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Loans and Allowance for Credit Losses on Loans (Tables)
 9 Months Ended
Mar. 31, 2024
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 March 31, 2024 are as follows:

(In thousands)
  
March 31, 2024
  
Residential real estate
  
$
411,555
  
Commercial real estate
    
924,777
  
Home equity
    
27,659
  
Consumer
    
4,721
  
Commercial
    
108,923
  
Total gross loans(1)(2)
    
1,477,635
  
   Allowance for credit losses on loans
    
(20,382
)
Loans receivable, net
  
$
1,457,253
  

 
(1)
Loan balances include net deferred fees/cost of $167 at March 31, 2024.
 
(2)
Loan balances exclude accrued interest receivable of $6.7 million at March 31, 2024, 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 March 31, 2024:

(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
  
$
1,710
    
$
-
    
$
1,383
    
$
3,093
    
$
408,462
    
$
411,555
    
$
2,672
  
Commercial real estate
    
631
      
-
      
1,247
      
1,878
      
922,899
      
924,777
      
1,664
  
Home equity
    
50
      
-
      
13
      
63
      
27,596
      
27,659
      
48
  
Consumer
    
22
      
7
      
-
      
29
      
4,692
      
4,721
      
-
  
Commercial loans
    
1
      
106
      
1,255
      
1,362
      
107,561
      
108,923
      
1,255
  
Total gross loans
  
$
2,414
    
$
113
    
$
3,898
    
$
6,425
    
$
1,471,210
    
$
1,477,635
    
$
5,639
  

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 March 31, 2024  
(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
  
$
42,113
    
$
62,176
    
$
94,349
    
$
81,621
    
$
33,397
    
$
95,202
    
$
-
    
$
25
    
$
408,883
  
     Non-performing
    
-
      
-
      
-
      
185
      
170
      
2,317
      
-
      
-
      
2,672
  
Total residential real estate
    
42,113
      
62,176
      
94,349
      
81,806
      
33,567
      
97,519
      
-
      
25
      
411,555
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Commercial real estate
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
78,939
      
214,833
      
244,311
      
127,603
      
77,506
      
141,954
      
5,189
      
367
      
890,702
  
     Special mention
    
-
      
946
      
2,482
      
303
      
436
      
5,114
      
-
      
-
      
9,281
  
     Substandard
    
330
      
1,692
      
3,205
      
598
      
4,617
      
14,352
      
-
      
-
      
24,794
  
Total commercial real estate
    
79,269
      
217,471
      
249,998
      
128,504
      
82,559
      
161,420
      
5,189
      
367
      
924,777
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Home equity
                                                                        
By payment activity status:
                                                                        
     Performing
    
4,716
      
2,964
      
349
      
454
      
291
      
1,361
      
17,476
      
-
      
27,611
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
1
      
47
      
-
      
48
  
Total home equity
    
4,716
      
2,964
      
349
      
454
      
291
      
1,362
      
17,523
      
-
      
27,659
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Consumer
                                                                        
By payment activity status:
                                                                        
     Performing
    
1,921
      
1,407
      
799
      
324
      
124
      
73
      
73
      
-
      
4,721
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Consumer
    
1,921
      
1,407
      
799
      
324
      
124
      
73
      
73
      
-
      
4,721
  
Current period gross charge-offs
    
318
      
13
      
49
      
4
      
1
      
-
      
8
      
-
      
393
  
                                                                         
Commercial
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
6,308
      
11,015
      
14,019
      
15,287
      
5,606
      
18,469
      
26,810
      
456
      
97,970
  
     Special mention
    
-
      
55
      
86
      
-
      
36
      
877
      
3,879
      
-
      
4,933
  
     Substandard
    
-
      
-
      
1,719
      
1,272
      
76
      
210
      
2,743
      
-
      
6,020
  
Total Commercial
  
$
6,308
    
$
11,070
    
$
15,824
    
$
16,559
    
$
5,718
    
$
19,556
    
$
33,432
    
$
456
    
$
108,923
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
137
    
$
19
    
$
-
    
$
156
  

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
Loans Modified to Borrowers Experiencing Financial Difficulty by type of Concession Granted
The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty by type of concession granted:

   
For the three and nine months ended March 31, 2024
  

 
Term extension
    
Term extension and
interest rate reduction
  
(Dollars in thousands)  
Amortized cost
    
Percentage of
total class
    
Amortized cost
    
Percentage of total class
  
Commercial real estate
  
$
3,948
      
0.427
%
  
$
130
      
0.014
%
Total
  
$
3,948
            
$
130
          
Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty
The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty:

   
For the three and nine months ended March 31, 2024
  
           
Loan type
  
Term extension
  
Interest rate reduction
  
Commercial real estate
  
Added a weighted-average 9
months to the life of the loans
  
Interest rates were reduced by an
average of 1.75%
  
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
March 31, 2023
    
For the nine months ended
March 31, 2023
  
(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
    
$
-
    
$
775
    
$
-
    
$
895
    
$
2
  
Commercial real estate
    
1,518
      
1,518
      
-
      
755
      
17
      
369
      
25
  
Home equity
    
-
      
-
      
-
      
43
      
-
      
100
      
-
  
Consumer Installment
     -       -       -       4       -       4       1  
Commercial loans
    
