Loans Receivable

12 Months Ended

Jun. 30, 2025

Loans Receivable [Abstract]

Loans Receivable

Note 3. Loans Receivable

Loans receivable at June 30, 2025 and 2024, are summarized as follows:

	2025			2024
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	174,978		$	178,347
Commercial		138,920			143,460
Multi-Family Residential		32,283			37,092
Land		30,054			30,737
Construction		11,226			15,704
Equity and Second Mortgage		2,520			2,634
Equity Lines of Credit		20,354			17,046
Total Mortgage Loans		410,335			425,020
Commercial Loans		54,138			49,256
Consumer Loans
Loans on Savings Accounts		381			393
Other Consumer Loans		739			855
Total Consumer Other Loans		1,120			1,248
Total Loans		465,593			475,524
Less:  Allowance for Credit Losses		(4,484	)		(4,574	)
Unamortized Loan Fees		(105	)		(98	)
Net Loans Receivable	$	461,004		$	470,852

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until: (a) they become past due; (b) management becomes aware of a deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification.  In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.

The Company uses the following definitions for risk ratings:

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less cost to acquire and sell the underlying collateral in a timely manner.

Pass Watch – Loans are considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral and are still considered a pass.

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the bank’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted.  Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans.  Accordingly, these loans are charged-off before period end.

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2025:

	Term Loans Amortized Cost by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	12,456	$	20,344	$	40,116	$	35,296	$	30,282	$	28,952	$	-	$	167,446
Pass and Watch		1,072		1,358		1,088		1,379		257		629		-		5,783
Special mention		-		40		-		-		379		314		-		733
Substandard		-		-		268		252		496		-		-		1,016
Total one-to-four family residential	$	13,528	$	21,742	$	41,472	$	36,927	$	31,414	$	29,895	$	-	$	174,978
Current period gross charge-offs	$	-	$	-	$	34	$	-	$	-	$	-	$	-	$	34
Commercial
Risk rating
Pass	$	21,880	$	12,736	$	17,394	$	32,791	$	36,221	$	13,823	$	-	$	134,845
Pass and Watch		114		2,488		98		408		-		-		-		3,108
Substandard		-		-		-		19		948		-		-		967
Total commercial	$	21,994	$	15,224	$	17,492	$	33,218	$	37,169	$	13,823	$	-	$	138,920
Current period gross charge-offs	$	-	$	-	$	154	$	-	$	90	$	-	$	-	$	244
Multi-family residential
Risk rating
Pass	$	498	$	6,854	$	1,969	$	4,871	$	942	$	15,942	$	-	$	31,076
Pass and Watch		1,207		-		-		-		-		-		-		1,207
Total multi-family residential	$	1,705	$	6,854	$	1,969	$	4,871	$	942	$	15,942	$	-	$	32,283
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	8,405	$	8,380	$	3,044	$	3,262	$	3,505	$	994	$	-	$	27,590
Pass and Watch		79		2,376		-		-		9		-		-		2,464
Total land	$	8,484	$	10,756	$	3,044	$	3,262	$	3,514	$	994	$	-	$	30,054
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Risk rating
Pass	$	7,192	$	3,054	$	-	$	-	$	-	$	-	$	-	$	10,246
Pass and Watch		-		980		-		-		-		-		-		980
Total construction	$	7,192	$	4,034	$	-	$	-	$	-	$	-	$	-	$	11,226
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	46	$	582	$	629	$	639	$	96	$	376	$	19,823	$	22,191
Pass and Watch		-		-		10		-		-		-		234		244
Special mention		-		-		-		-		-		-		72		72
Substandard		-		-		142		-		-		-		225		367
Total home equity and lines of credit	$	46	$	582	$	781	$	639	$	96	$	376	$	20,354	$	22,874
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	7	$	17	$	-	$	24

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2025:

