10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from   to     to

Commission file number: 001-37981

HV BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Pennsylvania	46-4351868
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

3501 Masons Mill Road Suite 401 Huntingdon Valley, Pennsylvania  19006

(Address of Principal Executive Offices and Zip Code)

(267) 280-4000

(Registrant's Telephone Number, Including Area Code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company” or an “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  As of February 10, 2018, there were 2,182,125 outstanding shares of the issuer’s common stock.

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INDEX
PART I – FINANCIAL INFORMATION				1
		Item 1 – Consolidated Financial Statements – Unaudited		1
			Notes to Unaudited Consolidated Financial Statements	6
		Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
		Item 3 – Quantitative and Qualitative Disclosures about Market Risk		49
		Item 4 – Controls and Procedures		49
	PART II- OTHER INFORMATION			50
		Item 1 – Legal Proceedings		50
		Item 1A – Risk Factors		50
		Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds		50
		Item 3 – Defaults upon Senior Securities		50
		Item 4 – Mine Safety Disclosures		50
		Item 5 – Other Information		50
		Item 6 – Exhibits		50
SIGNATURES				51

PART I – FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements – Unaudited

HV BANCORP, INC. AND SUBSIDIARY

Unaudited Consolidated Statements of Financial Condition as of December 31, 2017 and June 30, 2017 (Dollars in thousands)

	At December 31,			At June 30,
	2017			2017
Assets
Cash and due from banks	$	1,070		$	1,514
Interest-earning deposits with banks		13,732			27,063
Cash and cash equivalents		14,802			28,577
Investment securities available-for-sale, at fair value		32,863			42,820
Investment securities held-to-maturity (fair value of $12,490 at    December 31, 2017 and $11,896 at June 30, 2017)		12,433			11,809
Loans held for sale, at fair value		12,266			12,784
Loans receivable, net of allowance for loan losses of $683 at    December 31, 2017 and $593 at June 30, 2017		159,702			111,811
Bank-owned life insurance		5,936			4,005
Restricted investment in bank stock		749			643
Premises and equipment, net		1,834			1,835
Accrued interest receivable		773			620
Prepaid income taxes		38			171
Deferred income taxes, net		397			257
Prepaid expenses		266			272
Mortgage banking derivatives		519			1,001
Other assets		78			160
Total Assets	$	242,656		$	216,765
Liabilities and Shareholders' Equity
Liabilities
Deposits	$	193,108		$	170,481
Advances from the Federal Home Loan Bank		12,000			9,000
Securities sold under agreements to repurchase		2,967			2,883
Advances from borrowers for taxes and insurance		1,428			1,402
Deferred gain on sale - leaseback of building		302			310
Other liabilities		1,138			1,248
Total Liabilities		210,943			185,324
Shareholders’ Equity
Preferred  Stock, $0.01 par value, 2,000,000 shares authorized; no shares    issued and outstanding as of December 31, 2017 and June 30, 2017		—			—
Common Stock, $0.01 par value, 20,000,000 shares authorized;    2,182,125 shares issued and outstanding as of December 31,    2017 and June 30, 2017		22			22
Additional paid in capital		20,369			20,369
Retained earnings		13,962			13,547
Accumulated other comprehensive loss		(301	)		(111	)
Unearned Employee Stock Option Plan		(2,339	)		(2,386	)
Total Shareholders' Equity		31,713			31,441
Total Liabilities and Shareholders' Equity	$	242,656		$	216,765

See Notes to the Unaudited Consolidated Financial Statements

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HV BANCORP, INC. AND SUBSIDIARY

Unaudited Consolidated Statements of Income for the Three and Six Months Ended December 31, 2017 and 2016; (Dollars in thousands, except per share data)

	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	2017			2016			2017			2016
Interest Income
Interest and fees on loans	$	1,517		$	1,132		$	2,867		$	2,338
Interest and dividends on investments:
Taxable		91			72			209			132
Nontaxable		65			41			130			83
Interest on mortgage-backed securities and collateralized    mortgage obligations		94			48			179			111
Interest on interest-earning deposits		97			53			202			83
Total Interest Income		1,864			1,346			3,587			2,747
Interest Expense
Interest on deposits		231			163			447			329
Interest on advances from the Federal Home Loan Bank		45			40			75			86
Interest on securities sold under agreements to repurchase		1			1			2			2
Total Interest Expense		277			204			524			417
Net interest income		1,587			1,142			3,063			2,330
Provision for Loan Losses		80			12			79			135
Net interest income after provision for loan losses		1,507			1,130			2,984			2,195
Non-Interest Income
Fees for customer services		185			51			230			105
Increase in cash surrender value of bank owned life insurance		41			28			75			57
Gain on sale of loans, net		909			2,136			2,145			3,705
Gain on sale of available-for-sale securities		—			—			34			11
Loss from hedging instruments		(74	)		(560	)		(464	)		(939	)
Change in fair value of loans held-for-sale		(140	)		(778	)		(95	)		(695	)
Other		2			1			3			2
Total Non-Interest Income		923			878			1,928			2,246
Non-Interest Expense
Salaries and employee benefits		1,286			1,146			2,457			2,297
Occupancy		260			254			525			500
Federal deposit insurance premiums		26			32			56			70
Data processing related operations		125			138			277			285
Loss on sale of other real estate owned		3			12			3			12
Real estate owned expense		6			5			27			16
Professional fees		113			135			285			270
Other expenses		338			285			685			619
Total Non-Interest Expense		2,157			2,007			4,315			4,069
Income before income taxes		273			1			597			372
Income Tax Expense (Benefit)		94			(38	)		182			80
Net Income	$	179		$	39		$	415		$	292
Net Income per share:
Basic	$	0.08		$	N/A		$	0.19		$	N/A
Diluted	$	0.08		$	N/A		$	0.19		$	N/A

See Notes to the Unaudited Consolidated Financial Statements

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HV BANCORP, INC. AND SUBSIDIARY

Unaudited Consolidated Statements of Comprehensive Income for the Three and Six Months Ended December 31, 2017 and 2016 (Dollars in thousands)

	For the Three Months Ended  December 31,						For the Six Months Ended December 31,
	2017			2016			2017			2016
Comprehensive Income, Net of Taxes
Net Income	$	179		$	39		$	415		$	292
Other comprehensive loss, net of tax
Unrealized loss on available-for-sale securities (pre-tax    ($176) and ($490); $(205) and $(537), respectively)		(153	)		(288	)		(165	)		(309	)
Less: Reclassification for gains included in income (pre-tax $0 and $0; $(34) and $(11), respectively) (1)		—			—			25			7
Other comprehensive (loss)		(153	)		(288	)		(190	)		(316	)
Comprehensive Income (Loss)	$	26		$	(249	)	$	225		$	(24	)

(1) Amounts are included in gain on sale of available-for-sale securities on the Consolidated Statements of Income as a separate element within non-interest income. Income tax expense is included in the Consolidated Statements of Income.

See Notes to the Unaudited Consolidated Financial Statements

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HV BANCORP, INC. AND SUBSIDIARY

Unaudited Consolidated Statements of Shareholders’ Equity for the Six Months Ended December 31, 2017 and 2016 (Dollars in thousands, except per share data)

	Common Stock
	Shares		Amount		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss			Unearned ESOP Shares			Total
Balance, July 1, 2017		2,182,125	$	22	$	20,369	$	13,547	$	(111	)	$	(2,386	)	$	31,441
ESOP shares committed to be    released		—		—		—		—		—			47			47
Net income		—		—		—		415		—			—			415
Other comprehensive loss		—		—		—		—		(190	)		—			(190	)
Balance, December 31, 2017		2,182,125	$	22	$	20,369	$	13,962	$	(301	)	$	(2,339	)	$	31,713

	Shares (1)		Amount (1)		Additional Paid-in Capital (1)		Retained Earnings		Accumulated Other Comprehensive Loss			Unearned ESOP Shares (1)		Total
Balance, July 1, 2016		—	$	—	$	—	$	12,978	$	(7	)	$	—	$	12,971
Net income		—		—		—		292		—			—		292
Other comprehensive loss		—		—		—		—		(316	)		—		(316	)
Balance, December 31, 2016		—	$	—	$	—	$	13,270	$	(323	)	$	—	$	12,947

(1) No common stock or ESOP shares were issued and outstanding during the six months ended December 31, 2016.

See Notes to the Unaudited Consolidated Financial Statements

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HV BANCORP, INC. AND SUBSIDIARY

Unaudited Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2017 and 2016 (Dollars in thousands)

Six Months Ended December 31,	2017			2016
Cash Flows from Operating Activities
Net income	$	415		$	292
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Depreciation		106			96
Impairment of real estate owned, net		14			5
Amortization of net deferred loan costs		67			3
Amortization of net securities premiums		73			210
Loss on sale of real estate owned		3			12
Gain on sale of available-for-sale securities		(34	)		(11	)
Loss from hedging instruments		464			1,123
Provision for loan losses		79			135
Deferred income tax benefit		(91	)		(327	)
Amortization of deferred gain on sale-leaseback transaction		(8	)		(8	)
Earnings on bank owned life insurance		(75	)		(57	)
ESOP compensation expense		47			—
Loans held for sale:
Originations, net of prepayments		(80,066	)		(90,831	)
Proceeds from sales		82,634			112,336
Gain on sales		(2,145	)		(3,705	)
Change in fair value of loans held for sale		95			695
(Increase) decrease in:
Accrued interest receivable		(153	)		2
Prepaid federal income taxes		133			78
Prepaid and other assets		88			(1,039	)
Other liabilities		(90	)		(512	)
Net cash provided by operating activities		1,556			18,497
Cash Flows from Investing Activities
Net Increase in loans receivable		(48,178	)		(2,465	)
Activity in available-for-sale securities:
Proceeds from sales		11,158			2,054
Maturities and repayments		1,186			2,101
Purchases		(2,665	)		(5,200	)
Activity in held-to-maturity securities:
Maturities and repayments		11			—
Purchases		(635	)		—
Redemption of restricted investment in bank stock		(106	)		450
Purchases of bank owned life insurance		(1,856	)		—
Proceeds from sales of real estate owned		124			98
Purchases of premises and equipment		(107	)		(178	)
Net cash used in investing activities		(41,068	)		(3,140	)
Cash Flows from Financing Activities
Net increase in deposits		22,627			71,317
Net increase (decrease) in advances from borrowers for taxes and insurance		26			(480	)
Net increase (decrease) in securities sold under agreements to repurchase		84			(2,176	)
Proceeds from borrowings from Federal Home Loan Bank		15,000			19,000
Repayment of borrowings from Federal Home Loan Bank		(12,000	)		(30,000	)
Net cash provided by financing activities		25,737			57,661
(Decrease) increase in Cash and Cash Equivalents		(13,775	)		73,018
Cash and Cash Equivalents, beginning of year		28,577			15,427
Cash and Cash Equivalents, end of year	$	14,802		$	88,445
Supplementary Disclosure of Cash Flow Information
Cash paid during the year of interest	$	598		$	413
Cash paid during the year for income taxes	$	65		$	—
Supplementary Schedule of Noncash Investing Activities
Transfer of loans to real estate owned	$	127		$	65

See Notes to Unaudited Consolidated Financial Statements

5

HV BANCORP, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

1. Organization, Basis of Presentation and Recent Accounting Pronouncements

Organization

HV Bancorp, Inc., a Pennsylvania Corporation (the “Company”) is the holding company of Huntingdon Valley Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On January 11, 2017, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. A total of 2,182,125 shares of common stock were sold to depositors at $10.00 per share through which the Company received gross offering proceeds of approximately $21.8 million. Offering costs from the sale of the common stock totaled $1.4 million, resulting in net proceeds of $20.4 million. Shares of the Company began trading on the Nasdaq Capital Market on January 12, 2017. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”).

The Bank is a stock savings bank organized under the laws of the Commonwealth of Pennsylvania and is subject to comprehensive regulation and examination by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“PADOB”). The Bank was organized in 1871, and currently provides residential and commercial loans to its general service area (Montgomery, Bucks and Philadelphia Counties of Pennsylvania) as well as offering a wide variety of savings, checking and certificate of deposit accounts to its retail and business customers.

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim information and with the instructions to the Quarterly Report on Form 10-Q, as applicable to a smaller reporting company.  Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements.

The financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof.  The balances as of June 30, 2017 have been derived from the audited consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission on September 28, 2017. The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or any other period.

The Company has evaluated subsequent events through the date of issuance of the financial statements included herein.

Principles of Consolidation

The unaudited interim consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, the Bank.  In January 2017, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Prior to January 11, 2017, all financial information reflects the Bank’s transactions and balances only. All significant intercompany transactions and balances have been eliminated in consolidation.

6

Use of Estimates in the Preparation of Financial Statements

In preparing financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairments of securities, interest rate lock commitments (“IRLCs”), mandatory sales commitments, the valuation of mortgage loans held-for-sale, other real estate owned, and the valuation of deferred tax assets.

Recent Accounting Pronouncements

The Company qualifies under the Jumpstart Our Business Startups Act (the “JOBS Act”) as an emerging growth company. As an emerging growth company, the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements until such pronouncements are made applicable to private companies.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings.  In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e., the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e., the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others.  In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at

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implementation and on an ongoing basis. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2017 for public entities.  In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This ASU clarifies certain aspects of Topic 606 guidance as follows:

• The objective of the collectability assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services transferred.

• An entity can recognize revenue in the amount of consideration received when it has transferred control of the goods or services, has no additional obligation to transfer goods or services, and the consideration received is nonrefundable.

• A reporting entity is permitted to make the accounting policy election to exclude amounts collected from customers for all sales taxes from the transaction price.

• The measurement date is specified as being the contract inception, and variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration.

• As a practical expedient, a reporting entity is permitted to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented in accordance with Topic 606 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• The ASU clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments in this ASU permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts.

The amendments in this ASU clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted.

The guidance in the revenue recognition ASUs listed above is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the various revenue recognition ASUs. The guidance does not apply to revenue associated with financial instruments, including loans and securities. The Company evaluated its non-interest revenue sources and the adoption of these ASUs will not have a material impact on its financial condition or results of operations.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments.  Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others.  ASU 2016-01 also clarifies that an entity should assess the need for a valuation

8

allowance on a deferred tax asset related to unrealized losses of investments in debt instruments recognized in OCI in combination with the entity’s other deferred tax assets. Prior to this guidance, the alternative approach used in practice evaluated the need for a valuation allowance for a deferred tax asset related to unrealized losses on debt instruments recognized in other comprehensive income separately from other deferred tax assets. This alternative approach will no longer be acceptable. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  As of December 31, 2017 we do not hold material equity investments for which fair value is accounted through other comprehensive income.  We are analyzing ASU 2016-01 and do not believe that it will have a material effect on our financial statements.

In March 2017, the FASB issued Accounting Standards Update (ASU) 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization for premiums on purchased callable debt securities to the earliest call date (i.e. yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount.

The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based on prepayments of the underlying loans, not because the issuer has exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendment. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated.

The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. For all other entities, including emerging growth entities as further described above, the amendments are effective for fiscal periods beginning after December 15, 2019, and interim periods within fiscal periods beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this standard on July 1, 2017 with no material impact on our consolidated financial statements.  

In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases. The new leases standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification.

The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing U.S. GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606.

9

Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.

The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and re-measurement of lease payments. It also contains comprehensive implementation guidance with practical examples.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth entities as further described above) for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Specific transition requirements apply. The Company’s leases are operating leases and ASU 2016-02 will require us to add them to our balance sheet. The Company’s operating leases are predominantly related to real estate. The Company is currently evaluating other impacts of the pending adoption of the new standard on our consolidated financial statements.

In June 2016,the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument.

The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above.

Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (“AFS”) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis.

The ASU is effective for public business entities for fiscal years after December 15, 2019, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth companies as further described above for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In anticipation of the ASU, the Company has entered into a contract with a third party, compiled data for the modeling and is working on developing an estimate using historically and qualitative data based on the requirements of ASU 2016-13. The Company is currently evaluating the impact of adoption of the new standard on the consolidated financial statements.

10

2. Investment Securities

Investment securities available-for-sale was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	1,455	$	9	$	(17	)	$	1,447
Corporate notes		6,308		15		(47	)		6,276
Collateralized mortgage obligations - agency    residential		13,736		4		(265	)		13,475
Mortgage-backed securities - agency    residential		4,234		—		(81	)		4,153
Municipal securities		2,065		—		(19	)		2,046
Bank CDs		5,492		5		(31	)		5,466
	$	33,290	$	33	$	(460	)	$	32,863

Investment securities held-to-maturity was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	8	$	—		$	2,008
Municipal securities		10,433		85		(36	)		10,482
	$	12,433	$	93	$	(36	)	$	12,490

Investment securities available-for-sale was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	4,330	$	26	$	(16	)	$	4,340
Corporate notes		11,231		59		(64	)		11,226
Collateralized mortgage obligations - agency    residential		12,668		59		(160	)		12,567
Mortgage-backed securities - agency    residential		4,520		—		(85	)		4,435
Municipal securities		3,517		1		(11	)		3,507
Bank CDs		6,742		23		(20	)		6,745
	$	43,008	$	168	$	(356	)	$	42,820

Investment securities held-to-maturity was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	12	$	—		$	2,012
Municipal securities		9,809		88		(13	)		9,884
	$	11,809	$	100	$	(13	)	$	11,896

11

The scheduled maturities of securities available-for-sale and held-to-maturity at December 31, 2017were as follows:

	December 31, 2017
	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	1,550	$	1,549	$	605	$	604
Due from one to five years		8,569		8,515		2,528		2,513
Due from after five to ten years		3,750		3,728		6,995		7,050
Due after ten years		19,421		19,071		2,305		2,323
	$	33,290	$	32,863	$	12,433	$	12,490

Securities with a fair value of $6.6 million and $8.2 million at December 31, 2017 and June 30, 2017, respectively, were pledged to secure public deposits and for other purposes as required by law.

Proceeds from the sale of available-for-sale securities for the six months ended December 31, 2017 were $11.2 million. Gross realized gains on such sales were approximately $39,000 and gross realized losses on such sales were $5,000 for the six months ended December 31, 2017.

Proceeds from the sale of available-for-sale securities for the six months ended December 31, 2016 were $2.1 million. Gross realized gains on such sales were approximately $11,000 and gross realized losses on such sales were $0 for the six months ended December 31, 2016.

The following tables summarize the unrealized loss positions of securities available-for-sale and held-to-maturity as of December 31, 2017 and June 30, 2017:

	December 31, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	—	$	—		$	601	$	(17	)	$	601	$	(17	)
Corporate notes		900		(5	)		3,459		(42	)		4,359		(47	)
Collateralized mortgage obligations		5,843		(47	)		6,497		(218	)		12,340		(265	)
Mortgage-backed securities		—		—			4,149		(81	)		4,149		(81	)
Municipal securities		—		—			2,046		(19	)		2,046		(19	)
Bank CDs		3,975		(23	)		487		(8	)		4,462		(31	)
	$	10,718	$	(75	)	$	17,239	$	(385	)	$	27,957	$	(460	)
Held-to-maturity:
Municipal securities	$	5,637	$	(36	)	$	—	$	—		$	5,637	$	(36	)
	$	16,355	$	(111	)	$	17,239	$	(385	)	$	33,594	$	(496	)

12

	June 30, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	1,115	$	(16	)	$	—	$	—		$	1,115	$	(16	)
Corporate notes		2,045		(6	)		2,492		(58	)		4,537		(64	)
Collateralized mortgage obligations		2,218		(40	)		4,278		(120	)		6,496		(160	)
Mortgage-backed  securities		3,297		(46	)		1,133		(39	)		4,430		(85	)
Municipal securities		2,214		(9	)		238		(2	)		2,452		(11	)
Bank CDs		2,736		(13	)		243		(7	)		2,979		(20	)
	$	13,625	$	(130	)	$	8,384	$	(226	)	$	22,009	$	(356	)
Held-to-maturity:
Municipal securities	$	3,227	$	(11	)	$	501	$	(2	)	$	3,728	$	(13	)
	$	16,852	$	(141	)	$	8,885	$	(228	)	$	25,737	$	(369	)

At December 31, 2017 and June 30, 2017, the investment portfolio included five and ten U.S. Government securities, respectively, with total market values of $1.4 million and $4.3 million, respectively. Of these securities, two and three were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. These securities are zero risk weighted for capital purposes and are guaranteed for repayment of principal and interest. As of December 31, 2017 and June 30, 2017, management found no evidence of Other Than Temporary Impairment (“OTTI”) on any of the U.S. Governmental securities in an unrealized loss position held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included fifteen and twenty-four corporate notes with total market values of $8.3 million and $13.2 million, respectively. Of these securities, nine were in an unrealized loss position as of December 31, 2017 and June 30, 2017. At the time of purchase and as of December 31, 2017 and June 30, 2017, these bonds continue to maintain investment grade ratings. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the corporate notes held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than will not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included thirty-eight and thirty-five collateralized mortgage obligations (“CMOs”) with total market values of $13.5 million and $12.6 million, respectively. Of these securities, thirty-six andtwenty-eight were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The CMO portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the CMOs held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included fifteen mortgage backed securities (“MBS”) with a total market value of $4.2 million and $4.4 million, respectively. Of these securities, twelve were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The MBS portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the MBS held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

13

At December 31, 2017 and June 30, 2017, the investment portfolio included twenty-seven and thirty municipal securities with a total market value of $12.5 million and $13.4 million, respectively. Of these securities, seventeen and thirteen were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The Company’s municipal portfolio issuers are located in Pennsylvania and at the time of purchase, and as of December 31, 2017 and June 30, 2017, continue to maintain investment grade ratings. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the municipal securities held in the investment securities portfolio.The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included twenty-two and twenty-six Bank Certificate of Deposits (“CDs”) with a total market value of $5.5 million and $6.7 million, respectively. Of these securities, eighteen and twelve were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The Bank CDsare fully insured by the FDIC. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the Bank CDs held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

3. Loans Receivable

Loans receivable were comprised of the following:

	December 31,			June 30,
(Dollars in thousands)	2017			2017
Residential:
One-to-four family	$	128,267		$	88,578
Home equity and HELOCs		4,881			5,466
Commercial:
Commercial real estate		12,652			12,191
Commercial business		3,345			3,801
Construction		2,837			2,004
Consumer:
Medical education		7,526			—
Other		6			5
		159,514			112,045
Less:
Unearned discounts, origination and commitment    fees and costs		871			359
Allowance for loan losses		(683	)		(593	)
	$	159,702		$	111,811

In November 2017, the Bank entered into a loan purchase agreement with a broker to purchase a portfolio of private education loans made to American citizens attending American Medical Association (“AMA”) approved medical schools in Caribbean Nations. The broker serves as a lender, holder, program designer and developer, administrator, and secondary market for the loan portfolios they generate. At December 31, 2017, the balance of the private education loans was $7.5 million. The private student loans are made following a proven credit criteria and were underwritten in accordance with the Bank’s policies. Recourse includes a fully paid insurance wrap for the life of the loan provided by an insurance company who is required to repurchase loans delinquent over 180 days.

14

Overdraft deposits are reclassified as other consumer and commercial business loans and are included in the total loans on the statements of financial condition. Overdrafts were $12,000 and $5,000 at December 31, 2017 and June 30, 2017, respectively.

