10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _____________

Commission file number 001-37676

PB Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	47-5150586
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

40 Main Street, Putnam, Connecticut 06260

(Address of principal executive offices)

(Zip Code)

(860) 928-6501

(Issuer’s telephone number)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x YES  ¨ NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x YES ¨ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                      ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

¨ YES x NO

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	PBBI	The NASDAQ Stock Market, LLC

As of May 1, 2019, there were 7,447,204 shares of the registrant’s common stock outstanding.

PB Bancorp, Inc.

Table of Contents

		Page No.
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets at March 31, 2019 and June 30, 2018	1
	Consolidated Statements of Net Income for the three and nine months ended March 31, 2019 and 2018	2
	Consolidated Statements of Comprehensive Income for the three and nine months ended March 31, 2019 and 2018	3
	Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended  March 31, 2019 and 2018	4
	Consolidated Statements of Cash Flows for the nine months ended March 31, 2019 and 2018	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	43
SIGNATURES		44

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

PB Bancorp, Inc.

Consolidated Balance Sheets

(Unaudited)

	March 31,			June 30,
	2019			2018
	(in thousands except share data)
ASSETS
Cash and due from depository institutions	$	2,104		$	4,465
Interest-bearing demand deposits with other banks		13,476			5,637
Total cash and cash equivalents		15,580			10,102
Securities available-for-sale, at fair value		40,378			46,546
Securities held-to-maturity (fair value of $68,000 as of March 31, 2019 and $81,828 as of June 30, 2018)		68,245			82,816
Federal Home Loan Bank stock, at cost		3,633			4,206
Loans		371,260			355,213
Less: Allowance for loan losses		(2,962	)		(2,943	)
Net loans		368,298			352,270
Premises and equipment, net		3,041			3,253
Accrued interest receivable		1,475			1,361
Other real estate owned		1,309			1,381
Goodwill		6,912			6,912
Bank-owned life insurance		13,178			12,912
Net deferred tax asset		278			1,691
Other assets		2,050			1,938
Total assets	$	524,377		$	525,388
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits
Non-interest-bearing	$	70,850		$	71,428
Interest-bearing		302,347			300,157
Total deposits		373,197			371,585
Mortgagors' escrow accounts		1,583			3,123
Federal Home Loan Bank advances		62,158			63,199
Securities sold under agreements to repurchase		796			664
Other liabilities		2,339			2,528
Total liabilities		440,073			441,099
Stockholders' Equity
Preferred stock, 50,000,000 shares authorized,  $0.01 par value,    no shares issued and outstanding		-			-
Common stock, 100,000,000 shares authorized, $0.01 par value,  7,447,204 and 7,624,474 shares issued and outstanding at
March 31, 2019 and June 30, 2018, respectively.		74			76
Additional paid-in capital		58,548			60,329
Retained earnings		30,284			28,822
Accumulated other comprehensive loss		(521	)		(522	)
Unearned ESOP shares		(3,183	)		(3,293	)
Unearned stock awards		(898	)		(1,123	)
Total stockholders' equity		84,304			84,289
Total liabilities and stockholders' equity	$	524,377		$	525,388

See accompanying notes to consolidated financial statements.

1

PB Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

	Three months ended				Nine months ended
	March 31,				March 31,
	2019		2018		2019			2018
	(in thousands, except per share data)
Interest and dividend income:
Interest and fees on loans	$	3,846	$	3,360	$	11,152		$	9,844
Interest and dividends on investments		824		926		2,505			2,861
Other		28		21		142			82
Total interest and dividend income		4,698		4,307		13,799			12,787
Interest expense:
Deposits and escrow		630		468		1,764			1,374
Borrowed funds		304		330		912			1,031
Total interest expense		934		798		2,676			2,405
Net interest and dividend income		3,764		3,509		11,123			10,382
Provision (credit) for loan losses		100		50		(500	)		225
Net interest and dividend income after provision (credit)for loan losses		3,664		3,459		11,623			10,157
Non-interest income:
Total other-than-temporary impairment losses on debt securities		-		-		(135	)		(2	)
Portion of losses recognized in other comprehensive income		-		-		131			1
Net impairment losses recognized in earnings		-		-		(4	)		(1	)
Fees for services		430		467		1,388			1,428
Mortgage banking activities		4		9		16			12
Net commissions from brokerage services		24		47		69			127
Income from bank-owned life insurance		87		88		266			267
Gain on sales of securities		-		6		-			7
Gain on sales of other real estate owned, net		43		48		150			1
Legal settlement		-		-		15			155
Other income		41		70		133			136
Total non-interest income		629		735		2,033			2,132
Non-interest expense:
Compensation and benefits		1,974		1,871		5,848			5,526
Occupancy and equipment		296		293		897			888
Data processing		299		269		889			775
LAN/WAN network		21		30		67			96
Advertising and marketing		46		47		125			146
FDIC deposit insurance		35		41		109			120
Other real estate owned		65		35		149			157
Write-down of other real estate owned		-		-		91			14
Other		412		431		1,351			1,327
Total non-interest expense		3,148		3,017		9,526			9,049
Income before income tax expense		1,145		1,177		4,130			3,240
Income tax expense		194		212		698			900
NET INCOME	$	951	$	965	$	3,432		$	2,340
Earnings per common share:
Basic	$	0.13	$	0.13	$	0.48		$	0.32
Diluted	$	0.13	$	0.13	$	0.48		$	0.32

See accompanying notes to consolidated financial statements.

2

PB Bancorp, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three months ended						Nine Months Ended
	March 31,						March 31,
	2019			2018			2019			2018
	(in thousands)
Net income	$	951		$	965		$	3,432		$	2,340
Other comprehensive income (loss):
Reclassification adjustment for gains realized in income (1)		-			(6	)		-			(7	)
Net unrealized holding gains (losses) on available-for-sale securities		562			(268	)		134			(452	)
Reclassification adjustment for losses realized in income on available-for-sale securities (2)		-			-			4			1
Non-credit portion of other-than-temporary losses on available-for-sale securities		-			-			(131	)		(1	)
Other comprehensive income (loss) before tax		562			(274	)		7			(459	)
Income tax (loss) benefit related to other comprehensive income (loss)		(120	)		107			(6	)		124
Other comprehensive income (loss) net of tax		442			(167	)		1			(335	)
Total comprehensive income	$	1,393		$	798		$	3,433		$	2,005

(1) Reported in gain on sales of securities included in non-interest income on the consolidated statements of net income. There was a $2,000 income tax provision associated with the reclassification adjustment for the three and nine months ended March 31, 2018.

(2) Reported in net impairment losses recognized in earnings, included in non-interest income on the consolidated statements of net income. There was a $1,000 income tax benefits associated with the reclassification adjustment for the nine months ended March 31, 2019. There was no income tax benefit associated with the reclassification adjustment for the nine months ended March 31, 2018.

See accompanying notes to consolidated financial statements.

3

PB Bancorp, Inc.

Consolidated Statements of Changes in Stockholders’ Equity for the Nine Months Ended March 31, 2019 and 2018

(Unaudited)

	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated  Other Comprehensive  Loss			Unearned ESOP Shares			Unearned  Stock Awards			Total Stockholders' Equity
	(dollars in thousands, except per share data)
Balances at June 30, 2017	$	78		$	62,243		$	27,195		$	(117	)	$	(3,439	)	$	(1,423	)	$	84,537
Comprehensive income		-			-			584			66			-			-			650
Cash dividends declared and paid ($0.04 per share)		-			-			(313	)		-			-			-			(313	)
ESOP shares committed to be released (4,504 shares)		-			10			-			-			36			-			46
Common stock repurchased (50,000 shares)		-			(520	)		-			-			-			-			(520	)
Share-based compensation expense		-			37			-			-			-			75			112
Balances at September 30, 2017	$	78		$	61,770		$	27,466		$	(51	)	$	(3,403	)	$	(1,348	)	$	84,512
Comprehensive income		-			-			791			(187	)		-			-			604
Cash dividends declared and paid ($0.05 per share)		-			-			(388	)		-			-			-			(388	)
ESOP shares committed to be released (4,505 shares)		-			11			-			-			37			-			48
Common stock repurchased (5,000 shares)		-			(52	)		-			-			-			-			(52	)
Share-based compensation expense		-			37			-			-			-			75			112
Balances at December 31, 2017	$	78		$	61,766		$	27,869		$	(238	)	$	(3,366	)	$	(1,273	)	$	84,836
Comprehensive income		-			-			965			(214	)		-			-			751
Cash dividends declared and paid ($0.05 per share)		-			-			(389	)		-			-			-			(389	)
ESOP shares committed to be released (4,504 shares)		-			11			-			-			37			-			48
Common stock repurchased (127,620 shares)		(2	)		(1,327	)		-			-			-			-			(1,329	)
Cancellation of shares for tax withholding (2,646 shares)		-			(28	)		-			-			-			-			(28	)
Share-based compensation expense		-			37			-			-			-			75			112
Reclassification related to Tax Cuts and Jobs Act (Note 4)		-			-			47			(47	)		-			-			-
Balances at March 31, 2018	$	76		$	60,459		$	28,492		$	(499	)	$	(3,329	)	$	(1,198	)	$	84,001

See accompanying notes to consolidated financial statements.

4

	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Unearned ESOP Shares			Unearned Stock Awards			Total Stockholders' Equity
	(dollars in thousands, except per share data)
Balances at June 30, 2018	$	76		$	60,329		$	28,822		$	(522	)	$	(3,293	)	$	(1,123	)	$	84,289
Comprehensive income		-			-			1,391			(107	)		-			-			1,284
Cash dividends declared and paid ($0.06 per share)		-			-			(458	)		-			-			-			(458	)
ESOP shares committed to be released (4,504 shares)		-			16			-			-			37			-			53
Common stock repurchased (1,000 shares)		-			(11	)		-			-			-			-			(11	)
Share-based compensation expense		-			43			-			-			-			75			118
Balances at September 30, 2018	$	76		$	60,377		$	29,755		$	(629	)	$	(3,256	)	$	(1,048	)	$	85,275
Comprehensive income		-			-			1,090			(334	)		-			-			756
Cash dividends declared and paid ($0.13 per share)		-			-			(991	)		-			-			-			(991	)
ESOP shares committed to be released (4,505 shares)		-			14			-			-			37			-			51
Common stock repurchased (174,983 shares)		(2	)		(1,914	)		-			-			-			-			(1,916	)
Share-based compensation expense		-			36			-			-			-			75			111
Balances at December 31, 2018	$	74		$	58,513		$	29,854		$	(963	)	$	(3,219	)	$	(973	)	$	83,286
Comprehensive income		-			-			951			442			-			-			1,393
Cash dividends declared and paid ($0.07 per share)		-			-			(521	)		-			-			-			(521	)
ESOP shares committed to be released (4,505 shares)		-			13			-			-			36			-			49
Cancellation of shares for tax withholding (1,287 shares)		-			(14	)		-			-			-			-			(14	)
Share-based compensation expense		-			36			-			-			-			75			111
Balances at March 31, 2019	$	74		$	58,548		$	30,284		$	(521	)	$	(3,183	)	$	(898	)	$	84,304

See accompanying notes to consolidated financial statements.

5

PB Bancorp, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	For the nine months
	ended March 31,
	2019			2018
	(in thousands)
Cash flows from operating activities
Net income	$	3,432		$	2,340
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of securities premiums, net		322			409
Gain on sale of securities		-			(7	)
Impairment losses on securities		4			1
Amortization of deferred loan costs, net		184			178
(Credit) provision for loan losses		(500	)		225
Gain on sale of other real estate owned, net		(150	)		(1	)
Write-down of other real estate owned		91			14
Loss on sale of premises and equipment		1			1
Depreciation and amortization - premises and equipment		249			245
Amortization - software		5			7
Increase in accrued interest receivable and other assets		(231	)		(83	)
Income from bank-owned life insurance		(266	)		(267	)
Decrease in other liabilities		(189	)		(108	)
Share-based compensation expense		340			336
Deferred tax expense		1,407			345
ESOP expense		153			142
Net cash provided by operating activities		4,852			3,777
Cash flows from investing activities
Proceeds from sales of available-for-sale securities		-			3,626
Proceeds from calls, pay downs and maturities of available-for-sale securities		6,025			5,604
Proceeds from calls, pay downs and maturities of held-to-maturity securities		14,395			22,021
Redemption (purchase) of Federal Home Loan Bank stock, net		573			(133	)
Net loan principal originations		(16,747	)		(18,777	)
Loan purchases		-			(21,480	)
Recoveries of loans previously charged off		592			50
Proceeds from sale of other real estate owned		574			779
Capital expenditures - premises and equipment		(38	)		(95	)
Net cash provided by (used in) investing activities		5,374			(8,405	)
Cash flows from financing activities
Net increase in deposit accounts		1,612			5,198
Net decrease in mortgagors' escrow accounts		(1,540	)		(1,096	)
Proceeds from issuance of long-term Federal Home Loan Bank advances		-			25,730
Repayment of long-term Federal Home Loan Bank advances		(1,040	)		(28,018	)
Change in short term Federal Home Loan Bank advances, net		-			6,000
Net increase (decrease) in securities sold under agreements to repurchase		131			(827	)
Cash dividends paid on common stock		(1,970	)		(1,090	)
Common stock repurchased		(1,927	)		(1,901	)
Cancellation of shares for tax withholding		(14	)		(28	)
Net cash (used in) provided by financing activities		(4,748	)		3,968
Net increase (decrease) in cash and cash equivalents		5,478			(660	)
Cash and cash equivalents at beginning of year		10,102			10,173
Cash and cash equivalents at end of period	$	15,580		$	9,513
Supplemental disclosures
Cash paid during the period for:
Interest	$	2,628		$	2,402
Income taxes (refunded) paid		(701	)		370
Loans transferred to other real estate owned		443			359

See accompanying notes to consolidated financial statements.

6

PB Bancorp, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1 – Organization

PB Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated in 2015 to be the successor to PSB Holdings, Inc. upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Putnam Bancorp, MHC (the “MHC”), the top tier mutual holding company of PSB Holdings, Inc.   PSB Holdings, Inc. was the former mid-tier holding company for Putnam Bank (the “Bank”).  Prior to completion of the Conversion, a majority of the shares of common stock of PSB Holdings, Inc. were owned by the MHC.  In conjunction with the Conversion, the MHC and PSB Holdings, Inc. merged into the Company and the Company became PSB Holdings, Inc.’s successor.  The Conversion was completed on January 7, 2016.  The Company raised gross proceeds of $33.7 million in the related stock offering.  Concurrent with the completion of the stock offering, each share of PSB Holdings, Inc. stock owned by public stockholders (stockholders other than the MHC) was exchanged for 1.1907 shares of Company common stock.  The Conversion was accounted for as a capital raising transaction by entities under common control.  The historical financial results of the MHC were immaterial to the results of the Company and therefore the net assets of the MHC were reflected as an increase to stockholders’ equity.  

NOTE 2 – Basis of Presentation

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and the instructions to Form 10-Q, and accordingly do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments necessary, consisting of only normal recurring accruals and the elimination of all significant intercompany accounts, to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The interim results of operations are not necessarily indicative of the operating results to be expected for future periods, including the fiscal year ending June 30, 2019. These financial statements should be read in conjunction with the 2018 consolidated financial statements and notes thereto included in PB Bancorp, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (‘’SEC’’) on September 21, 2018.

NOTE 3 – Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes the requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, based on the current level of long-term leases in place, this is not expected to be material to the Company’s results of operations or financial position.

7

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires entities to measure all expected credit losses for certain financial assets (such as loans and held-to-maturity securities) held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  Entities will now use forward-looking information to better form their credit loss estimates.  The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.  Management is currently working to implement these requirements to determine the potential impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  The amendments in this update simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test.  Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity will consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.  For public business entities, the amendments are effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2020.  Early adoption is permitted.  We do not expect the application of this guidance to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which amends the disclosure requirements by adding, changing, or removing certain disclosures about recurring or non-recurring fair value measurements. This ASU will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this update will not have a significant impact on the consolidated financial statements.

Note 4 - Critical Accounting Policies

Critical accounting policies are those that involve significant judgments and assumptions by management that have, or could have, a material impact on our income or the carrying value of our assets. Our critical accounting policies are those related to the allowance for loan losses, realizability of deferred income taxes, valuation of goodwill and the impairment of securities.

Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, specific and unallocated components, as further described below.

General component

The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, residential construction, commercial and consumer/other. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; concentrations; changes in lending policies and procedures; experience/ability/depth of lending management and staff; loan rating migration; the effect of other external factors; changes in the value of underlying collateral; changes in the loan review system and national and local economic trends and conditions. The Company calculates historical losses using a five-year rolling average, which is considered indicative of the risk in the Company’s current loan portfolio. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses through March 31, 2019.

8

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate - The Company does not originate loans with a loan-to-value ratio greater than 100% and does not originate subprime loans. Loans originated with a loan-to-value ratio greater than 80% generally require private mortgage insurance. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial real estate - Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans.

Residential construction – Loans in this segment include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by the accuracy of estimated costs to complete the project, cost overruns, time to sell at an adequate price, and market conditions.

Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Consumer/other - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower.

Specific component

The specific component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent or foreclosure is probable. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer/other and residential real estate loans for impairment disclosures, unless such loans are non-accrual or subject to a troubled debt restructuring (“TDR”) agreement.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are classified as impaired.

9

Unallocated component

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general reserves in the portfolio.

Goodwill. Goodwill is measured as the excess of the cost of a business acquisition over the sum of the amounts assigned to identifiable tangible and intangible assets acquired less liabilities assumed. Goodwill is not amortized but is subject to a review of qualitative factors annually or more frequently if circumstances warrant, to determine if an impairment test is required. If required, the Company uses the following two-step approach for reviewing goodwill for impairment:

The first step (“Step 1”) is used to identify potential impairment, and involves comparing the reporting unit’s (the consolidated Company) estimated fair value to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. The second step (“Step 2”) involves calculating the implied fair value of goodwill. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which are dependent on internal forecasts, estimation of the long-term rate of growth, the period over which cash flows will occur, and determination of our cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions related to goodwill impairment.

Other-Than-Temporary Impairment of Securities. Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).

OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Prior to July 1, 2018, marketable equity securities were evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value were reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income, net of applicable taxes.

Income Taxes. The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized.

10

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $211,000, which was recorded as additional tax expense in the Company’s consolidated statements for the three months ended December 31, 2017. Included in the additional tax expense is $47,000 related to net unrealized losses on securities available-for-sale. The accounting treatment effectively stranded $47,000 of deferred tax items in accumulated other comprehensive income. The Company has developed a reasonable estimate of the other provisions of the Act in determining the current year income tax provision.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”), which allows a reclassification from AOCI to retained earnings to eliminate the stranded tax effects resulting from the Act. As permitted, the Company early adopted the ASU and recorded a $47,000 increase in retained earnings and corresponding decrease in AOCI as of January 1, 2018.

Management has discussed the development and selection of these critical accounting policies with the Audit Committee.

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NOTE 5 – Earnings Per Share (EPS)

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. The rights to dividends on unvested options/awards are non-forfeitable, therefore the unvested awards/options are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. For purposes of computing diluted EPS, the treasury stock method is used.

The following information was used in the computation of EPS on both a basic and diluted basis for the three and nine months ended March 31, 2019:

	Three months ended March 31,				Nine months ended March 31,
	2019		2018		2019		2018
Net income	$	951,000	$	965,000	$	3,432,000	$	2,340,000
Weighted average common shares applicable to basic EPS		7,052,135		7,295,257		7,157,017		7,341,827
Effect of dilutive potential common shares		-		-		2,870		-
Weighted average common shares applicable to diluted EPS		7,052,135		7,295,257		7,159,887		7,341,827
Earnings per share:
Basic	$	0.13	$	0.13	$	0.48	$	0.32
Diluted	$	0.13	$	0.13	$	0.48	$	0.32

For the three months ended March 31, 2019, options to purchase 387,330 shares were outstanding but not included in the computation of earnings per share because they were anti-dilutive. For the nine months ended March 31, 2019, there were 258,220 anti-dilutive options not being included in the computation of diluted earnings per share. For the three and nine months ended March 31, 2018, options to purchase 392,330 shares were outstanding but not included in the computation of earnings per share because they were anti-dilutive.