	Term Loans Amortized Cost by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
	(In Thousands)
Commercial loans
Risk rating
Pass	$	6,742	$	21,685	$	9,317	$	4,100	$	2,973	$	4,756	$	-	$	49,573
Pass and Watch		762		8		70		70		-		-		-		910
Special mention		2,318		179		917		-		128		-		-		3,542
Substandard		-		-		75		25		13		-		-		113
Total commercial loans	$	9,822	$	21,872	$	10,379	$	4,195	$	3,114	$	4,756	$	-	$	54,138
Current period gross charge-offs	$	-	$	-	$	-	$	2	$	-	$	-	$	-	$	2
Consumer loans
Risk rating
Pass	$	285	$	328	$	280	$	87	$	1	$	101	$	-	$	1,082
Special mention		-		29		-		-		-		-		-		29
Substandard		-		-		9		-		-		-		-		9
Total consumer loans	$	285	$	357	$	289	$	87	$	1	$	101	$	-	$	1,120
Current period gross charge-offs	$	-	$	1	$	18	$	-	$	-	$	-	$	-	$	19
Total
Pass	$	57,504	$	73,963	$	72,749	$	81,046	$	74,020	$	64,944	$	19,823	$	444,049
Pass and Watch		3,234		7,210		1,266		1,857		266		629		234		14,696
Special mention		2,318		248		917		-		507		314		72		4,376
Substandard		-		-		494		296		1,457		-		225		2,472
Total	$	63,056	$	81,421	$	75,426	$	83,199	$	76,250	$	65,887	$	20,354	$	465,593
Current period gross charge-offs	$	-	$	1	$	206	$	2	$	97	$	17	$	-	$	323

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2024:

	Term Loans Amortized Cost by Origination Year
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	9,120	$	48,035	$	43,055	$	36,495	$	21,911	$	17,047	$	-	$	175,663
Special mention		-		385		-		363		-		450		-		1,198
Substandard		-		1,224		123		-		-		139		-		1,486
Total one-to-four family residential	$	9,120	$	49,644	$	43,178	$	36,858	$	21,911	$	17,636	$	-	$	178,347
Current period gross charge-offs	$	-	$	-	$	483	$	-	$	463	$	-	$	-	$	946
Commercial
Risk rating
Pass	$	10,011	$	28,924	$	38,897	$	43,251	$	20,118	$	1,825	$	-	$	143,026
Special mention		-		324		110		-		-		-		-		434
Substandard		-		-		-		-		-		-		-		-
Total commercial	$	10,011	$	29,248	$	39,007	$	43,251	$	20,118	$	1,825	$	-	$	143,460
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family residential
Risk rating
Pass	$	3,300	$	3,265	$	10,232	$	2,216	$	6,972	$	11,107	$	-	$	37,092
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total multi-family residential	$	3,300	$	3,265	$	10,232	$	2,216	$	6,972	$	11,107	$	-	$	37,092
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	8,615	$	7,493	$	7,054	$	6,175	$	1,010	$	317	$	-	$	30,664
Special mention		-		73		-		-		-		-		-		73
Substandard		-		-		-		-		-		-		-		-
Total land	$	8,615	$	7,566	$	7,054	$	6,175	$	1,010	$	317	$	-	$	30,737
Current period gross charge-offs	$	-	$	-	$	7	$	-	$	-	$	-	$	-	$	7
Construction
Risk rating
Pass	$	3,758	$	9,801	$	2,145	$	-	$	-	$	-	$	-	$	15,704
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction	$	3,758	$	9,801	$	2,145	$	-	$	-	$	-	$	-	$	15,704
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	436	$	1,017	$	550	$	106	$	379	$	89	$	16,821	$	19,398
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		7		50		-		225		282
Total home equity and lines of credit	$	436	$	1,017	$	550	$	113	$	429	$	89	$	17,046	$	19,680
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2024:

	Term Loans Amortized Cost by Origination Year
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
Commercial loans
Risk rating
Pass	$	8,840	$	19,521	$	8,507	$	5,864	$	4,345	$	1,891	$	-	$	48,968
Special mention		-		109		33		-		-		-		-		142
Substandard		-		78		32		36		-		-		-		146
Total commercial loans	$	8,840	$	19,708	$	8,572	$	5,900	$	4,345	$	1,891	$	-	$	49,256
Current period gross charge-offs	$	-	$	1	$	40	$	-	$	-	$	-	$	-	$	41
Consumer loans
Risk rating
Pass	$	237	$	518	$	222	$	17	$	216	$	22	$	-	$	1,232
Special mention		-		-		-		-		-		-		-		-
Substandard		-		16		-		-		-		-		-		16
Total consumer loans	$	237	$	534	$	222	$	17	$	216	$	22	$	-	$	1,248
Current period gross charge-offs	$	-	$	6	$	3	$	3	$	-	$	5	$	-	$	17
Total
Pass	$	44,317	$	118,574	$	110,662	$	94,124	$	54,951	$	32,298	$	16,821	$	471,747
Special mention		-		891		143		363		-		450		-		1,847
Substandard		-		1,318		155		43		50		139		225		1,930
Total	$	44,317	$	120,783	$	110,960	$	94,530	$	55,001	$	32,887	$	17,046	$	475,524
Current period gross charge-offs	$	-	$	7	$	533	$	3	$	463	$	5	$	-	$	1,011