The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the three months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	420	$	(12	)		—	$	64		$	472	$	—	$	472
Home equity and HELOCs		39		—			—		(1	)		38		—		38
Commercial:
Commercial real estate		85		—			—		1			86		—		86
Commercial business		68		—			—		(10	)		58		16		42
Construction		3		—			—		7			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			—		—			—		—		—
	$	615	$	(12	)	$	—	$	80		$	683	$	16	$	667

Allowance for Loan Losses	For the three months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions		Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	360	$	—		$	2	$	—	$	362	$	—	$	362
Home equity and HELOCs		114		—			—		—		114		96		18
Commercial:
Commercial real estate		118		—			—		—		118		30		88
Commercial business		20		—			—		—		20		15		5
Construction		1		—			—		—		1		—		1
Consumer:
Other		—		(2	)		1		1		—		—		—
Unallocated reserve		—		—			—		11		11		—		11
	$	613	$	(2	)	$	3	$	12	$	626	$	141	$	485

15

The following tables summarize the activity in the allowance for loan losses by loan class for the six months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the six months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	399	$	(12	)	$	44	$	41		$	472	$	—	$	472
Home equity and HELOCs		38		—			—		—			38		—		38
Commercial:
Commercial real estate		89		(22	)		—		19			86		—		86
Commercial business		58		—			—		—			58		16		42
Construction		9		—			—		1			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			1		(1	)		—		—		—
Unallocated reserve		—		—			—		—			—		—		—
	$	593	$	(34	)	$	45	$	79		$	683	$	16	$	667

Allowance for Loan Losses	For the six months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	314	$	—		$	5	$	43		$	362	$	—	$	362
Home equity and HELOCs		18		—			—		96			114		96		18
Commercial:												—
Commercial real estate		131		—			—		(13	)		118		30		88
Commercial business		23		—			—		(3	)		20		15		5
Construction		1		—			—		—			1		—		1
Consumer:
Other		—		(2	)		1		1			—		—		—
Unallocated reserve		—		—			—		11			11		—		11
	$	487	$	(2	)	$	6	$	135		$	626	$	141	$	485

The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of December 31, 2017 and June 30, 2017:

16

December 31, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	128,267	$	1,280	$	126,987
Home equity and HELOCs		4,881		105		4,776
Commercial
Commercial real estate		12,652		406		12,246
Commercial business		3,345		163		3,182
Construction		2,837		—		2,837
Consumer:
Medical education		7,526		—		7,526
Other		6		—		6
	$	159,514	$	1,954	$	157,560

June 30, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	88,578	$	1,198	$	87,380
Home equity and HELOCs		5,466		196		5,270
Commercial
Commercial real estate		12,191		514		11,684
Commercial business		3,801		173		3,628
Construction		2,004		—		2,004
Consumer:
Other		5		—		5
	$	112,045	$	2,081	$	109,971

17

The following tables summarize information in regard to impaired loans by loan portfolio class as of December 31, 2017andJune 30, 2017:

	December 31, 2017						June 30, 2017
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Residential:
One-to-four family	$	1,280	$	1,280	$	—	$	1,198	$	1,198	$	—
Home equity and HELOCs		105		105		—		196		196		—
Commercial:
Commercial real estate		406		406		—		514		514		—
		1,791		1,791		—		1,908		1,908		—
With an allowance recorded
Commercial:
Commercial business		163		163		16		173		173		15
		163		163		16		173		173		15
	$	1,954	$	1,954	$	16	$	2,081	$	2,081	$	15

The following table presents additional information regarding the impaired loans for the three months ended December 31, 2017 and December 31, 2016:

	Three Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,151	$	1	$	924	$	1
Home equity and HELOCs		105		—		147		—
Commercial:
Commercial real estate		408		8		552		8
		1,664		9		1,623		9
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		120		—
Commercial:
Commercial real estate		—		—		200		4
Commercial business		165		3		185		3
		165		3		505		7
	$	1,829	$	12	$	2,128	$	16

If these loans were performing under the original contractual rate, interest income on such loans would have increased approximately $18,000 and $23,000 for the three months ended December 31, 2017 and 2016, respectively.

18

The following table presents additional information regarding the impaired loans for the six months ended December 31, 2017 and December 31, 2016:

	Six Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,147	$	3	$	854	$	3
Home equity and HELOCs		106		—		106		—
Commercial:
Commercial real estate		410		14		553		16
		1,663		17		1,513		19
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		121		—
Commercial:
Commercial real estate		—		—		200		8
Commercial business		168		5		188		6
		168		5		509		14
	$	1,831	$	22	$	2,022	$	33

If these loans were performing under the original contractual rate, interest income on such loans would have increased approximately $40,000 and $35,000 for the six months ended December 31, 2017 and 2016, respectively.

The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2017 and June 30, 2017:

	December 31,		June 30,
(Dollars in thousands)	2017		2017
Residential:
One-to-four family	$	1,139	$	1,198
Home equity and HELOCs		105		110
Commercial:
Commercial real estate		—		100
Commercial business		—		—
Construction		—		—
Consumer:
Medical education		—		—
Other		—		—
	$	1,244	$	1,408

Credit quality risk ratings include regulatory classifications of Special Mention, Substandard, Doubtful and Loss.  Loans classified as Special Mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of prospects for repayment. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current net worth and paying

19

capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass.

The following tables summarize the aggregate Pass and criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2017 and June 30, 2017:

	December 31, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	126,424	$	—	$	1,843	$	—	$	128,267
Home equity and HELOCs		4,776		—		105		—		4,881
Commercial:
Commercial real estate		12,026		220		406		—		12,652
Commercial business		3,182		—		163		—		3,345
Construction		2,837		—		—		—		2,837
Consumer:
Medical education		7,526		—		—		—		7,526
Other		6		—		—		—		6
	$	156,777	$	220	$	2,517	$	—	$	159,514

	June 30, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	87,099	$	—	$	1,479	$	—	$	88,578
Home equity and HELOCs		5,270		—		196		—		5,466
Commercial:
Commercial real estate		11,283		552		356		—		12,191
Commercial business		3,628		—		173		—		3,801
Construction		2,004		—		—		—		2,004
Consumer:
Other		5		—		—		—		5
	$	109,289	$	552	$	2,204	$	—	$	112,045

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The following tables present the segments of the loan portfolio summarized by aging categories as of December 31, 2017 and June 30,2017:

	December 31, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	191	$	500	$	860	$	1,551	$	126,716	$	128,267	$	—
Home equity and HELOCs		—		—		105		105		4,776		4,881		—
Commercial:
Commercial real estate		—		—		—		—		12,652		12,652		—
Commercial business		—		—		—		—		3,345		3,345		—
Construction		—		—		—		—		2,837		2,837		—
Consumer:
Medical education		173		—		—		173		7,353		7,526		—
Other		—		—		—		—		6		6		—
	$	364	$	500	$	965	$	1,829	$	157,685	$	159,514	$	—

	June 30, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	554	$	381	$	950	$	1,885	$	86,693	$	88,578	$	—
Home equity and HELOCs		—		—		110		110		5,356		5,466		—
Commercial:
Commercial real estate		—		—		100		100		12,091		12,191		—
Commercial business		—		—		—		—		3,801		3,801		—
Construction		—		—		—		—		2,004		2,004		—
Consumer:
Other		—		—		—		—		5		5		—
	$	554	$	381	$	1,160	$	2,095	$	109,950	$	112,045	$	—

The Company may grant a concession or modification for economic or legal reasons related to a borrower's financial condition that it would not otherwise consider resulting in a modified loan that is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers' operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company's allowance for loan losses. TDRs are restored to accrual status when the obligation is brought current, has performed in accordance with the modified contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

The Company may identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower's financial statements, revenue projections, tax returns, and

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credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions and negative trends may result in a payment default in the near future.

As of December 31, 2017 and June 30, 2017, the Company had two loans identified as TDRs totaling $317,000 and $331,000, respectively. At December 31, 2017 and June 30, 2017, both of the TDRs were performing in compliance with their restructured terms and on accrual status. There were no modifications to loans classified as TDRs during the six months ended December 31, 2017 and 2016. No additional loan commitments were outstanding to these borrowers at December 31, 2017 and June 30, 2017.

The following table details the Company’s TDRs that are on accrual status and non-accrual status at December 31, 2017:

	As of December 31, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	317	$	—	$	317
Total		2	$	317	$	—	$	317

The following table details the Company’s TDRs that are on accrual status and non-accrual status at June 30, 2017:

	As of June 30, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	331	$	—	$	331
Total		2	$	331	$	—	$	331

The carrying amount of residential mortgage loans in the process of foreclosure was $402,000 and $946,000 at December 31, 2017 and June 30, 2017, respectively.

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4. Derivatives and Risk Management Activities

The Company did not have any derivative instruments designated as hedging instruments or subject to master netting and collateral agreements as of December 31, 2017 and June 30, 2017 and for the six months ended December 31, 2017 and 2016. The following tables summarize the amounts recorded in the Company’s consolidated statements of financial condition for derivatives not designated as hedging instruments as of December 31, 2017 and June 30, 2017 (in thousands):

December 31, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	251	$	10,224
Forward loan sales commitments	Mortgage banking derivatives		268		7,267
To Be Announced securities	Mortgage banking derivatives		—		1,000
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	26	$	2,667
Forward loan sales commitments	Other liabilities		3		978
To Be Announced securities	Other liabilities		17		10,250

June 30, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	786	$	21,389
Forward loan sales commitments	Mortgage banking derivatives		179		10,864
To Be Announced securities	Mortgage banking derivatives		36		14,750
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	19	$	4,089
Forward loan sales commitments	Other liabilities		37		3,713
To Be Announced securities	Other liabilities		8		2,750

The following table summarizes the amounts recorded in the Company’s consolidated statements of income for derivative instruments not designated as hedging instruments for the three and six months ended December 31, 2017 and December 31, 2016 (in thousands):

		Gain/(Loss)
	Consolidated Statements of Income	Three Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(173	)	$	(486	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		131			(583	)
To Be Announced securities	(Loss) Gain from hedging instruments		(32	)		509
	Total loss from hedging instruments	$	(74	)	$	(560	)

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		Gain/(Loss)
	Consolidated Statements of Income	Six Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(542	)	$	(269	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		123			(928	)
To Be Announced securities	(Loss) Gain from hedging instruments		(45	)		258
	Total loss from hedging instruments	$	(464	)	$	(939	)

5.Fair Value of Financial Instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is determined at a reasonable point within the range that is most representative of fair value under current market conditions. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends, and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end.

In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

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Level 2 – Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

Assets measured at fair value on a recurring basis at December 31, 2017 and June 30, 2017 are summarized below:

	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	1,447	$	—	$	1,447
Corporate notes		—		5,288		988		6,276
Collateralized mortgage obligations - agency    residential		—		13,475		—		13,475
Mortgage-backed securities - agency    residential		—		4,153		—		4,153
Municipal securities		—		2,046		—		2,046
Bank CDs		—		5,223		243		5,466
Loans held for sale		—		12,266		—		12,266
Interest rate lock commitments		—		—		251		251
Forward loan sales commitments		—		268		—		268

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	4,340	$	—	$	4,340
Corporate notes		—		10,258		968		11,226
Collateralized mortgage obligations - agency    residential		—		12,567		—		12,567
Mortgage-backed securities - agency    residential		—		4,435		—		4,435
Municipal securities		—		3,507		—		3,507
Bank CDs		—		6,502		243		6,745
Loans held for sale		—		12,784		—		12,784
Interest rate lock commitments		—		—		786		786
Forward loan sales commitments		—		179		—		179
To Be Announced securities		—		36		—		36

Liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized below.

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	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	26	$	26
Forward loan sales commitments		—		3		—		3
To Be Announced securities		—		17		—		17

Liabilities measured at fair value on a recurring basis at June 30, 2017 are summarized below.

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	19	$	19
Forward loan sales commitments		—		37		—		37
To Be Announced securities		—		8		—		8

The following table represents the change in the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended December 31, 2017 and 2016:

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2017	$	243	$	982	$	412		$	(15	)
Total gains (unrealized):
Included in other comprehensive income		—		6		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(161	)		(11	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2016	$	—	$	—	$	867		$	(16	)
Total gains (unrealized):
Included in other comprehensive income		—		—		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(552	)		12
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2016	$	—	$	—	$	315		$	(4	)

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	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2017	$	243	$	968	$	786		$	(19	)
Total gains (unrealized):
Included in other comprehensive income		—		20		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(535	)		(7	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2016	$	—	$	—	$	1,084		$	(32	)
Total  losses (unrealized):
Included in other comprehensive income						—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(769	)		28
Transfers in and/or out of Level 3						—			—
Ending Balance: December 31, 2016	$	—	$	—	$	315		$	(4	)

There were no assets measured at fair value on a nonrecurring basis at December 31, 2017.

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The estimated fair values of the Company's financial instruments at December 31, 2017 and June 30,2017are as follows:

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
December 31, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	14,802	$	14,802	$	14,802	$	—	$	—
Investment securities held-to-maturity		12,433		12,490		—		10,482		2,008
Loans receivable, net		159,702		153,416		—		—		153,416
Restricted investment in bank stock		749		749		—		—		749
Accrued interest receivable		773		773		—		773		—
Liabilities:
Deposits	$	193,108	$	152,661	$	—	$	152,661	$	—
Advances from the FHLB		12,000		11,899		—		11,899		—
Securities sold under agreements to repurchase		2,967		2,967		—		2,967		—
Accrued interest payable		20		20		—		20		—

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
June 30, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	28,577	$	28,577	$	28,577	$	—	$	—
Investment securities held-to-maturity		11,809		11,896		—		9,884		2,012
Loans receivable, net		111,811		107,510		—		—		107,510
Restricted investment in bank stock		643		643		—		—		643
Accrued interest receivable		620		620		—		620		—
Liabilities:
Deposits	$	170,481	$	160,764	$	—	$	160,764	$	—
Advances from the FHLB		9,000		8,958		—		8,958		—
Securities sold under agreements to repurchase		2,883		2,883		—		2,883		—
Accrued interest payable		20		20		—		20		—

The above information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. There were no changes in methodologies or transfers between levels during the three and six months ended December 31, 2017 and December 31, 2016.

The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2017 and June 30, 2017:

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Cash and Cash Equivalents

These short-term assets are valued at their face value, which approximate fair value.

Investments (Available- for- Sale and Held- to- Maturity)

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain Mortgage Backed Securities (MBS), Collateralized Mortgage Obligations (CMO), Corporate notes, and Municipal and U.S government securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Investment securities classified within Level 3 include certain equity securities that do not have readily available market prices, certain corporate notes, certain Bank CDS and other less liquid investment securities. If observable market-based inputs are not available, we use unobservable inputs to determine appropriate valuation adjustments by reviewing valuation reports provided by a third-party (Level 3).

Loans Held for Sale at Fair Value

All mortgage loans held for sale are carried at fair value which is determined on a recurring basis by utilizing quoted prices from dealers in such loans.

The Company's mortgage loans held for sale are generally classified within Level 2 of the valuation hierarchy.

The following table reflectsthedifference between thecarrying amountofmortgage loansheld forsale, measuredatfairvalueandtheaggregateunpaidprincipalamountthattheCompany is contractuallyentitledto receive atmaturityasof December 31, 2017 and June30, 2017 (in thousands):

Loans held for sale
	Carrying Amount		Aggregated Unpaid Principal Balance		Excess Carrying Amount Over Aggregate Unpaid Principal Balance
December 31, 2017	$	12,266	$	12,112	$	154
June 30, 2017	$	12,784	$	12,534	$	250

The Company did nothave any mortgage loans held forsale recorded atfair value that were 90 or more days past due andon non-accrualatDecember 31, 2017, or June 30, 2017.

Interest Rate Lock Commitments (“IRLC”)

The fair value of the Company’s IRLC instruments are based upon the underlying mortgage loan adjusted for the probability of such commitments being exercised and estimated costs to complete and originate the loan. The Company’s IRLCs are classified within Level 3 of the valuation hierarchy as a result of unobservable market data inputs.

Forward Loan Sale Commitments

Fair values for forward loan sales commitments are based on forward prices with dealers in such securities. Due to the observable inputs used by the Company, the Company’s forward loan sales commitments are classified within Level 2 of the valuation hierarchy.

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To Be Announced Securities (“TBAs”)

TBAs are valued based on forward dealer marks from the Company’s approved counterparties.  The Company utilizes a third party market pricing service which compiles current prices for instruments from market sources, and those prices represent the current executable price. Due to the observable inputs used by the Company, the Company’s TBAs are classified within Level 2 of the valuation hierarchy.

Loan Receivable, Net

Fair values are estimated for portfolios of loans with similar financial characteristics. For loans that reprice frequently, the carrying value approximates fair value. The fair value of other type of loans is estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities.

Restricted Investment in Bank Stock

The stock is carried at cost; which approximates fair value and considers the limited marketability of such securities.

Accrued Interest Receivable and Accrued Interest Payable

The carrying amount of accrued interest receivable and payable approximates their respective fair values.

Deposits

The fair value of demand deposits, savings accounts, and money market deposits is estimated by discounting expected cash flow, net of expected servicing costs, using the current rates and anticipated maturities of each deposit category. As these deposits do not have stated maturity dates, the average lives of these deposits are estimated when calculating the discounted cash flow. The fair value of certificates of deposit is estimated discounting the contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with comparable remaining maturities.

Advances from the FHLB

The fair value of advances is estimated based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for borrowings with comparable terms, credit, and remaining maturities.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase are carried at the amounts at which the securities will be subsequently repurchased as specified in the agreements and the carrying amount is a reasonable estimate of the fair value. The Company values the collateral on a daily basis and obtains additional collateral, if necessary, to protect the Company in the event of default by the counterparties.

Commitments to Extend Credit

The majority of the Company's commitments to extend credit carry current market interest rates if converted to loans. Because commitments to extend credit are generally unassignable by either the Company or the borrower, they only have value to the Company and the borrower. The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties and is not considered material for disclosure.

6. Earnings per Share

Earnings per share ("EPS") consist of two separate components: basic EPS and diluted EPS. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for

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each period presented. The diluted EPS calculation reflects the EPS if all outstanding instruments convertible to common stock were exercised. There were no common shares outstanding for the three and six monthsended December 31, 2016. For the three and six months ended December 31, 2017 and 2016, there were no stock options or other convertible instruments outstanding.  Therefore, there is no effect of dilution on the Company’s earnings per share.

The calculation of EPS for the three and six months ended December 31, 2017 and 2016 is as follows (in thousands, except per share data):

	For the Three Months				For the Six Months
	Ended December 31,				Ended December 31,
	2017		2016		2017		2016
Net income (basic and diluted)	$	179	$	39	$	415	$	292
Weighted average shares outstanding		2,182,125	N/A			2,182,125	N/A
Net income per share – basic and diluted	$	0.08	$	N/A	$	0.19	$	N/A

7. Employee Stock Ownership Plan

The Company adopted the Huntingdon Valley Bank Employee Stock Ownership Plan (the “ESOP”) for eligible employees. Eligible employees who have attained age 21 may participate in the ESOP on the later of the effective date of the ESOP or upon the first entry date commencing on or after the eligible employee’s completion of 1,000 hours of service during a continuous 12-month period.

During the six months ended December 31, 2017, ESOP shares committed to be released were 4,364 with a value of approximately $47,000. There were no shares purchased by the ESOP during the six months ended December 31, 2017.

8. Related Party Transactions

In November 2017, the Company engaged a third party to provide services for certain customers with large deposit balances, by offering both a competitive rate of return and FDIC insurance. Related party balances in this program totaled $116.7 million at December 31, 2017 for which we received approximately $84,000 in fees for customer services which is included in the three month and six months ended December 31, 2017.

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Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements and information relating to the Company within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “should,” “could,” or “may” and similar expressions or the negative thereof. Certain factors that could cause actual results to differ materially from expected results include, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company, and changes in the securities markets. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. We caution readers not to place undue reliance on forward-looking statements. The Company disclaims any obligation to revise or update any forward-looking statements contained in this Form 10-Q to reflect future events or developments.

Overview

The Bank provides financial services to individuals and businesses from our main office in Huntingdon Valley, Pennsylvania, and from our three additional full-service banking offices located in Plumsteadville, Warrington and Huntingdon Valley, Pennsylvania. We also operate a limited service branch in Philadelphia, Pennsylvania. We have a loan production office located in Warminster, Pennsylvania and a loan origination office in Montgomeryville, Pennsylvania. Our primary market area includes Montgomery, Bucks and Philadelphia Counties in Pennsylvania. Our principal business consists of attracting retail deposits from the general public in our market area and investing those deposits, together with funds generated from operations and borrowings, primarily in one- to four-family residential mortgage loans, commercial real estate loans (including multi-family loans), home equity loans and lines of credit and, to a lesser extent, consumer and construction loans. We retain our loans in portfolio depending on market conditions, but we primarily sell our fixed-rate one- to four-family residential mortgage loans in the secondary market. We also invest in various investment securities. Our revenue is derived principally from interest on loans and investments and loan sales. Our primary sources of funds are deposits, Federal Home Loan Bank advances and principal and interest payments on loans and securities.

Our results of operations depend primarily on our net interest income which is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities.  Our results of operations also are affected by our provision for loan losses, non-interest income and non-interest expense.  Non-interest income consists primarily of gains recognized from the sale of residential mortgage loans in the secondary market, fees and service charges on deposit accounts, gain (loss) from hedging instruments and change in fair value of loans held for sale. Non-interest expense primarily consists of expenses related to salaries and employee benefits, occupancy, data processing related operations, professional fees, and other expenses.  

Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.  

Critical Accounting Policies

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. Critical accounting policies

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comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the current period or in future periods.

Our critical accounting policies involving significant judgments and assumptions used in the preparation of the Financial Statements as of December 31, 2017 have remained unchanged from the disclosures presented in our Annual Report on Form 10-K, for the year ended June 30, 2017.

The Jumpstart Our Business Startups Act (“JOBS Act”) contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we have elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of December 31, 2017 and June 30, 2017, there is not a significant difference in the presentation of our financial statements as compared to other public companies as a result of this transition guidance.

The complete list of Critical Accounting Policies are described in the Annual Report on Form 10-K, for the year ended June 30, 2017.

Comparison of Statements of Financial Condition at December 31, 2017 and at June 30, 2017

Total Assets

Total assets increased $25.9 million, or 11.9%, to $242.7 million at December 31, 2017 from $216.8 million at June 30, 2017.  The increase was primarily the result of increases of $47.9 million in loans receivable, and $1.9 million in bank owned life insurance, partially offset by decreases in cash and cash equivalents of $13.8 million, $9.3 million in investment securities and $518,000 in loans held for sale.

Cash and cash equivalents

Cash and cash equivalents decreased $13.8 million, or 48.3%, to $14.8 million at December 31, 2017 from $28.6 million at June 30, 2017, primarily as a result of funding loans as our continued strategic emphasis is growing our adjustable-rate jumbo one- to four-family residential real estate loan portfolio. We originated approximately $40.7 million in adjustable-rate jumbo one- to four-family residential real estate loans for the six months ended December 31, 2017.

Investment Securities

Investment securities decreased by $9.3 million or 17.0%, to $45.3 million at December 31, 2017 from $54.6 million at June 30, 2017. The decrease was primarily due to sales and principal repayments of $12.4 million partially offset by purchases of $3.3 million. At December 31, 2017, our held-to-maturity portion of the securities portfolio, at amortized cost, was $12.4 million, and our available-for-sale portion of the securities portfolio, at fair value, was $32.9 million compared to our held-to-maturity portion of the securities portfolio of $11.8 million and our available-for-sale portion of the securities portfolio of $42.8 million at June 30, 2017.

