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LOANS
 3 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
LOANS
4.
LOANS

A summary of the balances of loans follows:

(In thousands)

 

September 30, 2022

 

 

June 30, 2022

 

Mortgage loans on real estate:

 

 

 

 

 

 

Residential:

 

 

 

 

 

 

1-4 family

 

$

143,417

 

 

$

141,073

 

Multifamily

 

 

13,055

 

 

 

14,310

 

Second mortgages and home equity lines of credit

 

 

2,514

 

 

 

1,970

 

Construction

 

 

415

 

 

 

375

 

Commercial

 

 

15,639

 

 

 

14,761

 

Total mortgage loans on real estate

 

 

175,040

 

 

 

172,489

 

Consumer loans:

 

 

 

 

 

 

Consumer

 

 

71

 

 

 

84

 

Home improvement

 

 

2,231

 

 

 

2,116

 

Total other loans

 

 

2,302

 

 

 

2,200

 

Total loans

 

 

177,342

 

 

 

174,689

 

Less: Allowance for loan losses

 

 

(1,747

)

 

 

(1,747

)

Net deferred loan fees

 

 

(350

)

 

 

(349

)

Loans, net

 

$

175,245

 

 

$

172,593

 

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

 

 

Residential Real Estate Construction

 

 

Commercial Real Estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

$

1,223

 

 

$

3

 

 

$

252

 

 

$

61

 

 

$

208

 

 

$

1,747

 

Provision (credit) for loan losses

 

 

(10

)

 

 

1

 

 

 

14

 

 

 

4

 

 

 

(9

)

 

 

-

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at September 30, 2022

 

$

1,213

 

 

$

4

 

 

$

266

 

 

$

65

 

 

$

199

 

 

$

1,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

 

$

1,262

 

 

$

-

 

 

$

279

 

 

$

58

 

 

$

123

 

 

$

1,722

 

Provision (credit) for loan losses

 

 

(37

)

 

 

-

 

 

 

(4

)

 

 

1

 

 

 

55

 

 

 

15

 

Loans charged-off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recoveries

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance at September 30, 2021

 

$

1,225

 

 

$

-

 

 

$

275

 

 

$

59

 

 

$

178

 

 

$

1,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Allowance for non-impaired loans

 

 

1,213

 

 

 

4

 

 

 

266

 

 

 

65

 

 

 

199

 

 

 

1,747

 

Total allowance for loan losses

 

$

1,213

 

 

$

4

 

 

$

266

 

 

$

65

 

 

$

199

 

 

$

1,747

 

Impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Non-impaired loans

 

 

158,986

 

 

 

415

 

 

 

15,639

 

 

 

2,302

 

 

 

-

 

 

 

177,342

 

Total loans

 

$

158,986

 

 

$

415

 

 

$

15,639

 

 

$

2,302

 

 

$

-

 

 

$

177,342

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for impaired loans

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Allowance for non-impaired loans

 

 

1,223

 

 

 

3

 

 

 

252

 

 

 

61

 

 

 

208

 

 

 

1,747

 

Total allowance for loan losses

 

$

1,223

 

 

$

3

 

 

$

252

 

 

$

61

 

 

$

208

 

 

$

1,747

 

Impaired loans

 

$

-

 

 

 

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Non-impaired loans

 

 

157,353

 

 

 

375

 

 

 

14,761

 

 

 

2,200

 

 

 

-

 

 

 

174,689

 

Total loans

 

$

157,353

 

 

$

375

 

 

$

14,761

 

 

$

2,200

 

 

$

-

 

 

$

174,689

 

At September 30, 2022 there was one consumer loan for $4,700, secured by a passbook savings account, that was 60 days past due. At June 30, 2022, there were no past due loans. At September 30, 2022 and June 30, 2022, there were no loans on non-accrual or loans past due 90 days or more and still accruing.

There were no impaired loans at September 30, 2022 or June 30, 2022.

During the three months ended September 30, 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, commercial real estate and construction 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:

 

 

 

September 30, 2022

 

 

June 30, 2022

 

(In thousands)

 

Residential Real Estate

 

 

Commercial Real Estate

 

 

Residential Real Estate

 

 

Commercial Real Estate

 

Pass

 

$

156,716

 

 

$

15,639

 

 

$

157,728

 

 

$

14,761

 

Special mention

 

 

2,685

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

$

159,401

 

 

$

15,639

 

 

$

157,728

 

 

$

14,761

 
At September 30, 2022 residential real estate included $415,000 of pass rated residential construction loans.