Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Summary of Loans Receivable

Loans receivable are summarized as follows (in thousands):

	March 31,			June 30,
	2022			2021
Mortgage loans:
Residential	$	215,431		$	224,305
Commercial		897,424			826,624
Construction		16,894			10,151
Net deferred loan origination (fees) costs		(23	)		196
Total mortgage loans		1,129,726			1,061,276
Commercial and consumer loans:
Commercial loans		141,427			150,658
Home equity lines of credit		22,557			25,439
Consumer and overdrafts		348			345
Net deferred loan origination costs (fees)		539			(386	)
Total commercial and consumer loans		164,871			176,056
Total loans receivable		1,294,597			1,237,332
Allowance for loan losses		(8,711	)		(7,881	)
Loans receivable, net	$	1,285,886		$	1,229,451

Summary of Activity in Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and nine months ended March 31, 2022 and 2021 (in thousands):

	Three Months Ended March 31, 2022
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	319	$	1		$	-		$	4	$	324
Commercial mortgages		6,853		206			-			-		7,059
Construction		129		37			-			-		166
Commercial loans		1,067		40			(8	)		10		1,109
Home equity lines of credit		51		(4	)		-			2		49
Consumer and overdrafts		10		6			(16	)		4		4
Total	$	8,429	$	286		$	(24	)	$	20	$	8,711
	Three Months Ended March 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	334	$	(4	)	$	-		$	2	$	332
Commercial mortgages		6,872		(354	)		-			-		6,518
Construction		205		(103	)		-			-		102
Commercial loans		1,201		(437	)		(21	)		105		848
Home equity lines of credit		61		(1	)		-			2		62
Consumer and overdrafts		4		5			(6	)		-		3
Total	$	8,677	$	(894	)	$	(27	)	$	109	$	7,865

	Nine Months Ended March 31, 2022
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	337	$	(21	)	$	-		$	8	$	324
Commercial mortgages		6,435		624			-			-		7,059
Construction		102		64			-			-		166
Commercial loans		948		(121	)		(108	)		390		1,109
Home equity lines of credit		54		(11	)		-			6		49
Consumer and installment loans		5		28			(34	)		5		4
Total	$	7,881	$	563		$	(142	)	$	409	$	8,711
	Nine Months Ended March 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	373	$	(49	)	$	-		$	8	$	332
Commercial mortgages		6,913		(395	)		-			-		6,518
Construction		165		(63	)		-			-		102
Commercial loans		1,124		(187	)		(245	)		156		848
Home equity lines of credit		60		(4	)		-			6		62
Consumer and installment loans		4		20			(23	)		2		3
Total	$	8,639	$	(678	)	$	(268	)	$	172	$	7,865

Summary of Balance in Allowance for Loan Losses and Recorded investment in Loans by Portfolio Segment, and Based on Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, excluding net deferred fees and accrued interest, by portfolio segment, and based on impairment method as of March 31, 2022 and June 30, 2021 (in thousands):

	March 31, 2022
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	1,740	$	213,274	$	417	$	215,431	$	110	$	214	$	-	$	324
Commercial mortgages		4,790		891,768		866		897,424		-		7,059		-		7,059
Construction		1,113		15,781		-		16,894		-		166		-		166
Commercial loans		652		140,775		-		141,427		-		1,109		-		1,109
Home equity lines of credit		375		22,071		111		22,557		8		41		-		49
Consumer and overdrafts		-		348		-		348		-		4		-		4
Total	$	8,670	$	1,284,017	$	1,394	$	1,294,081	$	118	$	8,593	$	-	$	8,711
	June 30, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	2,356	$	221,229	$	720	$	224,305	$	113	$	224	$	-	$	337
Commercial mortgages		3,582		822,154		888		826,624		-		6,435		-		6,435
Construction		-		10,151		-		10,151		-		102		-		102
Commercial loans		1,707		148,951		-		150,658		-		948		-		948
Home equity lines of credit		414		24,902		123		25,439		8		46		-		54
Consumer and overdrafts		-		345		-		345		-		5		-		5
Total	$	8,059	$	1,227,732	$	1,731	$	1,237,522	$	121	$	7,760	$	-	$	7,881

Summary of Loans Individually Evaluated for Impairment (Excluding Loans Acquired with Deteriorated Credit Quality) by Portfolio Segment

The following tables present information related to loans individually evaluated for impairment (excluding loans acquired with deteriorated credit quality) by portfolio segment as of March 31, 2022 and June 30, 2021 (in thousands):

	March 31, 2022						June 30, 2021
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential mortgages	$	1,365	$	1,323	$	-	$	2,044	$	1,931	$	-
Commercial mortgages		4,796		4,790		-		3,582		3,582		-
Construction		1,113		1,113		-		-		-		-
Commercial loans		664		652		-		1,878		1,707		-
Home equity lines of credit		314		339		-		358		381		-
With an allowance recorded:
Residential mortgages		356		417		110		363		425		113
Home equity lines of credit		36		36		8		33		33		8
Total	$	8,644	$	8,670	$	118	$	8,258	$	8,059	$	121