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NOTE 6 – Investment Securities

The carrying value, estimated fair values, and gross unrealized gains and losses of investment securities by maturity and type are as follows:

	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
March 31, 2019:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
After ten years	$	2,640	$	-	$	(76	)	$	2,564
Corporate bonds:
Due from five through ten years		3,999		-		(312	)		3,687
U.S. Government-sponsored and guaranteed mortgage-backed securities:
From one through five years		5,497		6		(64	)		5,439
From five through ten years		1,214		-		(17	)		1,197
After ten years		15,102		112		(215	)		14,999
		21,813		118		(296	)		21,635
Non-agency mortgage-backed securities:
Due after ten years		2,590		400		(381	)		2,609
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		(117	)		7,883
After ten years		2,000		-		-			2,000
		10,000		-		(117	)		9,883
Total available-for-sale securities	$	41,042	$	518	$	(1,182	)	$	40,378
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	4,999	$	-	$	(20	)	$	4,979
From one through five years		987		20		-			1,007
After ten years		4,378		-		(135	)		4,243
		10,364		20		(155	)		10,229
State agency and municipal obligations From one through five years		442		-		(8	)		434
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		503		7		(1	)		509
From five through ten years		10,238		16		(136	)		10,118
After ten years		46,698		458		(446	)		46,710
		57,439		481		(583	)		57,337
Total held-to-maturity securities	$	68,245	$	501	$	(746	)	$	68,000

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	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
June 30, 2018:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
Due in one year or less	$	1,000	$	-	$	(4	)	$	996
After ten years		3,419		-		(87	)		3,332
		4,419		-		(91	)		4,328
Corporate bonds:
Due from five through ten years		1,999		-		(129	)		1,870
After ten years		2,000		-		(140	)		1,860
		3,999		-		(269	)		3,730
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		3,135		-		(125	)		3,010
From five through ten years		4,919		-		(95	)		4,824
After ten years		17,688		135		(406	)		17,417
		25,742		135		(626	)		25,251
Non-agency mortgage-backed securities:
Due after ten years		3,057		483		(303	)		3,237
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		-			8,000
After ten years		2,000		-		-			2,000
		10,000		-		-			10,000
Total available-for-sale securities	$	47,217	$	618	$	(1,289	)	$	46,546
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	2,001	$	-	$	(9	)	$	1,992
From one through five years		4,976		25		(33	)		4,968
After ten years		4,796		-		(189	)		4,607
		11,773		25		(231	)		11,567
State agency and municipal obligations
Due from one through five years		446		-		(14	)		432
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		846		5		(8	)		843
From five through ten years		12,123		14		(384	)		11,753
After ten years		57,628		518		(913	)		57,233
		70,597		537		(1,305	)		69,829
Total held-to-maturity securities	$	82,816	$	562	$	(1,550	)	$	81,828

There were no sales of available-for-sale securities for the three and nine months ended March 31, 2019. There were net gains on the sales of securities of $6,000 for the three months ended March 31, 2018 and $7,000 for the nine months ended March 31, 2018. Gains and losses on the sales of securities are recorded on the trade date and are determined using the specific identification method. There were no other-than-temporary impairment charges on available-for-sale securities realized in income during the three months ended March 31, 2019 or 2018. There were $4,000 in other-than temporary impairment losses during the nine months ended March 31, 2019 and $1,000 in other-than impairment losses during the nine months ended March 31, 2018. The write-downs for the nine months ended March 31, 2019 included total other-than-temporary impairment losses on non-agency mortgage-backed securities of $135,000, net of $131,000 recognized in other comprehensive loss, before taxes.

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The following is a summary of the estimated fair value and related unrealized losses segregated by category and length of time that individual securities have been in a continuous unrealized loss position at:

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
March 31, 2019:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	2,564	$	76	$	2,564	$	76
Corporate bonds		-		-		3,687		312		3,687		312
U.S. Government-sponsored and guaranteed mortgage-backed securities		-		-		16,215		296		16,215		296
Other securities		2,883		117		-		-		2,883		117
Total temporarily impaired available-for-sale		2,883		117		22,466		684		25,349		801
Held-to-maturity:
U.S. Government and government-sponsored securities		-		-		9,222		155		9,222		155
State and political subdivisions		-		-		434		8		434		8
U.S. Government-sponsored and guaranteed mortgage-backed securities		58		-		37,518		583		37,576		583
Total temporarily impaired held-to-maturity		58		-		47,174		746		47,232		746
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		268		13		947		368		1,215		381
Total temporarily-impaired and other-than-temporarily impaired securities	$	3,209	$	130	$	70,587	$	1,798	$	73,796	$	1,928

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
June 30, 2018:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	4,328	$	91	$	4,328	$	91
Corporate bonds		-		-		3,730		269		3,730		269
U.S. Government-sponsored and guaranteed mortgage-backed securities		7,331		123		14,914		503		22,245		626
Total temporarily impaired available-for-sale		7,331		123		22,972		863		30,303		986
Held-to-maturity:
U.S. Government and government-sponsored securities		5,956		42		4,606		189		10,562		231
State and political subdivisions		432		14		-		-		432		14
U.S. Government-sponsored and guaranteed mortgage-backed securities		34,387		708		16,880		597		51,267		1,305
Total temporarily impaired held-to-maturity		40,775		764		21,486		786		62,261		1,550
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		-		-		1,134		303		1,134		303
Total temporarily-impaired and other-than-temporarily impaired securities	$	48,106	$	887	$	45,592	$	1,952	$	93,698	$	2,839

(1) Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss.

15

Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.

At March 31, 2019, there were 80 individual investment securities with aggregate depreciation of 2.6% from the Company’s amortized cost basis. Management has the intent and ability to hold these securities until cost recovery occurs and considers these declines to be temporary.

The unrealized losses on the Company’s investment in U.S. Government-sponsored agency bonds and U.S. government-guaranteed and government-sponsored residential mortgage-backed securities were primarily caused by interest rate fluctuations. These investments are guaranteed or sponsored by the U.S. government or an agency thereof. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2019.

The Company’s unrealized losses on investments in corporate bonds and other securities relate to investments in companies within the financial services sector. As of March 31, 2019, the Company had three investments in corporate single-issuer trust preferred securities (TRUPs) with a total book value of $4.0 million and total fair value of $3.7 million, all of which were classified as available-for-sale. The single-issuer trust preferred investments are evaluated for other-than-temporary impairment by performing a present value of cash flows calculation each quarter. None of the issuers have deferred interest payments or announced the intention to defer interest payments. The Company believes the decline in fair value is related to the spread over three-month LIBOR, on which the quarterly interest payments are based, as the spread over LIBOR being received is significantly lower than current market spreads. Management concluded the impairment of these investments was considered temporary and asserts that the Company does not have the intent to sell these investments and that it is more likely than not it will not have to sell the investments before recovery of their cost bases which may be at maturity.

At March 31, 2019, there was one state and political subdivision security that had an unrealized loss of 1.8% from the Company’s amortized cost basis. We believe the unrealized loss was primarily caused by interest rate fluctuations. This security is guaranteed by a school district located in Texas. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, which may be at maturity, the Company does not consider this investment to be other-than-temporarily impaired at March 31, 2019.

For the nine months ended March 31, 2019, there was $4,000 in other-than-temporary impairment losses recognized in earnings. There were no other-than-temporary impairment losses for the three months ended March 31, 2019. The other-than-temporary impairment losses were on non-agency mortgage-backed securities. The Company estimates the portion of possible loss attributable to credit loss using a discounted cash flow model. Significant inputs include the estimated cash flows of the underlying loans based on key assumptions, such as default rate, loss severity and prepayment rate. Assumptions can vary widely from security to security, and are influenced by such factors as loan interest rate, geographical location of the borrower, borrower characteristics and collateral type. The present value of the expected cash flows is compared to the Company’s amortized cost basis to determine if there was a credit-related impairment loss. Based on the expected cash flows derived from the model, the Company expects to recover the remaining unrealized losses on these securities.

16

The following table represents a roll-forward of the amount of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in other comprehensive loss:

	Nine months ended
	March 31,
	2019		2018
	(in thousands)
Balance at beginning of period	$	15,983	$	15,982
Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded		4		1
Balance at end of period	$	15,987	$	15,983

NOTE 7 – Loans

The following table sets forth the composition of our loan portfolio at March 31, 2019 and June 30, 2018:

	March 31,			June 30,
	2019			2018
	(in thousands)
Real Estate:
Residential (1)	$	225,335		$	236,880
Commercial		130,860			101,647
Residential construction		1,896			2,217
Commercial		11,077			12,215
Consumer and other		848			831
Total loans		370,016			353,790
Net deferred loan costs		1,244			1,423
Allowance for loan losses		(2,962	)		(2,943	)
Loans, net	$	368,298		$	352,270

(1) Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

Credit Quality Information

The Company utilizes a nine grade internal loan rating system as follows:

Loans rated 1 - 5 are considered “pass” rated loans with low to average risk.

Loans rated 6 are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 7 are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

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Loans rated 8 are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Credit quality for residential real estate and consumer/other loans is determined by monitoring loan payment history and ongoing communications with the borrower.

The following table presents the Company’s loan classes by internally assigned grades at March 31, 2019 and June 30, 2018:

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and other		Total
	(in thousands)
March 31, 2019
Grade:
Pass	$	221,824	$	129,099	$	1,896	$	10,095	$	848	$	363,762
Special Mention		-		430		-		-		-		430
Substandard		3,511		1,331		-		982		-		5,824
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	225,335	$	130,860	$	1,896	$	11,077	$	848	$	370,016
June 30, 2018
Grade:
Pass	$	232,919	$	98,626	$	2,217	$	11,157	$	830	$	345,749
Special Mention		2		698		-		1,058		-		1,758
Substandard		3,959		2,323		-		-		1		6,283
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	236,880	$	101,647	$	2,217	$	12,215	$	831	$	353,790

Modifications deemed to be troubled debt restructures were not material for the nine months ended March 31, 2019 and 2018.

There were no material troubled debt restructurings that subsequently defaulted (defined as 30 or more days past due subsequent to restructuring) within one year of modification during the three and nine months ended March 31, 2019 and 2018.

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NOTE 8 – Non-performing Assets, Past Due and Impaired Loans

The table below sets forth the amounts and categories of non-performing assets at the dates indicated:

	At  March 31,			At June 30,
	2019			2018
	(Dollars in thousands)
Non-accrual loans:
Real Estate:
Residential	$	3,511		$	3,959
Commercial		272			432
Consumer		-			1
Total non-accrual loans		3,783			4,392
Accruing loans past due 90 days or more		-			32
Total non-performing loans		3,783			4,424
Other real estate owned		1,309			1,381
Total non-performing assets	$	5,092		$	5,805
Total non-performing loans to total loans		1.02	%		1.25	%
Total non-performing assets to total assets		0.97	%		1.10	%

Management is focused on working with borrowers and guarantors to resolve non-accrual loans by restructuring or liquidating assets when prudent. Many of our commercial relationships are secured by development loans, in particular condominiums which have experienced a significant reduction in demand. The Company reviews the strength of the guarantors; requires face to face discussions and offers restructuring suggestions that provide the borrowers with short term relief and exit strategies. The Company obtains a current appraisal on all real estate secured loans that are 180 days or more past due if the appraisal on file is older than one year. If the determination is made that there is the potential for collateral shortfall, an allocated reserve will be assigned to the loan for the expected deficiency. It is the policy of the Company to charge off or write down loans or other assets when, in the opinion of the Credit Committee and Loan Review, the ultimate amount recoverable is less than the carrying value, or the collection of the amount is expected to be unduly prolonged. The level of non-performing assets is expected to fluctuate in response to changing economic and market conditions, and the relative sizes of the respective loan portfolios, along with management’s degree of success in resolving problem assets.

19

The following table sets forth information regarding past due loans at March 31, 2019 and June 30, 2018:

					90 days
	30–59 Days		60–89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(in thousands)
At March 31, 2019
Real Estate:
Residential	$	1,879	$	177	$	446	$	2,502
Commercial		789		-		-		789
Consumer and other		6		-		-		6
Total	$	2,674	$	177	$	446	$	3,297
At June 30, 2018
Real Estate:
Residential	$	50	$	238	$	1,119	$	1,407
Commercial		-		-	$	124		124
Consumer and other		4		-		-		4
Total	$	54	$	238	$	1,243	$	1,535

The following is a summary of information pertaining to impaired loans at March 31, 2019 and June 30, 2018, none of which had a valuation allowance:

	At March 31, 2019				At June 30, 2018
			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal
	Investment		Balance		Investment		Balance
	(in thousands)
Real Estate:
Residential	$	2,115	$	2,261	$	2,732	$	2,870
Commercial		273		273		1,230		1,914
Total impaired loans	$	2,388	$	2,534	$	3,962	$	4,784

20

The following is a summary of additional information pertaining to impaired loans:

	Three months ended						Three months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,089	$	13	$	10	$	2,194	$	5	$	-
Commercial		339		-		-		1,265		22		-
Total impaired loans	$	2,428	$	13	$	10	$	3,459	$	27	$	-

	Nine months ended						Nine months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,300	$	52	$	43	$	2,193	$	21	$	7
Commercial		581		7		-		1,290		66		-
Total impaired loans	$	2,881	$	59	$	43	$	3,483	$	87	$	7

21

NOTE 9 – Allowance for Loan Losses

An analysis of the allowance for loan losses for the three and nine months ended March 31, 2019 and 2018 is as follows:

	Residential			Commercial			Residential						Consumer
	Real Estate			Real Estate			Construction			Commercial			and Other			Unallocated			Total
	(in thousands)
Three months ended March 31, 2019
Beginning balance	$	1,465		$	1,196		$	5		$	110		$	32		$	56		$	2,864
Charge-offs		-			-			-			-			(12	)		-			(12	)
Recoveries		3			-			-			4			3			-			10
(Credit) provision		17			98			7			(29	)		4			3			100
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Three months ended March 31, 2018
Beginning balance	$	1,417		$	1,215		$	9		$	79		$	131		$	114		$	2,965
Charge-offs		(83	)		-			-			-			(11	)		-			(94	)
Recoveries		10			-			-			4			4			-			18
(Credit) provision		147			(58	)		1			(8	)		6			(38	)		50
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939
Nine months ended March 31, 2019
Beginning balance	$	1,385		$	1,194		$	14		$	80		$	135		$	135		$	2,943
Charge-offs		(42	)		-			-			-			(31	)		-			(73	)
Recoveries		11			560			-			10			11			-			592
(Credit) provision		131			(460	)		(2	)		(5	)		(88	)		(76	)		(500	)
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Nine months ended March 31, 2018
Beginning balance	$	1,359		$	1,164		$	6		$	76		$	86		$	89		$	2,780
Charge-offs		(83	)		-			-			-			(33	)		-			(116	)
Recoveries		27			-			-			10			13			-			50
(Credit) provision		188			(7	)		4			(11	)		64			(13	)		225
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939

22

Further information pertaining to the allowance for loan losses at March 31, 2019 and June 30, 2018 is as follows:

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and Other		Unallocated		Total
	(in thousands)
At March 31, 2019
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,485	$	1,294	$	12	$	85	$	27	$	59	$	2,962
Impaired loans	$	2,115	$	273	$	-	$	-	$	-	$	-	$	2,388
Non-impaired loans	$	223,220	$	130,587	$	1,896	$	11,077	$	848	$	-	$	367,628
At June 30, 2018
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,385	$	1,194	$	14	$	80	$	135	$	135	$	2,943
Impaired loans	$	2,732	$	1,230	$	-	$	-	$	-	$	-	$	3,962
Non-impaired loans	$	234,148	$	100,417	$	2,217	$	12,215	$	831	$	-	$	349,828

23

NOTE 10 – Stock-Based Incentive Plan

In February 2017, stockholders of the Company approved the PB Bancorp, Inc. 2017 Stock-Based Incentive Plan (the “Incentive Plan”). Under the Incentive Plan, the Company may grant up to 453,267 stock options and 181,306 shares of restricted stock to its employees, officers and directors for an aggregate amount of up to 634,573 shares of the Company’s common stock for issuance upon the grant or exercise of awards. Both incentive stock options and non-statutory stock options may be granted under the Incentive Plan.

There were no stock options or awards granted during the nine months ended March 31, 2019 and 2018.

Both stock option and restricted stock awards granted to date vest at 20% per year beginning on the first anniversary of the date of the grant.

Stock options are considered common stock equivalents for the purpose of computing earnings per share on a diluted basis. Restricted stock awards have non-forfeitable dividend rights, and are considered participating securities outstanding for the purpose of computing basic earnings per share.

The Company has recorded share-based compensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. The fair value of each restricted stock allocation, based on the market price at the date of grant, is recorded to unearned stock awards. Compensation expense related to unearned restricted shares is amortized to compensation and benefits expense over the vesting period of the restricted stock awards, adjusted by actual forfeitures. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing method which includes several assumptions such as volatility, expected dividends, expected term and risk-free rate for each stock option award. The Company recorded share-based compensation expense in connection with the stock option and restricted stock awards for the three months ended March 31, 2019 of $111,000 and for the nine months ended March 31, 2019 of $340,000. The Company recorded share-based compensation expense in connection with the stock option and restricted stock awards for the three months ended March 31, 2018 of $112,000 and for the nine months ended March 31, 2018 of $336,000.

NOTE 11 – Accumulated Other Comprehensive Loss

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the consolidated balance sheets, such items are components of accumulated other comprehensive loss.

The components of accumulated other comprehensive loss and related tax effects are as follows:

	March 31,			June 30,
	2019			2018
	(in thousands)
Net unrealized loss on securities available-for-sale	$	(664	)	$	(671	)
Tax effect		143			149
Accumulated other comprehensive loss	$	(521	)	$	(522	)

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NOTE 12 – FAIR VALUE MEASUREMENTS

The Company groups its assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value as follows:

Level 1 – Valuations for assets traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets.

Level 2 – Valuations for assets traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets.

Level 3 – Valuations for assets that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets.

The level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets carried at fair value for March 31, 2019 and June 30, 2018.

The Company’s mortgage-backed securities and other debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services, which are not adjusted by management. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. Level 3 assets consisted of available-for-sale auction-rate trust preferred securities (ARPs).  All dividends are current. The Company has the ability and intent to hold these securities for the time necessary to collect the expected cash flows.

The fair value of impaired loans and other real estate owned is based on the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based upon appraisals of similar properties obtained from a third party and adjusted by management as needed.

The Company did not have any transfers of assets between levels of the fair value hierarchy during the nine months ended March 31, 2019.

25

The following summarizes assets measured at fair value on a recurring basis at March 31, 2019 and June 30, 2018:

	Total Fair
	Value		Level 1		Level 2		Level 3
	(in thousands)
At March 31, 2019
Securities available-for-sale:
U.S. government and government-sponsored securities	$	2,564	$	-	$	2,564	$	-
Corporate bonds		3,687		-		3,687		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		21,635		-		21,635		-
Non-agency mortgage-backed securities		2,609		-		2,609		-
Other securities		9,883		-		-		9,883
Total	$	40,378	$	-	$	30,495	$	9,883
At June 30, 2018
Securities available-for-sale:
U.S. government and government-sponsored securities	$	4,328	$	-	$	4,328	$	-
Corporate bonds		3,730		-		3,730		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		25,251		-		25,251		-
Non-agency mortgage-backed securities		3,237		-		3,237		-
Other securities		10,000		-		-		10,000
Total	$	46,546	$	-	$	36,546	$	10,000

There were no changes in level 3 assets measured at fair value for the nine months ended March 31, 2019 and 2018.

26

The following summarizes assets measured at fair value on a non-recurring basis and the adjustments to the carrying value at and for the three and nine months ended March 31, 2019 and 2018:

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2019		March 31, 2019
At March 31, 2019
Impaired loans	$	220	$	-	$	-	$	220	$	-	$	38
Other real estate owned		494		-		-		494		-		63
	$	714	$	-	$	-	$	714	$	-	$	101

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2018		March 31, 2018
	(in thousands)
At June 30, 2018
Impaired loans	$	160	$	-	$	-	$	160	$	29	$	29
Other real estate owned		110		-		-		110		-		9
	$	270	$	-	$	-	$	270	$	29	$	38

The amount of other real estate owned represents the carrying value for which write-downs are based on the estimated fair value of the property.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the asset. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular asset. Because a market may not readily exist for a significant portion of the Company’s asset, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

There were no liabilities measured at fair value on a recurring or non-recurring basis at March 31, 2019 or June 30, 2018.

27

The following methods and assumptions were used by the Company in estimating fair value disclosures of its financial instruments:

Cash and Cash Equivalents. The carrying amounts of cash and cash equivalents approximate fair values based on the short-term nature of the assets.

Investment Securities Held-to-Maturity and FHLBB Stock. The fair value of securities held-to-maturity is estimated based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or available market evidence. Ownership of Federal Home Loan Bank of Boston (“FHLBB”) stock is restricted to member banks; therefore, the stock is not traded. The estimated fair value of FHLBB stock is equal to its carrying value, which represents the price at which the FHLBB is obligated to redeem its stock.

Loans. For valuation purposes, the loan portfolio was segregated into its significant categories, which are residential, commercial real estate, residential construction, commercial and consumer and other loans. These categories were further segregated, where appropriate, into components based on significant financial characteristics such as type of interest rate (fixed or adjustable). Fair values were estimated for each component using assumptions developed by management and a valuation model provided by a third party specialist.

The fair values of residential, commercial real estate, residential construction, commercial and consumer and other loans were estimated by discounting the anticipated cash flows from the respective portfolios. Estimates of the timing and amount of these cash flows considered factors such as future loan prepayments. The discount rates reflected current market rates for loans with similar terms to borrowers of similar credit quality. The fair value of home equity lines of credit was based on the outstanding loan balances. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

Deposits and Mortgagors’ Escrow. The fair value of deposits with no stated maturity such as demand deposits, NOW, regular savings, and money market deposit accounts and mortgagors’ escrow accounts, is equal to the amount payable on demand. The fair value estimates do not include the benefit that results from the generally lower cost of funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. The fair value estimate of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits having similar remaining maturities.

Federal Home Loan Bank Advances. The fair values of the Company’s Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Securities Sold Under Agreements to Repurchase. The Company enters into overnight repurchase agreements with its customers. Since these agreements are short-term instruments, the fair value of these agreements approximates their recorded balance. The Company also secures term repurchase agreements through other financial institutions. The fair value of these agreements are determined by discounting the anticipated future cash payments using rates currently available to the Bank for debt with similar terms and remaining maturities.

Accrued Interest. The carrying amounts of accrued interest approximate fair value.

Off-Balance Sheet Instruments. The fair value of off-balance-sheet mortgage lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. In the case of the commitments discussed in Note 14, the fair value equals the carrying amounts which are not significant.

