Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Mar. 31, 2024

Categories of Loans

Classes of loans include:

	March 31, 2024			June 30, 2023
Real estate loans:
One- to four-family	$	176,117		$	163,854
Multi-family		127,757			89,649
Commercial		198,823			193,707
Home equity lines of credit		9,602			8,066
Construction		41,342			50,973
Commercial		89,383			79,693
Consumer		7,657			8,382
Total loans		650,681			594,324
Less:
Unearned fees and discounts, net		(370	)		(272	)
Allowance for credit losses		7,725			7,139
Loans, net	$	643,326		$	587,457

Allowance for Credit Losses

Allowance for Credit Losses

The following tables present the activity in the allowance for credit losses for the three-month and nine-month periods ended March 31, 2024 and 2023 and the year ended June 30, 2023:

	Three Months Ended March 31, 2024 Real Estate Loans
	One- to Four-Family		Multi-Family			Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,809	$	1,865		$	2,593		$	147
Provision (credit) for credit losses		16		(76	)		(280	)		—
Losses charged off		—		—			—			—
Recoveries		3		—			—			—
Balance, end of period	$	1,828	$	1,789		$	2,313		$	147
Loans:
Ending balance	$	176,117	$	127,757		$	198,823		$	9,602

	Three Months Ended March 31, 2024 (Continued)
	Construction			Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	539		$	915		$	67		$	7,935
Provision (credit) for credit losses		(2	)		(44	)		8			(378	)
Losses charged off		—			—			(10	)		(10	)
Recoveries		—			174			1			178
Balance, end of period	$	537		$	1,045		$	66		$	7,725
Loans:
Ending balance	$	41,342		$	89,383		$	7,657		$	650,681

	Nine Months Ended March 31, 2024 Real Estate Loans
	One- to Four-Family			Multi-Family		Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,898		$	1,121	$	2,369		$	121
Provision (credit) for credit losses		(73	)		668		(56	)		26
Losses charged off		—			—		—			—
Recoveries		3			—		—			—
Balance, end of period	$	1,828		$	1,789	$	2,313		$	147
Loans:
Ending balance	$	176,117		$	127,757	$	198,823		$	9,602

	Nine Months Ended March 31, 2024 (Continued)
	Construction			Commercial		Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	765		$	794	$	71		$	7,139
Provision (credit) for credit losses		(228	)		10		22			369
Losses charged off		—			—		(35	)		(35	)
Recoveries		—			241		8			252
Balance, end of period	$	537		$	1,045	$	66		$	7,725
Loans:
Ending balance	$	41,342		$	89,383	$	7,657		$	650,681

	Year Ended June 30, 2023 Real Estate Loans
	One- to Four- Family		Multi- Family			Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of year (prior to adoption of ASU 2016-13)	$	1,028	$	1,375		$	1,985		$	70
Impact of adopting ASU 2016-13		382		(140	)		385			33
Provision charged to expense		487		(114	)		(1	)		18
Losses charged off		—		—			—			—
Recoveries		1		—			—			—
Balance, end of year	$	1,898	$	1,121		$	2,369		$	121
Loans:
Ending balance	$	163,854	$	89,649		$	193,707		$	8,066

	Year Ended June 30, 2023 (Continued)
	Construction		Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of year (prior to adoption of ASU 2016-13)	$	489	$	2,025		$	80		$	7,052
Impact of adopting ASU 2016-13		192		(818	)		13			47
Provision charged to expense		84		(422	)		—			52
Losses charged off		—		(14	)		(37	)		(51	)
Recoveries		—		23			15			39
Balance, end of year	$	765	$	794		$	71		$	7,139
Loans:
Ending balance	$	50,973	$	79,693		$	8,382		$	594,324

	Three Months Ended March 31, 2023
	Real Estate Loans
	One- to Four-Family		Multi- Family			Commercial		Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,722	$	1,402		$	2,392	$	101
Provision charged to expense		268		(117	)		118		(3	)
Losses charged off		—		—			—		—
Recoveries		—		—			—		—
Balance, end of period	$	1,990	$	1,285		$	2,510	$	98
Loans:
Ending balance	$	158,388	$	98,891		$	198,976	$	7,058

	Three Months Ended March 31, 2023 (Continued)
	Construction		Commercial		Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	585	$	871	$	93		$	7,166
Provision charged to expense		101		12		(12	)		367
Losses charged off		—		—		(9	)		(9	)
Recoveries		—		6		5			11
Balance, end of period	$	686	$	889	$	77		$	7,535
Loans:
Ending balance	$	42,881	$	71,129	$	8,491		$	585,814

