10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2015

OR

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

For the transition period from to

Commission File Number 001-37399

KEARNY FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Maryland	30-0870244
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
120 Passaic Ave., Fairfield, New Jersey	07004
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code

973-244-4500

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  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

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

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

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

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: November 6, 2015.

$0.01 par value common stock — 93,528,092 shares outstanding

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

INDEX

		Page Number
PART I—FINANCIAL INFORMATION
Item 1:	Financial Statements
	Consolidated Statements of Financial Condition at September 30, 2015 and June 30, 2015 (Unaudited)	1
	Consolidated Statements of Income for the Three Months Ended September 30, 2015 and September 30, 2014 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the Three Months Ended September 30, 2015 and September 30, 2014 (Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended September 30, 2015 and September 30, 2014 (Unaudited)	5
	Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2015 and September 30, 2014 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	9
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	60
Item 3:	Quantitative and Qualitative Disclosure About Market Risk	76
Item 4:	Controls and Procedures	82
PART II—OTHER INFORMATION
Item 1:	Legal Proceedings	83
Item 1A:	Risk Factors	83
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	83
Item 3:	Defaults Upon Senior Securities	83
Item 4:	Mine Safety Disclosures	83
Item 5:	Other Information	83
SIGNATURES		86

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share and Per Share Data)

	September 30, 2015			June 30, 2015
	(Unaudited)
Assets
Cash and amounts due from depository institutions	$	19,379		$	15,529
Interest-bearing deposits in other banks		83,251			324,607
Cash and cash equivalents		102,630			340,136
Debt securities available for sale (amortized cost $422,789 and $422,903)		416,470			420,660
Mortgage-backed securities available for sale (amortized cost $324,589 and $344,523)		329,310			346,619
Securities available for sale		745,780			767,279
Debt securities held to maturity (fair value $228,757 and $218,366)		228,597			219,862
Mortgage-backed securities held to maturity (fair value $436,762 and $445,501)		429,912			443,479
Securities held to maturity		658,509			663,341
Loans receivable, including unamortized yield adjustments of $2,580 and $316		2,417,512			2,102,864
Less allowance for loan losses		(17,690	)		(15,606	)
Net loans receivable		2,399,822			2,087,258
Premises and equipment		39,256			39,180
Federal Home Loan Bank of New York ("FHLB") stock		29,717			27,468
Accrued interest receivable		11,058			9,873
Goodwill		108,591			108,591
Bank owned life insurance		171,842			170,452
Deferred income tax assets, net		22,316			17,827
Other assets		12,420			5,782
Total Assets	$	4,301,941		$	4,237,187
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest-bearing	$	227,941		$	218,533
Interest-bearing		2,235,949			2,247,117
Total deposits		2,463,890			2,465,650
Borrowings		628,351			571,499
Advance payments by borrowers for taxes		9,292			9,043
Other liabilities		36,798			23,620
Total Liabilities		3,138,331			3,069,812
Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized;   none issued and outstanding		-			-
Common stock, $0.01 par value; 800,000,000 shares authorized;   93,528,092 shares issued and outstanding		935			935
Paid-in capital		870,701			870,480
Retained earnings		343,335			342,148
Unearned employee stock ownership plan shares;   3,913,601 shares and 3,963,776 shares, respectively		(37,940	)		(38,427	)
Accumulated other comprehensive loss		(13,421	)		(7,761	)
Total Stockholders' Equity		1,163,610			1,167,375
Total Liabilities and Stockholders' Equity	$	4,301,941		$	4,237,187

See notes to unaudited consolidated financial statements

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended September 30,
		2015		2014
Interest Income
Loans	$	22,032	$	18,405
Mortgage-backed securities		4,514		4,776
Debt securities:
Taxable		1,896		1,735
Tax-exempt		534		485
Other interest-earning assets		439		297
Total Interest Income		29,415		25,698
Interest Expense
Deposits		4,072		3,846
Borrowings		2,987		2,327
Total Interest Expense		7,059		6,173
Net Interest Income		22,356		19,525
Provision for Loan Losses		2,641		858
Net Interest Income after Provision for   Loan Losses		19,715		18,667
Non-Interest Income
Fees and service charges		673		699
Gain on sale of loans		72		-
Loss on sale and write down of real estate owned		-		(151	)
Income from bank owned life insurance		1,390		652
Electronic banking fees and charges		286		284
Miscellaneous		72		96
Total Non-Interest Income		2,493		1,580
Non-Interest Expense
Salaries and employee benefits		10,625		10,076
Net occupancy expense of premises		1,909		1,642
Equipment and systems		1,978		1,930
Advertising and marketing		428		148
Federal deposit insurance premium		662		589
Directors' compensation		182		196
Miscellaneous		2,598		2,190
Total Non-Interest Expense		18,382		16,771
Income before Income Taxes		3,826		3,476
Income taxes		850		553
Net Income	$	2,976	$	2,923

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Continued)

(In Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended September 30,
		2015		2014
Net Income per Common Share (EPS)
Basic	$	0.03	$	0.03
Diluted	$	0.03	$	0.03
Weighted Average Number of   Common Shares Outstanding
Basic		89,590		92,452
Diluted		89,619		92,999
Dividends Declared Per Common Share	$	0.02	$	-

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In Thousands, Unaudited)

	Three Months Ended September 30,
		2015			2014
Net Income	$	2,976		$	2,923
Other Comprehensive Loss:
Net unrealized loss on securities available   for sale, net of deferred income tax   benefit of:
2015 $(768);
2014 $(1,041)		(683	)		(2,030	)
Net (loss) gain on securities transferred from   available for sale to held to maturity, net of   deferred income tax (benefit) expense of:
2015 $(13);
2014 $0		(17	)		2
Fair value adjustments on derivatives,   net of deferred income tax (benefit) expense of:
2015 $(3,060);
2014 $1,189		(4,432	)		1,722
Benefit plan adjustments, net of  deferred   income tax benefit of:
2015 $(366);
2014 $(140)		(528	)		(204	)
Total Other Comprehensive Loss		(5,660	)		(510	)
Total Comprehensive (Loss) Income	$	(2,684	)	$	2,413

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended September 30, 2014

(In Thousands, Unaudited)

	Common Stock				Paid-In			Retained		Unearned ESOP			Treasury			Accumulated Other Comprehensive
	Shares		Amount		Capital			Earnings		Shares			Stock			Loss			Total
Balance - June 30, 2014		92,856	$	7,378	$	231,870		$	336,355	$	(3,879	)	$	(74,768	)	$	(2,280	)	$	494,676
Net income		-		-		-			2,923		-			-			-			2,923
Other comprehensive income,   net of income tax		-		-		-			-		-			-			(510	)		(510	)
ESOP shares committed to be   released (50 shares)		-		-		184			-		363			-			-			547
Stock option expense		-		-		50			-		-			-			-			50
Treasury stock reissued for stock   option exercises		148		-		132			-		-			1,233			-			1,365
Restricted stock plan shares   earned (10 shares)		-		-		82			-		-			-			-			82
Settlement of stock options   with cash in lieu of shares		-		-		(7,188	)		-		-			-			-			(7,188	)
Balance - September 30, 2014		93,004	$	7,378	$	225,130		$	339,278	$	(3,516	)	$	(73,535	)	$	(2,790	)	$	491,945

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended September 30, 2015

(In Thousands, Unaudited)

	Common Stock				Paid-In		Retained			Unearned ESOP			Accumulated Other Comprehensive
	Shares		Amount		Capital		Earnings			Shares			Loss			Total
Balance - June 30, 2015		93,528	$	935	$	870,480	$	342,148		$	(38,427	)	$	(7,761	)	$	1,167,375
Net income		-		-		-		2,976			-			-			2,976
Other comprehensive loss, net of   income tax benefit		-		-		-		-			-			(5,660	)		(5,660	)
ESOP shares committed to be   released (50 shares)		-		-		87		-			487			-			574
Stock option expense		-		-		53		-			-			-			53
Restricted stock plan shares   earned (9 shares)		-		-		81		-			-			-			81
Cash dividend declared   ($0.02 per common share)		-		-		-		(1,789	)		-			-			(1,789	)
Balance - September 30, 2015		93,528	$	935	$	870,701	$	343,335		$	(37,940	)	$	(13,421	)	$	1,163,610

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands, Unaudited)