Summary of Fair Values of Financial Instruments. The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

28

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, as of March 31, 2019 and June 30, 2018:

	March 31, 2019
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	15,580	$	15,580	$	-	$	-	$	15,580
Securities available-for-sale		40,378		-		30,495		9,883		40,378
Securities held-to-maturity		68,245		-		68,000		-		68,000
Federal Home Loan Bank stock		3,633		-		-		3,633		3,633
Loans, net		368,298		-		-		355,455		355,455
Accrued interest receivable		1,475		-		-		1,475		1,475
Financial liabilities:
Deposits		373,197		-		-		373,840		373,840
Mortgagors' escrow accounts		1,583		-		-		1,583		1,583
Federal Home Loan Bank advances		62,158		-		62,102		-		62,102
Securities sold under agreements to repurchase		796		-		796		-		796
Accrued interest payable		206		-		-		206		206

	June 30, 2018
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	10,102	$	10,102	$	-	$	-	$	10,102
Securities available-for-sale		46,546		-		36,546		10,000		46,546
Securities held-to-maturity		82,816		-		81,828		-		81,828
Federal Home Loan Bank stock		4,206		-		-		4,206		4,206
Loans, net		352,270		-		-		346,511		346,511
Accrued interest receivable		1,361		-		-		1,361		1,361
Financial liabilities:
Deposits		371,585		-		-		372,563		372,563
Mortgagors' escrow accounts		3,123		-		-		3,123		3,123
Federal Home Loan Bank advances		63,199		-		62,428		-		62,428
Securities sold under agreements to repurchase		664		-		664		-		664
Accrued interest payable		158		-		-		158		158

29

NOTE 13 – Subsequent Events

On April 3, 2019, the Board of Directors of PB Bancorp, Inc. declared a quarterly cash dividend of $0.07 per share for stockholders of record as of April 17, 2019, which is payable on May 1, 2019.

NOTE 14 – Commitments to Extend Credit

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The contractual amounts of outstanding commitments were as follows:

	March 31,		June 30,
	2019		2018
	(in thousands)
Commitments to extend credit:
Commitments to grant loans	$	2,469	$	3,594
Unadvanced construction loans		11,647		8,822
Unadvanced lines of credit		20,395		18,881
Standby letters of credit		395		395
Outstanding commitments	$	34,906	$	31,692

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following analysis discusses changes in the financial condition at March 31, 2019 and June 30, 2018 and results of operations for the three and nine months ended March 31, 2019 and 2018, and should be read in conjunction with the Company’s Consolidated Financial Statements (unaudited) and the notes thereto, appearing in Part I, Item 1 of this quarterly report. These financial statements should be read in conjunction with the 2018 Consolidated Financial Statements and notes thereto included in PB Bancorp, Inc.’s Annual Report on Form 10-K filed with the SEC on September 21, 2018.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. PB Bancorp intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of PB Bancorp, are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. PB Bancorp’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of PB Bancorp and its subsidiary include, but are not limited to, changes in: interest rates, general economic conditions, legislation and regulations, real estate values, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of the loan and investment portfolios, demand for loan products, cyber-attacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems; deposit flows, competition, demand for financial services in PB Bancorp’s market area, the effect of any federal government shutdown, and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning PB Bancorp and its business, including additional factors that could materially affect PB Bancorp financial results, is included in PB Bancorp’s filings with the Securities and Exchange Commission, including the risk factors included in PB Bancorp’s Annual Report on Form 10-K filed with the SEC on September 21, 2018.

30

Except as required by applicable law and regulation, the Company does not undertake – and specifically disclaims any obligation – to publicly release the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Overview

Our profitability is highly dependent on our net interest income, which is the difference between our interest income on interest-earning assets, such as loans and securities, and our interest expense on interest-bearing liabilities, such as deposits and borrowed funds.

Our net income decreased $14,000, or 1.5%, to $951,000, or $0.13 per basic and diluted share for the three months ended March 31, 2019, compared to net income of $965,000, or $0.13 per basic and diluted share for the three months ended March 31, 2018. Net interest income increased $255,000, or 7.3% to $3.8 million for the three months ended March 31, 2019 from $3.5 million for the three months ended March 31, 2018, while non-interest income decreased $106,000, or 14.4% to $629,000, for the three months ended March 31, 2019 from $735,000 for the three months ended March 31, 2018.  The provision for loan losses increased $50,000, or 100.0% to $100,000 for the three months ended March 31, 2019 from $50,000 for the three months ended March 31, 2018. Non-interest expense increased $131,000, or 4.3% to $3.1 million for the three months ended March 31, 2019 from $3.0 million for the three months ended March 31, 2018. Income tax expense decreased $18,000, or 8.5% to $194,000 for the three months ended March 31, 2019 from $212,000 for the three months ended March 31, 2018. The effective tax rate was 16.9% for the three months ended March 31, 2019 compared to 18.0% for the three months ended March 31, 2018.

Our net income increased $1.1 million, or 46.7%, to $3.4 million, or $0.48 per basic and diluted share for the nine months ended March 31, 2019, compared to net income of $2.3 million, or $0.32 per basic and diluted share for the nine months ended March 31, 2018. This was due primarily to an increase in net interest income of $741,000, or 7.1% to $11.1 million for the nine months ended March 31, 2019 from $10.4 million for the nine months ended March 31, 2018. The provision for loan losses decreased $725,000 to a credit provision of $500,000 for the nine months ended March 31, 2019 compared to a $225,000 provision for loan losses for the nine months ended March 31, 2018. Non-interest income decreased $99,000, or 4.6% to $2.0 million for the nine months ended March 31, 2019 from $2.1 million for the nine months ended March 31, 2018. Non-interest expense increased $477,000, or 5.3% to $9.5 million for the nine months ended March 31, 2019 from $9.0 million for the nine months ended March 31, 2018. Income tax expense decreased $202,000, or 22.4% to $698,000 for the nine months ended March 31, 2019 from $900,000 for the nine months ended March 31, 2018. This was a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017. The Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $211,000, which was recorded as additional tax expense in the Company’s consolidated statements of net income for the nine months ended March 31, 2018 and a reduction in the federal tax rate. The effective tax rate was 16.9% for the nine months ended March 31, 2019 compared to 27.8% for the nine months ended March 31, 2018.

An increase in interest rates will present us with a challenge in managing our interest rate risk. As a general matter, our interest-bearing liabilities reprice or mature more quickly than our interest-earning assets, which can result in interest expense increasing more rapidly than increases in interest income as interest rates increase. Therefore, increases in interest rates may adversely affect our net interest income, which in turn would likely have an adverse effect on our results of operations. As described in “Market Risk,” we expect that our net interest income and our net portfolio value would decrease as a result of an instantaneous increase in interest rates. We use a variety of strategies to help manage interest rate risk, as described in “Market Risk”.

Unlike larger financial institutions that are more geographically diversified, our profitability depends primarily on the general economic conditions in Eastern Connecticut and the Rhode Island and Massachusetts communities adjacent to Windham County, Connecticut. Local economic conditions have a significant impact on our commercial real estate and construction and consumer loans, the ability of the borrowers to repay these loans and the value of the collateral securing these loans. In addition, changes in economic conditions could result in increased actual losses or increased losses inherent in our loan portfolio, either of which could require us to significantly increase the level of our provision for loan losses.

31

Comparison of Financial Condition at March 31, 2019 and June 30, 2018

Assets

Total assets were $524.4 million at March 31, 2019, a decrease of $1.0 million, or 0.2%, from $525.4 million at June 30, 2018. Cash and cash equivalents increased $5.5 million, or 54.2%, to $15.6 million at March 31, 2019 compared to $10.1 million at June 30, 2018. The increase was due to accumulating additional funds for upcoming loan closings. Investments in held-to-maturity securities decreased $14.6 million, or 17.6%, to $68.2 million at March 31, 2019 compared to $82.8 million at June 30, 2018 and investments in available-for-sale securities decreased $6.1 million, or 13.3%, to $40.4 million at March 31, 2019 compared to $46.5 million at June 30, 2018. The Company continues to use excess cash, as well as cash flows from investments to assist in funding higher yielding loan growth. Net loans outstanding increased $16.0 million, or 4.5%, to $368.3 million at March 31, 2019 from $352.3 million at June 30, 2018. The increase in loans was primarily due to a $29.2 million, or 28.7%, increase in commercial real estate loans to $130.9 million at March 31, 2019 from $101.6 million at June 30, 2018. This was partially offset by a decrease in residential loans of $11.5 million, or 4.9% to $225.3 million at March 31, 2019 from $236.9 million at June 30, 2018.

Allowance for Loan Losses

The table below indicates the relationship between the allowance for loan losses, total loans outstanding and non-performing loans at March 31, 2019 and June 30, 2018. For additional information, see “Comparison of Operating Results for the three and nine months ended March 31, 2019 and 2018 – Provision for Loan Losses.”

	March 31,			June 30,
	2019			2018
	(Dollars in thousands)
Allowance for loan losses	$	2,962		$	2,943
Total loans		370,016			353,790
Non-performing loans		3,783			4,424
Allowance/total loans		0.80	%		0.83	%
Allowance/non-performing loans		78.3	%		66.5	%

Liabilities

Total liabilities decreased $1.0 million, or 0.2%, to $440.1 million at March 31, 2019 from $441.1 million at June 30, 2018. Total deposits increased $1.6 million, or 0.4%, to $373.2 million at March 31, 2019 from $371.6 million at June 30, 2018. We experienced a decrease in non-interest-bearing deposits of $578,000, or 0.8% to $70.8 million at March 31, 2019 compared to $71.4 million at June 30, 2018. Interest-bearing deposits increased $2.2 million, or 0.7% to $302.3 million at March 31, 2019 compared to $300.2 million at June 30, 2018. Total Federal Home Loan Bank borrowings decreased $1.0 million, or 1.6%, to $62.2 million at March 31, 2019 from $63.2 million at June 30, 2018. Mortgagors’ escrow decreased $1.5 million, or 49.3% to $1.6 million at March 31, 2019 compared to $3.1 million at June 30, 2018.

Stockholders’ Equity

Total stockholders’ equity remained relatively unchanged at $84.3 million at both March 31, 2019 and June 30, 2018. The Company repurchased 175,983 shares at an average cost of $10.95 per share, or $1.9 million during the nine months ended March 31, 2019. This completed the Company’s second buyback plan. Dividends paid during the nine months ended March 31, 2019 were $2.0 million. Net income was $3.4 million for the nine months ended March 31, 2019.

32

Comparison of Operating Results for the Three and Nine Months Ended March 31, 2019 and 2018

Interest and Dividend Income. Interest and dividend income increased $391,000, or 9.1% to $4.7 million for the three months ended March 31, 2019 compared to $4.3 million for the three months ended March 31, 2018. The average balance of interest-earning assets decreased $6.9 million, or 1.4% to $493.6 million for the three months ended March 31, 2019 from $500.5 million for the three months ended March 31, 2018. The average yield on interest-earning assets increased to 3.86% for the three months ended March 31, 2019 from 3.49% for the three months ended March 31, 2018 as a result of increases in market interest rates.

Interest income on loans increased $486,000, or 14.5% to $3.8 million for the three months ended March 31, 2019 compared to $3.4 million for the three months ended March 31, 2018. This was due to an increase in average loans outstanding and an increase in yield. The average balance of loans increased $26.2 million, or 7.6% to $371.8 million for the three months ended March 31, 2019 from $345.6 million for the three months ended March 31, 2018. The yield on average loans increased 25 basis points to 4.19% for the three months ended March 31, 2019 from 3.94% for the three months ended March 31, 2018 as a result of increases in market interest rates.

Interest and dividend income on investments decreased $102,000, or 11.0% to $824,000 for the three months ended March 31, 2019 compared to $926,000 for the three months ended March 31, 2018. This was due to a decrease in the average balance of investments of $33.0 million, or 22.3% to $114.8 million for the three months ended March 31, 2019 from $147.8 million for the three months ended March 31, 2018. This was partially offset by an increase in yield of 37 basis points to 2.91% for the three months ended March 31, 2019 from 2.54% for the three months ended March 31, 2018 as a result of increases in market interest rates.

Interest and dividend income increased $1.0 million, or 7.9% to $13.8 million for the nine months ended March 31, 2019 compared to $12.8 million for the nine months ended March 31, 2018. The average balance of interest-earning assets decreased $7.2 million, or 1.4% to $492.7 million for the nine months ended March 31, 2019 from $499.9 million for the nine months ended March 31, 2018. The average yield on interest-earning assets increased to 3.73% for the nine months ended March 31, 2019 from 3.41% for the nine months ended March 31, 2018 as a result of increases in market interest rates.

Interest income on loans increased $1.3 million, or 13.3% to $11.1 million for the nine months ended March 31, 2019 compared to $9.8 million for the nine months ended March 31, 2018. This was due to an increase in average loans outstanding and an increase in yield. The average balance of loans increased $26.6 million, or 7.9% to $361.9 million for the nine months ended March 31, 2019 from $335.3 million for the nine months ended March 31, 2018. The yield on average loans increased 19 basis points to 4.10% for the nine months ended March 31, 2019 from 3.91% for the nine months ended March 31, 2018 as a result of increases in market interest rates.

Interest and dividend income on investments decreased $356,000, or 12.4% to $2.5 million for the nine months ended March 31, 2019 compared to $2.9 million for the nine months ended March 31, 2018. This was due to a decrease in the average balance of investments of $36.3 million, or 22.9% to $122.3 million for the nine months ended March 31, 2019 from $158.6 million for the nine months ended March 31, 2018. The Company has been using cash flows from investments to help fund the growth in the loan portfolio. This was partially offset by an increase in yield of 33 basis points to 2.73% for the nine months ended March 31, 2019 from 2.40% for the nine months ended March 31, 2018 as a result of increases in market interest rates.

Interest Expense. Interest expense increased $136,000, or 17.0% to $934,000 for the three months ended March 31, 2019 compared to $798,000 for the three months ended March 31, 2018. Total average interest-bearing liabilities decreased $10.8 million, or 2.9% to $364.3 million for the three months ended March 31, 2019 compared to $375.1 million for the three months ended March 31, 2018. The cost of average interest-bearing liabilities increased to 1.04% for the three months ended March 31, 2019 compared to 0.86% for the three months ended March 31, 2018.

Interest expense on deposits increased by $162,000, or 34.6%, to $630,000 for the three months ended March 31, 2019 from $468,000 for the three months ended March 31, 2018. Interest expense on time deposits increased $155,000, or 42.6%, to $519,000 for the three months ended March 31, 2019 from $364,000 for the three months ended March 31, 2018. The cost of interest-bearing deposits increased to 0.86% for the three months ended March 31, 2019 from 0.64% for the three months ended March 31, 2018 as we increased the rates we pay on deposits to remain competitive in our market areas.

33

Interest expense on borrowings decreased by $26,000, or 7.9%, to $304,000 for the three months ended March 31, 2019 from $330,000 for the three months ended March 31, 2018. The rate paid on borrowings increased 16 basis points to 1.88% for the three months ended March 31, 2019 from 1.72% for the three months ended March 31, 2018. Average borrowings decreased $12.1 million, or 15.6%, to $65.5 million for the three months ended March 31, 2019 from $77.6 million for the three months ended March 31, 2018. Average Federal Home Loan Bank advances decreased $11.4 million, or 15.2%, to $63.3 million for the three months ended March 31, 2019 from $74.7 million for the three months ended March 31, 2018. We have been able to fund loan growth, in part, with an increase in deposits. The average rate on Federal Home Loan Bank advances increased 15 basis points to 1.94% for the three months ended March 31, 2019 from 1.79% for the three months ended March 31, 2018. Average other borrowed money decreased $717,000, or 24.1%, to $2.3 million for the three months ended March 31, 2019 from $3.0 million for the three months ended March 31, 2018.

Interest expense increased $271,000, or 11.3% to $2.7 million for the nine months ended March 31, 2019 compared to $2.4 million for the nine months ended March 31, 2018. Total average interest-bearing liabilities decreased $8.7 million, or 2.3% to $363.7 million for the nine months ended March 31, 2019 compared to $372.4 million for the nine months ended March 31, 2018. The cost of average interest-bearing liabilities increased to 0.98% for the nine months ended March 31, 2019 compared to 0.86% for the nine months ended March 31, 2018.

Interest expense on deposits increased by $390,000, or 28.4%, to $1.8 million for the nine months ended March 31, 2019 from $1.4 for the nine months ended March 31, 2018. Interest expense on time deposits increased $368,000, or 34.6%, to $1.4 million for the nine months ended March 31, 2019 from $1.1 million for the nine months ended March 31, 2018. The cost of interest-bearing deposits increased to 0.79% for the nine months ended March 31, 2019 from 0.62% for the nine months ended March 31, 2018 as we increased the rates we pay on deposits to remain competitive in our market areas.

Interest expense on borrowings decreased by $119,000, or 11.5%, to $912,000 for the nine months ended March 31, 2019 from $1.0 million for the nine months ended March 31, 2018. The rate paid on borrowings increased 11 basis points to 1.87% for the nine months ended March 31, 2019 from 1.76% for the nine months ended March 31, 2018. Average borrowings decreased $13.1 million, or 16.8%, to $65.0 million for the nine months ended March 31, 2019 from $78.1 million for the nine months ended March 31, 2018. Average Federal Home Loan Bank advances decreased $12.7 million, or 16.8%, to $62.7 million for the nine months ended March 31, 2019 from $75.3 million for the nine months ended March 31, 2018. We have been able to fund loan growth, in part, with an increase in deposits. The average rate on Federal Home Loan Bank advances increased 11 basis points to 1.93% for the nine months ended March 31, 2019 from 1.82% for the nine months ended March 31, 2018. Average other borrowed money decreased $440,000, or 15.9%, to $2.3 million for the nine months ended March 31, 2019 from $2.8 million for the nine months ended March 31, 2018.

Net Interest Income. Net interest income increased $255,000, or 7.3%, to $3.8 million for the three months ended March 31, 2019 from $3.5 million for the three months ended March 31, 2018. Our interest rate spread increased to 2.82% for the three months ended March 31, 2019 from 2.62% for the three months ended March 31, 2018 and our net interest-earning assets increased $3.9 million, or 3.1%. Our net interest margin increased to 3.09% for the three months ended March 31, 2019 from 2.84% for the three months ended March 31, 2018.

Net interest income increased $741,000, or 7.1%, to $11.1 million for the nine months ended March 31, 2019 from $10.4 million for the nine months ended March 31, 2018. Our interest rate spread increased to 2.75% for the nine months ended March 31, 2019 from 2.55% for the nine months ended March 31, 2018 and our net interest-earning assets increased $1.5 million, or 1.2%. Our net interest margin increased to 3.01% for the nine months ended March 31, 2019 from 2.77% for the nine months ended March 31, 2018.

Provision for Loan Losses. Provision for loan losses increased $50,000, or 100% to $100,000 for the three months ended March 31, 2019 from $50,000 for the three months ended March 31, 2018. This was primarily due to net loan growth during the current quarter.

There was a credit provision for loan losses of $500,000 for the nine months ended March 31, 2019 compared to a provision for loan loss of $225,000 for the nine months ended March 31, 2018. This was due primarily to $592,000 in recoveries for the nine months ended March 31, 2019.

34

Non-interest Income. Non-interest income decreased $106,000, or 14.4%, to $629,000 for the three months ended March 31, 2019 compared to $735,000 for the three months ended March 31, 2018. This was primarily due to decreases in service fee income of $37,000 and net commissions from brokerage services of $23,000.

Non-interest income decreased $99,000, or 4.6% to $2.0 million for the nine months ended March 31, 2019 from $2.1 million for the nine months ended March 31, 2018. This reflected decreases in legal settlement income of $140,000 and $58,000 in net commissions from brokerage services during the nine months ended March 31, 2019. This was partially offset by an increase of $149,000 in net gains on other real estate owned sales.

Non-interest Expense. Non-interest expense increased $131,000, or 4.3% to $3.1 million for the three months ended March 31, 2019 from $3.0 million for the three months ended March 31, 2018. Salaries and benefits expense increased $103,000, or 5.5% to $2.0 million for the three months ended March 31, 2019 from $1.9 million for the three months ended March 31, 2018. This was primarily due to an increase in salary expense of $46,000. Occupancy and equipment expense increased $3,000, or 1.0% to $296,000 for the three months ended March 31, 2019 from $293,000 for the three months ended March 31, 2018. All other non-interest expense, consisting primarily of data processing expense, Federal Deposit Insurance Corporation deposit insurance, professional fees and marketing expense increased by $25,000, or 2.9%, to $878,000 for the three months ended March 31, 2019 from $853,000 for the three months ended March 31, 2018.

Non-interest expense increased $477,000, or 5.3% to $9.5 million for the nine months ended March 31, 2019 from $9.0 million for the nine months ended March 31, 2018. Salaries and benefits expense increased $322,000, or 5.8% to $5.8 million for the nine months ended March 31, 2019 from $5.5 million for the nine months ended March 31, 2018. This was primarily due to increases in salary expense of $144,000 and $125,000 in incentive compensation. All other non-interest expense, consisting primarily of data processing expense, Federal Deposit Insurance Corporation deposit insurance, professional fees and marketing expense increased by $146,000, or 5.5%, to $2.8 million for the nine months ended March 31, 2019 from $2.6 million for the nine months ended March 31, 2018. This was primarily due to an increase in data processing expense of $114,000.

Tax Expense. Income tax expense decreased by $18,000, or 8.5% to $194,000 for the three months ended March 31, 2019 from $212,000 for the three months ended March 31, 2018. Our effective tax rate was 16.9% for the three months ended March 31, 2019 compared to 18.0% for the three months ended March 31, 2018. Tax expense is based on a year-to-date basis at a forecasted effective rate. The effective tax rates differed from the statutory tax rate due to the dividends-received deduction applicable to certain securities in our investment portfolio, tax-exempt municipal income and non-taxable bank-owned life insurance income and the reduced corporate tax rate included in the Tax Cuts and Jobs Act enacted on December 22, 2017.