	Nine Months Ended March 31, 2023
	Real Estate Loans
	One- to Four-Family		Multi- Family			Commercial		Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period (prior to adoption of ASU 2016-13)	$	1,028	$	1,375		$	1,985	$	70
Impact of adopting ASU 2016-13		382		(140	)		385		33
Provision charged to expense		579		50			140		(5	)
Losses charged off		—		—			—		—
Recoveries		1		—			—		—
Balance, end of period	$	1,990	$	1,285		$	2,510	$	98
Loans:
Ending balance	$	158,388	$	98,891		$	198,976	$	7,058

	Nine Months Ended March 31, 2023 (Continued)
	Construction		Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period (prior to adoption of ASU 2016-13)	$	489	$	2,025		$	80		$	7,052
Impact of adopting ASU 2016-13		192		(818	)		13			47
Provision charged to expense		5		(332	)		5			442
Losses charged off		—		(4	)		(30	)		(34	)
Recoveries		—		18			9			28
Balance, end of period	$	686	$	889		$	77		$	7,535
Loans:
Ending balance	$	42,881	$	71,129		$	8,491		$	585,814

Credit Risk Profile of Association's Loan Portfolio Based on Risk Rating Category and Calendar Year of Origination

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and calendar year of origination as of March 31, 2024 and June 30, 2023 (in thousands):

March 31, 2024

Risk Rating	2024		2023		2022		2021		2020		Prior Years		Total
One- to Four-Family
Pass	$	7,525	$	40,980	$	52,989	$	25,080	$	15,651	$	33,618	$	175,843
Special Mention		—		—		—		77		—		—		77
Substandard		—		14		5		5		—		173		197
Total	$	7,525	$	40,994	$	52,994	$	25,162	$	15,651	$	33,791	$	176,117
Multi-Family
Pass	$	320	$	10,385	$	51,405	$	20,350	$	22,898	$	22,163	$	127,521
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		236		236
Total	$	320	$	10,385	$	51,405	$	20,350	$	22,898	$	22,399	$	127,757
Commercial Real Estate
Pass	$	1,926	$	24,432	$	61,466	$	27,898	$	31,072	$	50,797	$	197,591
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		150		830		252		1,232
Total	$	1,926	$	24,432	$	61,466	$	28,048	$	31,902	$	51,049	$	198,823
Home Equity Line of Credit
Pass	$	334	$	3,393	$	1,936	$	1,533	$	895	$	1,511	$	9,602
Special Mention		—		—		—		—		—		—		—

Substandard		—		—		—		—		—		—		—
Total	$	334	$	3,393	$	1,936	$	1,533	$	895	$	1,511	$	9,602
Construction
Pass	$	2,294	$	35,753	$	3,069	$	—	$	—	$	226	$	41,342
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	2,294	$	35,753	$	3,069	$	—	$	—	$	226	$	41,342
Commercial Business
Pass	$	3,496	$	36,107	$	14,963	$	10,441	$	8,103	$	14,374	$	87,484
Special Mention		—		—		—		—		—		—		—
Substandard		—		133		32		190		1,488		56		1,899
Total	$	3,496	$	36,240	$	14,995	$	10,631	$	9,591	$	14,430	$	89,383
Consumer
Pass	$	742	$	3,199	$	2,129	$	970	$	483	$	134	$	7,657
Special Mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	742	$	3,199	$	2,129	$	970	$	483	$	134	$	7,657
Total Loans
Pass	$	16,637	$	154,249	$	187,957	$	86,272	$	79,102	$	122,823	$	647,040
Special Mention		—		—		—		77		—		—		77
Substandard		—		147		37		345		2,318		717		3,564
Total	$	16,637	$	154,396	$	187,994	$	86,694	$	81,420	$	123,540	$	650,681