	Three Months Ended September 30,
		2015			2014
Cash Flows from Operating Activities:
Net income	$	2,976		$	2,923
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment		736			752
Net amortization of premiums, discounts and loan fees and costs		1,117			593
Deferred income taxes		(282	)		2,339
Amortization of intangible assets		43			28
Amortization of benefit plans’ unrecognized net (gain) loss		(458	)		20
Provision for loan losses		2,641			858
Loss on write-down and sales of real estate owned		-			151
Realized gain on sale of loans		(72	)		-
Proceeds from sale of loans		878			-
Realized gain on disposition of premises and equipment		(14	)		(25	)
Increase in cash surrender value of bank owned life insurance		(1,390	)		(652	)
ESOP, stock option plan and restricted stock plan expenses		708			679
Increase in interest receivable		(1,185	)		(294	)
Increase in other assets		(13,448	)		(3,650	)
Increase in interest payable		92			54
Increase in other liabilities		12,654			1,752
Net Cash Provided by Operating Activities		4,996			5,528
Cash Flows from Investing Activities:
Purchase of debt securities available for sale		-			(3,968	)
Proceeds from repayments of debt securities available for sale		141			43
Principal repayments on mortgage-backed securities available for sale		19,591			19,144
Purchase of debt securities held to maturity		(9,140	)		(350	)
Proceeds from repayments of debt securities held to maturity		350			1,257
Purchases of mortgage-backed securities held to maturity		-			(16,695	)
Principal repayments on mortgage-backed securities held to maturity		12,964			3,202
Purchase of loans		(303,549	)		(12,868	)
Net increase in loans receivable		(13,389	)		(17,667	)
Proceeds from sale of real estate owned		-			17
Additions to premises and equipment		(812	)		(457	)
Proceeds from cash settlement of premises and equipment		14			44
Purchase of FHLB stock		(2,475	)		(6,480	)
Redemption of FHLB stock		226			5,087
Net Cash Used in Investing Activities	$	(296,079	)	$	(29,691	)

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In Thousands, Unaudited)

	Three Months Ended September 30,
		2015			2014
Cash Flows from Financing Activities:
Net decrease in deposits	$	(1,740	)	$	(30,568	)
Repayment of term FHLB advances		(375,024	)		(303,023	)
Proceeds from term FHLB advances		425,000			375,000
Net change in overnight borrowings		-			(17,000	)
Increase (decrease) in other short-term borrowings		6,881			(2,369	)
Increase (decrease) in advance payments by borrowers for taxes		249			(302	)
Issuance of common stock of Kearny Financial Corp. from treasury		-			1,365
Cash dividends paid		(1,789	)		-
Payment of cash for exercise of stock options		-			(7,188	)
Net Cash Provided by Financing Activities		53,577			15,915
Net Decrease in Cash and Cash Equivalents		(237,506	)		(8,248	)
Cash and Cash Equivalents - Beginning		340,136			135,034
Cash and Cash Equivalents - Ending	$	102,630		$	126,786
Supplemental Disclosures of Cash Flows Information:
Cash paid during the year for:
Income taxes, net of refunds	$	1,656		$	1,000
Interest	$	6,967		$	6,119
Non-cash investing and financing activities:
Acquisition of real estate owned in settlement of loans	$	786		$	118

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.     PRINCIPLES OF CONSOLIDATION

The unaudited consolidated financial statements include the accounts of Kearny Financial Corp. (the “Company”), its wholly-owned subsidiary, Kearny Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, CJB Investment Corp. and KFS Financial Services, Inc. and its wholly-owned subsidiary, KFS Insurance Services, Inc. The Company conducts its business principally through the Bank. Management prepared the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), including the elimination of all significant inter-company accounts and transactions during consolidation.

2.     BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, income, comprehensive income, changes in stockholders’ equity and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the unaudited consolidated financial statements have been included. The results of operations for the three- month period ended September 30, 2015, are not necessarily indicative of the results that may be expected for the entire fiscal year or any other period.

The data in the consolidated statement of financial condition for June 30, 2015 was derived from the Company’s 2015 annual report on Form 10-K. That data, along with the interim unaudited financial information presented in the consolidated statements of financial condition, income, comprehensive income, changes in stockholders’ equity and cash flows should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2015 annual report on Form 10-K.

3.     NET INCOME PER COMMON SHARE (“EPS”)

Basic EPS is based on the weighted average number of common shares actually outstanding including restricted stock awards adjusted for Employee Stock Ownership Plan (“ESOP”) shares not yet committed to be released. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as outstanding stock options, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effect of contracts or securities exercisable or which could be converted into common stock, if dilutive, using the treasury stock method. Shares issued and reacquired during any period are weighted for the portion of the period they were outstanding.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:

	Three Months Ended September 30, 2015
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,976
Basic earnings per share, income   available to common stockholders	$	2,976		89,590	$	0.03
Effect of dilutive securities:
Stock options		-		29
	$	2,976		89,619	$	0.03

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	Three Months Ended September 30, 2014
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,923
Basic earnings per share, income   available to common stockholders	$	2,923		92,452	$	0.03
Effect of dilutive securities:
Stock options		-		547
	$	2,923		92,999	$	0.03

During the three months ended September 30, 2015, the average number of options which were considered anti-dilutive totaled approximately 276,080. During the three ended September 30, 2014, the average number of options which were considered anti-dilutive totaled approximately 255,374.

4.     SUBSEQUENT EVENTS

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2015, for items that should potentially be recognized or disclosed in these consolidated financial statements.  The evaluation was conducted through the date this document was filed.

5.     PLAN OF CONVERSION AND STOCK OFFERING

On September 4, 2014, the Boards of Directors of Kearny MHC, our prior holding company (also named Kearny Financial Corp.) and the Bank adopted a Plan of Conversion and Reorganization (the “Plan”). Pursuant to the Plan, Kearny MHC would convert from the mutual holding company form of organization to the fully public form. Kearny MHC would be merged into the prior holding company, and Kearny MHC would no longer exist. The prior holding company would then merge into a new Maryland corporation, also named Kearny Financial Corp., which would become the holding company for the Bank.

On May 5, 2015, the stockholders of the prior holding company and members of Kearny MHC approved the plan of conversion and reorganization.  Additionally, on May 5, 2015, the Company’s stockholders and Kearny MHC’s members each approved the establishment and funding of the KearnyBank Foundation with a contribution of 500,000 shares of New Kearny common stock and $5.0 million in cash.  The transactions contemplated by the Plan were also subject to approval by the Board of Governors of the Federal Reserve System, which was received in March 2015.

On May 18, 2015, the Company completed its second-step conversion and stock offering as outlined in the Plan described above.  In conjunction with that transaction, the Company sold 71,750,000 shares of its common stock at $10.00 per share, resulting in gross proceeds of $717.5 million.  The new shares issued included 3,612,500 shares sold to the Bank’s Employee Stock Ownership Plan (“ESOP”) with an aggregate value of $36.1 million based on the sales price of $10.00 per share.  Concurrent with the closing of the transaction, the Company also issued an additional 500,000 shares of its common stock with an aggregate value of $5.0 million and contributed these shares with an additional $5.0 million in cash to the KearnyBank Foundation.

The Company recognized direct stock offering costs of approximately $10.7 million in conjunction with the transaction which reduced the net proceeds credited to capital.  After adjusting for transaction costs and the value of the shares issued to the Bank’s ESOP, the Company recognized a net increase in equity capital of approximately $670.7 million, of which approximately $353.4 million was contributed to the Bank by the Company as an additional investment in the Bank’s common equity.

The outstanding shares held by the Company’s public stockholders immediately prior to the closing of the conversion and stock offering were “exchanged” or converted into 1.3804 shares of the Company’s new common stock. All shares previously held by Kearny MHC, the former mutual holding company, as well as the remaining shares previously repurchased by the Company and held in treasury were cancelled concurrent with the closing of the transaction.

At September 30, 2015, the Company had 93,528,092 shares outstanding, comprising 71,750,000 new shares sold in the stock offering, 500,000 new shares issued to the KearnyBank Foundation and 21,278,092 exchanged shares, as adjusted for the cash

- 10 -

settlement of fractional shares.  As a result of the completion of the second-step conversion and stock offering, all historical share and per share information has been revised to reflect the 1.3804-to-one exchange ratio to support the comparability of information between periods.

