NET LOANS RECEIVABLE (Tables)

12 Months Ended

Jun. 30, 2022

NET LOANS RECEIVABLE

Schedule of net loans receivable

A summary of net loans receivable is as follows (dollars in thousands):

	June 30, 2022		June 30, 2021
Commercial:
Real estate	$	453,549	$	490,115
Commercial and industrial (1)		103,197		167,912
Construction		71,101		64,914
Total commercial		627,847		722,941
Residential mortgages		270,268		279,508
Home equity loans and lines		81,238		75,469
Consumer		22,294		25,568
		1,001,647		1,103,486
Net deferred loan costs		3,443		1,572
Allowance for loan losses		(22,524)		(23,259)
Net loans receivable	$	982,566	$	1,081,799

(1) Commercial and industrial loans included PPP loans of $1.8 million and $51.5 million as of June 30, 2022 and 2021, respectively.

Schedule of activity in allowance for loan losses by portfolio segment

The following table presents the activity in the allowance for loan losses by portfolio segment (dollars in thousands):

	For the Year Ended June 30, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	18,300	$	3,224	$	1,295	$	440	$	23,259
Provisions charged to operations		(829)		(7)		150		136		(550)
Loans charged off		(528)		(355)		(57)		(175)		(1,115)
Recoveries on loans charged off		875		37		—		18		930
Allowance for loan losses at end of period	$	17,818	$	2,899	$	1,388	$	419	$	22,524

	For the Year Ended June 30, 2021
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	17,570	$	3,484	$	1,303	$	494	$	22,851
Provisions charged to operations		3,774		29		114		133		4,050
Loans charged off		(3,175)		(289)		(142)		(237)		(3,843)
Recoveries on loans charged off		131		—		20		50		201
Allowance for loan losses at end of period	$	18,300	$	3,224	$	1,295	$	440	$	23,259

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands):

	June 30, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses:
Related to loans individually evaluated for impairment	$	200	$	—	$	—	$	—	$	200
Related to loans collectively evaluated for impairment		17,618		2,899	$	1,388	$	419		22,324
Ending balance	$	17,818	$	2,899	$	1,388	$	419	$	22,524
Loans:
Individually evaluated for impairment	$	3,855	$	—	$	—	$	—	$	3,855
Loans collectively evaluated for impairment		623,992		270,268		81,238		22,294		997,792
Ending balance	$	627,847	$	270,268	$	81,238	$	22,294	$	1,001,647

	June 30, 2021
			Residential
	Commercial		Mortgages			Home Equity	Consumer		Total
Allowance for loan losses:
Related to loans individually evaluated for impairment	$	1,035	$	—	$	—	$	—	$	1,035
Related to loans collectively evaluated for impairment		17,265		3,224	$	1,295	$	440		22,224
Ending balance	$	18,300	$	3,224	$	1,295	$	440	$	23,259
Loans:
Individually evaluated for impairment	$	14,136	$	—	$	—	$	—	$	14,136
Loans collectively evaluated for impairment		708,805		279,508		75,469		25,568		1,089,350
Ending balance	$	722,941	$	279,508	$	75,469	$	25,568	$	1,103,486

Schedule of balance in allowance for loan losses and recorded investment

	For the Year Ended June 30, 2021
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	17,570	$	3,484	$	1,303	$	494	$	22,851
Provisions charged to operations		3,774		29		114		133		4,050
Loans charged off		(3,175)		(289)		(142)		(237)		(3,843)
Recoveries on loans charged off		131		—		20		50		201
Allowance for loan losses at end of period	$	18,300	$	3,224	$	1,295	$	440	$	23,259

Schedule of impaired loans by class

The following table presents information related to impaired loans by class (dollars in thousands):

