Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Summary of Loans Receivable

Loans receivable are summarized as follows (in thousands):

	March 31,			June 30,
	2020			2019
Mortgage loans:
Residential	$	266,684		$	265,167
Commercial		775,378			651,396
Construction		24,929			13,231
Net deferred loan origination costs		925			1,031
Total mortgage loans		1,067,916			930,825
Commercial and consumer loans:
Commercial loans		128,869			133,614
Home equity lines of credit		30,994			33,204
Consumer and overdrafts		444			365
Net deferred loan origination costs		805			777
Total commercial and consumer loans		161,112			167,960
Total loans receivable		1,229,028			1,098,785
Allowance for loan losses		(8,346	)		(5,664	)
Loans receivable, net	$	1,220,682		$	1,093,121

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, 2020 and 2019 (in thousands):

	Three Months Ended March 31, 2020
	Beginning Allowance		Provision (credit)			Charge-offs			Recoveries		Ending Allowance
Originated:
Residential	$	352	$	102		$	-		$	3	$	457
Commercial		4,568		1,099			-			125		5,792
Construction		273		173			-			-		446
Commercial loans		953		600			-			-		1,553
Home equity lines of credit		60		23			-			2		85
Consumer and overdrafts		10		11			(9	)		1		13
Total	$	6,216	$	2,008		$	(9	)	$	131	$	8,346
	Three Months Ended March 31, 2019
	Beginning Allowance		Provision (credit)			Charge-offs			Recoveries		Ending Allowance
Originated:
Residential	$	379	$	8		$	-		$	2	$	389
Commercial		3,261		(26	)		-			-		3,235
Construction		258		(58	)		-			-		200
Commercial loans		880		69			-			2		951
Home equity lines of credit		82		(8	)		-			-		74
Consumer and overdrafts		10		6			(11	)		2		7
Acquired:
Residential		73		16			-			-		89
Total	$	4,943	$	7		$	(11	)	$	6	$	4,945

	Nine Months Ended March 31, 2020
	Beginning Allowance		Provision (credit)			Charge-offs			Recoveries		Ending Allowance
Originated:
Residential	$	363	$	86		$	-		$	8	$	457
Commercial		3,853		1,814			-			125		5,792
Construction		159		287			-			-		446
Commercial loans		1,130		573			(150	)		-		1,553
Home equity lines of credit		65		10			-			10		85
Consumer and installment loans		11		37			(42	)		7		13
Acquired:
Residential		83		(52	)		(31	)		-		-
Total	$	5,664	$	2,755		$	(223	)	$	150	$	8,346
	Nine Months Ended March 31, 2019
	Beginning Allowance		Provision (credit)			Charge-offs			Recoveries		Ending Allowance
Originated:
Residential	$	386	$	(4	)	$	-		$	7	$	389
Commercial		3,073		276			(114	)		-		3,235
Construction		505		(401	)		-			96		200
Commercial loans		780		169			-			2		951
Home equity lines of credit		80		(6	)		-			-		74
Consumer and installment loans		7		21			(27	)		6		7
Acquired:
Residential		73		16			-			-		89
Total	$	4,904	$	71		$	(141	)	$	111	$	4,945

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, 2020 and June 30, 2019 (in thousands):

	March 31, 2020
	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	$	2,458	$	263,478	$	748	$	266,684	$	118	$	339	$	-	$	457
Commercial		-		774,501		877		775,378		-		5,792		-		5,792
Construction		-		24,929		-		24,929		-		446		-		446
Commercial loans		1,960		126,909		-		128,869		1		1,552		-		1,553
Home equity lines of credit		349		30,502		143		30,994		4		81		-		85
Consumer and overdrafts		-		444		-		444		-		13		-		13
Total	$	4,767	$	1,220,763	$	1,768	$	1,227,298	$	123	$	8,223	$	-	$	8,346
	June 30, 2019
	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	$	1,774	$	262,124	$	1,269	$	265,167	$	130	$	233	$	83	$	446
Commercial		1,418		649,088		890		651,396		-		3,853		-		3,853
Construction		-		13,231		-		13,231		-		159		-		159
Commercial loans		2,016		131,598		-		133,614		39		1,091		-		1,130
Home equity lines of credit		689		32,359		156		33,204		4		61		-		65
Consumer and overdrafts		-		365		-		365		-		11		-		11
Total	$	5,897	$	1,088,765	$	2,315	$	1,096,977	$	173	$	5,408	$	83	$	5,664

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, 2020 and June 30, 2019 (in thousands):

	March 31, 2020
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential	$	2,131	$	2,024	$	-
Commercial loans		2,105		1,934		-
Home equity lines of credit		389		338		-
With an allowance recorded:
Residential		373		434		118
Commercial loans		26		26		1
Home equity lines of credit		11		11		4
Total	$	5,035	$	4,767	$	123

	June 30, 2019
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential	$	1,061	$	1,028	$	-
Commercial		1,471		1,418		-
Commercial loans		2,007		1,836		-
Home equity lines of credit		750		678		-
With an allowance recorded:
Residential		723		746		130
Commercial loans		180		180		39
Home equity lines of credit		11		11		4
Total	$	6,203	$	5,897	$	173

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, 2020 and 2019 (in thousands):