Net Loans

Net loans increased $47.9 million, or 42.8%, to $159.7 million at December 31, 2017 from $111.8 million at June 30, 2017. One- to four-family residential real estate loans increased $39.7 million, or 44.8%, to $128.3 million at December 31, 2017 from $88.6 million at June 30, 2017 as a result of our continued strategic emphasis on growing our adjustable-rate jumbo one- to four-family residential real estate loan portfolio. In addition, during the three months ended December 31, 2017, there was a purchase of a portfolio of private medical education loans with a balance of $7.5 million. Commercial real estate loans increased by $461,000 from $12.2 million at June 30, 2017 to $12.7 million at December 31, 2017. Commercial business loans decreased by $456,000 from $3.8 million at June 30, 2017 to $3.3 million at

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December 31, 2017. Construction loans increased$833,000 to $2.8 million at December 31, 2017 from $2.0 million at June 30, 2017 primarily as a result of the origination of two new residential construction loanstotaling $2.3 million offset by a construction loan that was converted to a permanent mortgage loan during the six months ended December 31, 2017. Home equity and HELOC loans decreased by $585,000 from $5.5 million at June 30, 2017 to $4.9 million at December 31, 2017primarily as a result of a payoff of one loan.

In November 2017, the Bank entered into a loan purchase agreement with a broker to purchase a portfolio of private education loans made to American citizens attending American Medical Association (“AMA”) approved medical schools in Caribbean Nations. The broker serves as a lender, holder, program designer and developer, administrator, and secondary market for the loan portfolios they generate. At December 31, 2017, the balance of the private education loans was $7.5 million. The private student loans are made following a proven credit criteria and were underwritten in accordance with the Bank’s policies. Recourse includes a fully paid insurance wrap for the life of the loan provided by an insurance company that is required to repurchase delinquent loans over 180 days.

Loans Held For Sale

Loans held for sale decreased $518,000, or 4.1%, to $12.3 million at December 31, 2017 from $12.8 million at June 30, 2017 as the pipeline of one- to four-family residential real estate loans decreased during the six months ended December 31, 2017 due to lower demand.

Deposits

Deposits increased $22.6 million, or 13.3%, to $193.1 million at December 31, 2017 from $170.5 million at June 30, 2017. Our core deposits (consisting of NOW, money market, pass book and statement and checking accounts) increased $21.8 million, or 15.3%, to $164.4 million at December 31, 2017 from $142.6 million at June 30, 2017. This increase was primarily a result of organic core deposit growth totaling $13.6 million and $8.2 million of core deposits were obtained through a deposit placement network on a reciprocal basis, such that amounts are under the standard FDIC insurance maximum of $250,000 making the deposits eligible for FDIC insurance. In addition, certificates of deposit increased $804,000, or 2.9%, to $28.7 million at December 31, 2017 from $27.9 million at June 30, 2017.

Advances from the Federal Home Loan Bank

Advances from the Federal Home Loan Bank increased by $3.0 million, or 33.3%, from $9.0 million at June 30, 2017 to $12.0 million at December 31, 2017 primarily to fund our loan growth.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase increased approximately $84,000, or 2.9%, to $3.0 million at December 31, 2017 from $2.9 million at June 30, 2017 as a result of an increase in the underlying deposit balances, which are primarily held by title companies.

Total Shareholders’ Equity

Total shareholders’ equity increased $272,000 to $31.7 million at December 31, 2017 compared to $31.4 million at June 30, 2017 primarily as a result of net income for the six months ended December 31, 2017 of $415,000 and ESOP shares committed to be released of $47,000, partially offset by other comprehensive losses of $190,000 due to the fair value adjustments, net of deferred tax, on the investment securities available-for-sale portfolio during the six months ended December 31, 2017.

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Comparison of Statements of Income for the Three Months Ended December 31, 2017 and 2016

General

Net income increased $140,000 to $179,000 for the three months ended December 31, 2017 from $39,000 for the three months ended December 31, 2016.  The increase in net income for the three months ended December 31, 2017 was primarily due to increases of $445,000 in net interest income and $45,000 in non-interest income, partially offset by increases in non-interest expense of $150,000 and $132,000 in income tax expense compared to the same period in 2016.

Interest Income

Total interest income increased $518,000, or 38.5%, to $1.9 million for the three months ended December 31, 2017 from $1.3 million for the three months ended December 31, 2016. The increase was primarily the result of increases in interest and fees on loans of $385,000, interest on interest-earning deposits due with banks of $44,000, interest on mortgage-backed securities and collateralized mortgage obligations of $46,000 and interest and dividends on investments of $47,000. Total average interest-earning assets increased $37.5 million to $221.2 million for the three months ended December 31, 2017 from $183.7 million for the same period in 2016 primarily as a result of increases in the average balance of loans of $43.6 million and the average balance of investment securities of $8.1 million offset by a $14.0 million decrease in the average balance of interest-earning deposits with banks.

Interest and fees on loans increased $385,000 to $1.5 million for the three months ended December 31, 2017 from $1.1 million for the same period in 2016. This increase was primarily due to an increase in average loans outstanding of $43.6 million, which increased to $155.3 million for the three months ended December 31, 2017 from $111.7 million for the three months ended December 31, 2016 as a result of the Company’s continued efforts to increase originations of one-to-four family residential loans.  The benefit from the higher loan volume was partially offset by a reduction in the average yield of loans of 15 basis points, which decreased to 3.91% for the three months ended December 31, 2017 from 4.06% for the three months ended December 31, 2016, as lower yielding Jumbo one-to-four family adjustable rate mortgages were originated. We originated $13.9 million of one-to-four family adjustable rate mortgages during the three months ended December 31, 2017.

Interest income on interest-earning deposits increased by $44,000 to $97,000 for the three months ended December 31, 2017, from $53,000 for the three months ended December 31, 2016. The increase was due to an increase in the average yield on interest-earning deposits with banks which increased 131 basis points, to 1.93% for the three months ended December 31, 2017 from 62 basis points for the three months ended December 31, 2016.  The increase was primarily due to rate increases in the Federal funds rate by the Federal Reserve during 2017 as well as investments in higher yielding cash equivalents, which had rates ranging from 2%-4%. Offsetting the increase in the average yield on interest-earning deposits, was a decrease in the average balance of interest-earning deposits of $14.0 million to $20.1 million for the three months ended December 31, 2017 from $34.1 million for the three months ended December 31, 2016, primarily as the result of the deployment of liquidity into loans and investment securities.

Interest on investment securities increased by $93,000, or 62.4% to $242,000 for the three months ended December 31, 2017, from $149,000 for three months ended December 31, 2016. The increase was primarily the result of an increase in interest income on U.S. Government Agency securities, corporate bonds and municipal securities which increased $47,000 or 46.5%. In addition, interest income on mortgage backed securities and collateral mortgage obligation securities increased by $46,000 or 95.8%, to $94,000 for the three months ended December 31, 2017, from $48,000 for the three months ended December 31, 2016.  The average yield on total securities increased 54 basis points to 2.15% for the three months ended December 31, 2017 from 1.61% for the same period in 2016, as market rates increased reflecting higher yielding investments. A portion of the conversion proceeds were used to purchase new investment securities, which caused the average balance of investment securities to increase by $8.1 million to $45.0 million for the three months ended December 31, 2017, from $36.9 million for the three months ended December 31, 2016.

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Interest Expense

Total interest expense increased $73,000 or 35.8%, to $277,000 for the three months ended December 31, 2017 from $204,000 for the three months ended December 31, 2016, primarily due to a $68,000 increase in interest expense on deposits and a $5,000 increase in interest expense on advances from the Federal Home Loan Bank.  

Interest expense on deposits increased $68,000, or 41.7%, to $231,000 for the three months ended December 31, 2017 from $163,000 for the three months ended December 31, 2016 primarily as a result of an increase in average interest bearing deposits of $24.5 million to $170.8 million during the three months ended December 31, 2017 as compared to $146.3 million for the three months ended December 31, 2016. The increase in the average balance of interest bearing deposits was primarily as a result of a $31.1 million increase in the average balance of our core deposit accounts, which was partially offset by a $6.6 million decrease in the average balance of our certificates of deposit. The increase in the average balance of our core deposits was primarily a result of organic core deposit growth as well as core deposits obtained through a deposit placement network on a reciprocal basis, such that amounts are under the standard FDIC insurance maximum of $250,000 making the deposits eligible for FDIC insurance. The average cost of checking deposits increased by 19 basis points to 0.72% during the three months ended December 31, 2017 as compared to 0.53% for the three months ended December 31, 2016 as a result of the continued growth of the demand product that is attracting clients of local professional firms such as CPA firms. This product can pay up to 1.00% of interest per annum. The average rates paid on NOW accounts remained flat at 0.20% and 0.21% for the three months ended December 31, 2017 and 2016, respectively, while the money market deposit rates average increased by 20 basis points to 0.51% for the three months ended December 31, 2017 from 0.31% for the three months ended December 31, 2016. The average cost of certificates of deposit increased by 17 basis points to 1.15% for the three months ended December 31, 2017 as compared to 98 basis points for the three months ended December 31, 2016.

Interest expense on advances from the Federal Home Loan Bank increased $5,000 to $45,000 for the three months ended December 31, 2017 from $40,000 for the three months ended December 31, 2016 as a result of an increase in the average rate on the Federal Home Loan Bank advances, which increased from 0.84% for the three months ended December 31, 2016 to 1.51% for the three months ended December 31, 2017 due to increased rates on advances. Offsetting this increase was a decrease in the average balance of Federal Home Loan Bank advances. The average balance of the Federal Home Loan Bank advances decreased $7.2 million to $11.9 million for the three months ended December 31, 2017 from $19.1 million for the three months ended December 31, 2016 primarily due to the increase in liquidity from lower costs core deposits.

Net Interest Income

Net interest income increased approximately $445,000 or 39.0%, to $1.6 million for the three months ended December 31, 2017 from $1.1 million for the three months ended December 31, 2016 as a result of our net interest-earning assets increasing $19.7 million to $36.1 million for the three months ended December 31, 2017 from $16.4 million for the three months ended December 31, 2016. Our interest rate spread increased by 33 basis points to 2.77% for the three months ended December 31, 2017 from 2.44% for the three months ended December 31, 2016.  Our net interest margin increased by 38 basis points to 2.87% for the three months ended December 31, 2017 from 2.49% for the three months ended December 31, 2016.  

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Average Balances, Net Interest Income, Yields Earned and Rates Paid

The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin.  All average balances are based on daily balances.

	For the Three Months Ended December 31,
	2017								2016
	Average Balance			Interest Income/ Expense		Yield/ Cost (5)			Average Balance			Interest Income/ Expense		Yield/ Cost (5)
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	155,333		$	1,517		3.91	%	$	111,659		$	1,132		4.06	%
Interest-earning deposits with banks		20,097			97		1.93	%		34,069			53		0.62	%
Investment securities		44,992			242		2.15	%		36,932			149		1.61	%
Restricted investment in bank stock		764			8		4.19	%		1,078			12		4.45	%
Total interest-earning assets		221,186			1,864		3.37	%		183,738			1,346		2.93	%
Non-interest-earning assets		11,282								9,264
Total assets	$	232,468							$	193,002
Interest-bearing liabilities:
NOW accounts	$	41,482		21			0.20	%	$	44,430			23		0.21	%
Money market deposit accounts		32,958		42			0.51	%		24,716			19		0.31	%
Passbook and statement savings    accounts		32,169		21			0.26	%		34,954			26		0.30	%
Checking accounts		35,362		64			0.72	%		6,740			9		0.53	%
Certificates of deposit		28,878		83			1.15	%		35,434			86		0.98	%
Total deposits		170,849		231			0.54	%		146,274			163		0.45	%
Federal Home Loan Bank advances		11,946		45			1.51	%		19,109			40		0.84	%
Securities sold under agreements to    repurchase		2,307		1			0.17	%		1,925			1		0.21	%
Total interest-bearing liabilities		185,102		277			0.60	%		167,308			204		0.49	%
Non-interest-bearing liabilities:
Checking		13,556								11,494
Other		2,361								1,325
Total liabilities		201,019								180,127
Shareholders' Equity		31,449								12,875
Total liabilities and Shareholders'    equity	$	232,468							$	193,002
Net interest income				$	1,587		2.77	%				$	1,142		2.44	%
Interest rate spread (2)
Net interest-earning assets (3)	$	36,084					2.87	%	$	16,430					2.49	%
Net interest margin (4)
Average interest-earning assets to average interest-bearing liabilities		119.49	%							109.82	%

(1) Includes loans held for sale.

(2) Interest rate spread represents the difference between the average yield on average interest–earning assets and the average cost of average interest-bearing liabilities.

(3) Net interest earning assets represent total average interest–earning assets less total interest–bearing liabilities.

(4) Net interest margin represents net interest income divided by total average interest-earning assets.

(5) Annualized.

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Rate/ Volume Analysis

The following table presents the effects of changing rates and volumes on net interest income for the periods indicated.  The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns.

For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately, based on the changes due to rate and the changes due to volume.

	For the Three Months Ended December 31, 2017 vs 2016
	Increase (Decrease) Due to						Total Increase
	Volume			Rate			(Decrease)
	(In thousands)
Interest-earning assets:
Loans	$	523		$	(138	)	$	385
Interest-earning deposits with banks		(39	)	83				44
Investment securities		13		80				93
Restricted investment in bank stock		(2	)		(2	)		(4	)
Total interest-earning assets		495			23			518
Interest-bearing liabilities:
NOW accounts		(1	)		(1	)		(2	)
Money market deposit accounts		3			20			23
Passbook and statement savings accounts		(1	)		(4	)		(5	)
Checking accounts		42			13			55
Certificates of deposit		(20	)		17			(3	)
Total deposits		23			45			68
Federal Home Loan Bank advances		(26	)		31			5
Securities sold under agreements to    repurchase		—			—			—
Total interest-bearing liabilities		(3	)		76			73
Change in net interest income	$	498		$	(53	)	$	445

Provision for Loan Losses

We establish a provision for loan losses, which is charged to operations, in order to maintain the allowance for loan losses at a level we consider necessary to absorb credit losses incurred in the loan portfolio that are both probable and reasonably estimated at the balance sheet date. In determining the level of the allowance for loan losses, we consider past and current loss experience, evaluations of real estate collateral, current economic conditions, volume and type of lending, adverse situations that may affect a borrower’s ability to repay a loan and the levels of non-performing loans. The amount of the allowance is based on estimates, and actual losses may vary from such estimates as more information becomes available or economic conditions change.

This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as circumstances change as more information becomes available. The allowance for loan losses is assessed on a quarterly basis and provisions are made for loan losses as required in order to maintain the allowance.

Provision for loan losses increased by $68,000 to $80,000 for the three months ended December 31, 2017, from $12,000 for the three months ended December 31, 2016 primarily as a result of an increase in the general reserve due to an increase in loans outstanding. During the three months ended December 31, 2017, total net charge-offs of $12,000 were recorded. During the three months ended December 31, 2016, total net recoveries of $1,000 were recorded.

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Non-Interest Income

Non-interest income increased $45,000, or 5.1%, to $923,000 for the three months ended December 31, 2017 from $878,000 for the three months ended December 31, 2016. The increase in non-interest income was primarily due to an increase in fees for customer services of $134,000 to $185,000 for the three months ended December 31, 2017 from $51,000 for the three months December 31, 2016 primarily    as a result of income received in exchange for customer’s deposits with a balance of $8.2 million at December 31, 2017 sourced in the deposit placement network. Offsetting this increase was a decrease in the gain on sales of loans of $1.2 million, which decreased from $2.1 million for the three months ended December 31, 2016 to $909,000 for the three months ended December 31, 2017. This was primarily due to lower sales of loans of $29.7 million and reduced margin on loans sold for the three months ended December 31, 2017 when compared to the same period in 2016. This decrease in gain on sales of loans was offset by an increase in fair value of loans held for sale, totaling $638,000. Change in fair value of loans held for sale was $(140,000) for the three months ended December 31, 2017 compared to ($778,000) for the three months ended December 31, 2016. In addition, there was a decrease of $486,000 in loss from hedging instruments to $(74,000) for the three months ended December 31, 2017 from ($560,000) for the three months ended December 31, 2016 associated with a decrease in the volume of locked loans associated with hedging.

Non-Interest Expense

Non-interestexpense increased $150,000, or 7.5%, to $2.2 million for the three months ended December 31, 2017 from $2.0 million for the three months ended December 31, 2016.  The increase was primarily due to a $140,000 increase in salaries and employee benefits to $1.3 million for the three months ended December 31, 2017 from $1.1 million for the three months ended December 31, 2016. Salaries increased as full time equivalent (“FTE”) employees increased to 72 FTEs as of December 31, 2017, from 69 FTEs as of December 31, 2016, primarily as a result of the expansion in our administration department to support our operations as a public company.

Income Tax Expense

Income tax expense was $94,000 for the three months ended December 31, 2017 as compared to an income tax (benefit) of ($38,000) for the three months ended December 31, 2016.  Federal income taxes included in total taxes for the three months ended December 31, 2017 were $71,000 with an effective tax rate of 28.4% as compared to a tax (benefit) of ($37,000) for the three months ended December 31, 2016. During the three months ended December 31, 2017, the Company revised its estimated annual effective rate to reflect a change in the federal statutory tax rate from 35% to 21%, resulting from legislation that was enacted on December 22, 2017. The rate change is administratively effective at the beginning of our fiscal year, using a blended rate for the annual period.  As a result, the blended statutory rate for the year is 28.6%.

In addition, we recognized a tax expense in our tax provision for the three months ended December 31, 2017 related to adjusting our deferred tax balance to reflect the new corporate tax rate. As a result, income tax expense reported for the three months ended was adjusted to reflect the effects of the change in the tax law and resulted in an increase in income tax expense of $47,000 during the three months ended December 31, 2017.

Pennsylvania state tax expense increased $24,000 to $23,000 for the three months ended December 31, 2017 from a tax (benefit) of ($1,000) for the three months ended December 31, 2016.

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Comparison of Statements of Income for the Six Months Ended December 31, 2017 and 2016

General

Net income increased $123,000, or 42.1%, to $415,000 for the six months ended December 31, 2017 from $292,000 for the six months ended December 31, 2016.  The increase in net income for the six months ended December 31, 2017 was primarily due to an increase in net interest income of $733,000 and a decrease in the provision for loan losses of $56,000 partially offset by a decrease in non-interest income of $318,000 and increases in non-interest expense of $246,000 and income tax expense of $102,000 as compared to the same period in 2016.

Interest Income

Total interest income increased $840,000, or 30.6%, to $3.6 million for the six months ended December 31, 2017 from $2.7 million for the six months ended December 31, 2016. The increase was primarily the result of a $529,000 increase in interest and fees on loans, a $197,000 increase in interest on investment securities, and a $119,000 increase in interest-earning deposits with banks.  The average balance of our interest-earning assets increased by $36.7 million to $214.2 million for the six months ended December 31, 2017 as compared to the six months ended December 31, 2016 primarily due to growth in residential loan originations as our mortgage loans increased from an average balance of $95.4 million for the six months ended December 31, 2016 to $136.7 million for the six months ended December 31, 2017. The average yield on our interest-earning assets increased 25 basis points to 3.35% for the six months ended December 31, 2017 as compared to 3.10% for the six months ended December 31, 2016 primarily as a result of a higher average yield on investment securities and on interest-earning deposits with banks.

Interest and fees on loans increased $529,000, or 22.6%, to $2.9 million for the six months ended December 31, 2017 from $2.3 million for the six months ended December 31, 2016. This increase resulted from a $32.3 million increase in the average balance of loans to $146.8 million for the six months ended December 31, 2017 from $114.5 million for the six months ended December 31, 2016, due to our continued focus on increasing our portfolio of adjustable-rate jumbo one- to four-family residential mortgages.  However, the increase in interest and fees on loans was partially offset by a 17 basis points decrease in the average yield on loans to 3.91% for the six months ended December 31, 2017 from 4.08% for the six months ended December 31, 2016, due to pay-offs of higher-yielding existing loans during the current low interest rate environment and lower yields earned on new loan originations.

Interest and dividends on investments, mortgage-backed securities and collateralized mortgage obligations increased $197,000, or 64.4%, to $503,000 for the six months ended December 31, 2017 from $306,000 for the six months ended December 31, 2016. The increase was primarily the result of an increase in interest income on U.S. Government Agency securities, corporate bonds and municipal securities which increased $129,000 or 66.2% to $324,000 from $195,000 for the six months ended December 31, 2016. In addition, interest income on mortgage backed securities and collateral mortgage obligation securities increased by $68,000, or 61.3%, to $179,000 for the six months ended December 31, 2017, from $111,000 for the six months ended December 31, 2016.  The average yield on investment securities increased 50 basis points to 2.14% for the six months ended December 31, 2017 from 1.64% for the six months ended December 31, 2016, as market rates increased reflecting higher yielding investments.A portion of the conversion proceeds were used to purchase new investment securities, which primarily caused the average balance of investment securities to increase by $9.7 million to $47.1 million for the six months ended December 31, 2017, from $37.4 million for the six months ended December 31, 2016.

Interest on interest-earning deposits increased $119,000 to $202,000 for the six months ended December 31, 2017 from $83,000 for the six months ended December 31, 2016 due to an increase in the average yield on interest-earning deposits of 138 basis points to 2.06% for the six months ended December 31, 2017 from 0.68% for the six months ended December 31, 2016. Offsetting the increase in the average yield on interest-earning deposits, was a decrease in the average balance of interest-earning deposits of $4.8 million to $19.7 million for the six months ended December 31, 2017 from $24.5 million for the six

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months ended December 31, 2016, primarily as the result of the deployment of liquidity into loans and investment securities.

Interest Expense

Total interest expense increased $107,000, or 25.7%, to $524,000 for the six months ended December 31, 2017 from $417,000 for the six months ended December 31, 2016, due primarily to an $118,000 increase in interest on deposits, partially offset by an $11,000 decrease in interest on advances from the Federal Home Loan Bank.  

Interest on deposits increased $118,000, or 35.9%, to $447,000 for the six months ended December 31, 2017 from $329,000 for the six months ended December 31, 2016 as a result of an increase in average interest bearing deposits of $25.0 million to $164.9 million during the six months ended December 31, 2017 as compared to $139.9 million for the six months ended December 31, 2016. The increase in the average balance of interest bearing deposits was primarily as a result of a $33.0 million increase in the average balance of our core deposit accounts, which was partially offset by an $8.0 million decrease in the average balance of our certificates of deposit. The average cost of deposits increased by seven basis points to 0.54% for the six months ended December 31, 2017 from 0.47% for the six months ended December 31, 2016. The increase in the average balance of core deposits was primarily the result of organic core deposit growth as well as the introduction of a new demand deposit product attracting clients of local professional firms such as CPA firms, totaling $27.7 million at December 31, 2017. Associated with the growth of this new demand deposit product, the average cost of checking deposits increased by 62 basis points to 0.94% during the six months ended December 31, 2017 as compared to 0.32% for the six months ended December 31, 2016. This product can pay up to 1.00% of interest per annum. The average rates paid on the money market deposits increased by three basis to 0.33% for the six months ended December 31, 2017 from 0.30% for the six months ended December 31, 2016 and the NOW accounts decreased two basis points to 0.20% for the six months ended December 31, 2017 from 0.22% for the six months ended December 31, 2016.