June 30, 2023

Risk Rating	2023		2022		2021		2020		2019		Prior Years		Total
One- to Four-Family
Pass	$	22,032	$	56,054	$	27,843	$	18,468	$	5,996	$	32,729	$	163,122
Watch		—		—		—		—		—		335		335
Substandard		14		6		94		61		222		—		397
Total	$	22,046	$	56,060	$	27,937	$	18,529	$	6,218	$	33,064	$	163,854
Multi-Family
Pass	$	674	$	37,826	$	10,647	$	14,399	$	8,587	$	17,272	$	89,405
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		244		—		244
Total	$	674	$	37,826	$	10,647	$	14,399	$	8,831	$	17,272	$	89,649
Commercial Real Estate
Pass	$	12,214	$	63,645	$	29,320	$	32,502	$	5,844	$	49,239	$	192,764
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		862		81		—		943
Total	$	12,214	$	63,645	$	29,320	$	33,364	$	5,925	$	49,239	$	193,707
Home Equity Line of Credit
Pass	$	982	$	2,554	$	1,301	$	1,035	$	789	$	1,405	$	8,066
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	982	$	2,554	$	1,301	$	1,035	$	789	$	1,405	$	8,066
Construction
Pass	$	2,882	$	29,188	$	10,432	$	8,471	$	—	$	—	$	50,973
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Total	$	2,882	$	29,188	$	10,432	$	8,471	$	—	$	—	$	50,973

Commercial Business
Pass	$	12,449	$	20,004	$	17,673	$	8,797	$	7,669	$	8,841	$	75,433
Watch		—		—		—		—		—		—		—
Substandard		2,779		59		174		1,189		57		2		4,260
Total	$	15,228	$	20,063	$	17,847	$	9,986	$	7,726	$	8,843	$	79,693
Consumer
Pass	$	2,391	$	3,181	$	1,653	$	834	$	211	$	107	$	8,377
Watch		—		—		—		—		—		—		—
Substandard		—		—		1		—		—		4		5
Total	$	2,391	$	3,181	$	1,654	$	834	$	211	$	111	$	8,382
Total Loans
Pass	$	53,624	$	212,452	$	98,869	$	84,506	$	29,096	$	109,593	$	588,140
Watch		—		—		—		—		—		335		335
Substandard		2,793		65		269		2,112		604		6		5,849
Total	$	56,417	$	212,517	$	99,138	$	86,618	$	29,700	$	109,934	$	594,324

Association's Loan Portfolio Aging Analysis

The following tables present the Company’s loan portfolio aging analysis:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans Receivable		Total Loans 90 Days Past Due & Accruing
March 31, 2024:
Real estate loans:
One- to four-family	$	922	$	423	$	—	$	1,345	$	174,772	$	176,117	$	—
Multi-family		—		—		—		—		127,757		127,757		—
Commercial		384		179		252		815		198,008		198,823		252
Home equity lines of credit		—		18		—		18		9,584		9,602		—
Construction		—		—		—		—		41,342		41,342		—
Commercial		573		133		—		706		88,677		89,383		—
Consumer		36		24		—		60		7,597		7,657		—
Total	$	1,915	$	777	$	252	$	2,944	$	647,737	$	650,681	$	252

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans Receivable		Total Loans 90 Days Past Due & Accruing
June 30, 2023:
Real estate loans:
One- to four-family	$	523	$	116	$	—	$	639	$	163,215	$	163,854	$	—
Multi-family		—		—		—		—		89,649		89,649		—
Commercial		153		—		—		153		193,554		193,707		—
Home equity lines of credit		—		20		—		20		8,046		8,066		—
Construction		—		—		—		—		50,973		50,973		—
Commercial		56		—		58		114		79,579		79,693		—
Consumer		47		6		2		55		8,327		8,382		—
Total	$	779	$	142	$	60	$	981	$	593,343	$	594,324	$	—

Nonaccrual with no Allowance for Credit Losses and Nonaccrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded at March 31, 2024 and June 30, 2023:

	March 31, 2024				June 30, 2023
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual		Nonaccrual with no Allowance for Credit Losses		Nonaccrual
Mortgages on real estate:
One- to four-family	$	—	$	—	$	—	$	—
Multi-family		—		—		—		—
Commercial		—		—		—		—
Home equity lines of credit		—		—		—		—
Construction loans		—		—		—		—
Commercial business loans		—		—		—		115
Consumer loans		—		—		—		2
Total	$	—	$	—	$	—	$	117

Loans Modified as Troubled Debt Restructurings

The following table presents the recorded balance, at original cost, of troubled debt restructurings, as of June 30, 2023. All TDRs were performing according to the terms of the restructuring and were accruing as of June 30, 2023.

	June 30, 2023
Real estate loans
One- to four-family	$	189
Multi-family		—
Commercial		—
Home equity lines of credit		—
Total real estate loans		189
Construction loans		—
Commercial business loans		26
Consumer loans		—
Total	$	215