							For the Year Ended
	June 30, 2022						June 30, 2022
	Unpaid				Allowance for		Average		Interest
	Principal		Recorded		Loan Losses		Recorded		Income
	Balance		Investment		Allocated		Investment		Recognized
With no related allowance recorded:
Commercial:
Real estate	$	3,106	$	3,096	$	—	$	3,121	$	104
Commercial and industrial		—		—		—		—		—
Construction		—		—		—		—		—
Subtotal		3,106		3,096		—		3,121		104
With an allowance recorded:
Commercial:
Real estate		721		721		182		738		37
Commercial and industrial		39		38		18		39		—
Construction		—		—		—		—		—
Subtotal		760		759		200		777		37
Total	$	3,866	$	3,855	$	200	$	3,898	$	141

							For the Year Ended
	June 30, 2021						June 30, 2021
	Unpaid				Allowance for		Average		Interest
	Principal		Recorded		Loan Losses		Recorded		Income
	Balance		Investment		Allocated		Investment		Recognized
With no related allowance recorded:
Commercial:
Real estate	$	9,351	$	9,248	$	—	$	9,219	$	99
Commercial and industrial		253		249		—		274		—
Construction		1,340		550		—		1,002		—
Subtotal		10,944		10,047		—		10,495		99
With an allowance recorded:
Commercial:
Real estate		3,671		3,479		464		3,568		—
Commercial and industrial		1,464		610		571		1,118		24
Construction		—		—		—		—		—
Subtotal		5,135		4,089		1,035		4,686		24
Total	$	16,079	$	14,136	$	1,035	$	15,181	$	123

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans (dollars in thousands):

	June 30,				June 30,
	2022				2021
			Past Due				Past Due
			90 Days				90 Days
			Still on				Still on
	Nonaccrual		Accrual		Nonaccrual		Accrual
Commercial:
Real estate	$	756	$	200	$	10,527	$	1,476
Commercial and industrial		38		378		465		1,525
Construction		—		—		550		145
Residential mortgages		3,975		—		4,993		—
Home equity loans and lines		1,672		—		2,043		—
Consumer		—		1		187		15
	$	6,441	$	579	$	18,765	$	3,161

Schedule of aging of recorded investment

The following table presents the aging of the recorded investment in loans by class of loans (dollars in thousands):

	June 30, 2022
	30 - 59		60 - 89		90 or more
	Days		Days		Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Commercial:
Real estate	$	5	$	273	$	818	$	1,096	$	452,453	$	453,549
Commercial and industrial		—		97		402		499		102,698		103,197
Construction		—		—		—		—		71,101		71,101
Residential mortgages		398		563		1,046		2,007		268,261		270,268
Home equity loans and lines		477		412		633		1,522		79,716		81,238
Consumer		9		132		1		142		22,152		22,294
Total	$	889	$	1,477	$	2,900	$	5,266	$	996,381	$	1,001,647

	June 30, 2021
	30 - 59		60 - 89		90 or more
	Days		Days		Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Commercial:
Real estate	$	5	$	5,002	$	5,738	$	10,745	$	479,370	$	490,115
Commercial and industrial		—		318		1,970		2,288		165,624		167,912
Construction		—		—		695		695		64,219		64,914
Residential mortgages		673		1,345		2,049		4,067		275,441		279,508
Home equity loans and lines		193		97		1,233		1,523		73,946		75,469
Consumer		2		—		202		204		25,364		25,568
Total	$	873	$	6,762	$	11,887	$	19,522	$	1,083,964	$	1,103,486

Commercial

NET LOANS RECEIVABLE

Schedule of loans by risk category

The following table presents commercial loans summarized by class of loans and the risk category (dollars in thousands):

	June 30, 2022
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial
Real estate	$	403,419	$	5,767	$	44,363	$	—	$	453,549
Commercial and industrial		96,511		3,540		3,108		38		103,197
Construction		71,101		—		—		—		71,101
	$	571,031	$	9,307	$	47,471	$	38	$	627,847

	June 30, 2021
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial
Real estate	$	440,209	$	25,588	$	21,698	$	2,620	$	490,115
Commercial and industrial		149,909		9,272		8,308		423		167,912
Construction		63,747		—		1,167		—		64,914
	$	653,865	$	34,860	$	31,173	$	3,043	$	722,941