6.     RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The purpose of the ASU is to reduce diversity in the application of guidance by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. This ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The ASU’s core principle 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 objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine 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 a performance obligation. For public entities, the guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017.  The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860) Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The purpose of the ASU is to address the concern that current accounting guidance distinguishes between repurchase agreements that settle at the same time as the maturity of the transferred financial asset and those that settle any time before maturity. In particular, repurchase-to-maturity transactions are generally accounted for as sales with forward agreements under current accounting, whereas typical repurchase agreements that settle before the maturity of the transferred financial asset are accounted for as secured borrowings. Additionally, current accounting guidance requires an evaluation of whether an initial transfer of a financial asset and a contemporaneous repurchase agreement (a repurchase financing) should be accounted for separately or linked. If linked, the arrangement is accounted for on a combined basis as a forward agreement. Those outcomes often are referred to as off-balance-sheet accounting. The ASU changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The amendments also require two new related disclosures. This ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.  The purpose of the ASU is to address a practice issue related to the classification of certain foreclosed residential and nonresidential mortgage loans that are either fully or partially guaranteed under government programs. Specifically, creditors should reclassify loans that meet certain conditions to "other receivables" upon foreclosure, rather than reclassifying them to other real estate owned (OREO). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor.  The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting).  The purpose of the ASU is to codify an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets.  Given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement.  The ASU was immediately effective upon its announcement and its adoption did not have a significant impact on the Company’s consolidated financial statements.

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In September 2015, the FASB issued ASU 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.  The ASU requires adjustments to provisional amounts that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined.  This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.

In addition, the amendments in the Update would require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

7.     SECURITIES AVAILABLE FOR SALE

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities available for sale at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities available for sale at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,063	$	111	$	15	$	7,159
Obligations of state and political subdivisions		27,507		183		224		27,466
Asset-backed securities		87,646		62		2,530		85,178
Collateralized loan obligations		128,633		35		1,256		127,412
Corporate bonds		163,042		117		1,985		161,174
Trust preferred securities		8,898		16		833		8,081
Total debt securities		422,789		524		6,843		416,470
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		25,776		174		150		25,800
Federal National Mortgage Association		43,867		64		568		43,363
Non-agency securities		151		-		1		150
Total collateralized mortgage obligations		69,794		238		719		69,313
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,290		208		1		2,497
Federal Home Loan Mortgage Corporation		147,342		2,393		242		149,493
Federal National Mortgage Association		95,897		2,756		138		98,515
Total residential pass-through securities		245,529		5,357		381		250,505
Commercial pass-through securities:
Federal National Mortgage Association		9,266		226		-		9,492
Total commercial pass-through securities		9,266		226		-		9,492
Total mortgage-backed securities		324,589		5,821		1,100		329,310
Total securities available for sale	$	747,378	$	6,345	$	7,943	$	745,780

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	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities available for sale:
Due in one year or less	$	20,007	$	20,053
Due after one year through five years		50,778		50,098
Due after five years through ten years		155,585		153,828
Due after ten years		196,419		192,491
Total	$	422,789	$	416,470

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,208	$	66	$	11	$	7,263
Obligations of state and political subdivisions		27,513		26		704		26,835
Asset-backed securities		87,614		879		461		88,032
Collateralized loan obligations		128,624		175		628		128,171
Corporate bonds		163,049		433		874		162,608
Trust preferred securities		8,895		16		1,160		7,751
Total debt securities		422,903		1,595		3,838		420,660
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		27,392		10		324		27,078
Federal National Mortgage Association		45,522		12		900		44,634
Non-agency securities		167		-		2		165
Total collateralized mortgage obligations		73,081		22		1,226		71,877
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,430		225		-		2,655
Federal Home Loan Mortgage Corporation		155,522		2,286		1,358		156,450
Federal National Mortgage Association		102,424		2,749		665		104,508
Total residential pass-through securities		260,376		5,260		2,023		263,613
Commercial pass-through securities:
Federal National Mortgage Association		11,066		63		-		11,129
Total commercial pass-through securities		11,066		63		-		11,129
Total mortgage-backed securities		344,523		5,345		3,249		346,619
Total securities available for sale	$	767,426	$	6,940	$	7,087	$	767,279

There were no sales of securities available for sale during the three months ended September 30, 2015 and September 30, 2014.

At September 30, 2015 and June 30, 2015, securities available for sale with carrying values of approximately $54.5 million and $58.3 million, respectively, were utilized as collateral for borrowings through the FHLB of New York. As of those same dates, securities available for sale with total carrying values of approximately $1.2 million and $1.4 million, respectively, were pledged to secure public funds on deposit.

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8.     SECURITIES HELD TO MATURITY

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities held to maturity at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities held to maturity at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,335	$	7	$	40	$	143,302
Obligations of state and political subdivisions		85,262		502		309		85,455
Total debt securities		228,597		509		349		228,757
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		14,519		24		2		14,541
Federal National Mortgage Association		212		25		-		237
Non-agency securities		40		-		1		39
Total collateralized mortgage obligations		14,771		49		3		14,817
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		43,746		88		-		43,834
Federal National Mortgage Association		203,664		2,375		30		206,009
Total residential pass-through securities		247,418		2,464		30		249,852
Commercial pass-through securities:
Government National Mortgage Association		10,012		89		-		10,101
Federal National Mortgage Association		157,711		4,281		-		161,992
Total commercial pass-through securities		167,723		4,370		-		172,093
Total mortgage-backed securities		429,912		6,883		33		436,762
Total securities held to maturity	$	658,509	$	7,392	$	382	$	665,519

	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities held to maturity:
Due in one year or less	$	6,356	$	6,360
Due after one year through five years		154,535		154,490
Due after five years through ten years		41,391		41,539
Due after ten years		26,315		26,368
Total	$	228,597	$	228,757

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	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,334	$	-	$	332	$	143,002
Obligations of state and political subdivisions		76,528		26		1,190		75,364
Total debt securities		219,862		26		1,522		218,366
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		15,121		5		-		15,126
Federal National Mortgage Association		221		24		-		245
Non-agency securities		42		-		1		41
Total collateralized mortgage obligations		15,384		29		1		15,412
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		44,905		16		218		44,703
Federal National Mortgage Association		214,150		1,090		338		214,902
Total residential pass-through securities		259,063		1,107		556		259,614
Commercial pass-through securities:
Government National Mortgage Association		10,111		32		-		10,143
Federal National Mortgage Association		158,921		1,639		228		160,332
Total commercial pass-through securities		169,032		1,671		228		170,475
Total mortgage-backed securities		443,479		2,807		785		445,501
Total securities held to maturity	$	663,341	$	2,833	$	2,307	$	663,867

There were no sales of securities held to maturity during the three months ended September 30, 2015 and September 30, 2014.

At September 30, 2015 and June 30, 2015, securities held to maturity with carrying values of approximately $126.7 million and $126.9 million, respectively, were utilized as collateral for borrowings from the FHLB of New York. As of those same dates, securities held to maturity with total carrying values of approximately $7.9 million and $7.9 million, respectively, were pledged to secure public funds on deposit.

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9.     IMPAIRMENT OF SECURITIES

The following two tables summarize the fair values and gross unrealized losses within the available for sale and held to maturity portfolios at September 30, 2015 and June 30, 2015. The gross unrealized losses, presented by security type, represent temporary impairments of value within each portfolio as of the dates presented. Temporary impairments within the available for sale portfolio have been recognized through other comprehensive income as reductions in stockholders’ equity on a tax-effected basis.

The tables are followed by a discussion that summarizes the Company’s rationale for recognizing impairments, where applicable, as “temporary” versus those identified as “other-than-temporary”. Such rationale is presented by investment type and generally applies consistently to both the “available for sale” and “held to maturity” portfolios, except where specifically noted.

