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Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Dec. 31, 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 December 31, 2023 are as follows:

(In thousands)
  
December 31, 2023
  
Residential real estate
  
$
401,656
  
Commercial real estate
    
911,731
  
Home equity
    
26,167
  
Consumer
    
4,691
  
Commercial
    
112,930
  
Total gross loans(1)(2)
    
1,457,175
  
   Allowance for credit losses on loans
    
(20,309
)
Loans receivable, net
  
$
1,436,866
  

 
(1)
Loan balances include net deferred fees/cost of $54,000 at December 31, 2023.
 
(2)
Loan balances exclude accrued interest receivable of $6.4 million at December 31, 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 December 31, 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
  
$
3,470
    
$
609
    
$
1,323
    
$
5,402
    
$
396,254
    
$
401,656
    
$
2,524
  
Commercial real estate
    
1,829
      
54
      
1,247
      
3,130
      
908,601
      
911,731
      
1,682
  
Home equity
    
300
      
35
      
13
      
348
      
25,819
      
26,167
      
50
  
Consumer
    
13
      
-
      
-
      
13
      
4,678
      
4,691
      
-
  
Commercial loans
    
7
      
-
      
1,392
      
1,399
      
111,531
      
112,930
      
1,392
  
Total gross loans
  
$
5,619
    
$
698
    
$
3,975
    
$
10,292
    
$
1,446,883
    
$
1,457,175
    
$
5,648
  

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 December 31, 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
  
$
25,674
    
$
60,830
    
$
96,270
    
$
83,565
    
$
33,900
    
$
98,868
    
$
-
    
$
25
    
$
399,132
  
     Non-performing
    
-
      
-
      
-
      
185
      
173
      
2,166
      
-
      
-
      
2,524
  
Total residential real estate
    
25,674
      
60,830
      
96,270
      
83,750
      
34,073
      
101,034
      
-
      
25
      
401,656
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Commercial real estate
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
50,679
      
212,331
      
248,273
      
129,556
      
78,840
      
150,593
      
4,563
      
246
      
875,081
  
     Special mention
    
-
      
1,120
      
5,602
      
311
      
442
      
6,448
      
652
      
-
      
14,575
  
     Substandard
    
332
      
1,114
      
-
      
598
      
4,655
      
15,303
      
73
      
-
      
22,075
  
Total commercial real estate
    
51,011
      
214,565
      
253,875
      
130,465
      
83,937
      
172,344
      
5,288
      
246
      
911,731
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Home equity
                                                                        
By payment activity status:
                                                                        
     Performing
    
3,298
      
3,088
      
362
      
498
      
327
      
1,558
      
16,932
      
54
      
26,117
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
2
      
48
      
-
      
50
  
Total home equity
    
3,298
      
3,088
      
362
      
498
      
327
      
1,560
      
16,980
      
54
      
26,167
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Consumer
                                                                        
By payment activity status:
                                                                        
     Performing
    
1,445
      
1,586
      
923
      
401
      
159
      
92
      
85
      
-
      
4,691
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Consumer
    
1,445
      
1,586
      
923
      
401
      
159
      
92
      
85
      
-
      
4,691
  
Current period gross charge-offs
    
204
      
13
      
47
      
4
      
-
      
-
      
8
      
-
      
276
  
                                                                         
Commercial
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
6,653
      
11,536
      
15,134
      
15,786
      
5,970
      
19,435
      
26,468
      
-
      
100,982
  
     Special mention
    
-
      
-
      
55
      
-
      
-
      
456
      
4,352
      
-
      
4,863
  
     Substandard
    
-
      
-
      
1,794
      
1,273
      
93
      
1,283
      
2,642
      
-
      
7,085
  
Total Commercial
  
$
6,653
    
$
11,536
    
$
16,983
    
$
17,059
    
$
6,063
    
$
21,174
    
$
33,462
    
$
-
    
$
112,930
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
13
    
$
-
    
$
13
  

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:


  
At June 30, 2023
    
For the three months ended
December 31, 2022
    
For the six months ended
December 31, 2022
  
(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
  
$
1,020
    
$
1,020
    
$
-
    
$
923
    
$
2
    
$
954
    
$
2
  
Commercial real estate
    
1,518
      
1,518
      
-
      
372
      
6
      
218
      
8
  
Home equity
    
-
      
-
      
-
      
128
      
-
      
128
      
-
  
Consumer Installment
     -       -       -       4       -       5       1  
Commercial loans
    
334
      
334
      
-
      
341
      
4
      
343
      
8
  
Impaired loans with no allowance
    
2,872
      
2,872
      
-
      
1,768
      
12
      
1,648
      
19
  
                                                         
With an allowance recorded:
                                                        
