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Loans and Allowance for Credit Losses on Loans (Tables)
 12 Months Ended
Jun. 30, 2024
Loans and Allowance for Credit Losses on Loans [Abstract]  
Major Loan Segments and Classes
Loan segments and classes at June 30, 2024 are summarized as follows:

 (In thousands)
  
June 30, 2024
  
Residential real estate
  
$
417,589
  
Commercial real estate
    
936,640
  
Home equity
    
29,166
  
Consumer
    
4,771
  
Commercial
    
111,307
  
Total gross loans(1)(2)
    
1,499,473
  
Allowance for credit losses on loans(3)
    
(19,244
)
Loans receivable, net
  
$
1,480,229
  

(1) 
Loan balances include net deferred fees/cost of $(42,000) at June 30, 2024.
(2) 
Loan balances exclude accrued interest receivable of $6.2 million at June 30, 2024, which is included in accrued interest receivable in the consolidated statement of financial condition.
(3) 
Effective July 1, 2023, the allowance calculation is based upon the CECL methodology.  Prior to July 1, 2023, the allowance calculation was based upon the incurred loss methodology.

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 non-accrual loans as of June 30, 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
  
$
-
    
$
838
    
$
1,414
    
$
2,252
    
$
415,337
    
$
417,589
    
$
2,518
  
Commercial real estate
    
-
      
-
      
806
      
806
      
935,834
      
936,640
      
1,163
  
Home equity
    
14
      
-
      
47
      
61
      
29,105
      
29,166
      
47
  
Consumer
    
47
      
6
      
-
      
53
      
4,718
      
4,771
      
-
  
Commercial
    
-
      
-
      
-
      
-
      
111,307
      
111,307
      
-
  
Total gross loans
  
$
61
    
$
844
    
$
2,267
    
$
3,172
    
$
1,496,301
    
$
1,499,473
    
$
3,728
  

The following table sets forth information regarding delinquent and/or non-accrual loans as of 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
  
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 years ended June 30, 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
    
-
      
-
      
-
      
(481
)
    
(1,152
)
    
(1,633
)
Recoveries
    
-
      
3
      
-
      
142
      
66
      
211
  
Provision
    
261
      
265
      
49
      
370
      
(159
)
    
786
  
Balance at June 30, 2024
  
$
4,237
    
$
12,218
    
$
212
    
$
500
    
$
2,077
    
$
19,244
  

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 year ended June 30, 2023
  
(In thousands)
  
Balance June 30,
2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance June 30,
2023
  
Residential real estate
  
$
2,373
    
$
-
    
$
6
    
$
234
    
$
2,613
  
Residential construction and land
    
141
      
-
      
-
      
40
      
181
  
Multi-family
    
119
      
-
      
-
      
78
      
197
  
Commercial real estate
    
16,221
      
9
      
4
      
(3,196
)
    
13,020
  
Commercial construction
    
1,114
      
-
      
-
      
508
      
1,622
  
Home equity
    
89
      
-
      
-
      
(43
)
    
46
  
Consumer installment
    
349
      
535
      
141
      
377
      
332
  
Commercial loans
    
2,355
      
120
      
35
      
931
      
3,201
  
Total
  
$
22,761
    
$
664
    
$
186
    
$
(1,071
)
  
$
21,212
  

   
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
  
Loan Balances by Internal Credit Quality Indicator
The following tables illustrate the Company’s credit quality by loan class by vintage:

At June 30, 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
  
$
55,070
    
$
62,643
    
$
92,995
    
$
79,815
    
$
32,588
    
$
91,936
    
$
-
    
$
24
    
$
415,071
  
     Non-performing
    
-
      
-
      
-
      
185
      
169
      
2,164
      
-
      
-
      
2,518
  
Total residential real estate
    
55,070
      
62,643
      
92,995
      
80,000
      
32,757
      
94,100
      
-
      
24
      
417,589
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Commercial real estate
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
103,537
      