Interest on advances from the Federal Home Loan Bank decreased $11,000 to $75,000 for the six months ended December 31, 2017 from $86,000 for the six months ended December 31, 2016 as a result of a decrease in the average balance of Federal Home Loan Bank advances, partially offset by an increase in the average cost of Federal Home Loan Bank advances.  The average balance of Federal Home Loan Bank advances decreased by $8.9 million to $10.7 million during the six months ended December 31, 2017 as compared to $19.6 million for the six months ended December 31, 2016. This decrease was primarily due to the Company utilizing available liquidity of $11.2 million from proceeds from the sale of available-for-sale securities for the six months ended December 31, 2017 to fund loan requirements in place of advances from the Federal Home Loan Bank.  This decrease was partially offset by an increase in the average cost of Federal Home Loan Bank advances which increased by 52 basis points to 1.40% for the six months ended December 31, 2017 from 0.88% for the six months ended December 31, 2016, due primarily to increases in advance rates.  

Net Interest Income

Net interest income increased $733,000, or 31.5%, to $3.1 million for the six months ended December 31, 2017 from $2.3 million for the six months ended December 31, 2016 as we increased our interest income at a greater rate than our interest expense. Our net interest-earning assets increased to $36.4 million for the six months ended December 31, 2017 from $16.1 million for the six months ended December 31, 2016. Our interest rate spread increased by 18 basis points to 2.76% for the six months ended December 31, 2017 from 2.58% for the six months ended December 31, 2016.  Our net interest margin increased by 23 basis points to 2.86% for the six months ended December 31, 2017 from 2.63% for the six months ended December 31, 2016.  

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Average Balances, Net Interest Income, Yields Earned and Rates Paid

The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin.  All average balances are based on daily balances.

	For the Six Months Ended December 31,
	2017								2016
	Average Balance			Interest Income/ Expense		Yield/ Cost (5)			Average Balance			Interest Income/ Expense		Yield/ Cost (5)
	(Dollars in thousands)
Interest-earning assets:
Loans (1)	$	146,818		$	2,867		3.91	%	$	114,495		$	2,338		4.08	%
Interest-earning deposits with banks		19,653			202		2.06	%		24,525			83		0.68	%
Investment securities		47,063			503		2.14	%		37,365			306		1.64	%
Restricted investment in bank stock		710			15		4.23	%		1,092			20		3.66	%
Total interest-earning assets		214,244			3,587		3.35	%		177,477			2,747		3.10	%
Non-interest-earning assets		9,889								8,374
Total assets	$	224,133							$	185,851
Interest-bearing liabilities:
NOW accounts	$	38,678		38			0.20	%	$	37,304			41		0.22	%
Money market deposit accounts		32,535		54			0.33	%		24,973			38		0.30	%
Passbook and statement savings    accounts		32,620		44			0.27	%		34,864			52		0.30	%
Checking accounts		32,491		152			0.94	%		6,169			10		0.32	%
Certificates of deposit		28,560		159			1.11	%		36,565			188		1.03	%
Total deposits		164,884		447			0.54	%		139,875			329		0.47	%
Federal Home Loan Bank advances		10,708		75			1.40	%		19,554			86		0.88	%
Securities sold under agreements to    repurchase		2,208		2			0.18	%		1,955			2		0.20	%
Total interest-bearing liabilities		177,800		524			0.59	%		161,384			417		0.52	%
Non-interest-bearing liabilities:
Checking		12,855								10,371
Other		1,987								1,135
Total liabilities		192,642								172,890
Shareholders' Equity		31,491								12,961
Total liabilities and Shareholders'    equity	$	224,133							$	185,851
Net interest income				$	3,063							$	2,330
Interest rate spread (2)							2.76	%							2.58	%
Net interest-earning assets (3)	$	36,444							$	16,093
Net interest margin (4)							2.86	%							2.63	%
Average interest-earning assets to average interest-bearing liabilities		120.50	%							109.97	%

(1) Includes loans held for sale.

(2) Interest rate spread represents the difference between the average yield on average interest–earning assets and the average cost of average interest-bearing liabilities.

(3) Net interest earning assets represent total average interest–earning assets less total interest–bearing liabilities.

(4) Net interest margin represents net interest income divided by total average interest-earning assets.

(5) Annualized.

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Rate/ Volume Analysis

The following table presents the effects of changing rates and volumes on net interest income for the periods indicated.  The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately, based on the changes due to rate and the changes due to volume.

	For the Six Months Ended December 31, 2017 vs 2016
	Increase (Decrease) Due to						Total Increase
	Volume			Rate			(Decrease)
	(In thousands)
Interest-earning assets:
Loans	$	709		$	(180	)	$	529
Interest-earning deposits with banks		(26	)	145				119
Investment securities		59		138				197
Restricted investment in bank stock		(9	)		4			(5	)
Total interest-earning assets		733			107			840
Interest-bearing liabilities:
NOW accounts		2			(5	)		(3	)
Money market deposit accounts		10			6			16
Passbook and statement savings accounts		(2	)		(6	)		(8	)
Checking accounts		75			67			142
Certificates of deposit		(51	)		22			(29	)
Total deposits		34			84			118
Federal Home Loan Bank advances		(66	)		55			(11	)
Securities sold under agreements to    repurchase		—			—			—
Total interest-bearing liabilities		(32	)		139			107
Change in net interest income	$	765		$	(32	)	$	733

Provision for Loan Losses

Provision for loan losses decreased by $56,000 to $79,000 for the six months ended December 31, 2017, from $135,000 for the six months ended December 31, 2016 primarily as the result of a specific loan loss reserve of $96,000 on one residential owner-occupied loan included in the six months ended December 31, 2016 partially offset by increased provision expense due to loan volume growth during the six months ended December 31, 2017. Non-performing loans decreased from $1.4 million at June 30, 2017 to $1.3 million as of December 31, 2017, a decrease of $106,000, or 7.5%. During the six months ended December 31, 2017, total net recoveries of $11,000 were recorded. During the six months ended December 31, 2016, total net recoveries of $4,000 were recorded.

Non-Interest Income

Non-interest income decreased $318,000, or 14.2%, to $1.9 million for the six months ended December 31, 2017 from $2.2 million for the six months ended December 31, 2016. The decrease in non-interest income was primarily due to a decrease in gain on sales of loans, which decreased $1.6 million, or 42.1%, to $2.1 million for the six months ended December 31, 2017 from $3.7 million for the six months ended December 31, 2016. This was due to lower sales of loans and reduced margin on loans sold when

43

compared to the same period of 2016. Additionally, the change in fair value of loans held for sale decreased by $600,000 to ($95,000) for the six months ended December 31, 2017, from ($695,000) for the six months ended December 31, 2016. Loss from hedging instruments decreased $475,000 to ($464,000) for the six months ended December 31, 2017 from $(939,000) for the six months ended December 31, 2016 due to decreased volume of locked loans associated with hedging. These decreases in non-interest income were partially offset by an increase in fees for customer services which increased $125,000 to $230,000 for the six months ended December 31, 2017 from $105,000 for the same period in 2016 as a result of income received in exchange for customer’s deposits with a balance of $8.2 million at December 31, 2017 sourced in the deposit placement network. Gain on sale of available-for-sale securitiesincreased $23,000 to $34,000 for the six months ended December 31, 2017 from an $11,000 gain on sale of available-for-sale securities for the six months ended December 31, 2016.

Non-Interest Expense

Non-interestexpense increased $246,000, or 6.0%, to $4.3 million for the six months ended December 31, 2017 from $4.1 million for the six months ended December 31, 2016.  The increase primarily reflected a $160,000 increase in salaries and employee benefits and a $66,000 increase in other expenses. Salary and employee benefits expense increased by $160,000 to $2.5 million for the six months ended December 31, 2017 from $2.3 million for the six months ended December 31, 2016. Salaries increased as FTEs increased to 72 as of December 31, 2017, from 69 as of December 31, 2016, primarily as a result of the expansion in our administration department to support our operations. Other expenses increased $66,000, or 10.7%, to $685,000 for the six months ended December 31, 2017 from $619,000 for the six months ended December 31, 2016 due to increased ongoing compliance associated with being a public company.

Income Tax Expense

Income tax expense was $182,000 for the six months ended December 31, 2017 as compared to an income tax expense of $80,000 for the six months ended December 31, 2016.  Federal income taxes included in total taxes for the six months ended December 31, 2017 and 2016 were $144,000 and $81,000, with effective federal tax rates of 31.8% and 27.8%, respectively. During the six months ended December 31, 2017, the Company revised its estimated annual effective tax rate to reflect a change in the federal statutory rate from 35% to 21%, resulting from legislation that was enacted on December 22, 2017. The rate change is administratively effective at the beginning of our fiscal year, using a blended rate for the annual period.  As a result, the blended statutory rate for the year is 28.6%.

In addition, we recognized a tax expense in our tax provision for the six months ended December 31, 2017 related to adjusting our deferred tax balance to reflect the new corporate tax rate. As a result, income tax expense reported for the first six months was adjusted to reflect the effects of the change in the tax law and resulted in an increase in income tax expense of $47,000 during the six months ended December 31, 2017.

Pennsylvania state tax expense increased $39,000 to $38,000 for the six months ended December 31, 2017 from a tax (benefit) of ($1,000) for the six months ended December 31, 2016.

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Non-Performing Assets We define non-performing loans as loans that are either non-accruing or accruing whose payments are 90 days or more past due and non-accruing troubled debt restructurings. Non-performing assets, including non-performing loans and other real estate owned, totaled $1.2 million, or 0.51% of total assets, at December 31, 2017. The following table sets forth the amounts and categories of our non-performing assets at the dates indicated.  We had no accruing loans past due 90 days or more at December 31, 2017 or June 30, 2017.

	At December 31,			At June 30,
	2017			2017
	(Dollars in thousands)
Non-accrual loans:
Residential:
One- to four-family	$	1,139		$	1,198
Home equity & HELOCs		105			110
Commercial real estate		—			100
Commercial business		—			—
Construction		—			—
Consumer		—			—
Total non-accrual loans		1,244			1,408
Total non-performing loans		1,244			1,408
Real estate owned		—			—
Other non-performing assets		—			—
Total non-performing assets	$	1,244		$	1,408
Ratios:
Total non-performing loans to total loans receivable		0.78	%		1.26	%
Total non-performing loans to total    assets		0.51	%		0.65	%
Total non-performing assets to total    assets		0.51	%		0.65	%

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Allowance for Loan Losses

The following table sets forth activity in our allowance for loan losses for the periods indicated.

	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	2017			2016			2017		2016
	(Dollars in thousands)
Balance at beginning of year	$	615		$	613		$	593	$	487
Charge-offs:
Residential:
One- to four-family		(12	)		—			(12)		—
Home equity & HELOCs		—			—			—		—
Commercial real estate		—			—			(22)		—
Commercial business		—			—			—		—
Construction		—			—			—		—
Consumer		—			(2	)		—		(2	)
Total charge-offs		(12	)		(2	)		(34)		(2	)
Recoveries:
Residential:
One- to four-family		—			2			44		5
Home equity & HELOCs		—			—			—		—
Commercial real estate		—			—			—		—
Commercial business		—			—			—		—
Construction		—			—			—		—
Consumer		—			1			1		1
Total recoveries		—			3			45		6
Net recoveries (Charge-offs)		(12	)		1			11		4
Provision for loan losses		80			12			79		135
Balance at end of period	$	683		$	626		$	683	$	626
Ratios:
Net recoveries to average loans outstanding		—			—			—		—
Allowance for loan losses to non-performing    loans at end of period	54.90%			55.35%			54.90%		55.35%
Allowance for loan losses to total loans at    end of period	0.43%			0.65%			0.43%		0.65%

Liquidity and Capital Resources

Liquidity Management. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business.  Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures.  Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from sales of loans and securities, and matured loans and securities.  We also have the ability to borrow from the Federal Home Loan Bank of Pittsburgh.  Huntingdon Valley Bank had Federal Home Loan Bank of Pittsburgh advances of $12.0 million outstanding with unused borrowing capacity of $83.3 million as of December

46

31, 2017. Additionally, at December 31, 2017, we had the ability to borrow $3.0 million from the Atlantic Community Bankers Bank and we maintained a line of credit equal to 95% of the fair value of collateral held by the Federal Reserve Bank, which was $2.1 million at December 31, 2017. We have not borrowed against the credit lines with the Atlantic Community Bankers Bank and the Federal Reserve Bank during the six months endedDecember 31, 2017 and 2016.

The board of directors is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies. We believe that we have enough sources of liquidity to satisfy our short and long-term liquidity needs as of December 31, 2017.

We monitor and adjust our investments in liquid assets based upon our assessment of: (1) expected loan demand; (2) expected deposit flows; (3) yields available on interest-earning deposits and securities; and (4) the objectives of our asset/liability management program. Excess liquid assets are invested generally in interest-earning deposits and short-and intermediate-term securities.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents, which include federal funds sold and interest-earning deposits in other banks.  The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. At December 31, 2017, cash and cash equivalents totaled $14.8 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $32.9 million at December 31, 2017.  

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities.  Net cash provided by operating activities was $1.6 million and $18.5 million for the six months ended December 31, 2017 and December 31, 2016, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans and proceeds from maturing securities, was $41.1 million and $3.1 million for the six months ended December 31, 2017 and December 31, 2016, respectively. During the six months ended December 31, 2017 and December 31, 2016, we sold $11.2 million and $2.1 million, respectively, in securities available-for-sale.  Net cash provided by financing activities, consisting primarily of increases in deposits, was $25.7 million for the six months ended December 31, 2017 and $57.7 million for the six months ended December 31, 2016.

We are committed to maintaining a strong liquidity position.  We monitor our liquidity position on a daily basis.  We anticipate that we will have sufficient funds to meet our current funding commitments.  Certificates of deposit due within one year of December 31, 2017, totaled $11.3 million, or 5.8%, of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay.  We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.  

Capital Management.Huntingdon Valley Bank is subject to various regulatory capital requirements, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. At December 31, 2017, Huntingdon Valley Bank exceeded all regulatory capital requirements and was considered “well capitalized” under regulatory guidelines.  

Regulatory Capital

InformationpresentedforDecember 31, 2017 and June 30,2017,reflectstheBaselIIIcapitalrequirementsthatbecame effectiveJanuary 1,2015 fortheBank.Under thesecapitalrequirementsandtheregulatory frameworkforprompt corrective action, theBank mustmeet specificcapitalguidelinesthatinvolvequantitative measuresoftheBank’sassets, liabilitiesandcertainoff-balance-sheetitemsas

47

calculatedunder regulatory accounting practices. TheBank’scapitalamountsand classificationsarealso subjectto qualitativejudgmentsby regulatorsabout components, risk- weightingsandother factors.

Federal bank regulators require the Bank maintain minimum ratios of core capital to adjusted average assets of 4.0%, common equity Tier 1 capital to risk-weighted assets of 4.5%, Tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0%. At December 31, 2017, the Bank met all the capital adequacy requirements to which it was subject. At December 31, 2017, the Bank was “well capitalized” under the regulatory framework for prompt corrective action. To be “well capitalized,” the Bank must maintain minimum leverage, common equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios of at least 5.0%, 6.5%, 8.0% and 10.0%, respectively. Management believes that no conditions or events have occurred since December 31, 2017 that would materially adversely change the Bank’s capital classifications.

The Bank’s actual capital amounts and ratios are presented in the table (dollars in thousands):

									To Be Well Capitalized
									Under the Prompt
						Capital Adequacy			Corrective Action
	Actual					Purposes			Provision
(Dollars in thousands)	Amount		Ratio			Amount		Ratio	Amount		Ratio
As of December 31, 2017
Total risk-based capital (to    risk-weighted assets)	$	24,524		18.4	%	$>10,640		> 8.0%	$>13,300		>10.0%
Tier 1 capital (to risk-weighted assets)		23,841		17.9		>7,780		> 6.0%	>10,640		>  8.0%
Tier 1 capital (to average assets)		23,841		10.6		>9,001		> 4.0%	>11,252		>  5.0%
Tier 1 common equity (to risk-weighted    assets)		23,841		17.9		>5,985		> 4.5%	>8,645		>  6.5%
As of June 30, 2017
Total risk-based capital (to    risk-weighted assets)	$	24,113		21.8	%	$	≥8,870	> 8.0%	$	≥11,087	>10.0%
Tier 1 capital (to risk-weighted assets)		23,520		21.2		>6,652		> 6.0%	>8,870		>  8.0%
Tier 1 capital (to average assets)		23,520		11.2		>8,377		> 4.0%	>10,471		>  5.0%
Tier 1 common equity (to risk-weighted    assets)		23,520		21.2		>4,989		> 4.5%	>7,207		>  6.5%

As a licensed mortgagee, the Bank is subject to the rules and regulations of the Department of Housing and Urban Development (“HUD”), Federal Housing Authority (“FHA”) and state regulatory authorities with respect to originating, processing and selling loans. Those rules and regulations, among other things, require the maintenance of minimum net worth levels (which vary based on the portfolio of FHA loans originated by the Bank). Failure to meet the net worth requirements could adversely impact the ability to originate loans and access secondary markets. As of December 31, 2017 and June 30, 2017, the Bank maintained the minimum required net worth levels.  

The Bank must hold a capital conservation buffer, subject to a phase-in from January 1, 2016 through December 31, 2019, above its minimum risk-based capital requirements. As of December 31, 2017, the Bank is required to maintain a capital conservation buffer of 1.25%. At December 31, 2017, the Bank met the capital conservation buffer requirements.  Failure to maintain the full amount of the buffer will result in restrictions on the Bank’s ability to make capital distributions and to pay discretionary bonuses to executive officers. The phase-in requires the Bank to increase its capital conservation buffer from 0.625% as of June 30, 2016 to 2.50% as of June 30, 2019 and thereafter.

Off-Balance Sheet Arrangements and Contractual Obligations

Commitments.As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit.  While

48

these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make. At December 31, 2017, we had outstanding commitments to originate loans of $16.1million, unused lines of credit totaling $9.0 million and no stand-by letters of credit outstanding. We anticipate that we will have sufficient funds available to meet our current lending commitments. Certificates of deposit that are scheduled to mature in less than one year from December 31, 2017 totaled $11.3 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating leases for equipment, agreements with respect to borrowed funds and deposit liabilities.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Not required for smaller reporting companies

Item 4 – Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) as of December 31, 2017.  Based on their evaluation of the Company's disclosure controls and procedures, the Company's Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and regulations are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) occurred during the second fiscal quarter of 2018 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

49

PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

At December 31, 2017, the Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition and operating results of the Company.

Item 1A – Risk Factors

Not required for smaller reporting companies

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable

(b) Not applicable

(c) Not Applicable

Item 3 – Defaults upon Senior Securities

Not Applicable

Item 4 – Mine Safety Disclosures

Not Applicable

Item 5 – Other Information

None

Item 6 – Exhibits

31.1	Rule 13a-14(a) Certification of the Chief Executive Officer *
31.2	Rule 13a-14(a) Certification of the Chief Financial Officer *
32.0	Section 1350 Certification *
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

* Filed herewith

50

SIGNATURES

HV BANCORP, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HV BANCORP, INC.
Date: February 13, 2018	By:	/s/ Travis J. Thompson
		Travis J. Thompson
		President and Chief Executive Officer
		(Duly Authorized Officer)
Date: February 13, 2018	By:	/s/ Joseph C. O’Neill, Jr.
		Joseph C. O’Neill, Jr.
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

51

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Travis J. Thompson, certify that:  

1. I have reviewed this Quarterly Report on Form 10-Q of HV Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation; and

(c)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of  internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 13, 2018	/s/Travis J. Thompson
	Travis J. Thompson
	President and Chief Executive Officer
	(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Joseph C. O'Neill, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of HV Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation; and

(c)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of  internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 13, 2018	/s/Joseph C. O’Neill, Jr.
	Joseph C. O'Neill, Jr.
	Executive Vice President and Chief Financial Officer (principal financial and accounting officer)

EX-32

Exhibit 32

Certification

Pursuant to 18 U.S.C. § 1350, the undersigned officers of HV Bancorp, Inc. (the “Company”) hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 13, 2018	/s/Travis J. Thompson
	Travis J. Thompson
	President and Chief Executive Officer
	(principal executive officer)
	/s/Joseph C. O’Neill, Jr.
	Joseph C. O'Neill, Jr.
	Executive Vice President and Chief Financial Officer
	(principal financial officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 10, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	HVBC
Entity Registrant Name	HV Bancorp, Inc.
Entity Central Index Key	0001594555
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,182,125

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Assets
Cash and due from banks	$ 1,070	$ 1,514
Interest-earning deposits with banks	13,732	27,063
Cash and cash equivalents	14,802	28,577
Investment securities available-for-sale, at fair value	32,863	42,820
Investment securities held-to-maturity (fair value of $12,490 at December 31, 2017 and $11,896 at June 30, 2017)	12,433	11,809
Loans held for sale, at fair value	12,266	12,784
Loans receivable, net of allowance for loan losses of $683 at December 31, 2017 and $593 at June 30, 2017	159,702	111,811
Bank-owned life insurance	5,936	4,005
Restricted investment in bank stock	749	643
Premises and equipment, net	1,834	1,835
Accrued interest receivable	773	620
Prepaid income taxes	38	171
Deferred income taxes, net	397	257
Prepaid expenses	266	272
Mortgage banking derivatives	519	1,001
Other assets	78	160
Total Assets	242,656	216,765
Liabilities
Deposits	193,108	170,481
Advances from the Federal Home Loan Bank	12,000	9,000
Securities sold under agreements to repurchase	2,967	2,883
Advances from borrowers for taxes and insurance	1,428	1,402
Deferred gain on sale - leaseback of building	302	310
Other liabilities	1,138	1,248
Total Liabilities	210,943	185,324
Shareholders’ Equity
Preferred Stock, $0.01 par value, 2,000,000 shares authorized; no shares issued and outstanding as of December 31, 2017 and June 30, 2017
Common Stock, $0.01 par value, 20,000,000 shares authorized; 2,182,125 shares issued and outstanding as of December 31, 2017 and June 30, 2017	22	22
Additional paid in capital	20,369	20,369
Retained earnings	13,962	13,547
Accumulated other comprehensive loss	(301)	(111)
Unearned Employee Stock Option Plan	(2,339)	(2,386)
Total Shareholders' Equity	31,713	31,441
Total Liabilities and Shareholders' Equity	$ 242,656	$ 216,765

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Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Statement Of Financial Position [Abstract]
Investment securities held-to-maturity, fair value	$ 12,490	$ 11,896
Loans receivable, allowance for loan losses	$ 683	$ 593
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	2,182,125	2,182,125
Common stock, shares outstanding	2,182,125	2,182,125

XML

Unaudited Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Interest Income
Interest and fees on loans	$ 1,517	$ 1,132	$ 2,867	$ 2,338
Interest and dividends on investments:
Taxable	91	72	209	132
Nontaxable	65	41	130	83
Interest on mortgage-backed securities and collateralized mortgage obligations	94	48	179	111
Interest on interest-earning deposits	97	53	202	83
Total Interest Income	1,864	1,346	3,587	2,747
Interest Expense
Interest on deposits	231	163	447	329
Interest on advances from the Federal Home Loan Bank	45	40	75	86
Interest on securities sold under agreements to repurchase	1	1	2	2
Total Interest Expense	277	204	524	417
Net interest income	1,587	1,142	3,063	2,330
Provision for Loan Losses	80	12	79	135
Net interest income after provision for loan losses	1,507	1,130	2,984	2,195
Non-Interest Income
Fees for customer services	185	51	230	105
Increase in cash surrender value of bank owned life insurance	41	28	75	57
Gain on sale of loans, net	909	2,136	2,145	3,705
Gain on sale of available-for-sale securities			34	11
Loss from hedging instruments	(74)	(560)	(464)	(939)
Change in fair value of loans held-for-sale	(140)	(778)	(95)	(695)
Other	2	1	3	2
Total Non-Interest Income	923	878	1,928	2,246
Non-Interest Expense
Salaries and employee benefits	1,286	1,146	2,457	2,297
Occupancy	260	254	525	500
Federal deposit insurance premiums	26	32	56	70
Data processing related operations	125	138	277	285
Loss on sale of other real estate owned	3	12	3	12
Real estate owned expense	6	5	27	16
Professional fees	113	135	285	270
Other expenses	338	285	685	619
Total Non-Interest Expense	2,157	2,007	4,315	4,069
Income before income taxes	273	1	597	372
Income Tax Expense (Benefit)	94	(38)	182	80
Net Income	$ 179	$ 39	$ 415	$ 292
Net Income per share:
Basic	$ 0.08		$ 0.19
Diluted	$ 0.08		$ 0.19

XML

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net Income		$ 179	$ 39	$ 415	$ 292
Other comprehensive loss, net of tax
Unrealized loss on available-for-sale securities (pre-tax ($176) and ($490); $(205) and $(537), respectively)		(153)	(288)	(165)	(309)
Less: Reclassification for gains included in income (pre-tax $0 and $0; $(34) and $(11), respectively)	[1]			25	7
Other comprehensive (loss)		(153)	(288)	(190)	(316)
Comprehensive Income (Loss)		$ 26	$ (249)	$ 225	$ (24)

[1] Amounts are included in gain on sale of available-for-sale securities on the Consolidated Statements of Income as a separate element within non-interest income. Income tax expense is included in the Consolidated Statements of Income.

