XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.1
LOANS
 9 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
LOANS
4.
LOANS

A summary of the balances of loans follows:

 

 

 

 

 

 

 

(In thousands)

 

March 31, 2022

 

 

June 30, 2021

 

Mortgage loans on real estate:

 

 

 

 

 

 

Residential:

 

 

 

 

 

 

1-4 family

 

$

140,080

 

 

$

139,687

 

Multifamily

 

 

15,353

 

 

 

15,868

 

Second mortgages and home equity lines of credit

 

 

1,955

 

 

 

2,454

 

Commercial

 

 

15,307

 

 

 

16,366

 

Total mortgage loans on real estate

 

 

172,695

 

 

 

174,375

 

Other loans:

 

 

 

 

 

 

Consumer

 

 

97

 

 

 

139

 

Home improvement

 

 

2,062

 

 

 

1,972

 

Total other loans

 

 

2,159

 

 

 

2,111

 

Total loans

 

 

174,854

 

 

 

176,486

 

Less: Allowance for loan losses

 

 

(1,747

)

 

 

(1,722

)

Net deferred loan fees

 

 

(349

)

 

 

(331

)

Loans, net

 

$

172,758

 

 

$

174,433

 

 

 

 

 

 

 

 

Mortgage loans serviced for others are not included in the accompanying unaudited consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $121,000 at March 31, 2022 and $499,000 at June 30, 2021.

 

Residential loans are subject to a blanket lien securing FHLB advances. See Note 7.

 

 

 

 

Activity in the allowance for loan losses and allocation of the allowance to loan segments follows:

(In thousands)

 

Residential Real Estate

 

 

Commercial Real Estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

 

$

1,262

 

 

$

279

 

 

$

58

 

 

$

123

 

 

$

1,722

 

Provision (credit) for loan losses

 

 

(14

)

 

 

(14

)

 

 

-

 

 

 

53

 

 

 

25

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at December 31, 2021

 

 

1,248

 

 

 

265

 

 

 

58

 

 

 

176

 

 

 

1,747

 

Provision (credit) for loan losses

 

 

(10

)

 

 

(4

)

 

 

3

 

 

 

12

 

 

 

1

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

-

 

 

 

(1

)

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at March 31, 2022

 

$

1,238

 

 

$

261

 

 

$

60

 

 

$

188

 

 

$

1,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2020

 

$

1,228

 

 

$

301

 

 

$

48

 

 

$

85

 

 

$

1,662

 

Provision (credit) for loan losses

 

 

24

 

 

 

(8

)

 

 

7

 

 

 

7

 

 

 

30

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at December 31, 2020

 

 

1,252

 

 

 

293

 

 

 

55

 

 

 

92

 

 

 

1,692

 

Provision (credit) for loan losses

 

 

(20

)

 

 

-

 

 

 

(2

)

 

 

37

 

 

 

15

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at March 31, 2021

 

$

1,232

 

 

$

293

 

 

$

53

 

 

$

129

 

 

$

1,707

 

March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Allowance for non-impaired loans

 

 

1,238

 

 

 

261

 

 

 

60

 

 

 

188

 

 

 

1,747

 

Total allowance for loan losses

 

$

1,238

 

 

$

261

 

 

$

60

 

 

$

188

 

 

$

1,747

 

Impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Non-impaired loans

 

 

157,388

 

 

 

15,307

 

 

 

2,159

 

 

 

-

 

 

 

174,854

 

Total loans

 

$

157,388

 

 

$

15,307

 

 

$

2,159

 

 

$

-

 

 

$

174,854

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Allowance for non-impaired loans

 

 

1,248

 

 

 

265

 

 

 

58

 

 

 

176

 

 

 

1,747

 

Total allowance for loan losses

 

$

1,248

 

 

$

265

 

 

$

58

 

 

$

176

 

 

$

1,747

 

Impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Non-impaired loans

 

 

157,414

 

 

 

15,508

 

 

 

2,110

 

 

 

-

 

 

 

175,032

 

Total loans

 

$

157,414

 

 

$

15,508

 

 

$

2,110

 

 

$

-

 

 

$

175,032

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Allowance for non-impaired loans

 

 

1,262

 

 

 

279

 

 

 

58

 

 

 

123

 

 

 

1,722

 

Total allowance for loan losses

 

$

1,262

 

 

$

279

 

 

$

58

 

 

$

123

 

 

$

1,722

 

Impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Non-impaired loans

 

 

158,009

 

 

 

16,366

 

 

 

2,111

 

 

 

-

 

 

 

176,486

 

Total loans

 

$

158,009

 

 

$

16,366

 

 

$

2,111

 

 

$

-

 

 

$

176,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2022 and June 30, 2021, there were no past due loans or loans on non-accrual. At March 31, 2022 and June 30, 2021, there were no loans past due ninety days or more and still accruing.

There were no impaired loans at March 31, 2022 or June 30, 2021.

 

During the three and nine months ended March 31, 2022 and 2021, there were no troubled debt restructurings or troubled debt restructurings that defaulted in the first twelve months after restructuring. Management performs a discounted cash flow calculation to determine the amount of impairment reserve required on each of the troubled debt restructurings. Any reserve required is recorded through the provision for loan losses.

Credit Quality Information

The Bank utilizes an internal loan rating system for residential real estate and commercial real estate loans as follows:

Pass: Loans in this category are considered to pose low to average risk. Passed assets are generally protected by the current net worth and paying capacity of the obligor or by the value of collateral pledged.

Special Mention: Loans in this category possess credit deficiencies or potential weaknesses deserving management’s close attention. If uncorrected, such deficiencies or weaknesses may expose the Bank to an increased risk of loss.

Substandard: Loans in this category are considered to be inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. These assets have a well-defined weakness and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans in this category 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.

Loss: Loans in this category are considered uncollectible and continuance as a bankable asset is not warranted. Loans in this category are generally charged-off.

On an annual basis, or more often if needed, the Bank formally reviews the ratings on all commercial real estate and construction loans. On a monthly basis, the Bank reviews the residential and other loan portfolios for credit quality primarily through the use of delinquency reports.

The following table presents information on the Bank’s loans by risk ratings:

 

 

 

March 31, 2022

 

 

 

 

June 30, 2021

 

(In thousands)

 

Residential Real Estate

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

Commercial Real Estate

 

Pass

 

$

157,388

 

 

$

13,103

 

 

 

 

$

158,009

 

 

$

14,342

 

Special mention

 

 

-

 

 

 

2,204

 

 

 

 

 

-

 

 

 

2,024

 

 

 

$

157,388

 

 

$

15,307

 

 

 

 

$

158,009

 

 

$

16,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2022 and June 30, 2021, there were no loans rated substandard, doubtful or loss.