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,510	$	10	$	673	$	5	$	2,183	$	15
Obligations of state and political   subdivisions		7,501		123		3,031		101		10,532		224
Asset-backed securities		60,361		1,969		14,685		561		75,046		2,530
Collateralized loan obligations		43,350		405		69,213		851		112,563		1,256
Corporate bonds		24,487		530		93,590		1,455		118,077		1,985
Trust preferred securities		-		-		7,064		833		7,064		833
Collateralized mortgage obligations		-		-		50,649		719		50,649		719
Residential pass-through securities		21		1		48,995		380		49,016		381
Total	$	137,230	$	3,038	$	287,900	$	4,905	$	425,130	$	7,943

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,533	$	7	$	695	$	4	$	2,228	$	11
Obligations of state and political   subdivisions		20,575		515		2,943		189		23,518		704
Asset-backed securities		23,855		293		20,067		168		43,922		461
Collateralized loan obligations		49,694		117		59,551		511		109,245		628
Corporate bonds		19,880		120		74,295		754		94,175		874
Trust preferred securities		-		-		6,734		1,160		6,734		1,160
Collateralized mortgage obligations		5,479		29		52,105		1,197		57,584		1,226
Residential pass-through securities		61,896		1,140		50,513		883		112,409		2,023
Total	$	182,912	$	2,221	$	266,903	$	4,866	$	449,815	$	7,087

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The number of available for sale securities with unrealized losses at September 30, 2015 totaled 90 and included five U.S. agency securities, 29 municipal obligations, seven asset-backed securities, 18 collateralized loan obligations, 12 corporate obligations, four trust preferred securities,six collateralized mortgage obligations and nine residential pass-through securities. The number of available for sale securities with unrealized losses at June 30, 2015 totaled 119 and included five U.S. agency securities, 62 municipal obligations, four asset-backed securities, 16 collateralized loan obligations, seven corporate obligations, four trust preferred securities,eight collateralized mortgage obligations and 13 residential pass-through securities.

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	94,948	$	40	$	94,948	$	40
Obligations of state and political   subdivisions		18,363		99		8,097		210		26,460		309
Collateralized mortgage obligations		4,579		2		39		1		4,618		3
Residential pass-through securities		2,031		30		-		-		2,031		30
Total	$	24,973	$	131	$	103,084	$	251	$	128,057	$	382

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	143,002	$	332	$	143,002	$	332
Obligations of state and political   subdivisions		56,190		840		7,965		350		64,155		1,190
Collateralized mortgage obligations		-		-		41		1		41		1
Residential pass-through securities		142,789		556						142,789		556
Commercial pass-through securities		18,792		228		-		-		18,792		228
Total	$	217,771	$	1,624	$	151,008	$	683	$	368,779	$	2,307

The number of held to maturity securities with unrealized losses at September 30, 2015 totaled 72 and included five U.S. agency securities, 61 municipal obligations, five collateralized mortgage obligations, and one residential pass-through security.  The number of held to maturity securities with unrealized losses at June 30, 2015 totaled 166 and included seven U.S. agency securities, 136 municipal obligations, four collateralized mortgage obligations, 15 residential pass-through securities and four commercial pass-through securities.

In general, if the fair value of a debt security is less than its amortized cost basis at the time of evaluation, the security is “impaired” and the impairment is to be evaluated to determine if it is other than temporary. The Company evaluates the impaired securities in its portfolio for possible other than temporary impairment (OTTI) on at least a quarterly basis. The following represents the circumstances under which an impaired security is determined to be other than temporarily impaired:

· When the Company intends to sell the impaired debt security;

· When the Company more likely than not will be required to sell the impaired debt security before recovery of its amortized cost (for example, whether liquidity requirements or contractual or regulatory obligations indicate that the security will be required to be sold before a forecasted recovery occurs); or

· When an impaired debt security does not meet either of the two conditions above, but the Company does not expect to recover the entire amortized cost of the security. According to applicable accounting guidance for debt securities, this is generally when the present value of cash flows expected to be collected is less than the amortized cost of the security.

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In the first two circumstances noted above, the amount of OTTI recognized in earnings is the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. In the third circumstance, however, the OTTI is to be separated into the amount representing the credit loss from the amount related to all other factors. The credit loss component is to be recognized in earnings while the non-credit loss component is to be recognized in other comprehensive income. In these cases, OTTI is generally predicated on an adverse change in cash flows (e.g. principal and/or interest payment deferrals or losses) versus those expected at the time of purchase. The absence of an adverse change in expected cash flows generally indicates that a security’s impairment is related to other “non-credit loss” factors and is thereby generally not recognized as OTTI.

The Company considers a variety of factors when determining whether a credit loss exists for an impaired security including, but not limited to:

· The length of time and the extent (a percentage) to which the fair value has been less than the amortized cost basis;

· Adverse conditions specifically related to the security, an industry, or a geographic area (e.g. changes in the financial condition of the issuer of the security, or in the case of an asset backed debt security, in the financial condition of the underlying loan obligors, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement);

· The historical and implied volatility of the fair value of the security;

· The payment structure of the debt security;

· Actual or expected failure of the issuer of the security to make scheduled interest or principal payments;

· Changes to the rating of the security by external rating agencies; and

· Recoveries or additional declines in fair value subsequent to the balance sheet date.

At September 30, 2015 and June 30, 2015, the Company held no securities on which credit-related OTTI had been recognized in earnings. The following discussion summarizes the Company’s rationale for recognizing the impairments reported in the tables above as “temporary” versus “other-than-temporary”. Such rationale is presented by investment type and generally applies consistently to both the available for sale and held to maturity portfolios, except where specifically noted.

Mortgage-backed Securities.

The carrying value of the Company’s mortgage-backed securities totaled $759.2 million at September 30, 2015 and comprised 54.1% of total investments and 17.6% of total assets as of that date.  This category of securities primarily includes mortgage pass-through securities and collateralized mortgage obligations issued by U.S. government agencies and/or GSEs such as Ginnie Mae, Fannie Mae and Freddie Mac who guarantee the contractual cash flows associated with those securities.   Those guarantees were strengthened during the 2008-2009 financial crisis at which time Fannie Mae and Freddie Mac were placed into receivership by the federal government.  Through those actions, the U.S. government effectively reinforced the guarantees of their agencies thereby strengthening the creditworthiness of the mortgage-backed securities issued by those agencies.

With credit risk being reduced to negligible levels due primarily to the U.S. government’s support of most of these agencies, the unrealized losses on the Company’s investment in U.S. agency mortgage-backed securities are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s mortgage-backed securities, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates or adjustable rates that lag the movement in market interest rates, decline and vice-versa.

Additionally, movements in market interest rates significantly impact the average lives of mortgage-backed securities by influencing the rate of principal prepayment attributable to refinancing activity.  Changes in the expected average lives of such securities significantly impact their fair values due to the extension or contraction of the cash flows that an investor expects to receive over the life of the security.  Generally, lower market interest rates prompt greater refinancing activity thereby shortening the average lives of mortgage-backed securities and vice-versa.  The historically low mortgage rates prevalent in the marketplace during recent years created significant refinancing incentive for qualified borrowers.

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Prepayment rates are also influenced by fluctuating real estate values and the overall availability of credit in the marketplace which significantly impacts the ability of borrowers to qualify for refinancing.  The residential real estate marketplace in recent years has been characterized by diminished property values and reduced availability of credit due to tightening underwriting standards.  As a consequence, the ability of certain borrowers to qualify for the refinancing of existing loans has been reduced while residential real estate purchase activity has been stifled.  These factors have partially offset the effects of historically low interest rates on mortgage-backed security prepayment rates.

The market price of mortgage-backed securities, being the key measure of the fair value to an investor in such securities, is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of a security decreases its price.

In sum, the factors influencing the fair value of the Company’s U.S. agency mortgage-backed securities, as described above, generally result from movements in market interest rates and changing real estate and financial market conditions which affect the supply and demand for such securities.  Such market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss. Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015 and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Moreover, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its U.S. agency and GSE mortgage-backed securities with unrealized losses at September 30, 2015  to be “other-than-temporarily” impaired as of that date.

In addition to those mortgage-backed securities issued by U.S. agencies and GSEs, the Company held a nominal balance of non-agency mortgage-backed securities at September 30, 2015.  Unlike agency and GSE mortgage-backed securities, non-agency collateralized mortgage obligations are not explicitly guaranteed by a U.S. government sponsored entity.  Rather, such securities generally utilize the structure of the larger investment vehicle to reallocate credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying mortgage loans.  The creditworthiness of certain tranches may also be further enhanced by additional credit insurance protection embedded within the terms of the total investment vehicle.

The fair values of the non-agency mortgage-backed securities are subject to many of the factors applicable to the agency securities that may result in “temporary” impairments in value.  However, due to the lack of agency guaranty, the Company also monitors the general level of credit risk for each of its non-agency mortgage-backed securities based upon a variety of factors including, but not limited to, the ratings assigned to its specific tranches by one or more credit rating agencies, where available.  As noted above, the level of such ratings and changes thereto, is one of several factors considered by the Company in identifying those securities that may be other-than-temporarily impaired.