334
      
334
      
-
      
338
      
4
      
341
      
12
  
Impaired loans with no allowance
    
2,872
      
2,872
      
-
      
1,915
      
21
      
1,709
      
40
  
                                                         
With an allowance recorded:
                                                        
Residential real estate
    
2,086
      
2,086
      
597
      
2,421
      
7
      
2,221
      
14
  
Commercial real estate
    
3,777
      
3,777
      
245
      
3,851
      
48
      
3,696
      
121
  
Home equity
    
-
      
-
      
-
      
-
      
-
      
107
      
4
  
Commercial loans
    
1,572
      
1,572
      
1,171
      
1,839
      
5
      
2,479
      
32
  
Impaired loans with allowance
    
7,435
      
7,435
      
2,013
      
8,111
      
60
      
8,503
      
171
  
                                                         
Total impaired:
                                                        
Residential real estate
    
3,106
      
3,106
      
597
      
3,196
      
7
      
3,116
      
16
  
Commercial real estate
    
5,295
      
5,295
      
245
      
4,606
      
65
      
4,065
      
146
  
Home equity
    
-
      
-
      
-
      
43
      
-
      
207
      
4
  
Consumer Installment     -       -       -       4       -       4       1  
Commercial loans
    
1,906
      
1,906
      
1,171
      
2,177
      
9
      
2,820
      
44
  
Total impaired loans
  
$
10,307
    
$
10,307
    
$
2,013
    
$
10,026
    
$
81
    
$
10,212
    
$
211
  
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 March 31, 2024
  
(In thousands)
  
Residential
real estate
    
Commercial
real estate
    
Home equity
    
Consumer
    
Commercial
    
Total
  
Balance at December 31, 2023
  
$
4,010
    
$
12,523
    
$
192
    
$
486
    
$
3,098
    
$
20,309
  
Charge-offs
    
-
      
-
      
-
      
(117
)
    
(143
)
    
(260
)
Recoveries
    
-
      
1
      
-
      
46
      
9
      
56
  
Provision
    
128
      
(28
)
    
7
      
87
      
83
      
277
  
Balance at March 31, 2024
  
$
4,138
    
$
12,496
    
$
199
    
$
502
    
$
3,047
    
$
20,382
  

   
Activity for the nine months ended March 31, 2024
  
(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
    
-
      
-
      
-
      
(393
)
    
(156
)
    
(549
)
Recoveries
    
-
      
2
      
-
      
100
      
27
      
129
  
Provision
    
162
      
544
      
36
      
326
      
(146
)
    
922
  
Balance at March 31, 2024
  
$
4,138
    
$
12,496
    
$
199
    
$
502
    
$
3,047
    
$
20,382
  

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 March 31, 2023
  
(In thousands)
  
Balance at
December 31, 2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
March 31, 2023
  
Residential real estate
  
$
2,492
    
$
-
    
$
-
    
$
146
    
$
2,638
  
Residential construction and land
    
193
      
-
      
-
      
(21
)
    
172
  
Multi-family
    
167
      
-
      
-
      
32
      
199
  
Commercial real estate
    
15,450
      
9
      
-
      
(1,869
)
    
13,572
  
Commercial construction
    
1,100
      
-
      
-
      
380
      
1,480
  
Home equity
    
38
      
-
      
-
      
11
      
49
  
Consumer installment
    
284
      
117
      
27
      
51
      
245
  
Commercial loans
    
2,565
      
103
      
12
      
326
      
2,800
  
Total
  
$
22,289
    
$
229
    
$
39
    
$
(944
)
  
$
21,155
  

   
Activity for the nine months ended March 31, 2023
  
(In thousands)
  
Balance at
June 30, 2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
March 31, 2023
  
Residential real estate
  
$
2,373
    
$
-
    
$
5
    
$
260
    
$
2,638
  
Residential construction and land
    
141
      
-
      
-
      
31
      
172
  
Multi-family
    
119
      
-
      
-
      
80
      
199
  
Commercial real estate
    
16,221
      
9
      
-
      
(2,640
)
    
13,572
  
Commercial construction
    
1,114
      
-
      
-
      
366
   
1,480
  
Home equity
    
89
      
-
      
-
      
(40
)
    
49
  
Consumer installment
    
349
      
421
      
102
      
215
      
245
  
Commercial loans
    
2,355
      
114
      
30
      
529
      
2,800
  
Total
  
$
22,761
    
$
544
    
$
137
    
$
(1,199
)
  
$
21,155
  

   
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
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)
  
March 31, 2024
    
June 30, 2023
  
Commercial loans   $
302     $
302  
Total foreclosed real estate
  
$
302
    
$
302