Income tax expense decreased by $202,000, or 22.4% to $698,000 for the nine months ended March 31, 2019 from $900,000 for the nine months ended March 31, 2018. Tax expense for the nine months ended March 31, 2018 included a charge of $211,000 to our deferred tax expense because of the reduced corporate tax rate included in the Tax Cuts and Jobs Act enacted on December 22, 2017. Our effective tax rate was 16.9% for the nine months ended March 31, 2019 compared to 27.8% for the nine months ended March 31, 2018. Tax expense is based on a year-to-date basis at a forecasted effective rate. The effective tax rates differed from the statutory tax rate due to the dividends-received deduction applicable to certain securities in our investment portfolio, tax-exempt municipal income and non-taxable bank-owned life insurance income and the reduced corporate tax rate included in the Tax Cuts and Jobs Act enacted on December 22, 2017.

35

Average Balances and Yields

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense. Yields and costs are annualized.

	For the Three Months Ended March 31,
	2019							2018
	Average		Interest		Yield/			Average		Interest		Yield/
	Balance		Income/Expense		Cost			Balance		Income/Expense		Cost
	(Dollars in thousands)
Interest-earning assets:
Investment securities	$	114,780	$	824		2.91	%	$	147,778	$	926		2.54	%
Loans		371,830		3,846		4.19	%		345,639		3,360		3.94	%
Other earning assets		6,956		28		1.63	%		7,057		21		1.21	%
Total interest-earning assets		493,566		4,698		3.86	%		500,474		4,307		3.49	%
Non-interest-earning assets		28,946							29,590
Total assets	$	522,512						$	530,064
Interest-bearing liabilities:
NOW accounts	$	70,609		65		0.37	%	$	81,682		74		0.37	%
Savings accounts		85,088		17		0.08	%		82,971		16		0.08	%
Money market accounts		22,274		29		0.53	%		24,003		14		0.24	%
Time deposits		120,834		519		1.74	%		108,825		364		1.36	%
Total interest-bearing deposits		298,805		630		0.86	%		297,481		468		0.64	%
FHLB advances		63,277		303		1.94	%		74,658		329		1.79	%
Other borrowed money		2,256		1		0.18	%		2,973		1		0.14	%
Total other borowed money		65,533		304		1.88	%		77,631		330		1.72	%
Total interest-bearing liabilities		364,338		934		1.04	%		375,112		798		0.86	%
Non-interest-bearing demand deposits		70,331							66,993
Other non-interest-bearing liabilities		3,927							3,342
Capital accounts		83,916							84,617
Total liabilities and capital accounts	$	522,512						$	530,064
Net interest income			$	3,764						$	3,509
Interest rate spread						2.82	%						2.62	%
Net interest-earning assets	$	129,228						$	125,362
Net interest margin						3.09	%						2.84	%
Average earning assets to average interest-bearing liabilities						135.47	%						133.42	%

36

	For the Nine Months Ended March 31,
	2019							2018
	Average		Interest		Yield/			Average		Interest		Yield/
	Balance		Income/Expense		Cost			Balance		Income/Expense		Cost
	(Dollars in thousands)
Interest-earning assets:
Investment securities	$	122,323	$	2,505		2.73	%	$	158,654	$	2,861		2.40	%
Loans		361,899		11,152		4.10	%		335,264		9,844		3.91	%
Other earning assets		8,479		142		2.23	%		5,943		82		1.84	%
Total interest-earning assets		492,701		13,799		3.73	%		499,861		12,787		3.41	%
Non-interest-earning assets		28,124							28,814
Total assets	$	520,825						$	528,675
Interest-bearing liabilities:
NOW accounts	$	74,989		210		0.37	%	$	81,189		225		0.37	%
Savings accounts		85,170		52		0.08	%		82,704		52		0.08	%
Money market accounts		22,210		71		0.43	%		21,997		34		0.21	%
Time deposits		116,387		1,431		1.64	%		108,432		1,063		1.31	%
Total interest-bearing deposits		298,756		1,764		0.79	%		294,322		1,374		0.62	%
FHLB advances		62,661		910		1.93	%		75,331		1,029		1.82	%
Other borrowed money		2,335		2		0.11	%		2,775		2		0.10	%
Total other borrowed money		64,996		912		1.87	%		78,106		1,031		1.76	%
Total interest-bearing liabilities		363,752		2,676		0.98	%		372,428		2,405		0.86	%
Non-interest-bearing demand deposits		70,301							69,465
Other non-interest-bearing liabilities		2,184							2,068
Capital accounts		84,588							84,714
Total liabilities and capital accounts	$	520,825						$	528,675
Net interest income			$	11,123						$	10,382
Interest rate spread						2.75	%						2.55	%
Net interest-earning assets	$	128,949						$	127,433
Net interest margin						3.01	%						2.77	%
Average earning assets to average interest-bearing liabilities						135.45	%						134.22	%

37

The following table sets forth the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of the table, changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.

	For the Three Months Ended March 31, 2019
	Compared to the Three Months Ended March 31, 2018
	Increase (Decrease) Due to change in
INTEREST INCOME	Rate		Volume			Net
	(In thousands)
Investment securities	$	622	$	(724	)	$	(102	)
Loans		223		263			486
Other interest-earning assets		9		(2	)		7
TOTAL INTEREST INCOME		854		(463	)		391
INTEREST EXPENSE
NOW accounts		8		(17	)		(9	)
Savings accounts		1		-			1
Money market accounts		22		(7	)		15
Time deposits		112		43			155
FHLB advances		138		(164	)		(26	)
Other borrowed money		1		(1	)		-
TOTAL INTEREST EXPENSE		282		(146	)		136
CHANGE IN NET INTEREST INCOME	$	572	$	(317	)	$	255

38

	For the Nine Months Ended March 31, 2019
	Compared to the Nine Months Ended March 31, 2018
	Increase (Decrease) Due to change in
INTEREST INCOME	Rate			Volume			Net
	(In thousands)
Investment securities	$	517		$	(873	)	$	(356	)
Loans		502			806			1,308
Other interest-earning assets		20			40			60
TOTAL INTEREST INCOME		1,039			(27	)		1,012
INTEREST EXPENSE
NOW accounts		4			(19	)		(15	)
Savings accounts		(2	)		2			-
Money market accounts		37			-			37
Time deposits		286			82			368
FHLB advances		93			(212	)		(119	)
Other borrowed money		-			-			-
TOTAL INTEREST EXPENSE		418			(147	)		271
CHANGE IN NET INTEREST INCOME	$	621		$	120		$	741

39

Market Risk, Liquidity and Capital Resources

Market Risk

The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk (“IRR”). Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits and other borrowings. As a result, a principal part of our business strategy is to manage IRR and reduce the exposure of our net interest income (“NII”) to changes in market interest rates. Accordingly, our Board of Directors has established an Asset/Liability Management Committee, which is responsible for evaluating the IRR inherent in our assets and liabilities, for determining the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors. With the assistance of an IRR management consultant, the committee monitors the level of IRR on a regular basis and generally meets at least on a quarterly basis to review our asset/liability policies and IRR position.

We have sought to manage our IRR in order to minimize the exposure of our earnings and capital to changes in interest rates. As part of our ongoing asset/liability management, we currently use the following strategies to manage our IRR: (i) using alternative funding sources, such as advances from the Federal Home Loan Bank of Boston, to “match fund” certain investments and/or loans; (ii) continued emphasis on increasing core deposits; (iii) offering adjustable rate and shorter-term home equity loans, commercial real estate loans, construction loans and commercial and industrial loans; (iv) offering a variety of consumer loans, which typically have shorter-terms; and (v) investing in mortgage-backed securities with variable rates or fixed rates with shorter durations. Shortening the average maturity of our interest-earning assets by increasing our investments in shorter-term loans and securities, as well as loans and securities with variable rates of interest, helps to better match the maturities and interest rates of our assets and liabilities, thereby reducing the exposure of our NII to changes in market interest rates.

Net interest income at-risk measures the risk of a decline in earnings due to potential short-term and long- term changes in interest rates. The table below represents an analysis of our IRR as measured by the estimated changes in NII, resulting from an instantaneous and sustained parallel shift in the yield curve (+100 and +200 basis points) at March 31, 2019 and June 30, 2018.

Net Interest Income At-Risk
	Estimated Increase (Decrease)			Estimated Increase (Decrease)
Change in Interest Rates	in NII			in NII
(Basis Points)	March 31, 2019			June 30, 2018
+200		1.60	%		0.20	%
+100		2.00	%		1.40	%
-100		(4.70	)%		(4.50	)%
-200		(10.30	)%		(10.40	)%

Net Portfolio Value Simulation Analysis. We compute the amounts by which the net present value of our cash flow from assets, liabilities and off-balance sheet items (the institution’s net portfolio value or “NPV”) would change in the event of a range of assumed changes in market interest rates. A basis point equals one-hundredth of one percent, and 200 basis points equals two percent, an increase in interest rates from 3% to 5% would mean, for example, a 200 basis point increase in the “Change in Interest Rates” column below.

40

The tables below set forth, at March 31, 2019, the estimated changes in our net portfolio value that would result from the designated instantaneous changes in the United States Treasury yield curve based on information produced by an external consultant. This data is for Putnam Bank only and does not include any yield curve changes in the assets of PB Bancorp, Inc.

									NPV as a Percentage of Present
									Value of Assets (3)
			Estimated Increase (Decrease) in
Change in			NPV									Increase
Interest Rates	Estimated											(Decrease)
(basis points) (1)	NPV (2)		Amount			Percent			NPV Ratio (4)			(basis points)
+300	$	63,512	$	(19,612	)		-23.59	%		13.60	%		(270	)
+200	$	70,693	$	(12,431	)		-14.95	%		14.70	%		(160	)
+100	$	77,911	$	(5,213	)		-6.27	%		15.70	%		(60	)
0	$	83,124	$	-			0.00	%		16.30	%		0
-100	$	85,374	$	2,250			2.71	%		16.40	%		10
-200	$	85,911	$	2,787			3.35	%		16.10	%		(20	)

_____________________

(1) Assumes an instantaneous uniform change in interest rates at all maturities.

(2) NPV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4) NPV ratio represents NPV divided by the present value of assets.

The preceding analyses do not represent actual forecasts and should not be relied upon as being indicative of expected operating results. These hypothetical estimates are based upon numerous assumptions, which are subject to change, including: the nature and timing of interest rate levels including the yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacement of asset and liability cash flows, and others. Also, as market conditions vary prepayment/refinancing levels will likely deviate from those assumed, the varying impact of interest rate changes on caps and floors embedded in adjustable rate loans, early withdrawal of deposits, changes in product preferences, and other internal/external variables.

Liquidity

The term liquidity refers to the ability of the Company and the Bank to meet current and future short-term financial obligations. The Company and the Bank further define liquidity as the ability to generate adequate amounts of cash to fund loan originations, deposit withdrawals and operating expenses. Liquidity management is both a daily and long-term function of business management. The Bank’s primary sources of liquidity are deposits, scheduled amortization and prepayments of loan principal and mortgage-related securities, and Federal Home Loan Bank of Boston borrowings. The Bank can borrow funds from the Federal Home Loan Bank of Boston based on eligible collateral of loans and securities. The Bank had Federal Home Loan Bank of Boston borrowings as of March 31, 2019 of $62.2 million, with unused borrowing capacity of $51.3 million. The Bank has an internal limit of wholesale borrowings to total assets ratio of 30.0%. As of March 31, 2019, the ratio of wholesale borrowings to total assets was 15.3%.

The Bank’s primary investing activities are the origination of loans and the purchase of investment securities. During the nine months ended March 31, 2019, the Bank’s loan originations net of principal collections were $16.7 million compared to loan originations net of principal collections of $18.8 million for the nine months ended March 31, 2018. There were no security purchases during the nine months ended March 31, 2019 and 2018. There were no loan purchases for the nine months ended March 31, 2019 compared to $21.5 million in loan purchases for the nine months ended March 31, 2018.

Loan repayments and maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of investment securities and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and economic conditions and competition in the marketplace. These factors reduce the predictability of the timing of these sources of funds. Deposit flows are affected by the level of interest rates, by the interest rates and products offered by competitors and by other factors. The Bank monitors its liquidity position frequently and anticipates that it will have sufficient funds to meet its current funding commitments.

41

Certificates of deposit totaled $124.9 million at March 31, 2019. The Bank relies on competitive rates, customer service and long-standing relationships with customers to retain deposits. Based on the Bank’s experience with deposit retention and current retention strategies, management believes that, although it is not possible to predict with certainty future terms and conditions upon renewal, a significant portion of such deposits will remain with the Bank.

Federal banking regulations require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6% and a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital, Tier 1 capital or Total capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. The capital conservation buffer was fully phased in effective January 1, 2019. With the Bank’s capital levels remaining characterized as “well-capitalized” throughout the phase in periods.  Due to our asset size, the Company is not subject to capital requirements.

As of March 31, 2019, the most recent notification from the Federal Reserve Bank of Boston, categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change our category. The following table shows the Bank’s required minimum capital ratios in order to be considered well-capitalized and the actual capital ratios as of March 31, 2019 and June 30, 2018.

	Required			Actual		Actual
	Ratio			Amount		Ratio
				(in thousands)
March 31, 2019
Tier 1 Leverage		5.00	%	$	65,914		12.89	%
Common Equity Tier 1 Capital		6.50			65,914		18.24
Tier 1 Risk-based Capital		8.00			65,914		18.24
Total Capital		10.00			68,918		19.07
June 30, 2018
Tier 1 Leverage		5.00	%	$	62,797		12.16	%
Common Equity Tier 1 Capital		6.50			62,797		18.19
Tier 1 Risk-based Capital		8.00			62,797		18.19
Total Capital		10.00			65,779		19.05

Off-Balance Sheet Arrangements

In addition to the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments, lines of credit, and letters of credit.

For the nine months ended March 31, 2019, we engaged in no off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.

42

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 4. Controls and Procedures

Under the supervision and with the participation of PB Bancorp, Inc.’s management, including its Chief Executive Officer and Chief Financial Officer, PB Bancorp, Inc. evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15(d)-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, PB Bancorp’s disclosure controls and procedures were effective.

There has been no change in PB Bancorp, Inc.’s internal control over financial reporting in connection with the quarterly evaluation that occurred during PB Bancorp, Inc.’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, PB Bancorp, Inc.’s internal control over financial reporting.

Part II. – OTHER INFORMATION

Item 1. Legal Proceedings – Not applicable

Item 1A. Risk Factors – Not applicable to smaller reporting companies

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a) Not applicable

b) Not applicable

Item 3. Defaults Upon Senior Securities – Not applicable

Item 4. Mine Safety Disclosures – Not Applicable

Item 5. Other Information - Not Applicable

Item 6. Exhibits

Exhibits

31.1 Chief Executive Officer Certification pursuant to 17 CFR 240.13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Chief Financial Officer Certification pursuant to 17 CFR 240.13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Chief Executive Officer Certification pursuant to 18 U.S.C. Section 1350.

32.2 Chief Financial Officer Certification pursuant to 18 U.S.C. Section 1350.

101 The following materials from PB Bancorp’s Quarterly Report on Form 10-Q for the three and nine months ended March 31, 2019, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.

43

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		PB BANCORP, INC.
		(Registrant)
Date:	May 14, 2019	/s/ Thomas A. Borner
		Thomas A. Borner
		President and Chief Executive Officer

Date:	May 14, 2019	/s/ Robert J. Halloran, Jr.
		Robert J. Halloran, Jr.
		Executive Vice President, Chief Financial
		Officer and Treasurer

44

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

I, Thomas A. Borner, certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of PB Bancorp, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)        Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)        Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)        Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)        Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)        All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)        Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 14, 2019

/s/  Thomas A. Borner

Thomas A. Borner

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14

I, Robert J. Halloran, Jr., certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of PB Bancorp, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)        Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)        Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)        Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)        Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)        All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)        Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 14, 2019

/s/  Robert J. Halloran, Jr.

Robert J. Halloran, Jr.,
Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PB Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas A. Borner, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350 that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the report.

May 14, 2019

/s/  Thomas A. Borner

Thomas A. Borner

President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PB Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert J. Halloran, Jr., Executive Vice President, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350 that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the report.

May 14, 2019

/s/ Robert J. Halloran, Jr.

Robert J. Halloran, Jr.

Executive Vice President, Chief Financial Officer and Treasurer

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 01, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	PB Bancorp, Inc.
Entity Central Index Key	0001652106
Trading Symbol	pbbi
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		7,447,204
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
ASSETS
Cash and due from depository institutions	$ 2,104	$ 4,465
Interest-bearing demand deposits with other banks	13,476	5,637
Total cash and cash equivalents	15,580	10,102
Securities available-for-sale, at fair value	40,378	46,546
Securities held-to-maturity (fair value of $68,000 as of March 31, 2019 and $81,828 as of June 30, 2018)	68,245	82,816
Federal Home Loan Bank stock, at cost	3,633	4,206
Loans	371,260	355,213
Less: Allowance for loan losses	(2,962)	(2,943)
Net loans	368,298	352,270
Premises and equipment, net	3,041	3,253
Accrued interest receivable	1,475	1,361
Other real estate owned	1,309	1,381
Goodwill	6,912	6,912
Bank-owned life insurance	13,178	12,912
Net deferred tax asset	278	1,691
Other assets	2,050	1,938
Total assets	524,377	525,388
Deposits
Non-interest-bearing	70,850	71,428
Interest-bearing	302,347	300,157
Total deposits	373,197	371,585
Mortgagors' escrow accounts	1,583	3,123
Federal Home Loan Bank advances	62,158	63,199
Securities sold under agreements to repurchase	796	664
Other liabilities	2,339	2,528
Total liabilities	440,073	441,099
Stockholders' Equity
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares issued and outstanding
Common stock, 100,000,000 shares authorized, $0.01 par value, 7,447,204 and 7,624,474 shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively.	74	76
Additional paid-in capital	58,548	60,329
Retained earnings	30,284	28,822
Accumulated other comprehensive loss	(521)	(522)
Unearned ESOP shares	(3,183)	(3,293)
Unearned stock awards	(898)	(1,123)
Total stockholders' equity	84,304	84,289
Total liabilities and stockholders' equity	$ 524,377	$ 525,388

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Statement Of Financial Position [Abstract]
Investments in held-to-maturity securities, fair value (in dollars)	$ 68,000	$ 81,828
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	7,447,204	7,624,474
Common stock, shares outstanding	7,447,204	7,624,474

XML

Consolidated Statements of Net Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Interest and dividend income:
Interest and fees on loans	$ 3,846	$ 3,360	$ 11,152	$ 9,844
Interest and dividends on investments	824	926	2,505	2,861
Other	28	21	142	82
Total interest and dividend income	4,698	4,307	13,799	12,787
Interest expense:
Deposits and escrow	630	468	1,764	1,374
Borrowed funds	304	330	912	1,031
Total interest expense	934	798	2,676	2,405
Net interest and dividend income	3,764	3,509	11,123	10,382
Provision (credit) for loan losses	100	50	(500)	225
Net interest and dividend income after provision (credit) for loan losses	3,664	3,459	11,623	10,157
Non-interest income:
Total other-than-temporary impairment losses on debt securities			(135)	(2)
Portion of losses recognized in other comprehensive income			131	1
Net impairment losses recognized in earnings			(4)	(1)
Net commissions from brokerage services	24	47	69	127
Income from bank-owned life insurance	87	88	266	267
Gain on sales of securities		6		7
Gain on sales of other real estate owned, net	43	48	150	1
Legal settlement			15	155
Other income	41	70	133	136
Total non-interest income	629	735	2,033	2,132
Non-interest expense:
Compensation and benefits	1,974	1,871	5,848	5,526
Occupancy and equipment	296	293	897	888
Data processing	299	269	889	775
LAN/WAN network	21	30	67	96
Advertising and marketing	46	47	125	146
FDIC deposit insurance	35	41	109	120
Other real estate owned	65	35	149	157
Write-down of other real estate owned			91	14
Other	412	431	1,351	1,327
Total non-interest expense	3,148	3,017	9,526	9,049
Income before income tax expense	1,145	1,177	4,130	3,240
Income tax expense	194	212	698	900
NET INCOME	$ 951	$ 965	$ 3,432	$ 2,340
Earnings per common share:
Basic (in dollars per share)	$ 0.13	$ 0.13	$ 0.48	$ 0.32
Diluted (in dollars per share)	$ 0.13	$ 0.13	$ 0.48	$ 0.32
Fees for services
Non-interest income:
Fees for services mortgage banking activities	$ 430	$ 467	$ 1,388	$ 1,428
Mortgage banking activities
Non-interest income:
Fees for services mortgage banking activities	$ 4	$ 9	$ 16	$ 12

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Comprehensive Income (Loss), Net Of Tax, Attributable To Parent [Abstract]
Net income		$ 951	$ 965	$ 3,432	$ 2,340
Other comprehensive income (loss):
Reclassification adjustment for gains realized in income	[1]		(6)		(7)
Net unrealized holding gains (losses) on available-for-sale securities		562	(268)	134	(452)
Reclassification adjustment for losses realized in income on available-for-sale securities	[2]			4	1
Non-credit portion of other-than-temporary losses on available-for-sale securities				(131)	(1)
Other comprehensive income (loss) before tax		562	(274)	7	(459)
Income tax (loss) benefit related to other comprehensive income (loss)		(120)	107	(6)	124
Other comprehensive income (loss) net of tax		442	(167)	1	(335)
Total comprehensive income		$ 1,393	$ 798	$ 3,433	$ 2,005

[1] Reported in gain on sales of securities included in non-interest income on the consolidated statements of net income. There was a $2,000 income tax provision associated with the reclassification adjustment for the three and nine months ended March 31, 2018.