Summary of Average Recorded Investment and Interest Income Recognized on Loans Individually Evaluated for Impairment, by Portfolio Segment

The tables below present the average recorded investment and interest income recognized on loans individually evaluated for impairment, by portfolio segment, for the three and nine months ended March 31, 2022 and 2021 (in thousands):

	Three months ended				Three months ended
	March 31, 2022				March 31, 2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,472	$	16	$	1,822	$	7
Commercial mortgages		4,790		12		-		-
Construction		1,113		-		-		-
Commercial loans		653		3		1,749		47
Home equity lines of credit		339		-		379		-
With an allowance recorded:
Residential mortgages		418		3		427		4
Home equity lines of credit		36		1		30		-
Total	$	8,821	$	35	$	4,407	$	58
	Nine Months Ended				Nine Months Ended
	March 31, 2022				March 31, 2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,750	$	46	$	1,905	$	27
Commercial mortgages		4,065		12		-		-
Construction		445		-		-		-
Commercial loans		704		197		1,786		144
Home equity lines of credit		343		2		384		1
With an allowance recorded:
Residential mortgages		421		10		429		11
Home equity lines of credit		35		1		24		-
Total	$	7,763	$	268	$	4,528	$	183

Nonaccrual Loans and in Loans Past Due over 90 Days Still on Accrual Status by Portfolio Segment

The following table presents the recorded investment in nonaccrual loans and in loans past due over 90 days and still on accrual status, by portfolio segment, as of March 31, 2022 and June 30, 2021 (in thousands):

					Loans Past Due Over 90 Days
	Nonaccrual				and Still Accruing
	March 31,		June 30,		March 31,		June 30,
	2022		2021		2022		2021
Residential mortgages	$	793	$	1,391	$	-	$	-
Commercial mortgages		4,790		3,582		423		411
Construction		1,113		-		-		-
Commercial loans		400		-		-		-
Home equity lines of credit		339		381		-		-
Total	$	7,435	$	5,354	$	423	$	411

Aging of Recorded Investment in Past Due Loans by Portfolio Segment

The following tables present the aging of the recorded investment in past due loans by portfolio segment as of March 31, 2022 and June 30, 2021 (in thousands):

	March 31, 2022
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	-	$	-	$	869	$	869	$	214,562	$	215,431
Commercial mortgages		-		-		1,631		1,631		895,793		897,424
Construction		-		-		1,113		1,113		15,781		16,894
Commercial loans		12		11		400		423		141,004		141,427
Home equity lines of credit		97		-		357		454		22,103		22,557
Consumer and overdrafts		-		-		-		-		348		348
Total	$	109	$	11	$	4,370	$	4,490	$	1,289,591	$	1,294,081

	June 30, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	198	$	126	$	948	$	1,272	$	223,033	$	224,305
Commercial mortgages		453		-		411		864		825,760		826,624
Construction		-		-		-		-		10,151		10,151
Commercial loans		69		76		-		145		150,513		150,658
Home equity lines of credit		-		19		381		400		25,039		25,439
Consumer and overdrafts		-		-		-		-		345		345
Total	$	720	$	221	$	1,740	$	2,681	$	1,234,841	$	1,237,522

(1)As of March 31, 2022 and June 30, 2021, loans on a COVID-19-related payment deferral are considered current.

Summary of Risk Category of Loans by Portfolio Segment

Based on the most recent analysis performed, the risk category of loans by portfolio segment is as follows (in thousands):

	March 31, 2022
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	213,685	$	156	$	1,590	$	215,431
Commercial mortgages		878,607		2,947		15,870		897,424
Construction		15,781		-		1,113		16,894
Commercial loans		137,265		21		4,141		141,427
Home equity lines of credit		22,047		82		428		22,557
Consumer and overdrafts		348		-		-		348
Total	$	1,267,733	$	3,206	$	23,142	$	1,294,081

	June 30, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	219,901	$	2,480	$	1,924	$	224,305
Commercial mortgages		809,660		1,615		15,349		826,624
Construction		9,038		1,113		-		10,151
Commercial loans		146,275		491		3,892		150,658
Home equity lines of credit		24,400		602		437		25,439
Consumer and overdrafts		345		-		-		345
Total	$	1,209,619	$	6,301	$	21,602	$	1,237,522

Schedule of Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans as of March 31, 2022 and June 30, 2021 is as follows (in thousands):

	March 31,		June 30,
	2022		2021
Residential mortgages	$	417	$	720
Commercial mortgages		866		888
Home equity lines of credit		111		123
Carrying amount, net of allowance of $0	$	1,394	$	1,731

Summary of Accretable Yield, or Income Expected to be Collected for Acquired Loans

Accretable yield, or income expected to be collected, for acquired loans is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Beginning balance	$	101		$	147		$	130		$	156
New loans acquired		-			-			-			-
Accretion income		(5	)		(9	)		(34	)		(18	)
Reclassification from non-accretable difference		-			-			-			-
Disposals		-			-			-			-
Ending balance	$	96		$	138		$	96		$	138