The applicable securities generally maintained their credit-ratings at levels supporting the investment grade assessment by the Company.  The Company has the stated ability and intent to “hold to maturity” those securities at September 30, 2015 and has further concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its non-agency mortgage-backed securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

U.S. Agency Debt Securities.

The carrying value of the Company’s U.S. agency debt securities totaled $150.5 million at September 30, 2015 and comprised 10.7% of total investments and 3.5% of total assets as of that date.  Such securities included fixed-rate U.S. agency debentures and securitized pools of loans issued and fully guaranteed by the Small Business Administration (“SBA”), a U.S. government agency.

With credit risk being reduced to negligible levels due to the issuer’s guarantee, the unrealized losses on the Company’s investment in U.S. agency debentures are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s U.S. agency debentures, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates, decline and vice-versa.

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The market price of U.S. agency debentures is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s U.S. agency debentures, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015  and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its balance of U.S. agency securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Obligations of State and Political Subdivisions.

The carrying value of the Company’s securities representing obligations of state and political subdivisions totaled $112.7 million at September 30, 2015 and comprised 8.0% of total investments and 2.6% of total assets as of that date.  Such securities primarily included fixed-rate, bank-qualified securities representing general obligations of municipalities located within the U.S. or the obligations of their related entities such as boards of education or school districts.  The balance of municipal obligations at September 30, 2015 included $6.4 million of non-rated bond anticipation and special emergency notes (“BANs”) comprising ten short-term obligations issued by a total of seven New Jersey municipalities.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its municipal obligations.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with municipal obligations whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired municipal obligations were consistently rated by Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Financial Services (“S&P”) well above the thresholds that generally support the Company’s investment grade assessment with such ratings equaling “A” or higher by S&P and/or “A3” or higher by Moody’s, where rated by those agencies.  In the absence of such ratings, the Company relies upon its own internal analysis of the issuer’s financial condition to validate its investment grade assessment.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in municipal obligations are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s municipal obligations, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates, decline and vice-versa.

The market price of municipal obligations is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect investors’ assessment of an issuer’s creditworthiness and resulting expectations for timely and full repayment in accordance with the terms of the applicable security agreement.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

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In sum, the factors influencing the fair value of the Company’s municipal obligations, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015 and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its balance of obligations of state and political subdivisions with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Asset-backed Securities.

The carrying value of the Company’s asset-backed securities totaled $85.2 million at September 30, 2015 and comprised 6.1% of total investments and 2.0% of total assets as of that date.  This category of securities is comprised entirely of structured, floating-rate securities representing securitized federal education loans with 97% U.S. government guarantees.  The securities represent tranches of a larger investment vehicle designed to reallocate credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying loans.  The Company’s securities represent the highest credit-quality tranches within the overall structures with each being rated “AA+” or better by S&P at September 30, 2015.

With credit risk being reduced to nominal levels due to the guarantees and structural support noted above, the unrealized losses on the Company’s investment in asset-backed securities are due largely to the combined effects of several market-related factors, including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s asset-backed securities, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s asset-backed securities greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of asset-backed securities is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s asset-backed securities, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  In light of the factors noted, the Company does not consider its balance of asset-backed securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Collateralized Loan Obligations.

The outstanding balance of the Company’s collateralized loan obligations totaled $127.4 million at September 30, 2015 and comprised 9.1% of total investments and 3.0% of total assets as of that date.  This category of securities is comprised entirely of structured, floating-rate securities comprised of securitized commercial loans to large U.S. corporations.  The Company’s securities represent tranches of a larger investment vehicle designed to reallocate cash flows and credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying loans.

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As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its collateralized loan obligations.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with collateralized loan obligations whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired collateralized loan obligations were consistently rated by Moody’s and S&P well above the thresholds that generally support the Company’s investment grade assessment, with such ratings equaling “AA” or higher by S&P and “Aa2” or higher by Moody’s, where rated by those agencies.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in collateralized loan obligations are due largely to the combined effects of several market-related factors, including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s collateralized loan obligations, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s collateralized loan obligations greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of collateralized loan obligations is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect the performance of the underlying collateral in conjunction with the resiliency of the security’s structural support as they affect investors’ expectations for timely and full repayment.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s collateralized loan obligations, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

During fiscal 2015, the Company reviewed the underlying security agreements for each of its collateralized loan obligations to determine if the terms of such agreements could potentially allow for the inclusion of ineligible assets within the security’s structure in the future thereby making it an ineligible investment under the terms of the “Volcker Rule” and related regulations enacted by regulatory agencies in conjunction with the ongoing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. To the extent the agreements contained such provisions and could or would not be modified by the issuer to ensure ongoing compliance with the Volcker Rule, the Bank sold such securities during fiscal 2015.

At September 30, 2015, the Company’s entire portfolio of collateralized loan obligations remains compliant with the Volcker Rule.  As such, the Company concluded that the possibility of being required to sell its collateralized loan obligations prior to their anticipated recovery is currently unlikely, which is further reinforced by the overall strength of the Company’s liquidity, asset quality and capital position as of that date. Moreover, the Company does not otherwise intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost at September 30, 2015.

In light of the factors noted, the Company does not consider its balance of collateralized loan obligations with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Corporate Bonds.

The carrying value of the Company’s corporate bonds totaled $161.2 million at September 30, 2015 and comprised 11.5% of total investments and 3.7% of total assets as of that date.  This category of securities is comprised entirely of floating-rate corporate debt obligations of large financial institutions.

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As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its corporate bonds.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with corporate bonds whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired corporate bonds were consistently rated by Moody’s and S&P above the thresholds that generally support the Company’s investment grade assessment with such ratings equaling “BBB+” or higher by S&P and/or “A3” or higher by Moody’s, where rated by those agencies.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in corporate bonds are due largely to the combined effects of several market-related factors including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s corporate bonds, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s corporate bonds greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of corporate bonds is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect investors’ assessment of an issuer’s creditworthiness and resulting expectations for timely and full repayment in accordance with the terms of the applicable security agreement.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s corporate bonds, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  In light of the factors noted, the Company does not consider its balance of corporate bonds with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Trust Preferred Securities.

The carrying value of the Company’s trust preferred securities totaled $8.1 million at September 30, 2015 and comprised less than one percent of total investments and total assets as of that date.  The category comprises a total of five “single-issuer” (i.e. non-pooled) trust preferred securities, four of which are impaired as of September 30, 2015, that were originally issued by four separate financial institutions.  As a result of bank mergers involving the issuers of these securities, the Company’s five trust preferred securities currently represent the de-facto obligations of three separate financial institutions.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where such ratings are available, in its evaluation of the impairment attributable to each of its trust preferred securities.  The Company uses such ratings, in conjunction with other criteria, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with trust preferred securities whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s internal investment grade assessment of the security.

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At September 30, 2015, the Company owned two securities at an amortized cost of $3.0 million that were consistently rated by Moody’s and S&P above the thresholds that generally support the Company’s investment grade assessment. The securities were originally issued through Chase Capital II and currently represent de-facto obligations of JPMorgan Chase & Co.

The Company has attributed the unrealized losses on these securities to the combined effects of several market-related factors, including movements in market interest rates and general level of liquidity of such securities in the marketplace based on overall supply and demand.

With regard to interest rates, the Company’s impaired trust preferred securities are variable rate securities whose interest rates generally float with three-month LIBOR plus a margin.  Based upon the historically low level of short-term market interest rates, the current yield on these securities is comparatively low.  Consequently, the fair value of the securities, as determined based upon their market price, reflects the adverse effects of the historically low market interest rates at September 30, 2015.

More significantly, the market prices of the impaired trust preferred securities also currently reflect the effect of reduced demand for such securities in the current marketplace.

In addition to the securities noted above, the Company owned two additional trust preferred securities at an amortized cost of $4.9 million whose external credit ratings by both S&P and Moody’s fell below the thresholds that the Company normally associates with investment grade securities. The securities were originally issued through BankBoston Capital Trust IV and MBNA Capital B and currently represent de-facto obligations of Bank of America Corporation.