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Unaudited Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Unrealized loss on available-for-sale securities, pre-tax	$ (176)	$ (490)	$ (205)	$ (537)
Reclassification for gains included in income, pre-tax	$ 0	$ 0	$ (34)	$ (11)

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Unaudited Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Unearned ESOP Shares
Beginning balance at Jun. 30, 2016	$ 12,971			$ 12,978	$ (7)
Net Income	292			292
Other comprehensive loss	(316)				(316)
Ending balance at Dec. 31, 2016	12,947			13,270	(323)
Beginning balance at Jun. 30, 2017	31,441	$ 22	$ 20,369	13,547	(111)	$ (2,386)
Beginning balance, shares at Jun. 30, 2017		2,182,125
ESOP shares committed to be released	47					47
Net Income	415			415
Other comprehensive loss	(190)				(190)
Ending balance at Dec. 31, 2017	$ 31,713	$ 22	$ 20,369	$ 13,962	$ (301)	$ (2,339)
Ending balance, shares at Dec. 31, 2017		2,182,125

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Unaudited Consolidated Statements Shareholders' Equity (Parenthetical)	6 Months Ended
	Dec. 31, 2016 shares
Statement Of Stockholders Equity [Abstract]
Common stock or ESOP shares issued	0
Common stock or ESOP shares outstanding	0

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Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net Income	$ 415	$ 292
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	106	96
Impairment of real estate owned, net	14	5
Amortization of net deferred loan costs	67	3
Amortization of net securities premiums	73	210
Loss on sale of other real estate owned	3	12
Gain on sale of available-for-sale securities	(34)	(11)
Loss from hedging instruments	464	1,123
Provision for Loan Losses	79	135
Deferred income tax benefit	(91)	(327)
Amortization of deferred gain on sale-leaseback transaction	(8)	(8)
Earnings on bank owned life insurance	(75)	(57)
ESOP compensation expense	47
Loans held for sale:
Originations, net of prepayments	(80,066)	(90,831)
Proceeds from sales	82,634	112,336
Gain on sales	(2,145)	(3,705)
Change in fair value of loans held for sale	95	695
(Increase) decrease in:
Accrued interest receivable	(153)	2
Prepaid federal income taxes	133	78
Prepaid and other assets	88	(1,039)
Other liabilities	(90)	(512)
Net cash provided by operating activities	1,556	18,497
Cash Flows from Investing Activities
Net Increase in loans receivable	(48,178)	(2,465)
Activity in available-for-sale securities:
Proceeds from sales	11,158	2,054
Maturities and repayments	1,186	2,101
Purchases	(2,665)	(5,200)
Activity in held-to-maturity securities:
Maturities and repayments	11
Purchases	(635)
Redemption of restricted investment in bank stock	(106)	450
Purchases of bank owned life insurance	(1,856)
Proceeds from sales of real estate owned	124	98
Purchases of premises and equipment	(107)	(178)
Net cash used in investing activities	(41,068)	(3,140)
Cash Flows from Financing Activities
Net increase in deposits	22,627	71,317
Net increase (decrease) in advances from borrowers for taxes and insurance	26	(480)
Net increase (decrease) in securities sold under agreements to repurchase	84	(2,176)
Proceeds from borrowings from Federal Home Loan Bank	15,000	19,000
Repayment of borrowings from Federal Home Loan Bank	(12,000)	(30,000)
Net cash provided by financing activities	25,737	57,661
(Decrease) increase in Cash and Cash Equivalents	(13,775)	73,018
Cash and Cash Equivalents, beginning of year	28,577	15,427
Cash and Cash Equivalents, end of year	14,802	88,445
Supplementary Disclosure of Cash Flow Information
Cash paid during the year of interest	598	413
Cash paid during the year for income taxes	65
Supplementary Schedule of Noncash Investing Activities
Transfer of loans to real estate owned	$ 127	$ 65

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Organization, Basis of Presentation and Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Organization, Basis of Presentation and Recent Accounting Pronouncements

1. Organization, Basis of Presentation and Recent Accounting Pronouncements

Organization

HV Bancorp, Inc., a Pennsylvania Corporation (the “Company”) is the holding company of Huntingdon Valley Bank (the “Bank”) and was formed in connection with the conversion of the Bank from the mutual to the stock form of organization. On January 11, 2017, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. A total of 2,182,125 shares of common stock were sold to depositors at $10.00 per share through which the Company received gross offering proceeds of approximately $21.8 million. Offering costs from the sale of the common stock totaled $1.4 million, resulting in net proceeds of $20.4 million. Shares of the Company began trading on the Nasdaq Capital Market on January 12, 2017. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Bank”).

The Bank is a stock savings bank organized under the laws of the Commonwealth of Pennsylvania and is subject to comprehensive regulation and examination by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“PADOB”). The Bank was organized in 1871, and currently provides residential and commercial loans to its general service area (Montgomery, Bucks and Philadelphia Counties of Pennsylvania) as well as offering a wide variety of savings, checking and certificate of deposit accounts to its retail and business customers.

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim information and with the instructions to the Quarterly Report on Form 10-Q, as applicable to a smaller reporting company.  Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements.

The financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof.  The balances as of June 30, 2017 have been derived from the audited consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission on September 28, 2017. The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or any other period.

The Company has evaluated subsequent events through the date of issuance of the financial statements included herein.

Principles of Consolidation

The unaudited interim consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, the Bank.  In January 2017, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Prior to January 11, 2017, all financial information reflects the Bank’s transactions and balances only. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates in the Preparation of Financial Statements

In preparing financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairments of securities, interest rate lock commitments (“IRLCs”), mandatory sales commitments, the valuation of mortgage loans held-for-sale, other real estate owned, and the valuation of deferred tax assets.

Recent Accounting Pronouncements

The Company qualifies under the Jumpstart Our Business Startups Act (the “JOBS Act”) as an emerging growth company. As an emerging growth company, the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements until such pronouncements are made applicable to private companies.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings.  In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e., the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e., the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others.  In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2017 for public entities.  In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This ASU clarifies certain aspects of Topic 606 guidance as follows:

• The objective of the collectability assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services transferred.

• An entity can recognize revenue in the amount of consideration received when it has transferred control of the goods or services, has no additional obligation to transfer goods or services, and the consideration received is nonrefundable.

• A reporting entity is permitted to make the accounting policy election to exclude amounts collected from customers for all sales taxes from the transaction price.

• The measurement date is specified as being the contract inception, and variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration.

• As a practical expedient, a reporting entity is permitted to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented in accordance with Topic 606 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• The ASU clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments in this ASU permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts.

The amendments in this ASU clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted.

The guidance in the revenue recognition ASUs listed above is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the various revenue recognition ASUs. The guidance does not apply to revenue associated with financial instruments, including loans and securities. The Company evaluated its non-interest revenue sources and the adoption of these ASUs will not have a material impact on its financial condition or results of operations.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments.  Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others.  ASU 2016-01 also clarifies that an entity should assess the need for a valuation allowance on a deferred tax asset related to unrealized losses of investments in debt instruments recognized in OCI in combination with the entity’s other deferred tax assets. Prior to this guidance, the alternative approach used in practice evaluated the need for a valuation allowance for a deferred tax asset related to unrealized losses on debt instruments recognized in other comprehensive income separately from other deferred tax assets. This alternative approach will no longer be acceptable. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  As of December 31, 2017 we do not hold material equity investments for which fair value is accounted through other comprehensive income.  We are analyzing ASU 2016-01 and do not believe that it will have a material effect on our financial statements.

In March 2017, the FASB issued Accounting Standards Update (ASU) 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization for premiums on purchased callable debt securities to the earliest call date (i.e. yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount.

The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based on prepayments of the underlying loans, not because the issuer has exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendment. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated.

The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. For all other entities, including emerging growth entities as further described above, the amendments are effective for fiscal periods beginning after December 15, 2019, and interim periods within fiscal periods beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this standard on July 1, 2017 with no material impact on our consolidated financial statements.  

In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases. The new leases standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification.

The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing U.S. GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606.

Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.

The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and re-measurement of lease payments. It also contains comprehensive implementation guidance with practical examples.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth entities as further described above) for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Specific transition requirements apply. The Company’s leases are operating leases and ASU 2016-02 will require us to add them to our balance sheet. The Company’s operating leases are predominantly related to real estate. The Company is currently evaluating other impacts of the pending adoption of the new standard on our consolidated financial statements.

In June 2016,the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument.

The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above.

Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (“AFS”) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis.

The ASU is effective for public business entities for fiscal years after December 15, 2019, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth companies as further described above for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In anticipation of the ASU, the Company has entered into a contract with a third party, compiled data for the modeling and is working on developing an estimate using historically and qualitative data based on the requirements of ASU 2016-13. The Company is currently evaluating the impact of adoption of the new standard on the consolidated financial statements.

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Investment Securities

6 Months Ended

Dec. 31, 2017

Investments Debt And Equity Securities [Abstract]

Investment Securities

2. Investment Securities

Investment securities available-for-sale was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	1,455	$	9	$	(17	)	$	1,447
Corporate notes		6,308		15		(47	)		6,276
Collateralized mortgage obligations - agency    residential		13,736		4		(265	)		13,475
Mortgage-backed securities - agency    residential		4,234		—		(81	)		4,153
Municipal securities		2,065		—		(19	)		2,046
Bank CDs		5,492		5		(31	)		5,466
	$	33,290	$	33	$	(460	)	$	32,863

Investment securities held-to-maturity was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	8	$	—		$	2,008
Municipal securities		10,433		85		(36	)		10,482
	$	12,433	$	93	$	(36	)	$	12,490

Investment securities available-for-sale was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	4,330	$	26	$	(16	)	$	4,340
Corporate notes		11,231		59		(64	)		11,226
Collateralized mortgage obligations - agency    residential		12,668		59		(160	)		12,567
Mortgage-backed securities - agency    residential		4,520		—		(85	)		4,435
Municipal securities		3,517		1		(11	)		3,507
Bank CDs		6,742		23		(20	)		6,745
	$	43,008	$	168	$	(356	)	$	42,820

Investment securities held-to-maturity was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	12	$	—		$	2,012
Municipal securities		9,809		88		(13	)		9,884
	$	11,809	$	100	$	(13	)	$	11,896

The scheduled maturities of securities available-for-sale and held-to-maturity at December 31, 2017 were as follows:

	December 31, 2017
	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	1,550	$	1,549	$	605	$	604
Due from one to five years		8,569		8,515		2,528		2,513
Due from after five to ten years		3,750		3,728		6,995		7,050
Due after ten years		19,421		19,071		2,305		2,323
	$	33,290	$	32,863	$	12,433	$	12,490

Securities with a fair value of $6.6 million and $8.2 million at December 31, 2017 and June 30, 2017, respectively, were pledged to secure public deposits and for other purposes as required by law.

Proceeds from the sale of available-for-sale securities for the six months ended December 31, 2017 were $11.2 million. Gross realized gains on such sales were approximately $39,000 and gross realized losses on such sales were $5,000 for the six months ended December 31, 2017.

Proceeds from the sale of available-for-sale securities for the six months ended December 31, 2016 were $2.1 million. Gross realized gains on such sales were approximately $11,000 and gross realized losses on such sales were $0 for the six months ended December 31, 2016.

The following tables summarize the unrealized loss positions of securities available-for-sale and held-to-maturity as of December 31, 2017 and June 30, 2017:

	December 31, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	—	$	—		$	601	$	(17	)	$	601	$	(17	)
Corporate notes		900		(5	)		3,459		(42	)		4,359		(47	)
Collateralized mortgage obligations		5,843		(47	)		6,497		(218	)		12,340		(265	)
Mortgage-backed securities		—		—			4,149		(81	)		4,149		(81	)
Municipal securities		—		—			2,046		(19	)		2,046		(19	)
Bank CDs		3,975		(23	)		487		(8	)		4,462		(31	)
	$	10,718	$	(75	)	$	17,239	$	(385	)	$	27,957	$	(460	)
Held-to-maturity:
Municipal securities	$	5,637	$	(36	)	$	—	$	—		$	5,637	$	(36	)
	$	16,355	$	(111	)	$	17,239	$	(385	)	$	33,594	$	(496	)

	June 30, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	1,115	$	(16	)	$	—	$	—		$	1,115	$	(16	)
Corporate notes		2,045		(6	)		2,492		(58	)		4,537		(64	)
Collateralized mortgage obligations		2,218		(40	)		4,278		(120	)		6,496		(160	)
Mortgage-backed  securities		3,297		(46	)		1,133		(39	)		4,430		(85	)
Municipal securities		2,214		(9	)		238		(2	)		2,452		(11	)
Bank CDs		2,736		(13	)		243		(7	)		2,979		(20	)
	$	13,625	$	(130	)	$	8,384	$	(226	)	$	22,009	$	(356	)
Held-to-maturity:
Municipal securities	$	3,227	$	(11	)	$	501	$	(2	)	$	3,728	$	(13	)
	$	16,852	$	(141	)	$	8,885	$	(228	)	$	25,737	$	(369	)

At December 31, 2017 and June 30, 2017, the investment portfolio included five and ten U.S. Government securities, respectively, with total market values of $1.4 million and $4.3 million, respectively. Of these securities, two and three were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. These securities are zero risk weighted for capital purposes and are guaranteed for repayment of principal and interest. As of December 31, 2017 and June 30, 2017, management found no evidence of Other Than Temporary Impairment (“OTTI”) on any of the U.S. Governmental securities in an unrealized loss position held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included fifteen and twenty-four corporate notes with total market values of $8.3 million and $13.2 million, respectively. Of these securities, nine were in an unrealized loss position as of December 31, 2017 and June 30, 2017. At the time of purchase and as of December 31, 2017 and June 30, 2017, these bonds continue to maintain investment grade ratings. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the corporate notes held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than will not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included thirty-eight and thirty-five collateralized mortgage obligations (“CMOs”) with total market values of $13.5 million and $12.6 million, respectively. Of these securities, thirty-six andtwenty-eight were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The CMO portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the CMOs held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included fifteen mortgage backed securities (“MBS”) with a total market value of $4.2 million and $4.4 million, respectively. Of these securities, twelve were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The MBS portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the MBS held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included twenty-seven and thirty municipal securities with a total market value of $12.5 million and $13.4 million, respectively. Of these securities, seventeen and thirteen were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The Company’s municipal portfolio issuers are located in Pennsylvania and at the time of purchase, and as of December 31, 2017 and June 30, 2017, continue to maintain investment grade ratings. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the municipal securities held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

At December 31, 2017 and June 30, 2017, the investment portfolio included twenty-two and twenty-six Bank Certificate of Deposits (“CDs”) with a total market value of $5.5 million and $6.7 million, respectively. Of these securities, eighteen and twelve were in an unrealized loss position as of December 31, 2017 and June 30, 2017, respectively. The Bank CDsare fully insured by the FDIC. As of December 31, 2017 and June 30, 2017, management found no evidence of OTTI on any of the Bank CDs held in the investment securities portfolio. The Company has the ability to hold to maturity and more likely than not, will not be required to sell the securities before a recovery of the cost has occurred.

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Loans Receivable

6 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable were comprised of the following:

	December 31,			June 30,
(Dollars in thousands)	2017			2017
Residential:
One-to-four family	$	128,267		$	88,578
Home equity and HELOCs		4,881			5,466
Commercial:
Commercial real estate		12,652			12,191
Commercial business		3,345			3,801
Construction		2,837			2,004
Consumer:
Medical education		7,526			—
Other		6			5
		159,514			112,045
Less:
Unearned discounts, origination and commitment    fees and costs		871			359
Allowance for loan losses		(683	)		(593	)
	$	159,702		$	111,811

In November 2017, the Bank entered into a loan purchase agreement with a broker to purchase a portfolio of private education loans made to American citizens attending American Medical Association (“AMA”) approved medical schools in Caribbean Nations. The broker serves as a lender, holder, program designer and developer, administrator, and secondary market for the loan portfolios they generate. At December 31, 2017, the balance of the private education loans was $7.5 million. The private student loans are made following a proven credit criteria and were underwritten in accordance with the Bank’s policies. Recourse includes a fully paid insurance wrap for the life of the loan provided by an insurance company who is required to repurchase loans delinquent over 180 days.

Overdraft deposits are reclassified as other consumer and commercial business loans and are included in the total loans on the statements of financial condition. Overdrafts were $12,000 and $5,000 at December 31, 2017 and June 30, 2017, respectively.

The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the three months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	420	$	(12	)		—	$	64		$	472	$	—	$	472
Home equity and HELOCs		39		—			—		(1	)		38		—		38
Commercial:
Commercial real estate		85		—			—		1			86		—		86
Commercial business		68		—			—		(10	)		58		16		42
Construction		3		—			—		7			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			—		—			—		—		—
	$	615	$	(12	)	$	—	$	80		$	683	$	16	$	667

Allowance for Loan Losses	For the three months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions		Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	360	$	—		$	2	$	—	$	362	$	—	$	362
Home equity and HELOCs		114		—			—		—		114		96		18
Commercial:
Commercial real estate		118		—			—		—		118		30		88
Commercial business		20		—			—		—		20		15		5
Construction		1		—			—		—		1		—		1
Consumer:
Other		—		(2	)		1		1		—		—		—
Unallocated reserve		—		—			—		11		11		—		11
	$	613	$	(2	)	$	3	$	12	$	626	$	141	$	485

The following tables summarize the activity in the allowance for loan losses by loan class for the six months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the six months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	399	$	(12	)	$	44	$	41		$	472	$	—	$	472
Home equity and HELOCs		38		—			—		—			38		—		38
Commercial:
Commercial real estate		89		(22	)		—		19			86		—		86
Commercial business		58		—			—		—			58		16		42
Construction		9		—			—		1			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			1		(1	)		—		—		—
Unallocated reserve		—		—			—		—			—		—		—
	$	593	$	(34	)	$	45	$	79		$	683	$	16	$	667

Allowance for Loan Losses	For the six months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	314	$	—		$	5	$	43		$	362	$	—	$	362
Home equity and HELOCs		18		—			—		96			114		96		18
Commercial:												—
Commercial real estate		131		—			—		(13	)		118		30		88
Commercial business		23		—			—		(3	)		20		15		5
Construction		1		—			—		—			1		—		1
Consumer:
Other		—		(2	)		1		1			—		—		—
Unallocated reserve		—		—			—		11			11		—		11
	$	487	$	(2	)	$	6	$	135		$	626	$	141	$	485

The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of December 31, 2017 and June 30, 2017:

December 31, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	128,267	$	1,280	$	126,987
Home equity and HELOCs		4,881		105		4,776
Commercial
Commercial real estate		12,652		406		12,246
Commercial business		3,345		163		3,182
Construction		2,837		—		2,837
Consumer:
Medical education		7,526		—		7,526
Other		6		—		6
	$	159,514	$	1,954	$	157,560

June 30, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	88,578	$	1,198	$	87,380
Home equity and HELOCs		5,466		196		5,270
Commercial
Commercial real estate		12,191		514		11,684
Commercial business		3,801		173		3,628
Construction		2,004		—		2,004
Consumer:
Other		5		—		5
	$	112,045	$	2,081	$	109,971

The following tables summarize information in regard to impaired loans by loan portfolio class as of December 31, 2017 and June 30, 2017:

	December 31, 2017						June 30, 2017
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Residential:
One-to-four family	$	1,280	$	1,280	$	—	$	1,198	$	1,198	$	—
Home equity and HELOCs		105		105		—		196		196		—
Commercial:
Commercial real estate		406		406		—		514		514		—
		1,791		1,791		—		1,908		1,908		—
With an allowance recorded
Commercial:
Commercial business		163		163		16		173		173		15
		163		163		16		173		173		15
	$	1,954	$	1,954	$	16	$	2,081	$	2,081	$	15

The following table presents additional information regarding the impaired loans for the three months ended December 31, 2017 and December 31, 2016:

	Three Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,151	$	1	$	924	$	1
Home equity and HELOCs		105		—		147		—
Commercial:
Commercial real estate		408		8		552		8
		1,664		9		1,623		9
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		120		—
Commercial:
Commercial real estate		—		—		200		4
Commercial business		165		3		185		3
		165		3		505		7
	$	1,829	$	12	$	2,128	$	16

If these loans were performing under the original contractual rate, interest income on such loans would have increased approximately $18,000 and $23,000 for the three months ended December 31, 2017 and 2016, respectively.

The following table presents additional information regarding the impaired loans for the six months ended December 31, 2017 and December 31, 2016:

	Six Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,147	$	3	$	854	$	3
Home equity and HELOCs		106		—		106		—
Commercial:
Commercial real estate		410		14		553		16
		1,663		17		1,513		19
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		121		—
Commercial:
Commercial real estate		—		—		200		8
Commercial business		168		5		188		6
		168		5		509		14
	$	1,831	$	22	$	2,022	$	33

If these loans were performing under the original contractual rate, interest income on such loans would have increased approximately $40,000 and $35,000 for the six months ended December 31, 2017 and 2016, respectively.

The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2017 and June 30, 2017:

	December 31,		June 30,
(Dollars in thousands)	2017		2017
Residential:
One-to-four family	$	1,139	$	1,198
Home equity and HELOCs		105		110
Commercial:
Commercial real estate		—		100
Commercial business		—		—
Construction		—		—
Consumer:
Medical education		—		—
Other		—		—
	$	1,244	$	1,408

Credit quality risk ratings include regulatory classifications of Special Mention, Substandard, Doubtful and Loss.  Loans classified as Special Mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of prospects for repayment. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass.