[2] Reported in net impairment losses recognized in earnings, included in non-interest income on the consolidated statements of net income. There was a $1,000 income tax benefits associated with the reclassification adjustment for the nine months ended March 31, 2019. There was no income tax benefit associated with the reclassification adjustment for the nine months ended March 31, 2018.

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Unearned ESOP Shares	Unearned Stock Awards	Total
Balance at Jun. 30, 2017	$ 78	$ 62,243	$ 27,195	$ (117)	$ (3,439)	$ (1,423)	$ 84,537
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			584	66			650
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(313)				(313)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		10			36		46
Common stock repurchased (50,000, 5,000, 127,620, 1,000 and 174,983, shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018 respectively)		(520)					(520)
Share-based compensation expense		37				75	112
Balance at Sep. 30, 2017	78	61,770	27,466	(51)	(3,403)	(1,348)	84,512
Balance at Jun. 30, 2017	78	62,243	27,195	(117)	(3,439)	(1,423)	84,537
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income							2,005
Balance at Mar. 31, 2018	76	60,459	28,492	(499)	(3,329)	(1,198)	84,001
Balance at Sep. 30, 2017	78	61,770	27,466	(51)	(3,403)	(1,348)	84,512
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			791	(187)			604
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(388)				(388)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		11			37		48
Common stock repurchased (50,000, 5,000, 127,620, 1,000 and 174,983, shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018 respectively)		(52)					(52)
Share-based compensation expense		37				75	112
Balance at Dec. 31, 2017	78	61,766	27,869	(238)	(3,366)	(1,273)	84,836
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			965	(214)			798
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(389)				(389)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		11			37		48
Common stock repurchased (50,000, 5,000, 127,620, 1,000 and 174,983, shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018 respectively)	(2)	(1,327)					(1,329)
Cancellation of shares for tax withholding (2,646 and 1,287 shares for three mont ended march 31, 2018 and 2019 respectively)		(28)					(28)
Share-based compensation expense		37				75	112
Reclassification related to Tax Cuts and Jobs Act			47	(47)			0
Balance at Mar. 31, 2018	76	60,459	28,492	(499)	(3,329)	(1,198)	84,001
Balance at Jun. 30, 2018	76	60,329	28,822	(522)	(3,293)	(1,123)	84,289
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			1,391	(107)			1,284
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(458)				(458)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		16			37		53
Common stock repurchased (50,000, 5,000, 127,620, 1,000 and 174,983, shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018 respectively)		(11)					(11)
Share-based compensation expense		43				75	118
Balance at Sep. 30, 2018	76	60,377	29,755	(629)	(3,256)	(1,048)	85,275
Balance at Jun. 30, 2018	76	60,329	28,822	(522)	(3,293)	(1,123)	84,289
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income							3,433
Balance at Mar. 31, 2019	74	58,548	30,284	(521)	(3,183)	(898)	84,304
Balance at Sep. 30, 2018	76	60,377	29,755	(629)	(3,256)	(1,048)	85,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			1,090	(334)			756
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(991)				(991)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		14			37		51
Common stock repurchased (50,000, 5,000, 127,620, 1,000 and 174,983, shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018 respectively)	(2)	(1,914)					(1,916)
Share-based compensation expense		36				75	111
Balance at Dec. 31, 2018	74	58,513	29,854	(963)	(3,219)	(973)	83,286
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income			951	442			1,393
Cash dividends declared and paid ($0.04,$0.05,$0.05,$0.06,$0.13, and $0.07 per share for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)			(521)				(521)
ESOP shares committed to be released (4,504, 4,505, 4,504, 4,504, 4,505, and 4,505 shares for three month ended 30 Spt,2017, 31 Dec,2017,31 March,2018, 30 Spt,2018, 31 Dec,2018,31 March,2019 respectively)		13			36		49
Cancellation of shares for tax withholding (2,646 and 1,287 shares for three mont ended march 31, 2018 and 2019 respectively)		(14)					(14)
Share-based compensation expense		36				75	111
Balance at Mar. 31, 2019	$ 74	$ 58,548	$ 30,284	$ (521)	$ (3,183)	$ (898)	$ 84,304

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Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) (Unaudited) - $ / shares	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Statement Of Stockholders' Equity [Abstract]
Cash dividend declared (in dollars per share)	$ 0.07	$ 0.13	$ 0.06	$ 0.05	$ 0.05	$ 0.04
Number of ESOP shares committed to be released	4,505	4,505	4,504	4,504	4,505	4,504
Shares of common stock repurchased		174,983	1,000	127,620	5,000	50,000
Shares cancelled during period for tax withholding shares	1,287			2,646

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net income	$ 3,432	$ 2,340
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of securities premiums, net	322	409
Gain on sale of securities		(7)
Impairment losses on securities	4	1
Amortization of deferred loan costs, net	184	178
(Credit) provision for loan losses	(500)	225
Gain on sale of other real estate owned, net	(150)	(1)
Write-down of other real estate owned	91	14
Loss on sale of premises and equipment	1	1
Depreciation and amortization - premises and equipment	249	245
Amortization - software	5	7
Increase in accrued interest receivable and other assets	(231)	(83)
Income from bank-owned life insurance	(266)	(267)
Decrease in other liabilities	(189)	(108)
Share-based compensation expense	340	336
Deferred tax expense	1,407	345
ESOP expense	153	142
Net cash provided by operating activities	4,852	3,777
Cash flows from investing activities
Proceeds from sales of available-for-sale securities		3,626
Proceeds from calls, pay downs and maturities of available-for-sale securities	6,025	5,604
Proceeds from calls, pay downs and maturities of held-to-maturity securities	14,395	22,021
Redemption (purchase) of Federal Home Loan Bank stock, net	573	(133)
Net loan principal originations	(16,747)	(18,777)
Loan purchases		(21,480)
Recoveries of loans previously charged off	592	50
Proceeds from sale of other real estate owned	574	779
Capital expenditures - premises and equipment	(38)	(95)
Net cash provided by (used in) investing activities	5,374	(8,405)
Cash flows from financing activities
Net increase in deposit accounts	1,612	5,198
Net decrease in mortgagors' escrow accounts	(1,540)	(1,096)
Proceeds from issuance of long-term Federal Home Loan Bank advances		25,730
Repayment of long-term Federal Home Loan Bank advances	(1,040)	(28,018)
Change in short term Federal Home Loan Bank advances, net		6,000
Net increase (decrease) in securities sold under agreements to repurchase	131	(827)
Cash dividends paid on common stock	(1,970)	(1,090)
Common stock repurchased	(1,927)	(1,901)
Cancellation of shares for tax withholding	(14)	(28)
Net cash (used in) provided by financing activities	(4,748)	3,968
Net increase (decrease) in cash and cash equivalents	5,478	(660)
Cash and cash equivalents at beginning of year	10,102	10,173
Cash and cash equivalents at end of period	15,580	9,513
Cash paid during the period for:
Interest	2,628	2,402
Income taxes (refunded) paid	(701)	370
Loans transferred to other real estate owned	$ 443	$ 359

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Organization

9 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization

NOTE 1 – Organization

PB Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated in 2015 to be the successor to PSB Holdings, Inc. upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Putnam Bancorp, MHC (the “MHC”), the top tier mutual holding company of PSB Holdings, Inc.   PSB Holdings, Inc. was the former mid-tier holding company for Putnam Bank (the “Bank”).  Prior to completion of the Conversion, a majority of the shares of common stock of PSB Holdings, Inc. were owned by the MHC.  In conjunction with the Conversion, the MHC and PSB Holdings, Inc. merged into the Company and the Company became PSB Holdings, Inc.’s successor.  The Conversion was completed on January 7, 2016.  The Company raised gross proceeds of $33.7 million in the related stock offering.  Concurrent with the completion of the stock offering, each share of PSB Holdings, Inc. stock owned by public stockholders (stockholders other than the MHC) was exchanged for 1.1907 shares of Company common stock.  The Conversion was accounted for as a capital raising transaction by entities under common control.  The historical financial results of the MHC were immaterial to the results of the Company and therefore the net assets of the MHC were reflected as an increase to stockholders’ equity. 

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Basis of Presentation

9 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

NOTE 2 – Basis of Presentation

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and the instructions to Form 10-Q, and accordingly do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments necessary, consisting of only normal recurring accruals and the elimination of all significant intercompany accounts, to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The interim results of operations are not necessarily indicative of the operating results to be expected for future periods, including the fiscal year ending June 30, 2019. These financial statements should be read in conjunction with the 2018 consolidated financial statements and notes thereto included in PB Bancorp, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (‘’SEC’’) on September 21, 2018.

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Recent Accounting Pronouncements

9 Months Ended

Mar. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

NOTE 3 – Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which supersedes the requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, based on the current level of long-term leases in place, this is not expected to be material to the Company’s results of operations or financial position.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires entities to measure all expected credit losses for certain financial assets (such as loans and held-to-maturity securities) held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  Entities will now use forward-looking information to better form their credit loss estimates.  The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.  Management is currently working to implement these requirements to determine the potential impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.  The amendments in this update simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test.  Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity will consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.  For public business entities, the amendments are effective for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2020.  Early adoption is permitted.  We do not expect the application of this guidance to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which amends the disclosure requirements by adding, changing, or removing certain disclosures about recurring or non-recurring fair value measurements. This ASU will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this update will not have a significant impact on the consolidated financial statements.

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Critical Accounting Policies

9 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Critical Accounting Policies

Note 4 - Critical Accounting Policies

Critical accounting policies are those that involve significant judgments and assumptions by management that have, or could have, a material impact on our income or the carrying value of our assets. Our critical accounting policies are those related to the allowance for loan losses, realizability of deferred income taxes, valuation of goodwill and the impairment of securities.

Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, specific and unallocated components, as further described below.

General component

The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, residential construction, commercial and consumer/other. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; concentrations; changes in lending policies and procedures; experience/ability/depth of lending management and staff; loan rating migration; the effect of other external factors; changes in the value of underlying collateral; changes in the loan review system and national and local economic trends and conditions. The Company calculates historical losses using a five-year rolling average, which is considered indicative of the risk in the Company’s current loan portfolio. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses through March 31, 2019.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate - The Company does not originate loans with a loan-to-value ratio greater than 100% and does not originate subprime loans. Loans originated with a loan-to-value ratio greater than 80% generally require private mortgage insurance. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial real estate - Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans.

Residential construction – Loans in this segment include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by the accuracy of estimated costs to complete the project, cost overruns, time to sell at an adequate price, and market conditions.

Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Consumer/other - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower.

Specific component

The specific component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent or foreclosure is probable. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer/other and residential real estate loans for impairment disclosures, unless such loans are non-accrual or subject to a troubled debt restructuring (“TDR”) agreement.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are classified as impaired.

Unallocated component

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general reserves in the portfolio.

Goodwill. Goodwill is measured as the excess of the cost of a business acquisition over the sum of the amounts assigned to identifiable tangible and intangible assets acquired less liabilities assumed. Goodwill is not amortized but is subject to a review of qualitative factors annually or more frequently if circumstances warrant, to determine if an impairment test is required. If required, the Company uses the following two-step approach for reviewing goodwill for impairment:

The first step (“Step 1”) is used to identify potential impairment, and involves comparing the reporting unit’s (the consolidated Company) estimated fair value to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. The second step (“Step 2”) involves calculating the implied fair value of goodwill. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which are dependent on internal forecasts, estimation of the long-term rate of growth, the period over which cash flows will occur, and determination of our cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions related to goodwill impairment.

Other-Than-Temporary Impairment of Securities. Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).

OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Prior to July 1, 2018, marketable equity securities were evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value were reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income, net of applicable taxes.

Income Taxes. The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized.

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $211,000, which was recorded as additional tax expense in the Company’s consolidated statements for the three months ended December 31, 2017. Included in the additional tax expense is $47,000 related to net unrealized losses on securities available-for-sale. The accounting treatment effectively stranded $47,000 of deferred tax items in accumulated other comprehensive income. The Company has developed a reasonable estimate of the other provisions of the Act in determining the current year income tax provision.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”), which allows a reclassification from AOCI to retained earnings to eliminate the stranded tax effects resulting from the Act. As permitted, the Company early adopted the ASU and recorded a $47,000 increase in retained earnings and corresponding decrease in AOCI as of January 1, 2018.

Management has discussed the development and selection of these critical accounting policies with the Audit Committee.

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Earnings Per Share (EPS)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

NOTE 5 – Earnings Per Share (EPS)

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. The rights to dividends on unvested options/awards are non-forfeitable, therefore the unvested awards/options are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. For purposes of computing diluted EPS, the treasury stock method is used.

The following information was used in the computation of EPS on both a basic and diluted basis for the three and nine months ended March 31, 2019:

	Three months ended March 31,				Nine months ended March 31,
	2019		2018		2019		2018
Net income	$	951,000	$	965,000	$	3,432,000	$	2,340,000
Weighted average common shares applicable to basic EPS		7,052,135		7,295,257		7,157,017		7,341,827
Effect of dilutive potential common shares		-		-		2,870		-
Weighted average common shares applicable to diluted EPS		7,052,135		7,295,257		7,159,887		7,341,827
Earnings per share:
Basic	$	0.13	$	0.13	$	0.48	$	0.32
Diluted	$	0.13	$	0.13	$	0.48	$	0.32

For the three months ended March 31, 2019, options to purchase 387,330 shares were outstanding but not included in the computation of earnings per share because they were anti-dilutive. For the nine months ended March 31, 2019, there were 258,220 anti-dilutive options not being included in the computation of diluted earnings per share. For the three and nine months ended March 31, 2018, options to purchase 392,330 shares were outstanding but not included in the computation of earnings per share because they were anti-dilutive.

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Investment Securities

9 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

NOTE 6 – Investment Securities

The carrying value, estimated fair values, and gross unrealized gains and losses of investment securities by maturity and type are as follows:

	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
March 31, 2019:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
After ten years	$	2,640	$	-	$	(76	)	$	2,564
Corporate bonds:
Due from five through ten years		3,999		-		(312	)		3,687
U.S. Government-sponsored and guaranteed mortgage-backed securities:
From one through five years		5,497		6		(64	)		5,439
From five through ten years		1,214		-		(17	)		1,197
After ten years		15,102		112		(215	)		14,999
		21,813		118		(296	)		21,635
Non-agency mortgage-backed securities:
Due after ten years		2,590		400		(381	)		2,609
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		(117	)		7,883
After ten years		2,000		-		-			2,000
		10,000		-		(117	)		9,883
Total available-for-sale securities	$	41,042	$	518	$	(1,182	)	$	40,378
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	4,999	$	-	$	(20	)	$	4,979
From one through five years		987		20		-			1,007
After ten years		4,378		-		(135	)		4,243
		10,364		20		(155	)		10,229
State agency and municipal obligations From one through five years		442		-		(8	)		434
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		503		7		(1	)		509
From five through ten years		10,238		16		(136	)		10,118
After ten years		46,698		458		(446	)		46,710
		57,439		481		(583	)		57,337
Total held-to-maturity securities	$	68,245	$	501	$	(746	)	$	68,000

	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
June 30, 2018:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
Due in one year or less	$	1,000	$	-	$	(4	)	$	996
After ten years		3,419		-		(87	)		3,332
		4,419		-		(91	)		4,328
Corporate bonds:
Due from five through ten years		1,999		-		(129	)		1,870
After ten years		2,000		-		(140	)		1,860
		3,999		-		(269	)		3,730
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		3,135		-		(125	)		3,010
From five through ten years		4,919		-		(95	)		4,824
After ten years		17,688		135		(406	)		17,417
		25,742		135		(626	)		25,251
Non-agency mortgage-backed securities:
Due after ten years		3,057		483		(303	)		3,237
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		-			8,000
After ten years		2,000		-		-			2,000
		10,000		-		-			10,000
Total available-for-sale securities	$	47,217	$	618	$	(1,289	)	$	46,546
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	2,001	$	-	$	(9	)	$	1,992
From one through five years		4,976		25		(33	)		4,968
After ten years		4,796		-		(189	)		4,607
		11,773		25		(231	)		11,567
State agency and municipal obligations
Due from one through five years		446		-		(14	)		432
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		846		5		(8	)		843
From five through ten years		12,123		14		(384	)		11,753
After ten years		57,628		518		(913	)		57,233
		70,597		537		(1,305	)		69,829
Total held-to-maturity securities	$	82,816	$	562	$	(1,550	)	$	81,828

There were no sales of available-for-sale securities for the three and nine months ended March 31, 2019. There were net gains on the sales of securities of $6,000 for the three months ended March 31, 2018 and $7,000 for the nine months ended March 31, 2018. Gains and losses on the sales of securities are recorded on the trade date and are determined using the specific identification method. There were no other-than-temporary impairment charges on available-for-sale securities realized in income during the three months ended March 31, 2019 or 2018. There were $4,000 in other-than temporary impairment losses during the nine months ended March 31, 2019 and $1,000 in other-than impairment losses during the nine months ended March 31, 2018. The write-downs for the nine months ended March 31, 2019 included total other-than-temporary impairment losses on non-agency mortgage-backed securities of $135,000, net of $131,000 recognized in other comprehensive loss, before taxes.

The following is a summary of the estimated fair value and related unrealized losses segregated by category and length of time that individual securities have been in a continuous unrealized loss position at:

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
March 31, 2019:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	2,564	$	76	$	2,564	$	76
Corporate bonds		-		-		3,687		312		3,687		312
U.S. Government-sponsored and guaranteed mortgage-backed securities		-		-		16,215		296		16,215		296
Other securities		2,883		117		-		-		2,883		117
Total temporarily impaired available-for-sale		2,883		117		22,466		684		25,349		801
Held-to-maturity:
U.S. Government and government-sponsored securities		-		-		9,222		155		9,222		155
State and political subdivisions		-		-		434		8		434		8
U.S. Government-sponsored and guaranteed mortgage-backed securities		58		-		37,518		583		37,576		583
Total temporarily impaired held-to-maturity		58		-		47,174		746		47,232		746
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		268		13		947		368		1,215		381
Total temporarily-impaired and other-than-temporarily impaired securities	$	3,209	$	130	$	70,587	$	1,798	$	73,796	$	1,928

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
June 30, 2018:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	4,328	$	91	$	4,328	$	91
Corporate bonds		-		-		3,730		269		3,730		269
U.S. Government-sponsored and guaranteed mortgage-backed securities		7,331		123		14,914		503		22,245		626
Total temporarily impaired available-for-sale		7,331		123		22,972		863		30,303		986
Held-to-maturity:
U.S. Government and government-sponsored securities		5,956		42		4,606		189		10,562		231
State and political subdivisions		432		14		-		-		432		14
U.S. Government-sponsored and guaranteed mortgage-backed securities		34,387		708		16,880		597		51,267		1,305
Total temporarily impaired held-to-maturity		40,775		764		21,486		786		62,261		1,550
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		-		-		1,134		303		1,134		303
Total temporarily-impaired and other-than-temporarily impaired securities	$	48,106	$	887	$	45,592	$	1,952	$	93,698	$	2,839

(1) Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss.

Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.

At March 31, 2019, there were 80 individual investment securities with aggregate depreciation of 2.6% from the Company’s amortized cost basis. Management has the intent and ability to hold these securities until cost recovery occurs and considers these declines to be temporary.

The unrealized losses on the Company’s investment in U.S. Government-sponsored agency bonds and U.S. government-guaranteed and government-sponsored residential mortgage-backed securities were primarily caused by interest rate fluctuations. These investments are guaranteed or sponsored by the U.S. government or an agency thereof. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2019.

The Company’s unrealized losses on investments in corporate bonds and other securities relate to investments in companies within the financial services sector. As of March 31, 2019, the Company had three investments in corporate single-issuer trust preferred securities (TRUPs) with a total book value of $4.0 million and total fair value of $3.7 million, all of which were classified as available-for-sale. The single-issuer trust preferred investments are evaluated for other-than-temporary impairment by performing a present value of cash flows calculation each quarter. None of the issuers have deferred interest payments or announced the intention to defer interest payments. The Company believes the decline in fair value is related to the spread over three-month LIBOR, on which the quarterly interest payments are based, as the spread over LIBOR being received is significantly lower than current market spreads. Management concluded the impairment of these investments was considered temporary and asserts that the Company does not have the intent to sell these investments and that it is more likely than not it will not have to sell the investments before recovery of their cost bases which may be at maturity.

At March 31, 2019, there was one state and political subdivision security that had an unrealized loss of 1.8% from the Company’s amortized cost basis. We believe the unrealized loss was primarily caused by interest rate fluctuations. This security is guaranteed by a school district located in Texas. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investments before recovery of its amortized cost basis, which may be at maturity, the Company does not consider this investment to be other-than-temporarily impaired at March 31, 2019.

For the nine months ended March 31, 2019, there was $4,000 in other-than-temporary impairment losses recognized in earnings. There were no other-than-temporary impairment losses for the three months ended March 31, 2019. The other-than-temporary impairment losses were on non-agency mortgage-backed securities. The Company estimates the portion of possible loss attributable to credit loss using a discounted cash flow model. Significant inputs include the estimated cash flows of the underlying loans based on key assumptions, such as default rate, loss severity and prepayment rate. Assumptions can vary widely from security to security, and are influenced by such factors as loan interest rate, geographical location of the borrower, borrower characteristics and collateral type. The present value of the expected cash flows is compared to the Company’s amortized cost basis to determine if there was a credit-related impairment loss. Based on the expected cash flows derived from the model, the Company expects to recover the remaining unrealized losses on these securities.