The Company’s evaluation of the unrealized loss associated with these securities considered a variety of factors to determine if any portion of the impairment was credit-related at September 30, 2015.  Factors generally considered in such evaluations included the financial strength and viability of the issuer and its parent company, the security’s historical performance through prior business and economic cycles, rating consistency or variability among rating companies, the security’s current and anticipated status regarding payment default or deferral of contractual payments to investors and the impact of these factors on the present value of the security’s expected future cash flows in relation to its amortized cost basis.

In its evaluation, the Company noted the overall financial strength and continuing expected viability of the issuing entity’s parent, particularly given their systemically critical role in the marketplace.  The Company noted the security’s absence of historical defaults or payment deferrals throughout prior business cycles including the recent fiscal crisis that triggered the current economic weaknesses prevalent in the marketplace.  Given these factors, the Company had no basis upon which to estimate an adverse change in the expected cash flows over the securities’ remaining terms to maturity.

In sum, the factors influencing the fair value of the Company’s trust preferred securities and the resulting impairment attributable to each generally resulted from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Such market conditions may generally fluctuate over time resulting in the securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not reflective of an expectation for an adverse change in cash flows signifying a credit loss. Consequently, the impairments of value arising from these changing market conditions are both “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  Moreover, as “single issuer” obligations, these securities fall outside the scope of the Volcker Rule discussed earlier that originally identified pooled trust preferred securities as potentially ineligible investments for banks.  In light of the factors noted, the Company does not consider its investments in trust preferred securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

10.     LOAN QUALITY AND ALLOWANCE FOR LOAN LOSSES

Past Due Loans. A loan’s “past due” status is generally determined based upon its “P&I delinquency” status in conjunction with its “past maturity” status, where applicable. A loan’s “P&I delinquency” status is based upon the number of calendar days between the date of the earliest P&I payment due and the “as of” measurement date. A loan’s “past maturity” status, where applicable, is based upon the number of calendar days between a loan’s contractual maturity date and the “as of” measurement date. Based upon the larger of these criteria, loans are categorized into the following “past due” tiers for financial statement reporting and disclosure purposes: Current (including 1-29 days past due), 30-59 days, 60-89 days and 90 or more days.

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Nonaccrual Loans. Loans are generally placed on nonaccrual status when contractual payments become 90 days or more past due, and are otherwise placed on nonaccrual status when the Company does not expect to receive all P&I payments owed substantially in accordance with the terms of the loan agreement. Loans that become 90 days past maturity, but remain non-delinquent with regard to ongoing P&I payments, may remain on accrual status if: (1) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the loan agreement, past maturity status notwithstanding, and (2) the borrower is working actively and cooperatively with the Company to remedy the past maturity status through an expected refinance, payoff or modification of the loan agreement that is not expected to result in a troubled debt restructuring (“TDR”) classification. All TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of past due status. The sum of nonaccrual loans plus accruing loans that are 90 days or more past due are generally defined collectively as “nonperforming loans”.

Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan for financial statement purposes. When a loan is returned to accrual status, any accumulated interest payments previously applied to the carrying value of the loan during its nonaccrual period are recognized as interest income as an adjustment to the loan’s yield over its remaining term.

Loans that are not considered to be TDRs are generally returned to accrual status when payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Non-TDR loans may also be returned to accrual status when a loan’s payment status falls below 90 days past due and the Company: (1) expects receipt of the remaining past due amounts within a reasonable timeframe, and (2) expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement.

Acquired Loans. Loans that we acquire through acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest.

The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable yield. The nonaccretable yield represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require us to evaluate the need for an allowance for credit losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable yield which we then reclassify as accretable yield that is recognized into interest income over the remaining life of the loan using the interest method. Our evaluation of the amount of future cash flows that we expect to collect is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable yield portion of the fair value adjustment.

Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield.

At September 30, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $9,873,000 and $8,243,000, respectively. By comparison, at June 30, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $9,900,000 and $8,363,000, respectively.

The carrying amount of acquired credit-impaired loans for which interest is not being recognized due to the uncertainty of the cash flows relating to such loans totaled $1,302,000 and $1,322,000 at September 30, 2015 and June 30, 2015, respectively.

The balance of the allowance for loan losses at June 30, 2015 included approximately $81,000 of valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans. The valuation allowances were attributable to additional impairment recognized on the applicable loans subsequent to their acquisition, net of any charge offs recognized during that time.  There were no valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans at September 30, 2015.

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The following table presents the changes in the accretable yield relating to the acquired credit-impaired loans for the three months ended September 30, 2015 and September 30, 2014.

	Three Months Ended September 30,
	2015			2014
	(In Thousands)
Beginning balance	$	1,189		$	1,891
Accretion to interest income		(105	)		(64	)
Disposals		-			-
Reclassifications from nonaccretable difference		-			-
Ending balance	$	1,084		$	1,827

Classification of Assets. In compliance with regulatory guidelines, the Company’s loan review system includes an evaluation process through which certain loans exhibiting adverse credit quality characteristics are classified “Special Mention”, “Substandard”, “Doubtful” or “Loss”.

An asset is classified as “Substandard” if it is inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as “Doubtful” have all of the weaknesses inherent in those classified as “Substandard”, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets, or portions thereof, classified as “Loss” are considered uncollectible or of so little value that their continuance as assets is not warranted.

Management evaluates loans classified as substandard or doubtful for impairment in accordance with applicable accounting requirements. As discussed in greater detail below, a valuation allowance is established through the provision for loan losses for any impairment identified through such evaluations.

To the extent that impairment identified on a loan is classified as “Loss”, that portion of the loan is charged off against the allowance for loan losses. The classification of loan impairment as “Loss” is based upon a confirmed expectation for loss. For loans primarily secured by real estate, the expectation for loss is generally confirmed when: (a) impairment is identified on a loan individually evaluated in the manner described below, and (b) the loan is presumed to be collateral-dependent such that the source of loan repayment is expected to arise solely from sale of the collateral securing the applicable loan. Impairment identified on non-collateral-dependent loans may or may not be eligible for a “Loss” classification depending upon the other salient facts and circumstances that affect the manner and likelihood of loan repayment. However, loan impairment that is classified as “Loss” is charged off against the allowance for loan losses concurrent with that classification.

The timeframe between when loan impairment is first identified by the Company and when such impairment may ultimately be charged off varies by loan type. For example, unsecured consumer and commercial loans are generally classified as “Loss” at 120 days past due, resulting in their outstanding balances being charged off at that time. For the Company’s secured loans, the condition of collateral dependency generally serves as the basis upon which a “Loss” classification is ascribed to a loan’s impairment thereby confirming an expected loss and triggering charge off of that impairment. While the facts and circumstances that effect the manner and likelihood of repayment vary from loan to loan, the Company generally considers the referral of a loan to foreclosure, coupled with the absence of other viable sources of loan repayment, to be demonstrable evidence of collateral dependency. Depending upon the nature of the collections process applicable to a particular loan, an early determination of collateral dependency could result in a nearly concurrent charge off of a newly identified impairment. By contrast, a presumption of collateral dependency may only be determined after the completion of lengthy loan collection and/or workout efforts, including bankruptcy proceedings, which may extend several months or more after a loan’s impairment is first identified.

In a limited number of cases, the entire net carrying value of a loan may be determined to be impaired based upon a collateral-dependent impairment analysis. However, the borrower’s adherence to contractual repayment terms precludes the recognition of a “Loss” classification and charge off. In these limited cases, a valuation allowance equal to 100% of the impaired loan’s carrying value may be maintained against the net carrying value of the asset.

Assets which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses are designated as “Special Mention” by management. Adversely classified assets, together with those rated as “Special Mention”, are generally referred to as “Classified Assets”. Non-classified assets are internally rated within one of four “Pass” categories or as “Watch” with the latter denoting a potential deficiency or concern that warrants increased oversight or tracking by management until remediated.

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Management performs a classification of assets review, including the regulatory classification of assets, generally on a monthly basis. The results of the classification of assets review are validated by the Company’s third party loan review firm during their quarterly independent review. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will generally utilize the more critical or conservative rating or classification. Final loan ratings and regulatory classifications are presented monthly to the Board of Directors and are reviewed by regulators during the examination process.

Allowance for Loan Losses. The allowance for loan losses is a valuation account that reflects the Company’s estimation of the losses in its loan portfolio to the extent they are both probable and reasonable to estimate. The balance of the allowance is generally maintained through provisions for loan losses that are charged to income in the period that estimated losses on loans are identified by the Company’s loan review system. The Company charges confirmed losses on loans against the allowance as such losses are identified. Recoveries on loans previously charged-off are added back to the allowance.