The following tables summarize the aggregate Pass and criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2017 and June 30, 2017:

	December 31, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	126,424	$	—	$	1,843	$	—	$	128,267
Home equity and HELOCs		4,776		—		105		—		4,881
Commercial:
Commercial real estate		12,026		220		406		—		12,652
Commercial business		3,182		—		163		—		3,345
Construction		2,837		—		—		—		2,837
Consumer:
Medical education		7,526		—		—		—		7,526
Other		6		—		—		—		6
	$	156,777	$	220	$	2,517	$	—	$	159,514

	June 30, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	87,099	$	—	$	1,479	$	—	$	88,578
Home equity and HELOCs		5,270		—		196		—		5,466
Commercial:
Commercial real estate		11,283		552		356		—		12,191
Commercial business		3,628		—		173		—		3,801
Construction		2,004		—		—		—		2,004
Consumer:
Other		5		—		—		—		5
	$	109,289	$	552	$	2,204	$	—	$	112,045

The following tables present the segments of the loan portfolio summarized by aging categories as of December 31, 2017 and June 30, 2017:

	December 31, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	191	$	500	$	860	$	1,551	$	126,716	$	128,267	$	—
Home equity and HELOCs		—		—		105		105		4,776		4,881		—
Commercial:
Commercial real estate		—		—		—		—		12,652		12,652		—
Commercial business		—		—		—		—		3,345		3,345		—
Construction		—		—		—		—		2,837		2,837		—
Consumer:
Medical education		173		—		—		173		7,353		7,526		—
Other		—		—		—		—		6		6		—
	$	364	$	500	$	965	$	1,829	$	157,685	$	159,514	$	—

	June 30, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	554	$	381	$	950	$	1,885	$	86,693	$	88,578	$	—
Home equity and HELOCs		—		—		110		110		5,356		5,466		—
Commercial:
Commercial real estate		—		—		100		100		12,091		12,191		—
Commercial business		—		—		—		—		3,801		3,801		—
Construction		—		—		—		—		2,004		2,004		—
Consumer:
Other		—		—		—		—		5		5		—
	$	554	$	381	$	1,160	$	2,095	$	109,950	$	112,045	$	—

The Company may grant a concession or modification for economic or legal reasons related to a borrower's financial condition that it would not otherwise consider resulting in a modified loan that is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers' operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company's allowance for loan losses. TDRs are restored to accrual status when the obligation is brought current, has performed in accordance with the modified contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

The Company may identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower's financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions and negative trends may result in a payment default in the near future.

As of December 31, 2017 and June 30, 2017, the Company had two loans identified as TDRs totaling $317,000 and $331,000, respectively. At December 31, 2017 and June 30, 2017, both of the TDRs were performing in compliance with their restructured terms and on accrual status. There were no modifications to loans classified as TDRs during the six months ended December 31, 2017 and 2016. No additional loan commitments were outstanding to these borrowers at December 31, 2017 and June 30, 2017.

The following table details the Company’s TDRs that are on accrual status and non-accrual status at December 31, 2017:

	As of December 31, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	317	$	—	$	317
Total		2	$	317	$	—	$	317

The following table details the Company’s TDRs that are on accrual status and non-accrual status at June 30, 2017:

	As of June 30, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	331	$	—	$	331
Total		2	$	331	$	—	$	331

The carrying amount of residential mortgage loans in the process of foreclosure was $402,000 and $946,000 at December 31, 2017 and June 30, 2017, respectively.

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Derivatives and Risk Management Activities

6 Months Ended

Dec. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Risk Management Activities

4. Derivatives and Risk Management Activities

The Company did not have any derivative instruments designated as hedging instruments or subject to master netting and collateral agreements as of December 31, 2017 and June 30, 2017 and for the six months ended December 31, 2017 and 2016. The following tables summarize the amounts recorded in the Company’s consolidated statements of financial condition for derivatives not designated as hedging instruments as of December 31, 2017 and June 30, 2017 (in thousands):

December 31, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	251	$	10,224
Forward loan sales commitments	Mortgage banking derivatives		268		7,267
To Be Announced securities	Mortgage banking derivatives		—		1,000
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	26	$	2,667
Forward loan sales commitments	Other liabilities		3		978
To Be Announced securities	Other liabilities		17		10,250

June 30, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	786	$	21,389
Forward loan sales commitments	Mortgage banking derivatives		179		10,864
To Be Announced securities	Mortgage banking derivatives		36		14,750
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	19	$	4,089
Forward loan sales commitments	Other liabilities		37		3,713
To Be Announced securities	Other liabilities		8		2,750

The following table summarizes the amounts recorded in the Company’s consolidated statements of income for derivative instruments not designated as hedging instruments for the three and six months ended December 31, 2017 and December 31, 2016 (in thousands):

		Gain/(Loss)
	Consolidated Statements of Income	Three Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(173	)	$	(486	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		131			(583	)
To Be Announced securities	(Loss) Gain from hedging instruments		(32	)		509
	Total loss from hedging instruments	$	(74	)	$	(560	)

		Gain/(Loss)
	Consolidated Statements of Income	Six Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(542	)	$	(269	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		123			(928	)
To Be Announced securities	(Loss) Gain from hedging instruments		(45	)		258
	Total loss from hedging instruments	$	(464	)	$	(939	)

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Fair Value of Financial Instruments

6 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

5.Fair Value of Financial Instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is determined at a reasonable point within the range that is most representative of fair value under current market conditions. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends, and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end.

In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

Assets measured at fair value on a recurring basis at December 31, 2017 and June 30, 2017 are summarized below:

	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	1,447	$	—	$	1,447
Corporate notes		—		5,288		988		6,276
Collateralized mortgage obligations - agency    residential		—		13,475		—		13,475
Mortgage-backed securities - agency    residential		—		4,153		—		4,153
Municipal securities		—		2,046		—		2,046
Bank CDs		—		5,223		243		5,466
Loans held for sale		—		12,266		—		12,266
Interest rate lock commitments		—		—		251		251
Forward loan sales commitments		—		268		—		268

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	4,340	$	—	$	4,340
Corporate notes		—		10,258		968		11,226
Collateralized mortgage obligations - agency    residential		—		12,567		—		12,567
Mortgage-backed securities - agency    residential		—		4,435		—		4,435
Municipal securities		—		3,507		—		3,507
Bank CDs		—		6,502		243		6,745
Loans held for sale		—		12,784		—		12,784
Interest rate lock commitments		—		—		786		786
Forward loan sales commitments		—		179		—		179
To Be Announced securities		—		36		—		36

Liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized below.

	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	26	$	26
Forward loan sales commitments		—		3		—		3
To Be Announced securities		—		17		—		17

Liabilities measured at fair value on a recurring basis at June 30, 2017 are summarized below.

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	19	$	19
Forward loan sales commitments		—		37		—		37
To Be Announced securities		—		8		—		8

The following table represents the change in the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended December 31, 2017 and 2016:

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2017	$	243	$	982	$	412		$	(15	)
Total gains (unrealized):
Included in other comprehensive income		—		6		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(161	)		(11	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2016	$	—	$	—	$	867		$	(16	)
Total gains (unrealized):
Included in other comprehensive income		—		—		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(552	)		12
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2016	$	—	$	—	$	315		$	(4	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2017	$	243	$	968	$	786		$	(19	)
Total gains (unrealized):
Included in other comprehensive income		—		20		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(535	)		(7	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2016	$	—	$	—	$	1,084		$	(32	)
Total  losses (unrealized):
Included in other comprehensive income						—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(769	)		28
Transfers in and/or out of Level 3						—			—
Ending Balance: December 31, 2016	$	—	$	—	$	315		$	(4	)

There were no assets measured at fair value on a nonrecurring basis at December 31, 2017.

The estimated fair values of the Company's financial instruments at December 31, 2017 and June 30, 2017 are as follows:

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
December 31, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	14,802	$	14,802	$	14,802	$	—	$	—
Investment securities held-to-maturity		12,433		12,490		—		10,482		2,008
Loans receivable, net		159,702		153,416		—		—		153,416
Restricted investment in bank stock		749		749		—		—		749
Accrued interest receivable		773		773		—		773		—
Liabilities:
Deposits	$	193,108	$	152,661	$	—	$	152,661	$	—
Advances from the FHLB		12,000		11,899		—		11,899		—
Securities sold under agreements to repurchase		2,967		2,967		—		2,967		—
Accrued interest payable		20		20		—		20		—

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
June 30, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	28,577	$	28,577	$	28,577	$	—	$	—
Investment securities held-to-maturity		11,809		11,896		—		9,884		2,012
Loans receivable, net		111,811		107,510		—		—		107,510
Restricted investment in bank stock		643		643		—		—		643
Accrued interest receivable		620		620		—		620		—
Liabilities:
Deposits	$	170,481	$	160,764	$	—	$	160,764	$	—
Advances from the FHLB		9,000		8,958		—		8,958		—
Securities sold under agreements to repurchase		2,883		2,883		—		2,883		—
Accrued interest payable		20		20		—		20		—

The above information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. There were no changes in methodologies or transfers between levels during the three and six months ended December 31, 2017 and December 31, 2016.

The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2017 and June 30, 2017:

Cash and Cash Equivalents

These short-term assets are valued at their face value, which approximate fair value.

Investments (Available- for- Sale and Held- to- Maturity)

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain Mortgage Backed Securities (MBS), Collateralized Mortgage Obligations (CMO), Corporate notes, and Municipal and U.S government securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Investment securities classified within Level 3 include certain equity securities that do not have readily available market prices, certain corporate notes, certain Bank CDS and other less liquid investment securities. If observable market-based inputs are not available, we use unobservable inputs to determine appropriate valuation adjustments by reviewing valuation reports provided by a third-party (Level 3).

Loans Held for Sale at Fair Value

All mortgage loans held for sale are carried at fair value which is determined on a recurring basis by utilizing quoted prices from dealers in such loans.

The Company's mortgage loans held for sale are generally classified within Level 2 of the valuation hierarchy.

The following table reflectsthedifference between thecarrying amountofmortgage loansheld forsale, measuredatfairvalueandtheaggregateunpaidprincipalamountthattheCompany is contractuallyentitledto receive atmaturityasof December 31, 2017 and June30, 2017 (in thousands):

Loans held for sale
	Carrying Amount		Aggregated Unpaid Principal Balance		Excess Carrying Amount Over Aggregate Unpaid Principal Balance
December 31, 2017	$	12,266	$	12,112	$	154
June 30, 2017	$	12,784	$	12,534	$	250

The Company did nothave any mortgage loans held forsale recorded atfair value that were 90 or more days past due andon non-accrualatDecember 31, 2017, or June 30, 2017.

Interest Rate Lock Commitments (“IRLC”)

The fair value of the Company’s IRLC instruments are based upon the underlying mortgage loan adjusted for the probability of such commitments being exercised and estimated costs to complete and originate the loan. The Company’s IRLCs are classified within Level 3 of the valuation hierarchy as a result of unobservable market data inputs.

Forward Loan Sale Commitments

Fair values for forward loan sales commitments are based on forward prices with dealers in such securities. Due to the observable inputs used by the Company, the Company’s forward loan sales commitments are classified within Level 2 of the valuation hierarchy.

To Be Announced Securities (“TBAs”)

TBAs are valued based on forward dealer marks from the Company’s approved counterparties.  The Company utilizes a third party market pricing service which compiles current prices for instruments from market sources, and those prices represent the current executable price. Due to the observable inputs used by the Company, the Company’s TBAs are classified within Level 2 of the valuation hierarchy.

Loan Receivable, Net

Fair values are estimated for portfolios of loans with similar financial characteristics. For loans that reprice frequently, the carrying value approximates fair value. The fair value of other type of loans is estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities.

Restricted Investment in Bank Stock

The stock is carried at cost; which approximates fair value and considers the limited marketability of such securities.

Accrued Interest Receivable and Accrued Interest Payable

The carrying amount of accrued interest receivable and payable approximates their respective fair values.

Deposits

The fair value of demand deposits, savings accounts, and money market deposits is estimated by discounting expected cash flow, net of expected servicing costs, using the current rates and anticipated maturities of each deposit category. As these deposits do not have stated maturity dates, the average lives of these deposits are estimated when calculating the discounted cash flow. The fair value of certificates of deposit is estimated discounting the contractual cash flows. The discount rate is estimated using the rates currently offered for deposits with comparable remaining maturities.

Advances from the FHLB

The fair value of advances is estimated based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for borrowings with comparable terms, credit, and remaining maturities.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase are carried at the amounts at which the securities will be subsequently repurchased as specified in the agreements and the carrying amount is a reasonable estimate of the fair value. The Company values the collateral on a daily basis and obtains additional collateral, if necessary, to protect the Company in the event of default by the counterparties.

Commitments to Extend Credit

The majority of the Company's commitments to extend credit carry current market interest rates if converted to loans. Because commitments to extend credit are generally unassignable by either the Company or the borrower, they only have value to the Company and the borrower. The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties and is not considered material for disclosure.

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Earnings per Share

6 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings per Share

6. Earnings per Share

Earnings per share ("EPS") consist of two separate components: basic EPS and diluted EPS. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for each period presented. The diluted EPS calculation reflects the EPS if all outstanding instruments convertible to common stock were exercised. There were no common shares outstanding for the three and six months ended December 31, 2016. For the three and six months ended December 31, 2017 and 2016, there were no stock options or other convertible instruments outstanding.  Therefore, there is no effect of dilution on the Company’s earnings per share.

The calculation of EPS for the three and six months ended December 31, 2017 and 2016 is as follows (in thousands, except per share data):

	For the Three Months				For the Six Months
	Ended December 31,				Ended December 31,
	2017		2016		2017		2016
Net income (basic and diluted)	$	179	$	39	$	415	$	292
Weighted average shares outstanding		2,182,125	N/A			2,182,125	N/A
Net income per share – basic and diluted	$	0.08	$	N/A	$	0.19	$	N/A

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Employee Stock Ownership Plan

6 Months Ended

Dec. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock Ownership Plan

7. Employee Stock Ownership Plan

The Company adopted the Huntingdon Valley Bank Employee Stock Ownership Plan (the “ESOP”) for eligible employees. Eligible employees who have attained age 21 may participate in the ESOP on the later of the effective date of the ESOP or upon the first entry date commencing on or after the eligible employee’s completion of 1,000 hours of service during a continuous 12-month period.

During the six months ended December 31, 2017, ESOP shares committed to be released were 4,364 with a value of approximately $47,000. There were no shares purchased by the ESOP during the six months ended December 31, 2017.

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Related Party Transactions

6 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

8. Related Party Transactions

In November 2017, the Company engaged a third party to provide services for certain customers with large deposit balances, by offering both a competitive rate of return and FDIC insurance. Related party balances in this program totaled $116.7 million at December 31, 2017 for which we received approximately $84,000 in fees for customer services which is included in the three month and six months ended December 31, 2017.

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Organization, Basis of Presentation and Recent Accounting Pronouncements (Policies)

6 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim information and with the instructions to the Quarterly Report on Form 10-Q, as applicable to a smaller reporting company.  Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements.

The financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof.  The balances as of June 30, 2017 have been derived from the audited consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission on September 28, 2017. The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or any other period.

The Company has evaluated subsequent events through the date of issuance of the financial statements included herein.

Principles of Consolidation

Principles of Consolidation

The unaudited interim consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, the Bank.  In January 2017, the mutual to stock conversion of the Bank was completed and the Company became the parent holding company for the Bank. Prior to January 11, 2017, all financial information reflects the Bank’s transactions and balances only. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

In preparing financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairments of securities, interest rate lock commitments (“IRLCs”), mandatory sales commitments, the valuation of mortgage loans held-for-sale, other real estate owned, and the valuation of deferred tax assets.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company qualifies under the Jumpstart Our Business Startups Act (the “JOBS Act”) as an emerging growth company. As an emerging growth company, the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements until such pronouncements are made applicable to private companies.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings.  In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e., the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e., the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others.  In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2017 for public entities.  In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This ASU clarifies certain aspects of Topic 606 guidance as follows:

• The objective of the collectability assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services transferred.

• An entity can recognize revenue in the amount of consideration received when it has transferred control of the goods or services, has no additional obligation to transfer goods or services, and the consideration received is nonrefundable.

• A reporting entity is permitted to make the accounting policy election to exclude amounts collected from customers for all sales taxes from the transaction price.

• The measurement date is specified as being the contract inception, and variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration.

• As a practical expedient, a reporting entity is permitted to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented in accordance with Topic 606 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

• The ASU clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments in this ASU permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts.

The amendments in this ASU clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted.

The guidance in the revenue recognition ASUs listed above is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the various revenue recognition ASUs. The guidance does not apply to revenue associated with financial instruments, including loans and securities. The Company evaluated its non-interest revenue sources and the adoption of these ASUs will not have a material impact on its financial condition or results of operations.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments.  Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others.  ASU 2016-01 also clarifies that an entity should assess the need for a valuation allowance on a deferred tax asset related to unrealized losses of investments in debt instruments recognized in OCI in combination with the entity’s other deferred tax assets. Prior to this guidance, the alternative approach used in practice evaluated the need for a valuation allowance for a deferred tax asset related to unrealized losses on debt instruments recognized in other comprehensive income separately from other deferred tax assets. This alternative approach will no longer be acceptable. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  As of December 31, 2017 we do not hold material equity investments for which fair value is accounted through other comprehensive income.  We are analyzing ASU 2016-01 and do not believe that it will have a material effect on our financial statements.

In March 2017, the FASB issued Accounting Standards Update (ASU) 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization for premiums on purchased callable debt securities to the earliest call date (i.e. yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount.

The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based on prepayments of the underlying loans, not because the issuer has exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendment. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated.

The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. For all other entities, including emerging growth entities as further described above, the amendments are effective for fiscal periods beginning after December 15, 2019, and interim periods within fiscal periods beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this standard on July 1, 2017 with no material impact on our consolidated financial statements.  

In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases. The new leases standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification.

The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing U.S. GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606.

Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.

The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and re-measurement of lease payments. It also contains comprehensive implementation guidance with practical examples.

The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth entities as further described above) for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Specific transition requirements apply. The Company’s leases are operating leases and ASU 2016-02 will require us to add them to our balance sheet. The Company’s operating leases are predominantly related to real estate. The Company is currently evaluating other impacts of the pending adoption of the new standard on our consolidated financial statements.

In June 2016,the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument.

The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above.

Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (“AFS”) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis.

The ASU is effective for public business entities for fiscal years after December 15, 2019, including interim periods within those fiscal years. The amendments are effective for all other entities (including emerging growth companies as further described above for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. In anticipation of the ASU, the Company has entered into a contract with a third party, compiled data for the modeling and is working on developing an estimate using historically and qualitative data based on the requirements of ASU 2016-13. The Company is currently evaluating the impact of adoption of the new standard on the consolidated financial statements.

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Investment Securities (Tables)

6 Months Ended

Dec. 31, 2017

Investments Debt And Equity Securities [Abstract]

Investment Securities Available-for-Sale

Investment securities available-for-sale was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	1,455	$	9	$	(17	)	$	1,447
Corporate notes		6,308		15		(47	)		6,276
Collateralized mortgage obligations - agency    residential		13,736		4		(265	)		13,475
Mortgage-backed securities - agency    residential		4,234		—		(81	)		4,153
Municipal securities		2,065		—		(19	)		2,046
Bank CDs		5,492		5		(31	)		5,466
	$	33,290	$	33	$	(460	)	$	32,863

Investment securities available-for-sale was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
U.S. Governmental securities	$	4,330	$	26	$	(16	)	$	4,340
Corporate notes		11,231		59		(64	)		11,226
Collateralized mortgage obligations - agency    residential		12,668		59		(160	)		12,567
Mortgage-backed securities - agency    residential		4,520		—		(85	)		4,435
Municipal securities		3,517		1		(11	)		3,507
Bank CDs		6,742		23		(20	)		6,745
	$	43,008	$	168	$	(356	)	$	42,820

Investment Securities Held-to-Maturity

Investment securities held-to-maturity was comprised of the following:

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	8	$	—		$	2,008
Municipal securities		10,433		85		(36	)		10,482
	$	12,433	$	93	$	(36	)	$	12,490

Investment securities held-to-maturity was comprised of the following:

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
Corporate notes	$	2,000	$	12	$	—		$	2,012
Municipal securities		9,809		88		(13	)		9,884
	$	11,809	$	100	$	(13	)	$	11,896

Scheduled Maturities of Securities Available-for-Sale and Held-to-Maturity

The scheduled maturities of securities available-for-sale and held-to-maturity at December 31, 2017 were as follows:

	December 31, 2017
	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	1,550	$	1,549	$	605	$	604
Due from one to five years		8,569		8,515		2,528		2,513
Due from after five to ten years		3,750		3,728		6,995		7,050
Due after ten years		19,421		19,071		2,305		2,323
	$	33,290	$	32,863	$	12,433	$	12,490

Unrealized Loss Positions of Securities Available-for-Sale and Held-to-Maturity

The following tables summarize the unrealized loss positions of securities available-for-sale and held-to-maturity as of December 31, 2017 and June 30, 2017:

	December 31, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	—	$	—		$	601	$	(17	)	$	601	$	(17	)
Corporate notes		900		(5	)		3,459		(42	)		4,359		(47	)
Collateralized mortgage obligations		5,843		(47	)		6,497		(218	)		12,340		(265	)
Mortgage-backed securities		—		—			4,149		(81	)		4,149		(81	)
Municipal securities		—		—			2,046		(19	)		2,046		(19	)
Bank CDs		3,975		(23	)		487		(8	)		4,462		(31	)
	$	10,718	$	(75	)	$	17,239	$	(385	)	$	27,957	$	(460	)
Held-to-maturity:
Municipal securities	$	5,637	$	(36	)	$	—	$	—		$	5,637	$	(36	)
	$	16,355	$	(111	)	$	17,239	$	(385	)	$	33,594	$	(496	)

	June 30, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale:
U.S. Governmental securities	$	1,115	$	(16	)	$	—	$	—		$	1,115	$	(16	)
Corporate notes		2,045		(6	)		2,492		(58	)		4,537		(64	)
Collateralized mortgage obligations		2,218		(40	)		4,278		(120	)		6,496		(160	)
Mortgage-backed  securities		3,297		(46	)		1,133		(39	)		4,430		(85	)
Municipal securities		2,214		(9	)		238		(2	)		2,452		(11	)
Bank CDs		2,736		(13	)		243		(7	)		2,979		(20	)
	$	13,625	$	(130	)	$	8,384	$	(226	)	$	22,009	$	(356	)
Held-to-maturity:
Municipal securities	$	3,227	$	(11	)	$	501	$	(2	)	$	3,728	$	(13	)
	$	16,852	$	(141	)	$	8,885	$	(228	)	$	25,737	$	(369	)

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Loans Receivable (Tables)

6 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Summary of Loans Receivable

Loans receivable were comprised of the following:

	December 31,			June 30,
(Dollars in thousands)	2017			2017
Residential:
One-to-four family	$	128,267		$	88,578
Home equity and HELOCs		4,881			5,466
Commercial:
Commercial real estate		12,652			12,191
Commercial business		3,345			3,801
Construction		2,837			2,004
Consumer:
Medical education		7,526			—
Other		6			5
		159,514			112,045
Less:
Unearned discounts, origination and commitment    fees and costs		871			359
Allowance for loan losses		(683	)		(593	)
	$	159,702		$	111,811

Summary of Allowance for Loan Losses

The following table summarizes the activity in the allowance for loan losses by loan class for the three months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the three months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	420	$	(12	)		—	$	64		$	472	$	—	$	472
Home equity and HELOCs		39		—			—		(1	)		38		—		38
Commercial:
Commercial real estate		85		—			—		1			86		—		86
Commercial business		68		—			—		(10	)		58		16		42
Construction		3		—			—		7			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			—		—			—		—		—
	$	615	$	(12	)	$	—	$	80		$	683	$	16	$	667

Allowance for Loan Losses	For the three months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions		Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	360	$	—		$	2	$	—	$	362	$	—	$	362
Home equity and HELOCs		114		—			—		—		114		96		18
Commercial:
Commercial real estate		118		—			—		—		118		30		88
Commercial business		20		—			—		—		20		15		5
Construction		1		—			—		—		1		—		1
Consumer:
Other		—		(2	)		1		1		—		—		—
Unallocated reserve		—		—			—		11		11		—		11
	$	613	$	(2	)	$	3	$	12	$	626	$	141	$	485

The following tables summarize the activity in the allowance for loan losses by loan class for the six months ended December 31, 2017 and 2016.