The following table represents a roll-forward of the amount of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in other comprehensive loss:

	Nine months ended
	March 31,
	2019		2018
	(in thousands)
Balance at beginning of period	$	15,983	$	15,982
Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded		4		1
Balance at end of period	$	15,987	$	15,983

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Loans

9 Months Ended

Mar. 31, 2019

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans

NOTE 7 – Loans

The following table sets forth the composition of our loan portfolio at March 31, 2019 and June 30, 2018:

	March 31,			June 30,
	2019			2018
	(in thousands)
Real Estate:
Residential (1)	$	225,335		$	236,880
Commercial		130,860			101,647
Residential construction		1,896			2,217
Commercial		11,077			12,215
Consumer and other		848			831
Total loans		370,016			353,790
Net deferred loan costs		1,244			1,423
Allowance for loan losses		(2,962	)		(2,943	)
Loans, net	$	368,298		$	352,270

(1) Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

Credit Quality Information

The Company utilizes a nine grade internal loan rating system as follows:

Loans rated 1 - 5 are considered “pass” rated loans with low to average risk.

Loans rated 6 are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 7 are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 8 are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Credit quality for residential real estate and consumer/other loans is determined by monitoring loan payment history and ongoing communications with the borrower.

The following table presents the Company’s loan classes by internally assigned grades at March 31, 2019 and June 30, 2018:

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and other		Total
	(in thousands)
March 31, 2019
Grade:
Pass	$	221,824	$	129,099	$	1,896	$	10,095	$	848	$	363,762
Special Mention		-		430		-		-		-		430
Substandard		3,511		1,331		-		982		-		5,824
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	225,335	$	130,860	$	1,896	$	11,077	$	848	$	370,016
June 30, 2018
Grade:
Pass	$	232,919	$	98,626	$	2,217	$	11,157	$	830	$	345,749
Special Mention		2		698		-		1,058		-		1,758
Substandard		3,959		2,323		-		-		1		6,283
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	236,880	$	101,647	$	2,217	$	12,215	$	831	$	353,790

Modifications deemed to be troubled debt restructures were not material for the nine months ended March 31, 2019 and 2018.

There were no material troubled debt restructurings that subsequently defaulted (defined as 30 or more days past due subsequent to restructuring) within one year of modification during the three and nine months ended March 31, 2019 and 2018.

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Non-performing Assets, Past Due and Impaired Loans

9 Months Ended

Mar. 31, 2019

Non Performing Assets [Abstract]

Non-performing Assets, Past Due and Impaired Loans

NOTE 8 – Non-performing Assets, Past Due and Impaired Loans

The table below sets forth the amounts and categories of non-performing assets at the dates indicated:

	At  March 31,			At June 30,
	2019			2018
	(Dollars in thousands)
Non-accrual loans:
Real Estate:
Residential	$	3,511		$	3,959
Commercial		272			432
Consumer		-			1
Total non-accrual loans		3,783			4,392
Accruing loans past due 90 days or more		-			32
Total non-performing loans		3,783			4,424
Other real estate owned		1,309			1,381
Total non-performing assets	$	5,092		$	5,805
Total non-performing loans to total loans		1.02	%		1.25	%
Total non-performing assets to total assets		0.97	%		1.10	%

Management is focused on working with borrowers and guarantors to resolve non-accrual loans by restructuring or liquidating assets when prudent. Many of our commercial relationships are secured by development loans, in particular condominiums which have experienced a significant reduction in demand. The Company reviews the strength of the guarantors; requires face to face discussions and offers restructuring suggestions that provide the borrowers with short term relief and exit strategies. The Company obtains a current appraisal on all real estate secured loans that are 180 days or more past due if the appraisal on file is older than one year. If the determination is made that there is the potential for collateral shortfall, an allocated reserve will be assigned to the loan for the expected deficiency. It is the policy of the Company to charge off or write down loans or other assets when, in the opinion of the Credit Committee and Loan Review, the ultimate amount recoverable is less than the carrying value, or the collection of the amount is expected to be unduly prolonged. The level of non-performing assets is expected to fluctuate in response to changing economic and market conditions, and the relative sizes of the respective loan portfolios, along with management’s degree of success in resolving problem assets.

The following table sets forth information regarding past due loans at March 31, 2019 and June 30, 2018:

					90 days
	30–59 Days		60–89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(in thousands)
At March 31, 2019
Real Estate:
Residential	$	1,879	$	177	$	446	$	2,502
Commercial		789		-		-		789
Consumer and other		6		-		-		6
Total	$	2,674	$	177	$	446	$	3,297
At June 30, 2018
Real Estate:
Residential	$	50	$	238	$	1,119	$	1,407
Commercial		-		-	$	124		124
Consumer and other		4		-		-		4
Total	$	54	$	238	$	1,243	$	1,535

The following is a summary of information pertaining to impaired loans at March 31, 2019 and June 30, 2018, none of which had a valuation allowance:

	At March 31, 2019				At June 30, 2018
			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal
	Investment		Balance		Investment		Balance
	(in thousands)
Real Estate:
Residential	$	2,115	$	2,261	$	2,732	$	2,870
Commercial		273		273		1,230		1,914
Total impaired loans	$	2,388	$	2,534	$	3,962	$	4,784

The following is a summary of additional information pertaining to impaired loans:

	Three months ended						Three months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,089	$	13	$	10	$	2,194	$	5	$	-
Commercial		339		-		-		1,265		22		-
Total impaired loans	$	2,428	$	13	$	10	$	3,459	$	27	$	-

	Nine months ended						Nine months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,300	$	52	$	43	$	2,193	$	21	$	7
Commercial		581		7		-		1,290		66		-
Total impaired loans	$	2,881	$	59	$	43	$	3,483	$	87	$	7

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Allowance for Loan Losses

9 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Allowance for Loan Losses

NOTE 9 – Allowance for Loan Losses

An analysis of the allowance for loan losses for the three and nine months ended March 31, 2019 and 2018 is as follows:

	Residential			Commercial			Residential						Consumer
	Real Estate			Real Estate			Construction			Commercial			and Other			Unallocated			Total
	(in thousands)
Three months ended March 31, 2019
Beginning balance	$	1,465		$	1,196		$	5		$	110		$	32		$	56		$	2,864
Charge-offs		-			-			-			-			(12	)		-			(12	)
Recoveries		3			-			-			4			3			-			10
(Credit) provision		17			98			7			(29	)		4			3			100
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Three months ended March 31, 2018
Beginning balance	$	1,417		$	1,215		$	9		$	79		$	131		$	114		$	2,965
Charge-offs		(83	)		-			-			-			(11	)		-			(94	)
Recoveries		10			-			-			4			4			-			18
(Credit) provision		147			(58	)		1			(8	)		6			(38	)		50
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939
Nine months ended March 31, 2019
Beginning balance	$	1,385		$	1,194		$	14		$	80		$	135		$	135		$	2,943
Charge-offs		(42	)		-			-			-			(31	)		-			(73	)
Recoveries		11			560			-			10			11			-			592
(Credit) provision		131			(460	)		(2	)		(5	)		(88	)		(76	)		(500	)
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Nine months ended March 31, 2018
Beginning balance	$	1,359		$	1,164		$	6		$	76		$	86		$	89		$	2,780
Charge-offs		(83	)		-			-			-			(33	)		-			(116	)
Recoveries		27			-			-			10			13			-			50
(Credit) provision		188			(7	)		4			(11	)		64			(13	)		225
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939

Further information pertaining to the allowance for loan losses at March 31, 2019 and June 30, 2018 is as follows:

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and Other		Unallocated		Total
	(in thousands)
At March 31, 2019
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,485	$	1,294	$	12	$	85	$	27	$	59	$	2,962
Impaired loans	$	2,115	$	273	$	-	$	-	$	-	$	-	$	2,388
Non-impaired loans	$	223,220	$	130,587	$	1,896	$	11,077	$	848	$	-	$	367,628
At June 30, 2018
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,385	$	1,194	$	14	$	80	$	135	$	135	$	2,943
Impaired loans	$	2,732	$	1,230	$	-	$	-	$	-	$	-	$	3,962
Non-impaired loans	$	234,148	$	100,417	$	2,217	$	12,215	$	831	$	-	$	349,828

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Stock-Based Incentive Plan

9 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Incentive Plan

NOTE 10 – Stock-Based Incentive Plan

In February 2017, stockholders of the Company approved the PB Bancorp, Inc. 2017 Stock-Based Incentive Plan (the “Incentive Plan”). Under the Incentive Plan, the Company may grant up to 453,267 stock options and 181,306 shares of restricted stock to its employees, officers and directors for an aggregate amount of up to 634,573 shares of the Company’s common stock for issuance upon the grant or exercise of awards. Both incentive stock options and non-statutory stock options may be granted under the Incentive Plan.

There were no stock options or awards granted during the nine months ended March 31, 2019 and 2018.

Both stock option and restricted stock awards granted to date vest at 20% per year beginning on the first anniversary of the date of the grant.

Stock options are considered common stock equivalents for the purpose of computing earnings per share on a diluted basis. Restricted stock awards have non-forfeitable dividend rights, and are considered participating securities outstanding for the purpose of computing basic earnings per share.

The Company has recorded share-based compensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. The fair value of each restricted stock allocation, based on the market price at the date of grant, is recorded to unearned stock awards. Compensation expense related to unearned restricted shares is amortized to compensation and benefits expense over the vesting period of the restricted stock awards, adjusted by actual forfeitures. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing method which includes several assumptions such as volatility, expected dividends, expected term and risk-free rate for each stock option award. The Company recorded share-based compensation expense in connection with the stock option and restricted stock awards for the three months ended March 31, 2019 of $111,000 and for the nine months ended March 31, 2019 of $340,000. The Company recorded share-based compensation expense in connection with the stock option and restricted stock awards for the three months ended March 31, 2018 of $112,000 and for the nine months ended March 31, 2018 of $336,000.

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Accumulated Other Comprehensive Loss

9 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract]

Accumulated Other Comprehensive Loss

NOTE 11 – Accumulated Other Comprehensive Loss

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the consolidated balance sheets, such items are components of accumulated other comprehensive loss.

The components of accumulated other comprehensive loss and related tax effects are as follows:

	March 31,			June 30,
	2019			2018
	(in thousands)
Net unrealized loss on securities available-for-sale	$	(664	)	$	(671	)
Tax effect		143			149
Accumulated other comprehensive loss	$	(521	)	$	(522	)

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FAIR VALUE MEASURMENTS

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASURMENTS

NOTE 12 – FAIR VALUE MEASUREMENTS

The Company groups its assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value as follows:

Level 1 – Valuations for assets traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets.

Level 2 – Valuations for assets traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets.

Level 3 – Valuations for assets that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets.

The level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets carried at fair value for March 31, 2019 and June 30, 2018.

The Company’s mortgage-backed securities and other debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services, which are not adjusted by management. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. Level 3 assets consisted of available-for-sale auction-rate trust preferred securities (ARPs).  All dividends are current. The Company has the ability and intent to hold these securities for the time necessary to collect the expected cash flows.

The fair value of impaired loans and other real estate owned is based on the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based upon appraisals of similar properties obtained from a third party and adjusted by management as needed.

The Company did not have any transfers of assets between levels of the fair value hierarchy during the nine months ended March 31, 2019.

The following summarizes assets measured at fair value on a recurring basis at March 31, 2019 and June 30, 2018:

	Total Fair
	Value		Level 1		Level 2		Level 3
	(in thousands)
At March 31, 2019
Securities available-for-sale:
U.S. government and government-sponsored securities	$	2,564	$	-	$	2,564	$	-
Corporate bonds		3,687		-		3,687		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		21,635		-		21,635		-
Non-agency mortgage-backed securities		2,609		-		2,609		-
Other securities		9,883		-		-		9,883
Total	$	40,378	$	-	$	30,495	$	9,883
At June 30, 2018
Securities available-for-sale:
U.S. government and government-sponsored securities	$	4,328	$	-	$	4,328	$	-
Corporate bonds		3,730		-		3,730		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		25,251		-		25,251		-
Non-agency mortgage-backed securities		3,237		-		3,237		-
Other securities		10,000		-		-		10,000
Total	$	46,546	$	-	$	36,546	$	10,000

There were no changes in level 3 assets measured at fair value for the nine months ended March 31, 2019 and 2018.

The following summarizes assets measured at fair value on a non-recurring basis and the adjustments to the carrying value at and for the three and nine months ended March 31, 2019 and 2018:

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2019		March 31, 2019
At March 31, 2019
Impaired loans	$	220	$	-	$	-	$	220	$	-	$	38
Other real estate owned		494		-		-		494		-		63
	$	714	$	-	$	-	$	714	$	-	$	101

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2018		March 31, 2018
	(in thousands)
At June 30, 2018
Impaired loans	$	160	$	-	$	-	$	160	$	29	$	29
Other real estate owned		110		-		-		110		-		9
	$	270	$	-	$	-	$	270	$	29	$	38

The amount of other real estate owned represents the carrying value for which write-downs are based on the estimated fair value of the property.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the asset. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular asset. Because a market may not readily exist for a significant portion of the Company’s asset, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

There were no liabilities measured at fair value on a recurring or non-recurring basis at March 31, 2019 or June 30, 2018.

The following methods and assumptions were used by the Company in estimating fair value disclosures of its financial instruments:

Cash and Cash Equivalents. The carrying amounts of cash and cash equivalents approximate fair values based on the short-term nature of the assets.

Investment Securities Held-to-Maturity and FHLBB Stock. The fair value of securities held-to-maturity is estimated based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or available market evidence. Ownership of Federal Home Loan Bank of Boston (“FHLBB”) stock is restricted to member banks; therefore, the stock is not traded. The estimated fair value of FHLBB stock is equal to its carrying value, which represents the price at which the FHLBB is obligated to redeem its stock.

Loans. For valuation purposes, the loan portfolio was segregated into its significant categories, which are residential, commercial real estate, residential construction, commercial and consumer and other loans. These categories were further segregated, where appropriate, into components based on significant financial characteristics such as type of interest rate (fixed or adjustable). Fair values were estimated for each component using assumptions developed by management and a valuation model provided by a third party specialist.

The fair values of residential, commercial real estate, residential construction, commercial and consumer and other loans were estimated by discounting the anticipated cash flows from the respective portfolios. Estimates of the timing and amount of these cash flows considered factors such as future loan prepayments. The discount rates reflected current market rates for loans with similar terms to borrowers of similar credit quality. The fair value of home equity lines of credit was based on the outstanding loan balances. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

Deposits and Mortgagors’ Escrow. The fair value of deposits with no stated maturity such as demand deposits, NOW, regular savings, and money market deposit accounts and mortgagors’ escrow accounts, is equal to the amount payable on demand. The fair value estimates do not include the benefit that results from the generally lower cost of funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. The fair value estimate of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits having similar remaining maturities.

Federal Home Loan Bank Advances. The fair values of the Company’s Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Securities Sold Under Agreements to Repurchase. The Company enters into overnight repurchase agreements with its customers. Since these agreements are short-term instruments, the fair value of these agreements approximates their recorded balance. The Company also secures term repurchase agreements through other financial institutions. The fair value of these agreements are determined by discounting the anticipated future cash payments using rates currently available to the Bank for debt with similar terms and remaining maturities.

Accrued Interest. The carrying amounts of accrued interest approximate fair value.

Off-Balance Sheet Instruments. The fair value of off-balance-sheet mortgage lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. In the case of the commitments discussed in Note 14, the fair value equals the carrying amounts which are not significant.

Summary of Fair Values of Financial Instruments. The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, as of March 31, 2019 and June 30, 2018:

	March 31, 2019
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	15,580	$	15,580	$	-	$	-	$	15,580
Securities available-for-sale		40,378		-		30,495		9,883		40,378
Securities held-to-maturity		68,245		-		68,000		-		68,000
Federal Home Loan Bank stock		3,633		-		-		3,633		3,633
Loans, net		368,298		-		-		355,455		355,455
Accrued interest receivable		1,475		-		-		1,475		1,475
Financial liabilities:
Deposits		373,197		-		-		373,840		373,840
Mortgagors' escrow accounts		1,583		-		-		1,583		1,583
Federal Home Loan Bank advances		62,158		-		62,102		-		62,102
Securities sold under agreements to repurchase		796		-		796		-		796
Accrued interest payable		206		-		-		206		206

	June 30, 2018
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	10,102	$	10,102	$	-	$	-	$	10,102
Securities available-for-sale		46,546		-		36,546		10,000		46,546
Securities held-to-maturity		82,816		-		81,828		-		81,828
Federal Home Loan Bank stock		4,206		-		-		4,206		4,206
Loans, net		352,270		-		-		346,511		346,511
Accrued interest receivable		1,361		-		-		1,361		1,361
Financial liabilities:
Deposits		371,585		-		-		372,563		372,563
Mortgagors' escrow accounts		3,123		-		-		3,123		3,123
Federal Home Loan Bank advances		63,199		-		62,428		-		62,428
Securities sold under agreements to repurchase		664		-		664		-		664
Accrued interest payable		158		-		-		158		158

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Subsequent Events

9 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

NOTE 13 – Subsequent Events

On April 3, 2019, the Board of Directors of PB Bancorp, Inc. declared a quarterly cash dividend of $0.07 per share for stockholders of record as of April 17, 2019, which is payable on May 1, 2019.

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Commitments to Extend Credit

9 Months Ended

Mar. 31, 2019

Commitments To Extend Credit [Abstract]

Commitments to Extend Credit

NOTE 14 – Commitments to Extend Credit

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The contractual amounts of outstanding commitments were as follows:

	March 31,		June 30,
	2019		2018
	(in thousands)
Commitments to extend credit:
Commitments to grant loans	$	2,469	$	3,594
Unadvanced construction loans		11,647		8,822
Unadvanced lines of credit		20,395		18,881
Standby letters of credit		395		395
Outstanding commitments	$	34,906	$	31,692

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Critical Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Allowance for Loan Losses

Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, specific and unallocated components, as further described below.

General component

The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, residential construction, commercial and consumer/other. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; concentrations; changes in lending policies and procedures; experience/ability/depth of lending management and staff; loan rating migration; the effect of other external factors; changes in the value of underlying collateral; changes in the loan review system and national and local economic trends and conditions. The Company calculates historical losses using a five-year rolling average, which is considered indicative of the risk in the Company’s current loan portfolio. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses through March 31, 2019.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate - The Company does not originate loans with a loan-to-value ratio greater than 100% and does not originate subprime loans. Loans originated with a loan-to-value ratio greater than 80% generally require private mortgage insurance. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial real estate - Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans.

Residential construction – Loans in this segment include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by the accuracy of estimated costs to complete the project, cost overruns, time to sell at an adequate price, and market conditions.

Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Consumer/other - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower.

Specific component

The specific component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent or foreclosure is probable. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer/other and residential real estate loans for impairment disclosures, unless such loans are non-accrual or subject to a troubled debt restructuring (“TDR”) agreement.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are classified as impaired.

Unallocated component

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general reserves in the portfolio.

Goodwill

Goodwill. Goodwill is measured as the excess of the cost of a business acquisition over the sum of the amounts assigned to identifiable tangible and intangible assets acquired less liabilities assumed. Goodwill is not amortized but is subject to a review of qualitative factors annually or more frequently if circumstances warrant, to determine if an impairment test is required. If required, the Company uses the following two-step approach for reviewing goodwill for impairment:

The first step (“Step 1”) is used to identify potential impairment, and involves comparing the reporting unit’s (the consolidated Company) estimated fair value to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. The second step (“Step 2”) involves calculating the implied fair value of goodwill. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which are dependent on internal forecasts, estimation of the long-term rate of growth, the period over which cash flows will occur, and determination of our cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions related to goodwill impairment.

Other-Than-Temporary Impairment of Securities

Other-Than-Temporary Impairment of Securities. Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).

OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Prior to July 1, 2018, marketable equity securities were evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value were reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income, net of applicable taxes.

Income Taxes

Income Taxes. The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized.

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $211,000, which was recorded as additional tax expense in the Company’s consolidated statements for the three months ended December 31, 2017. Included in the additional tax expense is $47,000 related to net unrealized losses on securities available-for-sale. The accounting treatment effectively stranded $47,000 of deferred tax items in accumulated other comprehensive income. The Company has developed a reasonable estimate of the other provisions of the Act in determining the current year income tax provision.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”), which allows a reclassification from AOCI to retained earnings to eliminate the stranded tax effects resulting from the Act. As permitted, the Company early adopted the ASU and recorded a $47,000 increase in retained earnings and corresponding decrease in AOCI as of January 1, 2018.

Management has discussed the development and selection of these critical accounting policies with the Audit Committee.

