NET LOANS RECEIVABLE (Tables)

6 Months Ended

Dec. 31, 2022

NET LOANS RECEIVABLE

Schedule of net loans receivable

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

	December 31, 2022		June 30, 2022
Commercial:
Real estate	$	422,579	$	453,549
Commercial and industrial (1)		100,638		103,197
Construction		83,958		71,101
Total commercial		607,175		627,847
Residential mortgages		352,715		270,268
Home equity loans and lines		86,762		81,238
Consumer		18,689		22,294
		1,065,341		1,001,647
Net deferred loan costs		4,961		3,443
Allowance for loan losses		(22,192)		(22,524)
Net loans receivable	$	1,048,110	$	982,566

(1) Commercial and industrial loans included Paycheck Protection Program (“PPP”) loans of $180,000 and $1.8 million as of December 31, 2022 and June 30, 2022, respectively.

Schedule 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 (dollars in thousands):

	For the Three Months Ended December 31, 2022
			Residential
	Commercial		Mortgages			Home Equity	Consumer		Total
Allowance for loan losses at beginning of period	$	17,053	$	3,737	$	1,358	$	422	$	22,570
Provisions charged to operations		(1,353)		765		101		87		(400)
Loans charged off		(7)		—		—		(30)		(37)
Recoveries on loans charged off		10		31		14		4		59
Allowance for loan losses at end of period	$	15,703	$	4,533	$	1,473	$	483	$	22,192

	For the Three Months Ended December 31, 2021
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	18,273	$	3,080	$	1,344	$	374	$	23,071
Provisions charged to operations		(519)		448		3		68		—
Loans charged off		(139)		(305)		—		(26)		(470)
Recoveries on loans charged off		35		—		—		2		37
Allowance for loan losses at end of period	$	17,650	$	3,223	$	1,347	$	418	$	22,638

	For the Six Months Ended December 31, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	17,818	$	2,899	$	1,388	$	419	$	22,524
Provisions charged to operations		(2,126)		1,616		71		159		(280)
Loans charged off		(42)		(24)		—		(101)		(167)
Recoveries on loans charged off		53		42		14		6		115
Allowance for loan losses at end of period	$	15,703	$	4,533	$	1,473	$	483	$	22,192

	For the Six Months Ended December 31, 2021
			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		(174)		304		92		28		250
Loans charged off		(519)		(305)		(40)		(54)		(918)
Recoveries on loans charged off		43		—		—		4		47
Allowance for loan losses at end of period	$	17,650	$	3,223	$	1,347	$	418	$	22,638

Schedule of balance in allowance for loan losses and recorded investment

The following tables present 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):

	December 31, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses:
Related to loans individually evaluated for impairment	$	162	$	—	$	—	$	—	$	162
Related to loans collectively evaluated for impairment		15,541		4,533		1,473		483		22,030
Ending balance	$	15,703	$	4,533	$	1,473	$	483	$	22,192
Loans:
Individually evaluated for impairment	$	3,343	$	—	$	—	$	—	$	3,343
Loans collectively evaluated for impairment		603,832		352,715		86,762		18,689		1,061,998
Ending balance	$	607,175	$	352,715	$	86,762	$	18,689	$	1,065,341

	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

Schedule of impaired loans by class

The following tables present information related to impaired loans by class as of (dollars in thousands):

							For the Six Months Ended
	December 31, 2022						December 31, 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	$	2,662	$	2,642	$	—	$	2,653	$	61
Commercial and industrial		—		—		—		—		—
Construction		—		—		—		—		—
Subtotal		2,662		2,642		—		2,653		61
With an allowance recorded:
Commercial:
Real estate		701		701		162		709		18
Commercial and industrial		—		—		—		—		—
Construction		—		—		—		—		—
Subtotal		701		701		162		709		18
Total	$	3,363	$	3,343	$	162	$	3,362	$	79

							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

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):

	December 31,				June 30,
	2022				2022
			Past Due				Past Due
			90 Days				90 Days
			Still on				Still on
	Nonaccrual		Accrual		Nonaccrual		Accrual
Commercial:
Real estate	$	470	$	357	$	756	$	200
Commercial and industrial		—		1,350		38		378
Construction		—		5,364		—		—
Residential mortgages		4,118		—		3,975		—
Home equity loans and lines		1,515		—		1,672		—
Consumer		—		5,337		—		1
	$	6,103	$	12,408	$	6,441	$	579

Schedule of aging of recorded investment

The following tables present the aging of the recorded investment in loans by class of loans as of (dollars in thousands):

	December 31, 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	$	428	$	—	$	827	$	1,255	$	421,324	$	422,579
Commercial and industrial		3,381		—		1,350		4,731		95,907		100,638
Construction		384		—		5,364		5,748		78,210		83,958
Residential mortgages		761		673		608		2,042		350,673		352,715
Home equity loans and lines		718		417		439		1,574		85,188		86,762
Consumer		8		9		5,337		5,354		13,335		18,689
Total	$	5,680	$	1,099	$	13,925	$	20,704	$	1,044,637	$	1,065,341

	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

Commercial

NET LOANS RECEIVABLE

Schedule of loans by risk category

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

	December 31, 2022
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial
Real estate	$	375,156	$	6,013	$	41,410	$	—	$	422,579
Commercial and industrial		91,914		5,868		2,856		—		100,638
Construction		83,958		—		—		—		83,958
	$	551,028	$	11,881	$	44,266	$	—	$	607,175

	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