The Company’s allowance for loan loss calculation methodology utilizes a “two-tier” loss measurement process that is generally performed monthly. Based upon the results of the classification of assets and credit file review processes described earlier, the Company first identifies the loans that must be reviewed individually for impairment. Factors considered in identifying individual loans to be reviewed include, but may not be limited to, loan type, classification status, contractual payment status, performance/accrual status and impaired status.

The loans considered by the Company to be eligible for individual impairment review include its commercial mortgage loans, comprising multi-family and nonresidential real estate loans, construction loans, commercial business loans as well as its one-to-four family mortgage loans, home equity loans and home equity lines of credit.

A reviewed loan is deemed to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, management performs an analysis to determine the amount of impairment associated with that loan.

In measuring the impairment associated with collateral-dependent loans, the fair value of the collateral securing the loan is generally used as a measurement proxy for that of the impaired loan itself as a practical expedient. In the case of real estate collateral, such values are generally determined based upon a discounted market value obtained through an automated valuation module or prepared by a qualified, independent real estate appraiser. The value of non-real estate collateral is similarly determined based upon an independent assessment of fair market value by a qualified resource.

The Company generally obtains independent appraisals on properties securing mortgage loans when such loans are initially placed on nonperforming or impaired status with such values updated approximately every six to twelve months thereafter throughout the collections, bankruptcy and/or foreclosure processes. Appraised values are typically updated at the point of foreclosure, where applicable, and approximately every six to twelve months thereafter while the repossessed property is held as real estate owned.

As supported by accounting and regulatory guidance, the Company reduces the fair value of the collateral by estimated selling costs, such as real estate brokerage commissions, to measure impairment when such costs are expected to reduce the cash flows available to repay the loan.

The Company establishes valuation allowances in the fiscal period during which the loan impairments are identified. The results of management’s individual loan impairment evaluations are validated by the Company’s third party loan review firm during their quarterly independent review. Such valuation allowances are adjusted in subsequent fiscal periods, where appropriate, to reflect any changes in carrying value or fair value identified during subsequent impairment evaluations which are generally updated monthly by management.

The second tier of the loss measurement process involves estimating the probable and estimable losses which addresses loans not otherwise reviewed individually for impairment as well as those individually reviewed loans that are determined to be non-impaired. Such loans include groups of smaller-balance homogeneous loans that may generally be excluded from individual impairment analysis, and therefore collectively evaluated for impairment, as well as the non-impaired loans within categories that are otherwise eligible for individual impairment review.

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Valuation allowances established through the second tier of the loss measurement process utilize historical and environmental loss factors to collectively estimate the level of probable losses within defined segments of the Company’s loan portfolio. These segments aggregate homogeneous subsets of loans with similar risk characteristics based upon loan type. For allowance for loan loss calculation and reporting purposes, the Company currently stratifies its loan portfolio into seven primary segments: residential mortgage loans, commercial mortgage loans, construction loans, commercial business loans, home equity loans, home equity lines of credit and other consumer loans.

The risks presented by residential mortgage loans are primarily related to adverse changes in the borrower’s financial condition that threaten repayment of the loan in accordance with its contractual terms. Such risk to repayment can arise from job loss, divorce, illness and the personal bankruptcy of the borrower. For collateral dependent residential mortgage loans, additional risk of loss is presented by potential declines in the fair value of the collateral securing the loan.

Home equity loans and home equity lines of credit generally share the same risks as those applicable to residential mortgage loans. However, to the extent that such loans represent junior liens, they are comparatively more susceptible to such risks given their subordinate position behind senior liens.

In addition to sharing similar risks as those presented by residential mortgage loans, risks relating to commercial mortgage loans also arise from comparatively larger loan balances to single borrowers or groups of related borrowers. Moreover, the repayment of such loans is typically dependent on the successful operation of an underlying real estate project and may be further threatened by adverse changes to demand and supply of commercial real estate as well as changes generally impacting overall business or economic conditions.

The risks presented by construction loans are generally considered to be greater than those attributable to residential and commercial mortgage loans. Risks from construction lending arise, in part, from the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost, including interest, of the project. The nature of these loans is such that they are comparatively more difficult to evaluate and monitor than permanent mortgage loans.

Commercial business loans are also considered to present a comparatively greater risk of loss due to the concentration of principal in a limited number of loans and/or borrowers and the effects of general economic conditions on the business. Commercial business loans may be secured by varying forms of collateral including, but not limited to, business equipment, receivables, inventory and other business assets which may not provide an adequate source of repayment of the outstanding loan balance in the event of borrower default. Moreover, the repayment of commercial business loans is primarily dependent on the successful operation of the underlying business which may be threatened by adverse changes to the demand for the business’ products and/or services as well as the overall efficiency and effectiveness of the business’ operations and infrastructure.

Finally, our unsecured consumer loans generally have shorter terms and higher interest rates than other forms of lending but generally involve more credit risk due to the lack of collateral to secure the loan in the event of borrower default. Consumer loan repayment is dependent on the borrower’s continuing financial stability, and therefore is more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. By contrast, our consumer loans also include account loans that are fully secured by the borrower’s deposit accounts and generally present nominal risk to the Bank.

Each primary segment is further stratified to distinguish between loans originated and purchased through third parties from loans acquired through business combinations. Commercial business loans include secured and unsecured loans as well as loans originated through SBA programs. Additional criteria may be used to further group loans with common risk characteristics. For example, such criteria may distinguish between loans secured by different collateral types or separately identify loans supported by government guarantees such as those issued by the SBA.

In regard to historical loss factors, the Company’s allowance for loan loss calculation calls for an analysis of historical charge-offs and recoveries for each of the defined segments within the loan portfolio. The Company utilizes a two-year moving average of annual net charge-off rates (charge-offs net of recoveries) by loan segment, where available, to calculate its actual, historical loss experience. The outstanding principal balance of the non-impaired portion of each loan segment is multiplied by the applicable historical loss factor to estimate the level of probable losses based upon the Company’s historical loss experience.

As noted, the second tier of the Company’s allowance for loan loss calculation also utilizes environmental loss factors to estimate the probable losses within the loan portfolio. Environmental loss factors are based upon specific qualitative criteria representing key sources of risk within the loan portfolio. Such risk criteria includes the level of and trends in nonperforming loans; the effects of changes in credit policy; the experience, ability and depth of the lending function’s management and staff; national and local economic trends and conditions; credit risk concentrations and changes in local and regional real estate values. During fiscal

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2014, the environmental factors utilized by the Company in its allowance for loan loss calculation were expanded to include changes in the nature, volume and terms of loans, changes in the quality of loan review systems and resources and the effects of regulatory, legal and other external factors.

For each category of the loan portfolio, a level of risk, developed from a number of internal and external resources, is assigned to each of the qualitative criteria utilizing a scale ranging from zero (negligible risk) to 15 (high risk), with higher values potentially ascribed to exceptional levels of risk that exceed the standard range, as appropriate. The sum of the risk values, expressed as a whole number, is multiplied by .01% to arrive at an overall environmental loss factor, expressed in basis points, for each loan category.

The Company incorporates its credit-rating classification system into the calculation of environmental loss factors by loan type by including risk-rating classification “weights” in its calculation of those factors. The Company’s risk-rating classification system ascribes a numerical rating of “1” through “9” to each loan within the portfolio. The ratings “5” through “9” represent the numerical equivalents of the traditional loan classifications “Watch”, “Special Mention”, “Substandard”, “Doubtful” and “Loss”, respectively, while lower ratings, “1” through “4”, represent risk-ratings within the least risky “Pass” category. The environmental loss factor applicable to each non-impaired loan within a category, as described above, is “weighted” by a multiplier based upon the loan’s risk-rating classification. Within any single loan category, a “higher” environmental loss factor is ascribed to those loans with comparatively higher risk-rating classifications resulting in a proportionately greater ALLL requirement attributable to such loans compared to the comparatively lower risk-rated loans within that category.