Allowance for Loan Losses	For the six months ended December 31, 2017
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	399	$	(12	)	$	44	$	41		$	472	$	—	$	472
Home equity and HELOCs		38		—			—		—			38		—		38
Commercial:
Commercial real estate		89		(22	)		—		19			86		—		86
Commercial business		58		—			—		—			58		16		42
Construction		9		—			—		1			10		—		10
Consumer:
Medical education		—		—			—		19			19		—		19
Other		—		—			1		(1	)		—		—		—
Unallocated reserve		—		—			—		—			—		—		—
	$	593	$	(34	)	$	45	$	79		$	683	$	16	$	667

Allowance for Loan Losses	For the six months ended December 31, 2016
(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Credit) Provisions			Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairments
Residential:
One-to-four family	$	314	$	—		$	5	$	43		$	362	$	—	$	362
Home equity and HELOCs		18		—			—		96			114		96		18
Commercial:												—
Commercial real estate		131		—			—		(13	)		118		30		88
Commercial business		23		—			—		(3	)		20		15		5
Construction		1		—			—		—			1		—		1
Consumer:
Other		—		(2	)		1		1			—		—		—
Unallocated reserve		—		—			—		11			11		—		11
	$	487	$	(2	)	$	6	$	135		$	626	$	141	$	485

Summary of Loans Receivable by Balances Individually Evaluated for Impairment

The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of December 31, 2017 and June 30, 2017:

December 31, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	128,267	$	1,280	$	126,987
Home equity and HELOCs		4,881		105		4,776
Commercial
Commercial real estate		12,652		406		12,246
Commercial business		3,345		163		3,182
Construction		2,837		—		2,837
Consumer:
Medical education		7,526		—		7,526
Other		6		—		6
	$	159,514	$	1,954	$	157,560

June 30, 2017
Loan Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential
One-to-four family	$	88,578	$	1,198	$	87,380
Home equity and HELOCs		5,466		196		5,270
Commercial
Commercial real estate		12,191		514		11,684
Commercial business		3,801		173		3,628
Construction		2,004		—		2,004
Consumer:
Other		5		—		5
	$	112,045	$	2,081	$	109,971

Summary of Information in Regard to Impaired Loans

The following tables summarize information in regard to impaired loans by loan portfolio class as of December 31, 2017 and June 30, 2017:

	December 31, 2017						June 30, 2017
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Residential:
One-to-four family	$	1,280	$	1,280	$	—	$	1,198	$	1,198	$	—
Home equity and HELOCs		105		105		—		196		196		—
Commercial:
Commercial real estate		406		406		—		514		514		—
		1,791		1,791		—		1,908		1,908		—
With an allowance recorded
Commercial:
Commercial business		163		163		16		173		173		15
		163		163		16		173		173		15
	$	1,954	$	1,954	$	16	$	2,081	$	2,081	$	15

The following table presents additional information regarding the impaired loans for the three months ended December 31, 2017 and December 31, 2016:

	Three Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,151	$	1	$	924	$	1
Home equity and HELOCs		105		—		147		—
Commercial:
Commercial real estate		408		8		552		8
		1,664		9		1,623		9
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		120		—
Commercial:
Commercial real estate		—		—		200		4
Commercial business		165		3		185		3
		165		3		505		7
	$	1,829	$	12	$	2,128	$	16

The following table presents additional information regarding the impaired loans for the six months ended December 31, 2017 and December 31, 2016:

	Six Months Ended December 31,
	2017				2016
(Dollars in thousands)	Average Record Investment		Interest Income Recognized		Average Record Investment		Interest Income Recognized
With no related allowance recorded
Residential:
One-to-four family	$	1,147	$	3	$	854	$	3
Home equity and HELOCs		106		—		106		—
Commercial:
Commercial real estate		410		14		553		16
		1,663		17		1,513		19
With an allowance recorded
Residential:
Home equity and HELOCs		—		—		121		—
Commercial:
Commercial real estate		—		—		200		8
Commercial business		168		5		188		6
		168		5		509		14
	$	1,831	$	22	$	2,022	$	33

Summary of Nonaccrual Loans by Classes of Loan Portfolio

The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2017 and June 30, 2017:

	December 31,		June 30,
(Dollars in thousands)	2017		2017
Residential:
One-to-four family	$	1,139	$	1,198
Home equity and HELOCs		105		110
Commercial:
Commercial real estate		—		100
Commercial business		—		—
Construction		—		—
Consumer:
Medical education		—		—
Other		—		—
	$	1,244	$	1,408

Credit Quality Indicators by Class of Loan Portfolio

The following tables summarize the aggregate Pass and criticized categories of Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2017 and June 30, 2017:

	December 31, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	126,424	$	—	$	1,843	$	—	$	128,267
Home equity and HELOCs		4,776		—		105		—		4,881
Commercial:
Commercial real estate		12,026		220		406		—		12,652
Commercial business		3,182		—		163		—		3,345
Construction		2,837		—		—		—		2,837
Consumer:
Medical education		7,526		—		—		—		7,526
Other		6		—		—		—		6
	$	156,777	$	220	$	2,517	$	—	$	159,514

	June 30, 2017
			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential:
One-to-four family	$	87,099	$	—	$	1,479	$	—	$	88,578
Home equity and HELOCs		5,270		—		196		—		5,466
Commercial:
Commercial real estate		11,283		552		356		—		12,191
Commercial business		3,628		—		173		—		3,801
Construction		2,004		—		—		—		2,004
Consumer:
Other		5		—		—		—		5
	$	109,289	$	552	$	2,204	$	—	$	112,045

Summary of Segments of Loan Portfolio by Aging Categories

The following tables present the segments of the loan portfolio summarized by aging categories as of December 31, 2017 and June 30, 2017:

	December 31, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	191	$	500	$	860	$	1,551	$	126,716	$	128,267	$	—
Home equity and HELOCs		—		—		105		105		4,776		4,881		—
Commercial:
Commercial real estate		—		—		—		—		12,652		12,652		—
Commercial business		—		—		—		—		3,345		3,345		—
Construction		—		—		—		—		2,837		2,837		—
Consumer:
Medical education		173		—		—		173		7,353		7,526		—
Other		—		—		—		—		6		6		—
	$	364	$	500	$	965	$	1,829	$	157,685	$	159,514	$	—

	June 30, 2017
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
Residential:
One-to-four family	$	554	$	381	$	950	$	1,885	$	86,693	$	88,578	$	—
Home equity and HELOCs		—		—		110		110		5,356		5,466		—
Commercial:
Commercial real estate		—		—		100		100		12,091		12,191		—
Commercial business		—		—		—		—		3,801		3,801		—
Construction		—		—		—		—		2,004		2,004		—
Consumer:
Other		—		—		—		—		5		5		—
	$	554	$	381	$	1,160	$	2,095	$	109,950	$	112,045	$	—

Troubled Debt Restructurings on Accrual Status and Non-Accrual Status

The following table details the Company’s TDRs that are on accrual status and non-accrual status at December 31, 2017:

	As of December 31, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	317	$	—	$	317
Total		2	$	317	$	—	$	317

The following table details the Company’s TDRs that are on accrual status and non-accrual status at June 30, 2017:

	As of June 30, 2017
	Number		Accrual		Non-Accrual
(Dollars in thousands)	Of Loans		Status		Status		Total TDRs
Commercial real estate		2	$	331	$	—	$	331
Total		2	$	331	$	—	$	331

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Derivatives and Risk Management Activities (Tables)

6 Months Ended

Dec. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives Not Designated as Hedging Instruments Recorded in Consolidated Statement of Financial Condition

The following tables summarize the amounts recorded in the Company’s consolidated statements of financial condition for derivatives not designated as hedging instruments as of December 31, 2017 and June 30, 2017 (in thousands):

December 31, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	251	$	10,224
Forward loan sales commitments	Mortgage banking derivatives		268		7,267
To Be Announced securities	Mortgage banking derivatives		—		1,000
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	26	$	2,667
Forward loan sales commitments	Other liabilities		3		978
To Be Announced securities	Other liabilities		17		10,250

June 30, 2017
Asset Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Mortgage banking derivatives	$	786	$	21,389
Forward loan sales commitments	Mortgage banking derivatives		179		10,864
To Be Announced securities	Mortgage banking derivatives		36		14,750
Liability Derivatives
	Balance Sheet			Notional
	Presentation	Fair Value		Amount
Interest rate lock commitments	Other liabilities	$	19	$	4,089
Forward loan sales commitments	Other liabilities		37		3,713
To Be Announced securities	Other liabilities		8		2,750

Summary of Amounts Recorded in Consolidated Statements of Income for Derivative Instruments Not Designated as Hedging Instruments

The following table summarizes the amounts recorded in the Company’s consolidated statements of income for derivative instruments not designated as hedging instruments for the three and six months ended December 31, 2017 and December 31, 2016 (in thousands):

		Gain/(Loss)
	Consolidated Statements of Income	Three Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(173	)	$	(486	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		131			(583	)
To Be Announced securities	(Loss) Gain from hedging instruments		(32	)		509
	Total loss from hedging instruments	$	(74	)	$	(560	)

		Gain/(Loss)
	Consolidated Statements of Income	Six Months Ended
	Presentation	December 31, 2017			December 31, 2016
Interest rate lock commitments	Loss from hedging Instruments	$	(542	)	$	(269	)
Forward loan sales commitments	Gain (Loss) from hedging instruments		123			(928	)
To Be Announced securities	(Loss) Gain from hedging instruments		(45	)		258
	Total loss from hedging instruments	$	(464	)	$	(939	)

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis at December 31, 2017 and June 30, 2017 are summarized below:

	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	1,447	$	—	$	1,447
Corporate notes		—		5,288		988		6,276
Collateralized mortgage obligations - agency    residential		—		13,475		—		13,475
Mortgage-backed securities - agency    residential		—		4,153		—		4,153
Municipal securities		—		2,046		—		2,046
Bank CDs		—		5,223		243		5,466
Loans held for sale		—		12,266		—		12,266
Interest rate lock commitments		—		—		251		251
Forward loan sales commitments		—		268		—		268

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Investment securities available-for-sale:
U.S. governmental securities	$	—	$	4,340	$	—	$	4,340
Corporate notes		—		10,258		968		11,226
Collateralized mortgage obligations - agency    residential		—		12,567		—		12,567
Mortgage-backed securities - agency    residential		—		4,435		—		4,435
Municipal securities		—		3,507		—		3,507
Bank CDs		—		6,502		243		6,745
Loans held for sale		—		12,784		—		12,784
Interest rate lock commitments		—		—		786		786
Forward loan sales commitments		—		179		—		179
To Be Announced securities		—		36		—		36

Liabilities Measured at Fair Value on a Recurring Basis

Liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized below.

	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	26	$	26
Forward loan sales commitments		—		3		—		3
To Be Announced securities		—		17		—		17

Liabilities measured at fair value on a recurring basis at June 30, 2017 are summarized below.

	June 30, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Interest rate lock commitments	$	—	$	—	$	19	$	19
Forward loan sales commitments		—		37		—		37
To Be Announced securities		—		8		—		8

Change in Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table represents the change in the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended December 31, 2017 and 2016:

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2017	$	243	$	982	$	412		$	(15	)
Total gains (unrealized):
Included in other comprehensive income		—		6		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(161	)		(11	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: October 1, 2016	$	—	$	—	$	867		$	(16	)
Total gains (unrealized):
Included in other comprehensive income		—		—		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(552	)		12
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2016	$	—	$	—	$	315		$	(4	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2017	$	243	$	968	$	786		$	(19	)
Total gains (unrealized):
Included in other comprehensive income		—		20		—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(535	)		(7	)
Transfers in and/or out of Level 3		—		—		—			—
Ending Balance: December 31,    2017	$	243	$	988	$	251		$	(26	)

	Level 3
(Dollars in thousands)	Bank Cds		Corporate notes		IRLC- Asset			IRLC- Liability
Beginning Balance: July 1, 2016	$	—	$	—	$	1,084		$	(32	)
Total  losses (unrealized):
Included in other comprehensive income						—			—
Total (losses) or gains included in earnings and held at reporting date		—		—		(769	)		28
Transfers in and/or out of Level 3						—			—
Ending Balance: December 31, 2016	$	—	$	—	$	315		$	(4	)

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company's financial instruments at December 31, 2017 and June 30, 2017 are as follows:

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
December 31, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	14,802	$	14,802	$	14,802	$	—	$	—
Investment securities held-to-maturity		12,433		12,490		—		10,482		2,008
Loans receivable, net		159,702		153,416		—		—		153,416
Restricted investment in bank stock		749		749		—		—		749
Accrued interest receivable		773		773		—		773		—
Liabilities:
Deposits	$	193,108	$	152,661	$	—	$	152,661	$	—
Advances from the FHLB		12,000		11,899		—		11,899		—
Securities sold under agreements to repurchase		2,967		2,967		—		2,967		—
Accrued interest payable		20		20		—		20		—

					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
June 30, 2017	Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	28,577	$	28,577	$	28,577	$	—	$	—
Investment securities held-to-maturity		11,809		11,896		—		9,884		2,012
Loans receivable, net		111,811		107,510		—		—		107,510
Restricted investment in bank stock		643		643		—		—		643
Accrued interest receivable		620		620		—		620		—
Liabilities:
Deposits	$	170,481	$	160,764	$	—	$	160,764	$	—
Advances from the FHLB		9,000		8,958		—		8,958		—
Securities sold under agreements to repurchase		2,883		2,883		—		2,883		—
Accrued interest payable		20		20		—		20		—

Difference between Carrying Amount of Mortgage Loans Held For Sale, Measured at Fair Value and Aggregate Unpaid Principal Amount

The following table reflectsthedifference between thecarrying amountofmortgage loansheld forsale, measuredatfairvalueandtheaggregateunpaidprincipalamountthattheCompany is contractuallyentitledto receive atmaturityasof December 31, 2017 and June30, 2017 (in thousands):

Loans held for sale
	Carrying Amount		Aggregated Unpaid Principal Balance		Excess Carrying Amount Over Aggregate Unpaid Principal Balance
December 31, 2017	$	12,266	$	12,112	$	154
June 30, 2017	$	12,784	$	12,534	$	250

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Earnings per Share (Tables)

6 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The calculation of EPS for the three and six months ended December 31, 2017 and 2016 is as follows (in thousands, except per share data):

	For the Three Months				For the Six Months
	Ended December 31,				Ended December 31,
	2017		2016		2017		2016
Net income (basic and diluted)	$	179	$	39	$	415	$	292
Weighted average shares outstanding		2,182,125	N/A			2,182,125	N/A
Net income per share – basic and diluted	$	0.08	$	N/A	$	0.19	$	N/A

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Organization, Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Detail) $ / shares in Units, $ in Millions	Jan. 11, 2017 USD ($) $ / shares shares
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Shares of common stock converted | shares	2,182,125
Debt Instrument, convertible, conversion Price | $ / shares	$ 10.00
Gross offering proceeds received	$ 21.8
Offering costs	1.4
Net proceeds from issuance of shares	$ 20.4

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Investment Securities - Investment Securities Available-for-sale (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	$ 33,290	$ 43,008
Available-for-sale, Gross Unrealized Gains	33	168
Available-for-sale, Gross Unrealized Losses	(460)	(356)
Available-for-sale, Fair Value	32,863	42,820
U.S. Governmental securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	1,455	4,330
Available-for-sale, Gross Unrealized Gains	9	26
Available-for-sale, Gross Unrealized Losses	(17)	(16)
Available-for-sale, Fair Value	1,447	4,340
Corporate notes
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	6,308	11,231
Available-for-sale, Gross Unrealized Gains	15	59
Available-for-sale, Gross Unrealized Losses	(47)	(64)
Available-for-sale, Fair Value	6,276	11,226
Collateralized mortgage obligations - agency residential
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	13,736	12,668
Available-for-sale, Gross Unrealized Gains	4	59
Available-for-sale, Gross Unrealized Losses	(265)	(160)
Available-for-sale, Fair Value	13,475	12,567
Mortgage-backed securities - agency residential
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	4,234	4,520
Available-for-sale, Gross Unrealized Losses	(81)	(85)
Available-for-sale, Fair Value	4,153	4,435
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	2,065	3,517
Available-for-sale, Gross Unrealized Gains		1
Available-for-sale, Gross Unrealized Losses	(19)	(11)
Available-for-sale, Fair Value	2,046	3,507
Bank CDs
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale, Amortized Cost	5,492	6,742
Available-for-sale, Gross Unrealized Gains	5	23
Available-for-sale, Gross Unrealized Losses	(31)	(20)
Available-for-sale, Fair Value	$ 5,466	$ 6,745

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Investment Securities - Investment Securities Held-to-maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	$ 12,433	$ 11,809
Held-to-maturity, Gross Unrealized Gains	93	100
Held-to-maturity, Gross Unrealized Losses	(36)	(13)
Held-to-maturity, Fair Value	12,490	11,896
Corporate notes
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	2,000	2,000
Held-to-maturity, Gross Unrealized Gains	8	12
Held-to-maturity, Fair Value	2,008	2,012
Municipal securities
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost	10,433	9,809
Held-to-maturity, Gross Unrealized Gains	85	88
Held-to-maturity, Gross Unrealized Losses	(36)	(13)
Held-to-maturity, Fair Value	$ 10,482	$ 9,884

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Investment Securities - Scheduled of Maturities of Securities Available-for-sale and Held-to-maturity (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Investments Debt And Equity Securities [Abstract]
Available-for-Sale, Due in one year or less, Amortized Cost	$ 1,550
Available-for-Sale, Due from one to five years, Amortized Cost	8,569
Available-for-Sale, Due from after five to ten years, Amortized Cost	3,750
Available-for-Sale, Due after ten years, Amortized Cost	19,421
Available-for-Sale, Amortized Cost	33,290
Available-for-Sale, Due in one year or less, Fair Value	1,549
Available-for-Sale, Due from one to five years, Fair Value	8,515
Available-for-Sale, Due from after five to ten years, Fair Value	3,728
Available-for-Sale, Due after ten years, Fair Value	19,071
Available-for-Sale, Fair Value	32,863
Held-to-Maturity, Due in one year or less, Amortized Cost	605
Held-to-Maturity, Due from one to five years, Amortized Cost	2,528
Held-to-Maturity, Due from after five to ten years, Amortized Cost	6,995
Held-to-Maturity, Due after ten years, Amortized Cost	2,305
Held-to-Maturity, Amortized Cost	12,433
Held-to-Maturity, Due in one year or less, Fair Value	604
Held-to-Maturity, Due from one to five years, Fair Value	2,513
Held-to-Maturity, Due from after five to ten years, Fair Value	7,050
Held-to-Maturity, Due after ten years, Fair Value	2,323
Held-to-Maturity, Fair Value	$ 12,490

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Investment Securities - Additional information (Detail)	6 Months Ended
	Dec. 31, 2017 USD ($) Security	Dec. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) Security
Investment Holdings [Line Items]
Securities with a fair value pledge to secure public deposits and for other purposes as required by law	$ 6,600,000		$ 8,200,000
Proceeds from the sale of available-for-sale securities	11,158,000	$ 2,054,000
Gross realized gains on sale of available-for-sale securities	39,000	11,000
Gross realized losses sale of available-for-sale securities	5,000	$ 0
Securities available-for-sale	$ 32,863,000		$ 42,820,000
Bank CDs
Investment Holdings [Line Items]
Number of investment securities | Security	22		26
Securities available-for-sale	$ 5,466,000		$ 6,745,000
Number of securities with unrealized losses | Security	18		12
U.S. Governmental securities
Investment Holdings [Line Items]
Number of investment securities | Security	5		10
Securities available-for-sale	$ 1,447,000		$ 4,340,000
Number of securities with unrealized losses | Security	2		3
Corporate notes
Investment Holdings [Line Items]
Number of investment securities | Security	15		24
Securities available-for-sale	$ 6,276,000		$ 11,226,000
Number of securities with unrealized losses | Security	9		9
Investment securities	$ 8,300,000		$ 13,200,000
Collateralized mortgage obligations
Investment Holdings [Line Items]
Number of investment securities | Security	38		35
Securities available-for-sale	$ 13,475,000		$ 12,567,000
Number of securities with unrealized losses | Security	36		28
Available for sale securities percentage of agency	100.00%
Mortgage-backed securities
Investment Holdings [Line Items]
Number of investment securities | Security	15		15
Securities available-for-sale	$ 4,153,000		$ 4,435,000
Number of securities with unrealized losses | Security	12		12
Available for sale securities percentage of agency	100.00%
Municipal securities
Investment Holdings [Line Items]
Number of investment securities | Security	27		30
Securities available-for-sale	$ 2,046,000		$ 3,507,000
Number of securities with unrealized losses | Security	17		13
Investment securities	$ 12,500,000		$ 13,400,000