	Three months ended					Three months ended
	March 31, 2020					March 31, 2019
	Average Recorded Investment		Interest Income Recognized			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential	$	2,060	$	13		$	1,317	$	9
Commercial		485		9			1,408		11
Commercial loans		1,932		51			1,862		42
Home equity lines of credit		403		7			616		-
With an allowance recorded:
Residential		435		4			750		4
Commercial loans		38		-			39		-
Home equity lines of credit		11		(6	)		87		-
Total	$	5,364	$	78		$	6,079	$	66
	Nine Months Ended					Nine Months Ended
	March 31, 2020					March 31, 2019
	Average Recorded Investment		Interest Income Recognized			Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential	$	2,050	$	40		$	1,516	$	20
Commercial		946		149			1,494		37
Construction		-		-			2,131		138
Commercial loans		2,015		154			628		9
Home equity lines of credit		574		20			-		-
With an allowance recorded:
Residential		437		11			752		11
Construction		-		-			1,130		-
Commercial loans		42		1			40		1
Home equity lines of credit		11		-			88		-
Total	$	6,075	$	375		$	7,779	$	216

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, 2020 and June 30, 2019 (in thousands):

					Loans Past Due Over 90 Days
	Nonaccrual				and Still Accruing
	March 31,		June 30,		March 31,		June 30,
	2020		2019		2020		2019
Originated:
Residential	$	1,242	$	536	$	-	$	-
Commercial loans		-		150		-		-
Home equity lines of credit		42		383		-		-
Consumer and overdrafts		-		-		-		1
Acquired:
Residential		222		795		-		-
Commercial		-		568		-		-
Home equity lines of credit		296		294		-		-
Total	$	1,802	$	2,726	$	-	$	1

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, 2020 and June 30, 2019 (in thousands):

	March 31, 2020
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current		Total
Originated:
Residential	$	58	$	-	$	576	$	634	$	225,823	$	226,457
Commercial		-		-		-		-		733,781		733,781
Construction		-		-		-		-		24,929		24,929
Commercial loans		252		-		-		252		128,431		128,683
Home equity lines of credit		75		12		30		117		27,738		27,855
Consumer and overdrafts		-		-		-		-		427		427
Total originated		385		12		606		1,003		1,141,129		1,142,132
Acquired:
Residential		288		214		221		723		39,504		40,227
Commercial		-		-		-		-		41,597		41,597
Commercial loans		-		-		-		-		186		186
Home equity lines of credit		59		-		317		376		2,763		3,139
Consumer and overdrafts		-		-		-		-		17		17
Total acquired		347		214		538		1,099		84,067		85,166
Total	$	732	$	226	$	1,144	$	2,102	$	1,225,196	$	1,227,298

	June 30, 2019
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current		Total
Originated:
Residential	$	-	$	-	$	86	$	86	$	217,970	$	218,056
Commercial		-		-		-		-		600,675		600,675
Construction		-		-		-		-		13,231		13,231
Commercial loans		-		150		-		150		133,286		133,436
Home equity lines of credit		344		-		312		656		28,767		29,423
Consumer and overdrafts		-		-		1		1		348		349
Total originated		344		150		399		893		994,277		995,170
Acquired:
Residential		220		116		709		1,045		46,066		47,111
Commercial		-		-		568		568		50,153		50,721
Commercial loans		-		-		-		-		178		178
Home equity lines of credit		-		67		296		363		3,418		3,781
Consumer and overdrafts		-		-		-		-		16		16
Total acquired		220		183		1,573		1,976		99,831		101,807
Total	$	564	$	333	$	1,972	$	2,869	$	1,094,108	$	1,096,977

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, 2020
	Pass		Special Mention		Substandard		Total
Originated:
Residential	$	224,719	$	481	$	1,257	$	226,457
Commercial		733,449		332		-		733,781
Construction		24,929		-		-		24,929
Commercial loans		123,174		3,986		1,523		128,683
Home equity lines of credit		27,382		406		67		27,855
Consumer and overdrafts		427		-		-		427
Total originated		1,134,080		5,205		2,847		1,142,132
Acquired:
Residential		39,171		201		855		40,227
Commercial		40,720		-		877		41,597
Commercial loans		186		-		-		186
Home equity lines of credit		2,700		58		381		3,139
Consumer and overdrafts		17		-		-		17
Total acquired		82,794		259		2,113		85,166
Total	$	1,216,874	$	5,464	$	4,960	$	1,227,298

	June 30, 2019
	Pass		Special Mention		Substandard		Total
Originated:
Residential	$	216,438	$	1,071	$	547	$	218,056
Commercial		600,216		339		120		600,675
Construction		13,231		-		-		13,231
Commercial loans		123,361		6,423		3,652		133,436
Home equity lines of credit		28,996		67		360		29,423
Consumer and overdrafts		349		-		-		349
Total originated		982,591		7,900		4,679		995,170
Acquired:
Residential		44,959		211		1,941		47,111
Commercial		45,726		3,537		1,458		50,721
Commercial loans		178		-		-		178
Home equity lines of credit		3,331		68		382		3,781
Consumer and overdrafts		16		-		-		16
Total acquired		94,210		3,816		3,781		101,807
Total	$	1,076,801	$	11,716	$	8,460	$	1,096,977

Schedule of Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans as of March 31, 2020 and June 30, 2019 is as follows (in thousands):

	March 31,		June 30,
	2020		2019
Residential	$	748	$	1,186
Commercial		877		890
Home equity lines of credit		143		156
Carrying amount, net of allowance of $0 and $83, respectively	$	1,768	$	2,232

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 March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
Beginning balance	$	174		$	219		$	192		$	245
New loans acquired		-			-			-			-
Accretion income		(9	)		(14	)		(27	)		(40	)
Reclassification from non-accretable difference		-			-			-			-
Disposals		-			-			-			-
Ending balance	$	165		$	205		$	165		$	205