210,652
      
242,917
      
126,135
      
79,431
      
135,928
      
4,716
      
363
      
903,679
  
     Special mention
    
-
      
1,188
      
2,468
      
295
      
430
      
4,102
      
-
      
-
      
8,483
  
     Substandard
    
329
      
1,680
      
3,493
      
158
      
4,046
      
14,772
      
-
      
-
      
24,478
  
Total commercial real estate
    
103,866
      
213,520
      
248,878
      
126,588
      
83,907
      
154,802
      
4,716
      
363
      
936,640
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Home equity
                                                                        
By payment activity status:
                                                                        
     Performing
    
5,929
      
2,888
      
336
      
429
      
266
      
1,128
      
18,143
      
-
      
29,119
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
-
      
47
      
-
      
47
  
Total home equity
    
5,929
      
2,888
      
336
      
429
      
266
      
1,128
      
18,190
      
-
      
29,166
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                         
Consumer
                                                                        
By payment activity status:
                                                                        
     Performing
    
2,363
      
1,217
      
689
      
277
      
83
      
65
      
77
      
-
      
4,771
  
     Non-performing
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Consumer
    
2,363
      
1,217
      
689
      
277
      
83
      
65
      
77
      
-
      
4,771
  
Current period gross charge-offs
    
393
      
22
      
49
      
7
      
1
      
-
      
9
      
-
      
481
  
                                                                         
Commercial
                                                                        
By internally assigned grade:
                                                                        
     Pass
    
12,761
      
8,919
      
12,845
      
14,587
      
4,934
      
15,280
      
32,001
      
636
      
101,963
  
     Special mention
    
-
      
-
      
78
      
-
      
35
      
834
      
3,893
      
-
      
4,840
  
     Substandard
    
-
      
-
      
1,765
      
34
      
165
      
265
      
2,275
      
-
      
4,504
  
Total Commercial
  
$
12,761
    
$
8,919
    
$
14,688
    
$
14,621
    
$
5,134
    
$
16,379
    
$
38,169
    
$
636
    
$
111,307
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
989
    
$
-
    
$
137
    
$
26
    
$
-
    
$
1,152
  
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 year ended June 30, 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
      
0.43
%
  
$
130
      
0.01
%
Consumer
    19
       0.39 %     -
       -
  
Total
  
$
3,967
            
$
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 year ended June 30, 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%
  
Consumer
  Added a weighted-average 18 months to the life of the loan
     
Foreclosed Real Estate The following table sets forth information regarding FRE as of June 30, 2024 and 2023:

(In thousands)
  
2024
    
2023
  
Commercial loans
   $
-     $
302  
Total foreclosed real estate
  
$
-
    
$
302
  
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 year ended June 30, 2023
  
(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
    
$
-
    
$
876
    
$
5
  
Commercial real estate
    
1,518
      
1,518
      
-
      
678
      
48
  
Home equity
    
-
      
-
      
-
      
75
      
-
  
Consumer installment
     -       -       -       3       1  
Commercial loans
    
334
      
334
      
-
      
340
      
16
  
Impaired loans with no allowance
    
2,872
      
2,872
      
-
      
1,972
      
70
  
                                         
With an allowance recorded:
                                        
Residential real estate
    
2,086
      
2,086
      
597
      
2,241
      
19
  
Commercial real estate
    
3,777
      
3,777
      
245
      
3,666
      
197
  
Home equity
    
-
      
-
      
-
      
80
      
4
  
Commercial Loans
    
1,572
      
1,572
      
1,171
      
2,252
      
37
  
Impaired loans with allowance
    
7,435
      
7,435
      
2,013
      
8,239
      
257
  
                                         
Total impaired:
                                        
Residential real estate
    
3,106
      
3,106
      
597
      
3,117
      
24
  
Commercial real estate
    
5,295
      
5,295
      
245
      
4,344
      
245
  
Home equity
    
-
      
-
      
-
      
155
      
4
  
Consumer installment
     -       -       -       3       1  
Commercial loans
    
1,906
      
1,906
      
1,171
      
2,592
      
53
  
Total impaired loans
  
$
10,307
    
$
10,307
    
$
2,013
    
$
10,211
    
$
327
  
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
     $
-