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Earnings Per Share (EPS) (Tables)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of computation of EPS on basic and diluted basis

	Three months ended March 31,				Nine months ended March 31,
	2019		2018		2019		2018
Net income	$	951,000	$	965,000	$	3,432,000	$	2,340,000
Weighted average common shares applicable to basic EPS		7,052,135		7,295,257		7,157,017		7,341,827
Effect of dilutive potential common shares		-		-		2,870		-
Weighted average common shares applicable to diluted EPS		7,052,135		7,295,257		7,159,887		7,341,827
Earnings per share:
Basic	$	0.13	$	0.13	$	0.48	$	0.32
Diluted	$	0.13	$	0.13	$	0.48	$	0.32

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Investment Securities (Tables)

9 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of carrying value and estimated fair values of investment securities by maturity

	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
March 31, 2019:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
After ten years	$	2,640	$	-	$	(76	)	$	2,564
Corporate bonds:
Due from five through ten years		3,999		-		(312	)		3,687
U.S. Government-sponsored and guaranteed mortgage-backed securities:
From one through five years		5,497		6		(64	)		5,439
From five through ten years		1,214		-		(17	)		1,197
After ten years		15,102		112		(215	)		14,999
		21,813		118		(296	)		21,635
Non-agency mortgage-backed securities:
Due after ten years		2,590		400		(381	)		2,609
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		(117	)		7,883
After ten years		2,000		-		-			2,000
		10,000		-		(117	)		9,883
Total available-for-sale securities	$	41,042	$	518	$	(1,182	)	$	40,378
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	4,999	$	-	$	(20	)	$	4,979
From one through five years		987		20		-			1,007
After ten years		4,378		-		(135	)		4,243
		10,364		20		(155	)		10,229
State agency and municipal obligations From one through five years		442		-		(8	)		434
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		503		7		(1	)		509
From five through ten years		10,238		16		(136	)		10,118
After ten years		46,698		458		(446	)		46,710
		57,439		481		(583	)		57,337
Total held-to-maturity securities	$	68,245	$	501	$	(746	)	$	68,000

	Amortized		Gross Unrealized					Fair
	Cost Basis		Gains		(Losses)			Value
	(in thousands)
June 30, 2018:
Available-for-sale:
Debt securities:
U.S. government and government-sponsored securities:
Due in one year or less	$	1,000	$	-	$	(4	)	$	996
After ten years		3,419		-		(87	)		3,332
		4,419		-		(91	)		4,328
Corporate bonds:
Due from five through ten years		1,999		-		(129	)		1,870
After ten years		2,000		-		(140	)		1,860
		3,999		-		(269	)		3,730
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		3,135		-		(125	)		3,010
From five through ten years		4,919		-		(95	)		4,824
After ten years		17,688		135		(406	)		17,417
		25,742		135		(626	)		25,251
Non-agency mortgage-backed securities:
Due after ten years		3,057		483		(303	)		3,237
Other securities:
Auction rate preferred:
Due from five through ten years		8,000		-		-			8,000
After ten years		2,000		-		-			2,000
		10,000		-		-			10,000
Total available-for-sale securities	$	47,217	$	618	$	(1,289	)	$	46,546
Held-to-maturity:
U.S. government and government-sponsored securities:
Due in one year or less	$	2,001	$	-	$	(9	)	$	1,992
From one through five years		4,976		25		(33	)		4,968
After ten years		4,796		-		(189	)		4,607
		11,773		25		(231	)		11,567
State agency and municipal obligations
Due from one through five years		446		-		(14	)		432
U.S. Government-sponsored and guaranteed mortgage-backed securities:
Due from one through five years		846		5		(8	)		843
From five through ten years		12,123		14		(384	)		11,753
After ten years		57,628		518		(913	)		57,233
		70,597		537		(1,305	)		69,829
Total held-to-maturity securities	$	82,816	$	562	$	(1,550	)	$	81,828

Schedule of securities in a continuous unrealized loss position

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
March 31, 2019:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	2,564	$	76	$	2,564	$	76
Corporate bonds		-		-		3,687		312		3,687		312
U.S. Government-sponsored and guaranteed mortgage-backed securities		-		-		16,215		296		16,215		296
Other securities		2,883		117		-		-		2,883		117
Total temporarily impaired available-for-sale		2,883		117		22,466		684		25,349		801
Held-to-maturity:
U.S. Government and government-sponsored securities		-		-		9,222		155		9,222		155
State and political subdivisions		-		-		434		8		434		8
U.S. Government-sponsored and guaranteed mortgage-backed securities		58		-		37,518		583		37,576		583
Total temporarily impaired held-to-maturity		58		-		47,174		746		47,232		746
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		268		13		947		368		1,215		381
Total temporarily-impaired and other-than-temporarily impaired securities	$	3,209	$	130	$	70,587	$	1,798	$	73,796	$	1,928

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(in thousands)
June 30, 2018:
Available-for-sale:
U.S. Government and government-sponsored securities	$	-	$	-	$	4,328	$	91	$	4,328	$	91
Corporate bonds		-		-		3,730		269		3,730		269
U.S. Government-sponsored and guaranteed mortgage-backed securities		7,331		123		14,914		503		22,245		626
Total temporarily impaired available-for-sale		7,331		123		22,972		863		30,303		986
Held-to-maturity:
U.S. Government and government-sponsored securities		5,956		42		4,606		189		10,562		231
State and political subdivisions		432		14		-		-		432		14
U.S. Government-sponsored and guaranteed mortgage-backed securities		34,387		708		16,880		597		51,267		1,305
Total temporarily impaired held-to-maturity		40,775		764		21,486		786		62,261		1,550
Other-than-temporarily impaired debt securities (1):
Non-agency mortgage-backed securities		-		-		1,134		303		1,134		303
Total temporarily-impaired and other-than-temporarily impaired securities	$	48,106	$	887	$	45,592	$	1,952	$	93,698	$	2,839

(1) Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss.

Schedule of amount of credit losses on debt securities

	Nine months ended
	March 31,
	2019		2018
	(in thousands)
Balance at beginning of period	$	15,983	$	15,982
Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded		4		1
Balance at end of period	$	15,987	$	15,983

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Loans (Tables)

9 Months Ended

Mar. 31, 2019

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of composition of loan portfolio

	March 31,			June 30,
	2019			2018
	(in thousands)
Real Estate:
Residential (1)	$	225,335		$	236,880
Commercial		130,860			101,647
Residential construction		1,896			2,217
Commercial		11,077			12,215
Consumer and other		848			831
Total loans		370,016			353,790
Net deferred loan costs		1,244			1,423
Allowance for loan losses		(2,962	)		(2,943	)
Loans, net	$	368,298		$	352,270

(1) Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

Schedule of the loan classes by internally assigned grades

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and other		Total
	(in thousands)
March 31, 2019
Grade:
Pass	$	221,824	$	129,099	$	1,896	$	10,095	$	848	$	363,762
Special Mention		-		430		-		-		-		430
Substandard		3,511		1,331		-		982		-		5,824
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	225,335	$	130,860	$	1,896	$	11,077	$	848	$	370,016
June 30, 2018
Grade:
Pass	$	232,919	$	98,626	$	2,217	$	11,157	$	830	$	345,749
Special Mention		2		698		-		1,058		-		1,758
Substandard		3,959		2,323		-		-		1		6,283
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	236,880	$	101,647	$	2,217	$	12,215	$	831	$	353,790

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Non-performing Assets, Past Due and Impaired Loans (Tables)

9 Months Ended

Mar. 31, 2019

Non Performing Assets [Abstract]

Schedule of non performing assets

	At  March 31,			At June 30,
	2019			2018
	(Dollars in thousands)
Non-accrual loans:
Real Estate:
Residential	$	3,511		$	3,959
Commercial		272			432
Consumer		-			1
Total non-accrual loans		3,783			4,392
Accruing loans past due 90 days or more		-			32
Total non-performing loans		3,783			4,424
Other real estate owned		1,309			1,381
Total non-performing assets	$	5,092		$	5,805
Total non-performing loans to total loans		1.02	%		1.25	%
Total non-performing assets to total assets		0.97	%		1.10	%

Schedule of past due loans

					90 days
	30–59 Days		60–89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
	(in thousands)
At March 31, 2019
Real Estate:
Residential	$	1,879	$	177	$	446	$	2,502
Commercial		789		-		-		789
Consumer and other		6		-		-		6
Total	$	2,674	$	177	$	446	$	3,297
At June 30, 2018
Real Estate:
Residential	$	50	$	238	$	1,119	$	1,407
Commercial		-		-	$	124		124
Consumer and other		4		-		-		4
Total	$	54	$	238	$	1,243	$	1,535

Schedule of information pertaining to impaired loans

	At March 31, 2019				At June 30, 2018
			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal
	Investment		Balance		Investment		Balance
	(in thousands)
Real Estate:
Residential	$	2,115	$	2,261	$	2,732	$	2,870
Commercial		273		273		1,230		1,914
Total impaired loans	$	2,388	$	2,534	$	3,962	$	4,784

	Three months ended						Three months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,089	$	13	$	10	$	2,194	$	5	$	-
Commercial		339		-		-		1,265		22		-
Total impaired loans	$	2,428	$	13	$	10	$	3,459	$	27	$	-

	Nine months ended						Nine months ended
	March 31, 2019						March 31, 2018
	Average		Interest		Interest Income		Average		Interest		Interest Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Real Estate:
Residential	$	2,300	$	52	$	43	$	2,193	$	21	$	7
Commercial		581		7		-		1,290		66		-
Total impaired loans	$	2,881	$	59	$	43	$	3,483	$	87	$	7

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Allowance for Loan Losses (Tables)

9 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of analysis of the allowance for loan losses

	Residential			Commercial			Residential						Consumer
	Real Estate			Real Estate			Construction			Commercial			and Other			Unallocated			Total
	(in thousands)
Three months ended March 31, 2019
Beginning balance	$	1,465		$	1,196		$	5		$	110		$	32		$	56		$	2,864
Charge-offs		-			-			-			-			(12	)		-			(12	)
Recoveries		3			-			-			4			3			-			10
(Credit) provision		17			98			7			(29	)		4			3			100
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Three months ended March 31, 2018
Beginning balance	$	1,417		$	1,215		$	9		$	79		$	131		$	114		$	2,965
Charge-offs		(83	)		-			-			-			(11	)		-			(94	)
Recoveries		10			-			-			4			4			-			18
(Credit) provision		147			(58	)		1			(8	)		6			(38	)		50
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939
Nine months ended March 31, 2019
Beginning balance	$	1,385		$	1,194		$	14		$	80		$	135		$	135		$	2,943
Charge-offs		(42	)		-			-			-			(31	)		-			(73	)
Recoveries		11			560			-			10			11			-			592
(Credit) provision		131			(460	)		(2	)		(5	)		(88	)		(76	)		(500	)
Ending Balance	$	1,485		$	1,294		$	12		$	85		$	27		$	59		$	2,962
Nine months ended March 31, 2018
Beginning balance	$	1,359		$	1,164		$	6		$	76		$	86		$	89		$	2,780
Charge-offs		(83	)		-			-			-			(33	)		-			(116	)
Recoveries		27			-			-			10			13			-			50
(Credit) provision		188			(7	)		4			(11	)		64			(13	)		225
Ending Balance	$	1,491		$	1,157		$	10		$	75		$	130		$	76		$	2,939

	Residential		Commercial		Residential				Consumer
	Real Estate		Real Estate		Construction		Commercial		and Other		Unallocated		Total
	(in thousands)
At March 31, 2019
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,485	$	1,294	$	12	$	85	$	27	$	59	$	2,962
Impaired loans	$	2,115	$	273	$	-	$	-	$	-	$	-	$	2,388
Non-impaired loans	$	223,220	$	130,587	$	1,896	$	11,077	$	848	$	-	$	367,628
At June 30, 2018
Amount of allowance for loan losses for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Amount of allowance for loan losses for non-impaired loans	$	1,385	$	1,194	$	14	$	80	$	135	$	135	$	2,943
Impaired loans	$	2,732	$	1,230	$	-	$	-	$	-	$	-	$	3,962
Non-impaired loans	$	234,148	$	100,417	$	2,217	$	12,215	$	831	$	-	$	349,828

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract]

Schedule of accumulated other comprehensive loss

	March 31,			June 30,
	2019			2018
	(in thousands)
Net unrealized loss on securities available-for-sale	$	(664	)	$	(671	)
Tax effect		143			149
Accumulated other comprehensive loss	$	(521	)	$	(522	)

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FAIR VALUE MEASURMENTS (Tables)

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of summary of assets measured at fair value on a recurring basis

	Total Fair
	Value		Level 1		Level 2		Level 3
	(in thousands)
At March 31, 2019
Securities available-for-sale:
U.S. government and government-sponsored securities	$	2,564	$	-	$	2,564	$	-
Corporate bonds		3,687		-		3,687		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		21,635		-		21,635		-
Non-agency mortgage-backed securities		2,609		-		2,609		-
Other securities		9,883		-		-		9,883
Total	$	40,378	$	-	$	30,495	$	9,883
At June 30, 2018
Securities available-for-sale:
U.S. government and government-sponsored securities	$	4,328	$	-	$	4,328	$	-
Corporate bonds		3,730		-		3,730		-
U.S. Government-sponsored and guaranteed mortgage-backed securities		25,251		-		25,251		-
Non-agency mortgage-backed securities		3,237		-		3,237		-
Other securities		10,000		-		-		10,000
Total	$	46,546	$	-	$	36,546	$	10,000

Schedule of assets measured at fair value on a non-recurring basis and the adjustments to the carrying value

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2019		March 31, 2019
At March 31, 2019
Impaired loans	$	220	$	-	$	-	$	220	$	-	$	38
Other real estate owned		494		-		-		494		-		63
	$	714	$	-	$	-	$	714	$	-	$	101

									Total Losses		Total Losses
									for the three		for the nine
	Total Fair								months ended		months ended
	Value		Level 1		Level 2		Level 3		March 31, 2018		March 31, 2018
	(in thousands)
At June 30, 2018
Impaired loans	$	160	$	-	$	-	$	160	$	29	$	29
Other real estate owned		110		-		-		110		-		9
	$	270	$	-	$	-	$	270	$	29	$	38

Schedule of estimated fair value of financial instruments which are held or issued for purposes other than trading

	March 31, 2019
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	15,580	$	15,580	$	-	$	-	$	15,580
Securities available-for-sale		40,378		-		30,495		9,883		40,378
Securities held-to-maturity		68,245		-		68,000		-		68,000
Federal Home Loan Bank stock		3,633		-		-		3,633		3,633
Loans, net		368,298		-		-		355,455		355,455
Accrued interest receivable		1,475		-		-		1,475		1,475
Financial liabilities:
Deposits		373,197		-		-		373,840		373,840
Mortgagors' escrow accounts		1,583		-		-		1,583		1,583
Federal Home Loan Bank advances		62,158		-		62,102		-		62,102
Securities sold under agreements to repurchase		796		-		796		-		796
Accrued interest payable		206		-		-		206		206

	June 30, 2018
	Carrying		Fair Value Hierarchy						Total Fair
	Amount		Level 1		Level 2		Level 3		Value
	(in thousands)
Financial assets:
Cash and cash equivalents	$	10,102	$	10,102	$	-	$	-	$	10,102
Securities available-for-sale		46,546		-		36,546		10,000		46,546
Securities held-to-maturity		82,816		-		81,828		-		81,828
Federal Home Loan Bank stock		4,206		-		-		4,206		4,206
Loans, net		352,270		-		-		346,511		346,511
Accrued interest receivable		1,361		-		-		1,361		1,361
Financial liabilities:
Deposits		371,585		-		-		372,563		372,563
Mortgagors' escrow accounts		3,123		-		-		3,123		3,123
Federal Home Loan Bank advances		63,199		-		62,428		-		62,428
Securities sold under agreements to repurchase		664		-		664		-		664
Accrued interest payable		158		-		-		158		158

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Commitments to Extend Credit (Tables)

9 Months Ended

Mar. 31, 2019

Commitments To Extend Credit [Abstract]

Schedule of contractual amounts of outstanding commitments

	March 31,		June 30,
	2019		2018
	(in thousands)
Commitments to extend credit:
Commitments to grant loans	$	2,469	$	3,594
Unadvanced construction loans		11,647		8,822
Unadvanced lines of credit		20,395		18,881
Standby letters of credit		395		395
Outstanding commitments	$	34,906	$	31,692

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Organization (Detail Textuals) $ in Millions	6 Months Ended
	Jul. 07, 2016 USD ($) shares
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Gross proceeds from common stock offering | $	$ 33.7
Number of share exchanged for stock offering | shares	1.1907

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Critical Accounting Policies (Detail Textuals) - USD ($)	1 Months Ended		9 Months Ended
	Feb. 28, 2018	Dec. 22, 2017	Mar. 31, 2019
Accounting Policies [Line Items]
Additional tax expense due to remeasurement of deferred tax assets		$ 211,000
Additional tax expense of net unrealized losses on securities available-for-sale		$ 47,000
Increase in retained earnings and corresponding decrease in AOCI	$ 47,000
Previous Tax Year
Accounting Policies [Line Items]
Statutory federal income tax rate			34.00%
Current Tax Year
Accounting Policies [Line Items]
Statutory federal income tax rate			21.00%

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Earnings Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 951	$ 965	$ 3,432	$ 2,340
Weighted average common shares applicable to basic EPS	7,052,135	7,295,257	7,157,017	7,341,827
Effect of dilutive potential common shares			2,870
Weighted average common shares applicable to diluted EPS (in shares)	7,052,135	7,295,257	7,159,887	7,341,827
Earnings per share:
Basic (in dollars per share)	$ 0.13	$ 0.13	$ 0.48	$ 0.32
Diluted (in dollars per share)	$ 0.13	$ 0.13	$ 0.48	$ 0.32

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Earnings Per Share (EPS) (Detail Textuals) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	387,330	392,330	258,220	392,330

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Investment Securities - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
U.S. Government and government-sponsored securities
Available-for-sale debt securities
Due in one year or less, Amortized Cost		$ 1,000
Due in one year or less, Gross Unrealized Gains		0
Due in one year or less, Gross Unrealized (Losses)		(4)
Due in one year or less, Fair Value		996
After ten years, Amortized Cost	$ 2,640	3,419
After ten years, Gross Unrealized Gains	0	0
After ten years, Gross Unrealized (Losses)	(76)	(87)
After ten years, Fair Value	2,564	3,332
Available-for-sale securities, amortized cost basis		4,419
Available-for-sale securities, Gross Unrealized Gains		0
Available-for-sale securities, Gross Unrealized (Losses)		(91)
Available-for-sale securities, Fair Value		4,328
Corporate bonds
Available-for-sale debt securities
Due from five through ten years, Amortised Cost	3,999	1,999
Due from five through ten years, Gross Unrealized Gains	0	0
Due from five through ten years, Gross Unrealized (Losses)	(312)	(129)
Due from five through ten years, Fair Value	3,687	1,870
After ten years, Amortized Cost		2,000
After ten years, Gross Unrealized Gains		0
After ten years, Gross Unrealized (Losses)		(140)
After ten years, Fair Value		1,860
Available-for-sale securities, amortized cost basis		3,999
Available-for-sale securities, Gross Unrealized Gains		0
Available-for-sale securities, Gross Unrealized (Losses)		(269)
Available-for-sale securities, Fair Value		3,730
U.S. Government sponsored and guaranteed mortgage-backed securities
Available-for-sale debt securities
Due from one through five years, Amortized Cost	5,497	3,135
Due from one through five years, Gross Unrealized Gains	6	0
Due from one through five years, Gross Unrealized (Losses)	(64)	(125)
Due from one through five years, Fair Value	5,439	3,010
Due from five through ten years, Amortised Cost	1,214	4,919
Due from five through ten years, Gross Unrealized Gains	0	0
Due from five through ten years, Gross Unrealized (Losses)	(17)	(95)
Due from five through ten years, Fair Value	1,197	4,824
After ten years, Amortized Cost	15,102	17,688
After ten years, Gross Unrealized Gains	112	135
After ten years, Gross Unrealized (Losses)	(215)	(406)
After ten years, Fair Value	14,999	17,417
Available-for-sale securities, amortized cost basis	21,813	25,742
Available-for-sale securities, Gross Unrealized Gains	118	135
Available-for-sale securities, Gross Unrealized (Losses)	(296)	(626)
Available-for-sale securities, Fair Value	21,635	25,251
Non-agency mortgage-backed securities
Available-for-sale debt securities
After ten years, Amortized Cost	2,590	3,057
After ten years, Gross Unrealized Gains	400	483
After ten years, Gross Unrealized (Losses)	(381)	(303)
After ten years, Fair Value	$ 2,609	$ 3,237

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Investment Securities - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 1) - Auction rate preferred - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Debt and Equity Securities, FV-NI [Line Items]
Due from five through ten years, Amortized Cost	$ 8,000	$ 8,000
Due from five through ten years, Gross Unrealized Gains	0	0
Due from five through ten years, Gross Unrealized (Losses)	(117)	0
Due from five through ten years, Fair Value	7,883	8,000
After ten years, Amortized Cost	2,000	2,000
After ten years, Gross Unrealized Gains	0	0
After ten years, Gross Unrealized (Losses)	0	0
After ten years, Fair Value	2,000	2,000
Amortized Cost Basis	10,000	10,000
Gross Unrealized (Gain)	0	0
Gross Unrealized (Losses)	(117)	0
Fair Value	$ 9,883	$ 10,000

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Investment Securities - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Amortized Cost Basis	$ 41,042	$ 47,217
Gross Unrealized Gains	518	618
Gross Unrealized (Losses)	(1,182)	(1,289)
Fair Value	$ 40,378	$ 46,546