Residential real estate
    
2,086
      
2,086
      
597
      
2,301
      
5
      
2,120
      
7
  
Commercial real estate
    
3,777
      
3,777
      
245
      
3,805
      
41
      
3,517
      
73
  
Commercial construction
    
-
      
-
      
-
      
102
      
-
      
102
      
-
  
Home equity
    
-
      
-
      
-
      
-
      
-
      
160
      
4
  
Commercial loans
    
1,572
      
1,572
      
1,171
      
2,591
      
11
      
2,799
      
27
  
Impaired loans with allowance
    
7,435
      
7,435
      
2,013
      
8,799
      
57
      
8,698
      
111
  
                                                         
Total impaired:
                                                        
Residential real estate
    
3,106
      
3,106
      
597
      
3,224
      
7
      
3,074
      
9
  
Commercial real estate
    
5,295
      
5,295
      
245
      
4,177
      
47
      
3,735
      
81
  
Commercial construction
    
-
      
-
      
-
      
102
      
-
      
102
      
-
  
Home equity
    
-
      
-
      
-
      
128
      
-
      
288
      
4
  
Consumer Installment     -       -       -       4       -       5       1  
Commercial loans
    
1,906
      
1,906
      
1,171
      
2,932
      
15
      
3,142
      
35
  
Total impaired loans
  
$
10,307
    
$
10,307
    
$
2,013
    
$
10,567
    
$
69
    
$
10,346
    
$
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 December 31, 2023
  
(In thousands)
  
Residential Real Estate
    
Commercial
Real Estate
    
Home Equity
    
Consumer
    
Commercial
    
Total
  
Balance at September 30, 2023
  
$
3,869
    
$
12,356
    
$
188
    
$
490
    
$
3,346
    
$
20,249
  
Charge-offs
    
-
      
-
      
-
      
(154
)
    
(6
)
    
(160
)
Recoveries
    
-
      
-
      
-
      
28
      
9
      
37
  
Provision
    
141
      
167
      
4
      
122
      
(251
)
    
183
  
Balance at December 31, 2023
  
$
4,010
    
$
12,523
    
$
192
    
$
486
    
$
3,098
    
$
20,309
  

   
Activity for the six months ended December 31, 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
    
-
      
-
      
-
      
(276
)
    
(13
)
    
(289
)
Recoveries
    
-
      
1
      
-
      
54
      
18
      
73
  
Provision
    
34
      
572
      
29
      
239
      
(229
)
    
645
  
Balance at December 31, 2023
  
$
4,010
    
$
12,523
    
$
192
    
$
486
    
$
3,098
    
$
20,309
  

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 December 31, 2022
  
(In thousands)
  
Balance at
September 30, 2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
December 31, 2022
  
Residential real estate
  
$
2,471
    
$
-
    
$
2
    
$
19
    
$
2,492
  
Residential construction and land
    
177
      
-
      
-
      
16
      
193
  
Multi-family
    
159
      
-
      
-
      
8
      
167
  
Commercial real estate
    
15,392
      
-
      
-
      
58
      
15,450
  
Commercial construction
    
1,044
      
-
      
-
      
56
      
1,100
  
Home equity
    
44
      
-
      
-
      
(6
)
    
38
  
Consumer installment
    
274
      
137
      
29
      
118
      
284
  
Commercial loans
    
2,586
      
7
      
11
      
(25
)
    
2,565
  
Total
  
$
22,147
    
$
144
    
$
42
    
$
244
    
$
22,289
  


   
Activity for the six months ended December 31, 2022
  
(In thousands)
  
Balance at
June 30, 2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
December 31, 2022
  
Residential real estate
  
$
2,373
    
$
-
    
$
5
    
$
114
    
$
2,492
  
Residential construction and land
    
141
      
-
      
-
      
52
      
193
  
Multi-family
    
119
      
-
      
-
      
48
      
167
  
Commercial real estate
    
16,221
      
-
      
-
      
(771
)
    
15,450
  
Commercial construction
    
1,114
      
-
      
-
      
(14
)
    
1,100
  
Home equity
    
89
      
-
      
-
      
(51
)
    
38
  
Consumer installment
    
349
      
304
      
75
      
164
      
284
  
Commercial loans
    
2,355
      
11
      
18
      
203
      
2,565
  
Total
  
$
22,761
    
$
315
    
$
98
    
$
(255
)
  
$
22,289
  
   
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
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)
  
December 31, 2023
    
June 30, 2023
  
Commercial loans   $
302     $
302  
Total foreclosed real estate
  
$
302
    
$
302