The following tables present an aging analysis of past due loans, segregated by class of loans, as of June 30, 2025 and 2024:

June 30, 2025	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family     Residential	$	174	$	853	$	963	$	1,990	$	172,988	$	174,978	$	252
Commercial		99		-		967		1,066		137,854		138,920		-
Multi-Family Residential		-		-		-		-		32,283		32,283		-
Land		17		-		-		17		30,037		30,054		-
Construction		-		-		-		-		11,226		11,226		-
Equity and Second Mortgage		-		-		142		142		2,378		2,520		-
Equity Lines of Credit		48		-		225		273		20,081		20,354		-
Commercial Loans		8		-		38		46		54,092		54,138		-
Consumer Loans		29		-		-		29		1,091		1,120		-
Total	$	375	$	853	$	2,335	$	3,563	$	462,030	$	465,593	$	252

June 30, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
							(In Thousands)
Real Estate Loans:
One-to-Four Family      Residential	$	599	$	720	$	1,189	$	2,508	$	175,839	$	178,347	$	116
Commercial		-		-		-		-		143,460		143,460		-
Multi-Family Residential		-		-		-		-		37,092		37,092		-
Land		-		-		-		-		30,737		30,737		-
Construction		-		-		-		-		15,704		15,704		-
Equity and Second Mortgage		-		-		15		15		2,619		2,634		-
Equity Lines of Credit		57		-		225		282		16,764		17,046		-
Commercial Loans		-		-		90		90		49,166		49,256		-
Consumer Loans		5		-		-		5		1,243		1,248		-
Total	$	661	$	720	$	1,519	$	2,900	$	472,624	$	475,524	$	116

There was no interest income recognized on non-accrual loans during the years ended June 30, 2025 or June 30, 2024. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the years ended June 30, 2025 or June 30, 2024 was approximately $113,000 and $96,000, respectively.

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the year ended June 30, 2025 and 2024 was as follows:

	Real Estate Loans
June 30, 2025	1-4 Family Residential			Commercial			Multi- Family			Land			Construction			Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans			Total
										(In Thousands)
Allowance for credit losses:
Beginning Balances	$	2,346		$	1,088		$	130		$	175		$	103		$	165		$	548		$	19		$	4,574
Charge-Offs		(34	)		(244	)		-			-			-			(24	)		(2	)		(19	)		(323	)
Recoveries		351			-			-			1			-			5			2			-			359
Current Provision		(461	)		358			(17	)		(11	)		(29	)		36			(10	)		8			(126	)
Ending Balances	$	2,202		$	1,202		$	113		$	165		$	74		$	182		$	538		$	8		$	4,484

	Real Estate Loans
June 30, 2024	1-4 Family Residential			Commercial			Multi- Family			Land			Construction			Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans			Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	1,900		$	1,673		$	228		$	274		$	254		$	251		$	588		$	5		$	5,173
Impact of ASU 2016-13		688			(119	)		(139	)		(85	)		(44	)		30			24			4			359
Charge-Offs		(946	)		-			-			(7	)		-			-			(41	)		(17	)		(1,011	)
Recoveries		4			-			-			1			-			7			-			1			13
Current Provision		700			(466	)		41			(8	)		(107	)		(123	)		(23	)		26			40
Ending Balances	$	2,346		$	1,088		$	130		$	175		$	103		$	165		$	548		$	19		$	4,574

The Company held loans that were individually evaluated for credit losses at June 30, 2025 and June 30, 2024 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.  The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date.  The following describes the types of collateral that secure collateral dependent loans:

● One-to four-family first mortgages are primarily secured by first liens on residential real estate.

● Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including self-storage facilities, hotels and restaurants.

● Multi-family loans are primarily secured by residential property that include five or more housing units.

● Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

● Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

● Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

● Consumer loans considered collateral dependent are primarily secured by titled vehicles.

The following table presents loans individually evaluated, segregated by class of loans, as of June 30, 2025 and 2024:

	2025				2024
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,234	$	97	$	2,693	$	77
Commercial		1,081		102		122		5
Land		115		4		145		5
Home Equity Loans and Lines of Credit		367		0		283		3
Commercial Loans		45		2		74		2
Consumer Loans		15		1		72		4
Total	$	3,857	$	206	$	3,389	$	96

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of June 30, 2025, there were no residential loans in the process of foreclosure.