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Investment Securities - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 3) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Debt Securities, Held-to-maturity [Abstract]
Held-to-maturity securities, amortized cost basis	$ 68,245	$ 82,816
Held-to-maturity securities, Gross Unrealized Gains	501	562
Held-to-maturity securities, Gross Unrealized (Losses)	(746)	(1,550)
Held-to-maturity securities, Fair Value	68,000	81,828
U.S. Government and government-sponsored securities
Debt Securities, Held-to-maturity [Abstract]
Due in one year or less, amortized cost basis	4,999	2,001
Due in one year or less, Gross Unrealized Gains	0	0
Due in one year or less, Gross Unrealized (Losses)	(20)	(9)
Due in one year or less, Fair Value	4,979	1,992
From one through five years, Amortized Cost Basis	987	4,976
From one through five years, Gross Unrealized Gains	20	25
From one through five years, Gross Unrealized (Losses)	0	(33)
From one through five years, fair value	1,007	4,968
After ten years, Amortized Cost Basis	4,378	4,796
After ten years, Gross Unrealized Gains	0	0
After ten years, Gross Unrealized (Losses)	(135)	(189)
After ten years gross, fair value	4,243	4,607
Held-to-maturity securities, amortized cost basis	10,364	11,773
Held-to-maturity securities, Gross Unrealized Gains	20	25
Held-to-maturity securities, Gross Unrealized (Losses)	(155)	(231)
Held-to-maturity securities, Fair Value	10,229	11,567
State agency and municipal obligations
Debt Securities, Held-to-maturity [Abstract]
From one through five years, Amortized Cost Basis	442	446
From one through five years, Gross Unrealized Gains	0	0
From one through five years, Gross Unrealized (Losses)	(8)	(14)
From one through five years, fair value	434	432
U.S. Government sponsored and guaranteed mortgage-backed securities
Debt Securities, Held-to-maturity [Abstract]
From one through five years, Amortized Cost Basis	503	846
From one through five years, Gross Unrealized Gains	7	5
From one through five years, Gross Unrealized (Losses)	(1)	(8)
From one through five years, fair value	509	843
From five through ten years, Amortized Cost Basis	10,238	12,123
From five through ten years, Gross Unrealized Gains	16	14
From five through ten years, Gross Unrealized (Losses)	(136)	(384)
From five through ten years, fair value	10,118	11,753
After ten years, Amortized Cost Basis	46,698	57,628
After ten years, Gross Unrealized Gains	458	518
After ten years, Gross Unrealized (Losses)	(446)	(913)
After ten years gross, fair value	46,710	57,233
Held-to-maturity securities, amortized cost basis	57,439	70,597
Held-to-maturity securities, Gross Unrealized Gains	481	537
Held-to-maturity securities, Gross Unrealized (Losses)	(583)	(1,305)
Held-to-maturity securities, Fair Value	$ 57,337	$ 69,829

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Investment Securities - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 4) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 2,883	$ 7,331
Less than 12 months, Unrealized Loss	117	123
12 months or more, Fair Value	22,466	22,972
12 months or more, Unrealized Loss	684	863
Total, Fair Value	25,349	30,303
Total, Unrealized Loss	801	986
U.S. Government and government-sponsored securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	0	0
Less than 12 months, Unrealized Loss	0	0
12 months or more, Fair Value	2,564	4,328
12 months or more, Unrealized Loss	76	91
Total, Fair Value	2,564	4,328
Total, Unrealized Loss	76	91
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	0	0
Less than 12 months, Unrealized Loss	0	0
12 months or more, Fair Value	3,687	3,730
12 months or more, Unrealized Loss	312	269
Total, Fair Value	3,687	3,730
Total, Unrealized Loss	312	269
U.S. Government-sponsored and guaranteed mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	0	7,331
Less than 12 months, Unrealized Loss	0	123
12 months or more, Fair Value	16,215	14,914
12 months or more, Unrealized Loss	296	503
Total, Fair Value	16,215	22,245
Total, Unrealized Loss	296	$ 626
Other securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	2,883
Less than 12 months, Unrealized Loss	117
12 months or more, Fair Value	0
12 months or more, Unrealized Loss	0
Total, Fair Value	2,883
Total, Unrealized Loss	$ 117

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Investment Securities - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 5) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, Fair Value	$ 58	$ 40,775
Less than 12 months, Unrealized Loss	0	764
12 months or more, Fair Value	47,174	21,486
12 months or more, Unrealized Loss	746	786
Total, Fair Value	47,232	62,261
Total, Unrealized Loss	746	1,550
U.S. Government and government-sponsored securities
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, Fair Value	0	5,956
Less than 12 months, Unrealized Loss	0	42
12 months or more, Fair Value	9,222	4,606
12 months or more, Unrealized Loss	155	189
Total, Fair Value	9,222	10,562
Total, Unrealized Loss	155	231
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, Fair Value	0	432
Less than 12 months, Unrealized Loss	0	14
12 months or more, Fair Value	434	0
12 months or more, Unrealized Loss	8	0
Total, Fair Value	434	432
Total, Unrealized Loss	8	14
U.S. Government sponsored and guaranteed mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, Fair Value	58	34,387
Less than 12 months, Unrealized Loss	0	708
12 months or more, Fair Value	37,518	16,880
12 months or more, Unrealized Loss	583	597
Total, Fair Value	37,576	51,267
Total, Unrealized Loss	$ 583	$ 1,305

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Investment Securities - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 6) - Non-agency mortgage-backed securities - USD ($) $ in Thousands		Mar. 31, 2019	Jun. 30, 2018
Schedule Of Debt Securities [Line Items]
Less than 12 months, Fair Value	[1]	$ 268	$ 0
Less than 12 months, Unrealized Loss	[1]	13	0
12 months or more, Fair Value	[1]	947	1,134
12 months or more, Unrealized Loss	[1]	368	303
Total, Fair Value	[1]	1,215	1,134
Total, Unrealized Loss	[1]	$ 381	$ 303

[1] Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss.

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Investment Securities - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 7) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Less than 12 months, Fair Value	$ 3,209	$ 48,106
Less than 12 months, Unrealized Loss	130	887
12 months or more, Fair Value	70,587	45,592
12 months or more, Unrealized Loss	1,798	1,952
Total, Fair Value	73,796	93,698
Total, Unrealized Loss	$ 1,928	$ 2,839

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Investment Securities - Activity related to the credit component recognized in earnings on debt securities (Details 8) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	$ 15,983	$ 15,982
Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded	4	1
Balance at end of period	$ 15,987	$ 15,983

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Investment Securities (Detail Textuals) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($) Security	Mar. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Net gains on sales of securities	$ 6,000		$ 7,000
Other-than-temporary impairment charges on available-for-sale securities		$ 4,000	$ 1,000
Other than temporary impairment losses on non-agency mortgage-backed securities		135,000
Other-than-temporary impairment losses on other comprehensive loss		$ 131,000
Number of individual investment securities with unrealized losses | Security		80
Percentage of amortized cost basis as aggregate depreciation of investment securities		2.60%
Book value of available-for-sale securities		$ 41,042		$ 47,217
Fair Value		$ 40,378		$ 46,546
Trust Preferred Securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Number of investments in trust preferred securities | Security		3
Book value of available-for-sale securities		$ 4,000
Fair Value		$ 3,700
State and political subdivisions
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Percentage of amortized cost basis as aggregate depreciation of investment securities		1.80%
Number of available for sale securities with unrealized losses | Security		1

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Loans - Summary of loans (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Jun. 30, 2018
Loans and Leases Receivable Disclosure [Line Items]
Total loans		$ 370,016	$ 353,790
Net deferred loan costs		1,244	1,423
Allowance for loan losses		(2,962)	(2,943)
Loans, net		368,298	352,270
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Total loans	[1]	225,335	236,880
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		130,860	101,647
Real Estate | Residential construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans		1,896	2,217
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		11,077	12,215
Consumer and Other
Loans and Leases Receivable Disclosure [Line Items]
Total loans		$ 848	$ 831

[1] Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

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Loans - Loans by risk rating (Details 1) - USD ($) $ in Thousands		Mar. 31, 2019	Jun. 30, 2018
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 370,016	$ 353,790
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		363,762	345,749
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		430	1,758
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		5,824	6,283
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	225,335	236,880
Real Estate | Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		221,824	232,919
Real Estate | Residential | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	2
Real Estate | Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		3,511	3,959
Real Estate | Residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential | Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Commercial
Financing Receivable, Recorded Investment [Line Items]
Total loans		130,860	101,647
Real Estate | Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		129,099	98,626
Real Estate | Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		430	698
Real Estate | Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,331	2,323
Real Estate | Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Commercial | Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential construction
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,896	2,217
Real Estate | Residential construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,896	2,217
Real Estate | Residential construction | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential construction | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Real Estate | Residential construction | Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total loans		11,077	12,215
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		10,095	11,157
Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	1,058
Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		982	0
Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Commercial | Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Consumer and Other
Financing Receivable, Recorded Investment [Line Items]
Total loans		848	831
Consumer and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans		848	830
Consumer and Other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Consumer and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	1
Consumer and Other | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Consumer and Other | Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 0	$ 0

[1] Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

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Non-performing Assets, Past Due and Impaired Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Non Accrual Loans [Abstract]
Total non-accrual loans	$ 3,783	$ 4,392
Accruing loans past due 90 days or more	0	32
Total non-performing loans	3,783	4,424
Other real estate owned	1,309	1,381
Total non-performing assets	$ 5,092	$ 5,805
Total non-performing loans to total loans	1.02%	1.25%
Total non-performing assets to total assets	0.97%	1.10%
Real Estate | Residential
Non Accrual Loans [Abstract]
Total non-accrual loans	$ 3,511	$ 3,959
Real Estate | Commercial
Non Accrual Loans [Abstract]
Total non-accrual loans	272	432
Consumer
Non Accrual Loans [Abstract]
Total non-accrual loans	$ 0	$ 1

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Non-performing Assets, Past Due and Impaired Loans (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 3,297	$ 1,535
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,674	54
60-89 DaysPast Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	177	238
90 days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	446	1,243
Real Estate | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,502	1,407
Real Estate | Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,879	50
Real Estate | Residential | 60-89 DaysPast Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	177	238
Real Estate | Residential | 90 days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	446	1,119
Real Estate | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	789	124
Real Estate | Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	789	0
Real Estate | Commercial | 60-89 DaysPast Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Commercial | 90 days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	124
Consumer and Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	4
Consumer and Other | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	4
Consumer and Other | 60-89 DaysPast Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer and Other | 90 days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

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Non-performing Assets, Past Due and Impaired Loans (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Financing Receivable, Impaired [Line Items]
Impaired loans without valuation allowance, Recorded investment	$ 2,388		$ 2,388		$ 3,962
Impaired loans without valuation allowance, Unpaid principal balance	2,534		2,534		4,784
Impaired loans without valuation allowance, Average Recorded investment	2,428	$ 3,459	2,881	$ 3,483
Impaired loans without valuation allowance, Interest Income Recognized	13	27	59	87
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis	10	0	43	7
Real Estate | Residential
Financing Receivable, Impaired [Line Items]
Impaired loans without valuation allowance, Recorded investment	2,115		2,115		2,732
Impaired loans without valuation allowance, Unpaid principal balance	2,261		2,261		2,870
Impaired loans without valuation allowance, Average Recorded investment	2,089	2,194	2,300	2,193
Impaired loans without valuation allowance, Interest Income Recognized	13	5	52	21
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis	10	0	43	7
Real Estate | Commercial
Financing Receivable, Impaired [Line Items]
Impaired loans without valuation allowance, Recorded investment	273		273		1,230
Impaired loans without valuation allowance, Unpaid principal balance	273		273		$ 1,914
Impaired loans without valuation allowance, Average Recorded investment	339	1,265	581	1,290
Impaired loans without valuation allowance, Interest Income Recognized	0	22	7	66
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis	$ 0	$ 0	$ 0	$ 0

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Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Allowance for loan losses:
Beginning balance	$ 2,864	$ 2,965	$ 2,943	$ 2,780
Charge-offs	(12)	(94)	(73)	(116)
Recoveries	10	18	592	50
(Credit) provision	100	50	(500)	225
Ending Balance	2,962	2,939	2,962	2,939
Real Estate | Residential
Allowance for loan losses:
Beginning balance	1,465	1,417	1,385	1,359
Charge-offs	0	(83)	(42)	(83)
Recoveries	3	10	11	27
(Credit) provision	17	147	131	188
Ending Balance	1,485	1,491	1,485	1,491
Real Estate | Commercial
Allowance for loan losses:
Beginning balance	1,196	1,215	1,194	1,164
Charge-offs	0	0	0	0
Recoveries	0	0	560	0
(Credit) provision	98	(58)	(460)	(7)
Ending Balance	1,294	1,157	1,294	1,157
Real Estate | Residential Construction
Allowance for loan losses:
Beginning balance	5	9	14	6
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision	7	1	(2)	4
Ending Balance	12	10	12	10
Commercial
Allowance for loan losses:
Beginning balance	110	79	80	76
Charge-offs	0	0	0	0
Recoveries	4	4	10	10
(Credit) provision	(29)	(8)	(5)	(11)
Ending Balance	85	75	85	75
Consumer and Other
Allowance for loan losses:
Beginning balance	32	131	135	86
Charge-offs	(12)	(11)	(31)	(33)
Recoveries	3	4	11	13
(Credit) provision	4	6	(88)	64
Ending Balance	27	130	27	130
Unallocated
Allowance for loan losses:
Beginning balance	56	114	135	89
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision	3	(38)	(76)	(13)
Ending Balance	$ 59	$ 76	$ 59	$ 76

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Allowance for Loan Losses - Summary of impaired and non-impaired loans and allowance for loan losses (Details 1) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		$ 2,962	$ 2,864	$ 2,943	$ 2,939	$ 2,965	$ 2,780
Loans: Ending balance Impaired loans/Non-impaired loans		370,016		353,790
Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		2,388		3,962
Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		2,962		2,943
Loans: Ending balance Impaired loans/Non-impaired loans		367,628		349,828
Real Estate | Residential
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		1,485	1,465	1,385	1,491	1,417	1,359
Loans: Ending balance Impaired loans/Non-impaired loans	[1]	225,335		236,880
Real Estate | Residential | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		2,115		2,732
Real Estate | Residential | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		1,485		1,385
Loans: Ending balance Impaired loans/Non-impaired loans		223,220		234,148
Real Estate | Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		1,294	1,196	1,194	1,157	1,215	1,164
Loans: Ending balance Impaired loans/Non-impaired loans		130,860		101,647
Real Estate | Commercial | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		273		1,230
Real Estate | Commercial | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		1,294		1,194
Loans: Ending balance Impaired loans/Non-impaired loans		130,587		100,417
Real Estate | Residential Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		12	5	14	10	9	6
Loans: Ending balance Impaired loans/Non-impaired loans		1,896		2,217
Real Estate | Residential Construction | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		0		0
Real Estate | Residential Construction | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		12		14
Loans: Ending balance Impaired loans/Non-impaired loans		1,896		2,217
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		85	110	80	75	79	76
Loans: Ending balance Impaired loans/Non-impaired loans		11,077		12,215
Commercial | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		0		0
Commercial | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		85		80
Loans: Ending balance Impaired loans/Non-impaired loans		11,077		12,215
Consumer and Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		27	32	135	130	131	86
Loans: Ending balance Impaired loans/Non-impaired loans		848		831
Consumer and Other | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		0		0
Consumer and Other | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		27		135
Loans: Ending balance Impaired loans/Non-impaired loans		848		831
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		59	$ 56	135	$ 76	$ 114	$ 89
Unallocated | Impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		0		0
Loans: Ending balance Impaired loans/Non-impaired loans		0		0
Unallocated | Non-impaired loan receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans		59		135
Loans: Ending balance Impaired loans/Non-impaired loans		$ 0		$ 0

[1] Residential real estate loans include one-to four-family mortgage loans, second mortgage loans, and home equity lines of credit.

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Stock-Based Incentive Plan (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Feb. 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 111	$ 112	$ 340	$ 336
Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of stock options and restricted stock authorized					634,573
Vesting percentage of stock awards granted			20.00%
Incentive Plan | Employee Stock Option | Employees, Officers And Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of stock options and restricted stock authorized					453,267
Incentive Plan | Restricted Stock | Employees, Officers And Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of stock options and restricted stock authorized					181,306

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ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS - Components of accumulated other comprehensive loss and related tax effects (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract]
Net unrealized loss on securities available-for-sale	$ (664)	$ (671)
Tax effect	143	149
Accumulated other comprehensive loss	$ (521)	$ (522)

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FAIR VALUE MEASURMENTS - Assets measured at fair value on a recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Available-for-sale:
Assets measured at fair value	$ 40,378	$ 46,546
U.S. government and government-sponsored securities
Available-for-sale:
Assets measured at fair value	2,564	4,328
Corporate bonds
Available-for-sale:
Assets measured at fair value	3,687	3,730
U.S. Government-sponsored and guaranteed mortgage-backed securities
Available-for-sale:
Assets measured at fair value	21,635	25,251
Non-agency mortgage-backed securities
Available-for-sale:
Assets measured at fair value	2,609	3,237
Other securities
Available-for-sale:
Assets measured at fair value	9,883	10,000
Level 1
Available-for-sale:
Assets measured at fair value	0	0
Level 1 | U.S. government and government-sponsored securities
Available-for-sale:
Assets measured at fair value	0	0
Level 1 | Corporate bonds
Available-for-sale:
Assets measured at fair value	0	0
Level 1 | U.S. Government-sponsored and guaranteed mortgage-backed securities
Available-for-sale:
Assets measured at fair value	0	0
Level 1 | Non-agency mortgage-backed securities
Available-for-sale:
Assets measured at fair value	0	0
Level 1 | Other securities
Available-for-sale:
Assets measured at fair value	0	0
Level 2
Available-for-sale:
Assets measured at fair value	30,495	36,546
Level 2 | U.S. government and government-sponsored securities
Available-for-sale:
Assets measured at fair value	2,564	4,328
Level 2 | Corporate bonds
Available-for-sale:
Assets measured at fair value	3,687	3,730
Level 2 | U.S. Government-sponsored and guaranteed mortgage-backed securities
Available-for-sale:
Assets measured at fair value	21,635	25,251
Level 2 | Non-agency mortgage-backed securities
Available-for-sale:
Assets measured at fair value	2,609	3,237
Level 2 | Other securities
Available-for-sale:
Assets measured at fair value	0	0
Level 3
Available-for-sale:
Assets measured at fair value	9,883	10,000
Level 3 | U.S. government and government-sponsored securities
Available-for-sale:
Assets measured at fair value	0	0
Level 3 | Corporate bonds
Available-for-sale:
Assets measured at fair value	0	0
Level 3 | U.S. Government-sponsored and guaranteed mortgage-backed securities
Available-for-sale:
Assets measured at fair value	0	0
Level 3 | Non-agency mortgage-backed securities
Available-for-sale:
Assets measured at fair value	0	0
Level 3 | Other securities
Available-for-sale:
Assets measured at fair value	$ 9,883	$ 10,000

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FAIR VALUE MEASURMENTS - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details 1) - Fair value measurements non recurring basis - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 714		$ 714		$ 270
Total Losses	0	$ 29	101	$ 38
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	220		220		160
Total Losses	0	29	38	29
Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	494		494		110
Total Losses	0	$ 0	63	$ 9
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 1 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 1 | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 2 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 2 | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0		0		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	714		714		270
Level 3 | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	220		220		160
Level 3 | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 494		$ 494		$ 110

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FAIR VALUE MEASURMENTS - Company's financial instruments, all of which are held or issued for purposes other than trading (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Financial assets:
Securities available-for-sale	$ 40,378	$ 46,546
Securities held-to-maturity	68,000	81,828
Accrued interest receivable	1,475	1,361
Financial liabilities:
Mortgagors' escrow accounts	1,583	3,123
Carrying Amount
Financial assets:
Cash and cash equivalents	15,580	10,102
Securities available-for-sale	40,378	46,546
Securities held-to-maturity	68,245	82,816
Federal Home Loan Bank stock	3,633	4,206
Loans, net	368,298	352,270
Accrued interest receivable	1,475	1,361
Financial liabilities:
Deposits	373,197	371,585
Mortgagors' escrow accounts	1,583	3,123
Federal Home Loan Bank advances	62,158	63,199
Securities sold under agreements to repurchase	796	664
Accrued interest payable	206	158
Fair Value
Financial assets:
Cash and cash equivalents	15,580	10,102
Securities available-for-sale	40,378	46,546
Securities held-to-maturity	68,000	81,828
Federal Home Loan Bank stock	3,633	4,206
Loans, net	355,455	346,511
Accrued interest receivable	1,475	1,361
Financial liabilities:
Deposits	373,840	372,563
Mortgagors' escrow accounts	1,583	3,123
Federal Home Loan Bank advances	62,102	62,428
Securities sold under agreements to repurchase	796	664
Accrued interest payable	206	158
Level 1
Financial assets:
Cash and cash equivalents	15,580	10,102
Securities available-for-sale	0	0
Securities held-to-maturity	0	0
Federal Home Loan Bank stock	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Mortgagors' escrow accounts	0	0
Federal Home Loan Bank advances	0	0
Securities sold under agreements to repurchase	0	0
Accrued interest payable	0	0
Level 2
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	30,495	36,546
Securities held-to-maturity	68,000	81,828
Federal Home Loan Bank stock	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Mortgagors' escrow accounts	0	0
Federal Home Loan Bank advances	62,102	62,428
Securities sold under agreements to repurchase	796	664
Accrued interest payable	0	0
Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	9,883	10,000
Securities held-to-maturity	0	0
Federal Home Loan Bank stock	3,633	4,206
Loans, net	355,455	346,511
Accrued interest receivable	1,475	1,361
Financial liabilities:
Deposits	373,840	372,563
Mortgagors' escrow accounts	1,583	3,123
Federal Home Loan Bank advances	0	0
Securities sold under agreements to repurchase	0	0
Accrued interest payable	$ 206	$ 158

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Subsequent Events (Detail Textuals) - $ / shares	Apr. 03, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Subsequent Event [Line Items]
Cash dividend declared (in dollars per share)		$ 0.07	$ 0.13	$ 0.06	$ 0.05	$ 0.05	$ 0.04
Subsequent Event
Subsequent Event [Line Items]
Dividends payable declared date	Apr. 03, 2019
Cash dividend declared (in dollars per share)	$ 0.07
Dividends payable record date	Apr. 17, 2019
Dividends payable date	May 01, 2019

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Commitments to Extend Credit (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Commitments to extend credit:
Outstanding commitments	$ 34,906	$ 31,692
Commitments to grant loans
Commitments to extend credit:
Outstanding commitments	2,469	3,594
Unadvanced construction loans
Commitments to extend credit:
Outstanding commitments	11,647	8,822
Unadvanced lines of credit
Commitments to extend credit:
Outstanding commitments	20,395	18,881
Standby letters of credit
Commitments to extend credit:
Outstanding commitments	$ 395	$ 395