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Investment Securities - Unrealized Loss Positions of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value	$ 10,718	$ 13,625
Available-for-sale, Less than 12 Months, Unrealized Loss	(75)	(130)
Available-for-sale, 12 Months or Longer, Fair Value	17,239	8,384
Available-for-sale, 12 Months or Longer, Unrealized Loss	(385)	(226)
Available-for-sale, Total, Fair Value	27,957	22,009
Available-for-sale, Total, Unrealized Loss	(460)	(356)
Available-for-sale and Held-to-maturity, Less than 12 Months, Fair Value	16,355	16,852
Available-for-sale and Held-to-maturity, Less than 12 Months, Unrealized Loss	(111)	(141)
Available-for-sale and Held-to-maturity, 12 Months or Longer, Fair Value	17,239	8,885
Available-for-sale and Held-to-maturity, 12 Months or Longer, Unrealized Loss	(385)	(228)
Available-for-sale and Held-to-maturity, Total, Fair Value	33,594	25,737
Available-for-sale and Held-to-maturity, Total, Unrealized Loss	(496)	(369)
U.S. Governmental securities
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value		1,115
Available-for-sale, Less than 12 Months, Unrealized Loss		(16)
Available-for-sale, 12 Months or Longer, Fair Value	601
Available-for-sale, 12 Months or Longer, Unrealized Loss	(17)
Available-for-sale, Total, Fair Value	601	1,115
Available-for-sale, Total, Unrealized Loss	(17)	(16)
Corporate notes
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value	900	2,045
Available-for-sale, Less than 12 Months, Unrealized Loss	(5)	(6)
Available-for-sale, 12 Months or Longer, Fair Value	3,459	2,492
Available-for-sale, 12 Months or Longer, Unrealized Loss	(42)	(58)
Available-for-sale, Total, Fair Value	4,359	4,537
Available-for-sale, Total, Unrealized Loss	(47)	(64)
Collateralized mortgage obligations - agency residential
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value	5,843	2,218
Available-for-sale, Less than 12 Months, Unrealized Loss	(47)	(40)
Available-for-sale, 12 Months or Longer, Fair Value	6,497	4,278
Available-for-sale, 12 Months or Longer, Unrealized Loss	(218)	(120)
Available-for-sale, Total, Fair Value	12,340	6,496
Available-for-sale, Total, Unrealized Loss	(265)	(160)
Mortgage-backed securities - agency residential
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value		3,297
Available-for-sale, Less than 12 Months, Unrealized Loss		(46)
Available-for-sale, 12 Months or Longer, Fair Value	4,149	1,133
Available-for-sale, 12 Months or Longer, Unrealized Loss	(81)	(39)
Available-for-sale, Total, Fair Value	4,149	4,430
Available-for-sale, Total, Unrealized Loss	(81)	(85)
Municipal securities
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value		2,214
Available-for-sale, Less than 12 Months, Unrealized Loss		(9)
Available-for-sale, 12 Months or Longer, Fair Value	2,046	238
Available-for-sale, 12 Months or Longer, Unrealized Loss	(19)	(2)
Available-for-sale, Total, Fair Value	2,046	2,452
Available-for-sale, Total, Unrealized Loss	(19)	(11)
Held-to-maturity, Less than 12 Months, Fair Value	5,637	3,227
Held-to-maturity, Less than 12 Months, Unrealized Loss	(36)	(11)
Held-to-maturity, 12 Months or Longer, Fair Value		501
Held-to-maturity, 12 Months or Longer, Unrealized Loss		(2)
Held-to-maturity, Total, Fair Value	5,637	3,728
Held-to-maturity, Total, Unrealized Loss	(36)	(13)
Bank CDs
Investment Holdings [Line Items]
Available-for-sale, Less than 12 Months, Fair Value	3,975	2,736
Available-for-sale, Less than 12 Months, Unrealized Loss	(23)	(13)
Available-for-sale, 12 Months or Longer, Fair Value	487	243
Available-for-sale, 12 Months or Longer, Unrealized Loss	(8)	(7)
Available-for-sale, Total, Fair Value	4,462	2,979
Available-for-sale, Total, Unrealized Loss	$ (31)	$ (20)

XML

Loans Receivable - Summary of Loans Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	$ 159,514		$ 112,045
Unearned discounts, origination and commitment fees and costs	871		359
Allowance for loan losses	(683)	$ (615)	(593)	$ (626)	$ (613)	$ (487)
Loans and leases receivable, net amount	159,702		111,811
Residential | 1-4 family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	128,267		88,578
Allowance for loan losses	(472)	(420)	(399)	(362)	(360)	(314)
Residential | Home equity and HELOCs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	4,881		5,466
Allowance for loan losses	(38)	(39)	(38)	(114)	(114)	(18)
Commercial | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	12,652		12,191
Allowance for loan losses	(86)	(85)	(89)	(118)	(118)	(131)
Commercial | Commercial Business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	3,345		3,801
Allowance for loan losses	(58)	(68)	(58)	(20)	(20)	(23)
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	2,837		2,004
Allowance for loan losses	(10)	$ (3)	(9)	$ (1)	$ (1)	$ (1)
Consumer | Medical Education
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	7,526
Allowance for loan losses	(19)
Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, gross	$ 6		$ 5

XML

Loans Receivable - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) Loan	Dec. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, balance	$ 159,514,000		$ 159,514,000		$ 112,045,000
Overdrafts	12,000		12,000		$ 5,000
Loans performing under original contractual, interest increase	18,000	$ 23,000	$ 40,000	$ 35,000
Number of loans identified as TDRs | Loan			2		2
Loans identified as TDRs	317,000		$ 317,000		$ 331,000
Modifications to loans classified as TDRs			0	$ 0
Additional loan commitments outstanding	0		0		0
Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans in process of foreclosure	402,000		402,000		$ 946,000
Consumer | Private Education Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, balance	$ 7,526,000		$ 7,526,000

XML

Loans Receivable - Summary of Activity in Allowance for Loan Losses By Loan Class (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	$ 615	$ 613	$ 593	$ 487
Allowance for Loan Losses Charge-offs	(12)	(2)	(34)	(2)
Allowance for Loan Losses Recoveries		3	45	6
Allowance for Loan Losses (Credit) Provisions	80	12	79	135
Allowance for Loan Losses Ending Balance	683	626	683	626
Allowance for Loan Losses Ending Balance Individually Evaluated for Impairment	16	141	16	141
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	667	485	667	485
Residential | 1-4 family
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	420	360	399	314
Allowance for Loan Losses Charge-offs	(12)		(12)
Allowance for Loan Losses Recoveries		2	44	5
Allowance for Loan Losses (Credit) Provisions	64		41	43
Allowance for Loan Losses Ending Balance	472	362	472	362
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	472	362	472	362
Residential | Home equity and HELOCs
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	39	114	38	18
Allowance for Loan Losses (Credit) Provisions	(1)			96
Allowance for Loan Losses Ending Balance	38	114	38	114
Allowance for Loan Losses Ending Balance Individually Evaluated for Impairment		96		96
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	38	18	38	18
Commercial | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	85	118	89	131
Allowance for Loan Losses Charge-offs			(22)
Allowance for Loan Losses (Credit) Provisions	1		19	(13)
Allowance for Loan Losses Ending Balance	86	118	86	118
Allowance for Loan Losses Ending Balance Individually Evaluated for Impairment		30		30
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	86	88	86	88
Commercial | Commercial Business
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	68	20	58	23
Allowance for Loan Losses (Credit) Provisions	(10)			(3)
Allowance for Loan Losses Ending Balance	58	20	58	20
Allowance for Loan Losses Ending Balance Individually Evaluated for Impairment	16	15	16	15
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	42	5	42	5
Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Beginning Balance	3	1	9	1
Allowance for Loan Losses (Credit) Provisions	7		1
Allowance for Loan Losses Ending Balance	10	1	10	1
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	10	1	10	1
Consumer | Medical Education
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses (Credit) Provisions	19		19
Allowance for Loan Losses Ending Balance	19		19
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments	$ 19		19
Consumer | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses Charge-offs		(2)		(2)
Allowance for Loan Losses Recoveries		1	1	1
Allowance for Loan Losses (Credit) Provisions		1	$ (1)	1
Unallocated Reserve
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses (Credit) Provisions		11		11
Allowance for Loan Losses Ending Balance		11		11
Allowance for Loan Losses Ending Balance Collectively Evaluated for Impairments		$ 11		$ 11

XML

Loans Receivable - Individually and Collectively Evaluated for Impairment By Loan Class (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	$ 159,514	$ 112,045
Loans Receivable Ending Balance Individually Evaluated for Impairment	1,954	2,081
Loans Receivable Ending Balance Collectively Evaluated for Impairment	157,560	109,971
Residential | 1-4 family
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	128,267	88,578
Loans Receivable Ending Balance Individually Evaluated for Impairment	1,280	1,198
Loans Receivable Ending Balance Collectively Evaluated for Impairment	126,987	87,380
Residential | Home equity and HELOCs
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	4,881	5,466
Loans Receivable Ending Balance Individually Evaluated for Impairment	105	196
Loans Receivable Ending Balance Collectively Evaluated for Impairment	4,776	5,270
Commercial | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	12,652	12,191
Loans Receivable Ending Balance Individually Evaluated for Impairment	406	514
Loans Receivable Ending Balance Collectively Evaluated for Impairment	12,246	11,684
Commercial | Commercial Business
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	3,345	3,801
Loans Receivable Ending Balance Individually Evaluated for Impairment	163	173
Loans Receivable Ending Balance Collectively Evaluated for Impairment	3,182	3,628
Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	2,837	2,004
Loans Receivable Ending Balance Collectively Evaluated for Impairment	2,837	2,004
Consumer | Medical Education
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	7,526
Loans Receivable Ending Balance Collectively Evaluated for Impairment	7,526
Consumer | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Receivable Ending Balance	6	5
Loans Receivable Ending Balance Collectively Evaluated for Impairment	$ 6	$ 5

XML

Loans Receivable - Summary of Information in Regard to Impaired Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired loans by loan portfolio class with no related allowance, Recorded Investment	$ 1,791		$ 1,791		$ 1,908
Impaired loans by loan portfolio class with no related allowance, Unpaid Principal Balance	1,791		1,791		1,908
Impaired loans by loan portfolio class with an allowance, Recorded Investment	163		163		173
Impaired loans by loan portfolio class with an allowance, Unpaid Principal Balance	163		163		173
Impaired loans by loan portfolio class with an allowance, Related Allowance	16		16		15
Impaired loans by loan portfolio class, Recorded Investment	1,954		1,954		2,081
Impaired loans by loan portfolio class, Unpaid Principal Balance	1,954		1,954		2,081
Impaired loans by loan portfolio class with no related allowance, Average Record Investment	1,664	$ 1,623	1,663	$ 1,513
Impaired loans by loan portfolio class with no related allowance, Interest Income Recognized	9	9	17	19
Impaired loans by loan portfolio class with an allowance, Average Record Investment	165	505	168	509
Impaired loans by loan portfolio class with an allowance, Interest Income Recognized	3	7	5	14
Impaired loans by loan portfolio class, Average Record Investment	1,829	2,128	1,831	2,022
Impaired loans by loan portfolio class, Interest Income Recognized	12	16	22	33
Residential | 1-4 family
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired loans by loan portfolio class with no related allowance, Recorded Investment	1,280		1,280		1,198
Impaired loans by loan portfolio class with no related allowance, Unpaid Principal Balance	1,280		1,280		1,198
Impaired loans by loan portfolio class with no related allowance, Average Record Investment	1,151	924	1,147	854
Impaired loans by loan portfolio class with no related allowance, Interest Income Recognized	1	1	3	3
Residential | Home equity and HELOCs
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired loans by loan portfolio class with no related allowance, Recorded Investment	105		105		196
Impaired loans by loan portfolio class with no related allowance, Unpaid Principal Balance	105		105		196
Impaired loans by loan portfolio class with no related allowance, Average Record Investment	105	147	106	106
Impaired loans by loan portfolio class with an allowance, Average Record Investment		120		121
Commercial | Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired loans by loan portfolio class with no related allowance, Recorded Investment	406		406		514
Impaired loans by loan portfolio class with no related allowance, Unpaid Principal Balance	406		406		514
Impaired loans by loan portfolio class with no related allowance, Average Record Investment	408	552	410	553
Impaired loans by loan portfolio class with no related allowance, Interest Income Recognized	8	8	14	16
Impaired loans by loan portfolio class with an allowance, Average Record Investment		200		200
Impaired loans by loan portfolio class with an allowance, Interest Income Recognized		4		8
Commercial | Commercial Business
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired loans by loan portfolio class with an allowance, Recorded Investment	163		163		173
Impaired loans by loan portfolio class with an allowance, Unpaid Principal Balance	163		163		173
Impaired loans by loan portfolio class with an allowance, Related Allowance	16		16		$ 15
Impaired loans by loan portfolio class with an allowance, Average Record Investment	165	185	168	188
Impaired loans by loan portfolio class with an allowance, Interest Income Recognized	$ 3	$ 3	$ 5	$ 6

XML

Loans Receivable - Summary of Nonaccrual Loans by Classes of Loan Portfolio (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Financing Receivable, Modifications [Line Items]
Loans receivable, nonaccrual status	$ 1,244	$ 1,408
Residential | 1-4 family
Financing Receivable, Modifications [Line Items]
Loans receivable, nonaccrual status	1,139	1,198
Residential | Home equity and HELOCs
Financing Receivable, Modifications [Line Items]
Loans receivable, nonaccrual status	$ 105	110
Commercial | Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Loans receivable, nonaccrual status		$ 100

XML

Loans Receivable - Credit Quality Indicators by Class of Loan Portfolio (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 159,514	$ 112,045
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	156,777	109,289
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	220	552
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	2,517	2,204
Residential | 1-4 family
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	128,267	88,578
Residential | Home equity and HELOCs
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	4,881	5,466
Residential | Pass | 1-4 family
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	126,424	87,099
Residential | Pass | Home equity and HELOCs
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	4,776	5,270
Residential | Substandard | 1-4 family
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	1,843	1,479
Residential | Substandard | Home equity and HELOCs
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	105	196
Commercial | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	12,652	12,191
Commercial | Commercial Business
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	3,345	3,801
Commercial | Pass | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	12,026	11,283
Commercial | Pass | Commercial Business
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	3,182	3,628
Commercial | Special Mention | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	220	552
Commercial | Substandard | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	406	356
Commercial | Substandard | Commercial Business
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	163	173
Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	2,837	2,004
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	2,837	2,004
Consumer | Medical Education
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	7,526
Consumer | Other
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	6	5
Consumer | Pass | Medical Education
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	7,526
Consumer | Pass | Other
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 6	$ 5

XML

Loans Receivable - Summary of Segments of Loan Portfolio by Aging Categories (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 1,829	$ 2,095
Current	157,685	109,950
Total Loans Receivable	159,514	112,045
Loans Receivable >90 Days and Accruing	0	0
Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	364	554
Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	500	381
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	965	1,160
Residential | 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,551	1,885
Current	126,716	86,693
Total Loans Receivable	128,267	88,578
Loans Receivable >90 Days and Accruing	0	0
Residential | 1-4 family | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	191	554
Residential | 1-4 family | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	500	381
Residential | 1-4 family | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	860	950
Residential | Home equity and HELOCs
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	105	110
Current	4,776	5,356
Total Loans Receivable	4,881	5,466
Loans Receivable >90 Days and Accruing	0	0
Residential | Home equity and HELOCs | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	105	110
Commercial | Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		100
Current	12,652	12,091
Total Loans Receivable	12,652	12,191
Loans Receivable >90 Days and Accruing	0	0
Commercial | Commercial Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		100
Commercial | Commercial Business
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,345	3,801
Total Loans Receivable	3,345	3,801
Loans Receivable >90 Days and Accruing	0	0
Consumer | Medical Education
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	173
Current	7,353
Total Loans Receivable	7,526
Loans Receivable >90 Days and Accruing	0
Consumer | Medical Education | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	173
Consumer | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	6	5
Total Loans Receivable	6	5
Loans Receivable >90 Days and Accruing	0	0
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,837	2,004
Total Loans Receivable	2,837	2,004
Loans Receivable >90 Days and Accruing	$ 0	$ 0

XML

Loans Receivable - Troubled Debt Restructurings on Accrual Status and Non-Accrual Status (Detail) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($) Loan	Jun. 30, 2017 USD ($) Loan
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	2	2
Total TDRs	$ 317	$ 331
Accrual Status
Financing Receivable, Modifications [Line Items]
Total TDRs	$ 317	$ 331

XML

Derivatives and Risk Management Activities - Summary of Derivatives not Designated as Hedging Instruments Recorded in Consolidated Statement of Financial Condition (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	$ 519	$ 1,001
Not Designated as Hedging Instrument | Interest Rate Lock Commitments | Mortgage banking derivatives
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	251	786
Asset Derivatives, Notional Amount	10,224	21,389
Not Designated as Hedging Instrument | Interest Rate Lock Commitments | Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives, Fair Value	26	19
Liability Derivatives, Notional Amount	2,667	4,089
Not Designated as Hedging Instrument | Forward Loan Sales Commitments | Mortgage banking derivatives
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	268	179
Asset Derivatives, Notional Amount	7,267	10,864
Not Designated as Hedging Instrument | Forward Loan Sales Commitments | Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives, Fair Value	3	37
Liability Derivatives, Notional Amount	978	3,713
Not Designated as Hedging Instrument | To Be Announced Securities | Mortgage banking derivatives
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value		36
Asset Derivatives, Notional Amount	1,000	14,750
Not Designated as Hedging Instrument | To Be Announced Securities | Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives, Fair Value	17	8
Liability Derivatives, Notional Amount	$ 10,250	$ 2,750

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Derivatives and Risk Management Activities - Summary of Amounts Recorded in Consolidated Statements of Income for Derivative Instruments not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(Loss) from hedging instruments	$ (74)	$ (560)	$ (464)	$ (939)
Interest Rate Lock Commitments
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(Loss) from hedging instruments	(173)	(486)	(542)	(269)
Forward Loan Sales Commitments
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(Loss) from hedging instruments	131	(583)	123	(928)
To Be Announced Securities
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(Loss) from hedging instruments	$ (32)	$ 509	$ (45)	$ 258

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Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 32,863	$ 42,820
Loans held for sale, at fair value	12,266	12,784
Asset Derivatives	519	1,001
Bank CDs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	5,466	6,745
U.S. Governmental securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,447	4,340
Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	6,276	11,226
Collateralized mortgage obligations - agency residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	13,475	12,567
Mortgage-backed securities - agency residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,153	4,435
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,046	3,507
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	12,266	12,784
Fair Value, Measurements, Recurring | Bank CDs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	5,466	6,745
Fair Value, Measurements, Recurring | Forward Loan Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives	268	179
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives	251	786
Fair Value, Measurements, Recurring | To Be Announced Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives		36
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale, at fair value	12,266	12,784
Fair Value, Measurements, Recurring | Level 2 | Bank CDs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	5,223	6,502
Fair Value, Measurements, Recurring | Level 2 | Forward Loan Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives	268	179
Fair Value, Measurements, Recurring | Level 2 | To Be Announced Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives		36
Fair Value, Measurements, Recurring | Level 3 | Bank CDs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	243	243
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Derivatives	251	786
Fair Value, Measurements, Recurring | U.S. Governmental securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,447	4,340
Fair Value, Measurements, Recurring | U.S. Governmental securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,447	4,340
Fair Value, Measurements, Recurring | Corporate notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	6,276	11,226
Fair Value, Measurements, Recurring | Corporate notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	5,288	10,258
Fair Value, Measurements, Recurring | Corporate notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	988	968
Fair Value, Measurements, Recurring | Collateralized mortgage obligations - agency residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	13,475	12,567
Fair Value, Measurements, Recurring | Collateralized mortgage obligations - agency residential | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	13,475	12,567
Fair Value, Measurements, Recurring | Mortgage-backed securities - agency residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,153	4,435
Fair Value, Measurements, Recurring | Mortgage-backed securities - agency residential | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,153	4,435
Fair Value, Measurements, Recurring | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,046	3,507
Fair Value, Measurements, Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 2,046	$ 3,507

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Fair Value of Financial Instruments - Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Forward Loan Sales Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	$ 3	$ 37
Forward Loan Sales Commitments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	3	37
Interest Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	26	19
Interest Rate Lock Commitments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	26	19
To Be Announced Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	17	8
To Be Announced Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability Derivatives	$ 17	$ 8

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Fair Value of Financial Instruments - Change in Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Bank Cds
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 243		$ 243
Ending Balance	243		243
Corporate notes
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	982		968
Total gains (losses) (unrealized): Included in other comprehensive income	6		20
Ending Balance	988		988
IRLC - Asset
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	412	$ 867	786	$ 1,084
Total (losses) or gains included in earnings and held at reporting date	(161)	(552)	(535)	(769)
Ending Balance	251	315	251	315
IRLC - Liability
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	(15)	(16)	(19)	(32)
Total (losses) or gains included in earnings and held at reporting date	(11)	12	(7)	28
Ending Balance	$ (26)	$ (4)	$ (26)	$ (4)

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Fair Value of Financial Instruments - Additional Information (Detail)	Dec. 31, 2017 USD ($)
Fair Value Disclosures [Abstract]
Assets measured at fair value on a nonrecurring basis	$ 0

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Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Assets:
Investment securities held-to-maturity, fair value	$ 12,490	$ 11,896
Loans held for sale at fair value	12,266	12,784
Carrying Amount
Assets:
Cash and cash equivalents	14,802	28,577
Investment securities held-to-maturity, fair value	12,433	11,809
Loans receivable, net	159,702	111,811
Restricted investment in bank stock	749	643
Accrued interest receivable	773	620
Liabilities:
Deposits	193,108	170,481
Advances from the FHLB	12,000	9,000
Securities sold under agreements to repurchase	2,967	2,883
Accrued interest payable	20	20
Estimated Fair Value
Assets:
Cash and cash equivalents	14,802	28,577
Investment securities held-to-maturity, fair value	12,490	11,896
Loans receivable, net	153,416	107,510
Restricted investment in bank stock	749	643
Accrued interest receivable	773	620
Liabilities:
Deposits	152,661	160,764
Advances from the FHLB	11,899	8,958
Securities sold under agreements to repurchase	2,967	2,883
Accrued interest payable	20	20
Level 1
Assets:
Cash and cash equivalents	14,802	28,577
Level 2
Assets:
Investment securities held-to-maturity, fair value	10,482	9,884
Accrued interest receivable	773	620
Liabilities:
Deposits	152,661	160,764
Advances from the FHLB	11,899	8,958
Securities sold under agreements to repurchase	2,967	2,883
Accrued interest payable	20	20
Level 3
Assets:
Investment securities held-to-maturity, fair value	2,008	2,012
Loans receivable, net	153,416	107,510
Restricted investment in bank stock	$ 749	$ 643

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Fair Value of Financial Instruments - Difference between Carrying Amount of Mortgage Loans Held For Sale, Measured at Fair Value and Aggregate Unpaid Principal Amount (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Carrying Amount	$ 12,266	$ 12,784
Aggregate Unpaid Principal Balance	12,112	12,534
Excess Carrying Amount Over Aggregate Unpaid Principal Balance	$ 154	$ 250

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Earnings Per Share - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Earnings Per Share [Abstract]
Common stock outstanding	2,182,125	0	2,182,125	0	2,182,125
Stock options or other convertible instruments outstanding	0	0	0	0
Effect of dilution on earnings per share	$ 0	$ 0	$ 0	$ 0

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net income (basic and diluted)	$ 179	$ 39	$ 415	$ 292
Weighted average shares outstanding	2,182,125		2,182,125
Net income per share – basic and diluted	$ 0.08		$ 0.19

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Employee Stock Ownership Plan - Additional Information (Detail) $ in Thousands	6 Months Ended
	Dec. 31, 2017 USD ($) shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Employee stock ownership plan, eligibility description	Eligible employees who have attained age 21 may participate in the ESOP on the later of the effective date of the ESOP or upon the first entry date commencing on or after the eligible employee’s completion of 1,000 hours of service during a continuous 12-month period.
Employee stock ownership plan, service period eligibility	12 months
Employee stock ownership plan, age eligibility	21 years
Employee stock ownership plan, hours of service during twelve-month period	1000 hours
Employee stock ownership plan, number of shares committed to be released	4,364
Employee stock ownership plan, value of shares committed to be released | $	$ 47
Number of shares purchased by ESOP	0

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Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Fees for customer services	$ 185,000	$ 51,000	$ 230,000	$ 105,000
Competitive Rate of Return and FDIC Insurance
Related Party Transaction [Line Items]
Related party program total balances	116,700,000		116,700,000
Fees for customer services	$ 84,000		$ 84,000