The sum of the probable and estimable loan losses calculated through the first and second tiers of the loss measurement processes as described above, represents the total targeted balance for the Company’s allowance for loan losses at the end of a fiscal period. As noted earlier, the Company establishes all additional valuation allowances in the fiscal period during which additional individually identified loan impairments and additional estimated losses on loans collectively evaluated for impairment are identified. The Company adjusts its balance of valuation allowances through the provision for loan losses as required to ensure that the balance of the allowance for loan losses reflects all probable and estimable loans losses at the close of the fiscal period. Notwithstanding calculation methodology and the noted distinction between valuation allowances established on loans collectively versus individually evaluated for impairment, the Company’s entire allowance for loan losses is available to cover all charge-offs that arise from the loan portfolio.

Although the Company’s allowance for loans losses is established in accordance with management’s best estimate, actual losses are dependent upon future events and, as such, further additions to the level of loan loss allowances may be necessary.

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The following tables present the balance of the allowance for loan losses at September 30, 2015 and June 30, 2015 based upon the calculation methodology described above. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates as well as the activity in the allowance for loan losses for the three months ended September 30, 2015 and September 30, 2014. Unless otherwise noted, the balance of loans reported in the tables below excludes yield adjustments and the allowance for loan loss.

Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	218	$	142	$	-	$	22	$	89	$	-	$	-	$	471
Loans collectively evaluated   for impairment		2,158		12,576		24		969		185		36		26		15,974
Allowance for loan losses on   originated and purchased loans		2,376		12,718		24		991		274		36		26		16,445
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		-		-		-		-		-
Other acquired loans individually   evaluated for impairment		-		108		-		171		-		2		-		281
Acquired loans collectively   evaluated for impairment		93		355		5		416		37		57		1		964
Allowance for loan losses on   loans acquired at fair value		93		463		5		587		37		59		1		1,245
Total allowance for loan losses	$	2,469	$	13,181	$	29	$	1,578	$	311	$	95	$	27	$	17,690

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Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage			Commercial Mortgage		Construction			Commercial Business			Home Equity Loans		Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2015:
At June 30, 2015:
Allocated	$	2,210		$	11,120	$	34		$	1,860		$	260	$	106		$	16	$	15,606
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses		2,210			11,120		34			1,860			260		106			16		15,606
Total charge offs		(538	)		-		-			(96	)		-		(24	)		-		(658	)
Total recoveries		-			-		-			59			41		-			1		101
Total allocated provisions		797			2,061		(5	)		(245	)		10		13			10		2,641
Total unallocated provisions		-			-		-			-			-		-			-		-
At September 30, 2015:
Allocated		2,469			13,181		29			1,578			311		95			27		17,690
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses	$	2,469		$	13,181	$	29		$	1,578		$	311	$	95		$	27	$	17,690

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Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage			Commercial Mortgage			Construction			Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2014:
At June 30, 2014:
Allocated	$	2,729		$	7,737		$	67		$	1,284		$	460		$	88		$	22	$	12,387
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses		2,729			7,737			67			1,284			460			88			22		12,387
Total charge offs		(303	)		(346	)		-			(192	)		-			-			-		(841	)
Total recoveries		-			-			-			2			-			-			-		2
Total allocated provisions		149			551			(9	)		268			(98	)		(4	)		1		858
Total unallocated provisions		-			-			-			-			-			-			-		-
At September 30, 2014:
Allocated		2,575			7,942			58			1,362			362			84			23		12,406
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses	$	2,575		$	7,942		$	58		$	1,362		$	362		$	84		$	23	$	12,406

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Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,073	$	3,464	$	-	$	1,024	$	972	$	52	$	-	$	15,585
Loans collectively evaluated   for impairment		551,063		1,506,880		2,740		69,718		64,902		11,652		4,501		2,211,456
Total originated and purchased   loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		113		314		-		7,816		-		-		-		8,243
Other acquired loans individually   evaluated for impairment		-		4,334		2,013		512		476		918		-		8,253
Acquired loans collectively   evaluated for impairment		57,958		80,997		333		18,175		4,997		8,856		79		171,395
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580		2,414,932
Unamortized yield   adjustments																2,580
Loans receivable, net of    yield adjustments															$	2,417,512

- 33 -

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	116	$	415	$	-	$	30	$	12	$	-	$	-	$	573
Loans collectively evaluated   for impairment		2,031		10,162		29		989		184		33		15		13,443
Allowance for loan losses on   originated and purchased loans		2,147		10,577		29		1,019		196		33		15		14,016
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		81		-		-		-		81
Other acquired loans individually   evaluated for impairment		-		114		-		259		-		24		-		397
Acquired loans collectively   evaluated for impairment		63		429		5		501		64		49		1		1,112
Allowance for loan losses on   loans acquired at fair value		63		543		5		841		64		73		1		1,590
Total allowance for loan losses	$	2,210	$	11,120	$	34	$	1,860	$	260	$	106	$	16	$	15,606

- 34 -

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,240	$	3,439	$	-	$	1,861	$	991	$	26	$	-	$	16,557
Loans collectively evaluated   for impairment		520,070		1,214,586		3,328		69,797		63,034		10,854		4,204		1,885,873
Total originated and purchased   loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		116		318		-		7,929		-		-		-		8,363
Other acquired loans individually   evaluated for impairment		-		4,196		2,037		927		534		945		-		8,639
Acquired loans collectively   evaluated for impairment		61,895		86,564		346		18,937		5,698		9,589		87		183,116
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291		2,102,548
Unamortized yield   adjustments																316
Loans receivable, net of    yield adjustments															$	2,102,864

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The following tables present key indicators of credit quality regarding the Company’s loan portfolio based upon loan classification and contractual payment status at September 30, 2015 and June 30, 2015.

Credit-Rating Classification of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	549,597	$	1,505,511	$	2,594	$	69,697	$	64,688	$	11,603	$	4,493	$	2,208,183
Classified:
Special Mention		948		361		146		-		54		49		-		1,558
Substandard		10,591		4,381		-		1,045		1,132		52		5		17,206
Doubtful		-		91		-		-		-		-		3		94
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,539		4,833		146		1,045		1,186		101		8		18,858
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Non-classified		56,663		79,943		-		14,080		4,872		8,465		54		164,077
Classified:
Special Mention		370		123		333		6,538		76		242		21		7,703
Substandard		1,038		5,579		2,013		5,879		525		1,067		4		16,105
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,408		5,702		2,346		12,423		601		1,309		25		23,814
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

- 36 -

Credit-Rating Classification of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	518,592	$	1,213,307	$	3,328	$	69,662	$	62,902	$	10,780	$	4,201	$	1,882,772
Classified:
Special Mention		955		256		-		58		56		74		-		1,399
Substandard		10,763		4,195		-		1,938		1,067		26		3		17,992
Doubtful		-		267		-		-		-		-		-		267
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,718		4,718		-		1,996		1,123		100		3		19,658
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Non-classified		60,593		82,068		-		13,749		5,588		9,196		60		171,254
Classified:
Special Mention		372		3,425		346		7,617		76		242		24		12,102
Substandard		1,046		5,585		2,037		6,421		568		1,096		3		16,756
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,418		9,010		2,383		14,044		644		1,338		27		28,864
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

- 37 -

Contractual Payment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	554,530	$	1,508,899	$	2,740	$	70,434	$	65,377	$	11,562	$	4,497	$	2,218,039
Past due:
30-59 days		1,583		65		-		-		44		90		-		1,782
60-89 days		614		-		-		22		-		-		1		637
90+ days		4,409		1,380		-		286		453		52		3		6,583
Total past due		6,606		1,445		-		308		497		142		4		9,002
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Current		57,291		84,076		1,582		24,802		5,194		8,563		72		181,580
Past due:
30-59 days		780		259		-		148		17		12		4		1,220
60-89 days		-		438		-		-		76		281		1		796
90+ days		-		872		764		1,553		186		918		2		4,295
Total past due		780		1,569		764		1,701		279		1,211		7		6,311
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

- 38 -

Contractual Payment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	524,780	$	1,216,644	$	3,328	$	70,529	$	63,457	$	10,828	$	4,199	$	1,893,765
Past due:
30-59 days		420		256		-		23		114		-		4		817
60-89 days		685		-		-		-		-		26		-		711
90+ days		4,425		1,125		-		1,106		454		26		1		7,137
Total past due		5,530		1,381		-		1,129		568		52		5		8,665
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Current		61,895		89,796		1,610		25,721		5,993		9,577		85		194,677
Past due:
30-59 days		116		-		-		-		134		12		-		262
60-89 days		-		468		-		-		-		-		1		469
90+ days		-		814		773		2,072		105		945		1		4,710
Total past due		116		1,282		773		2,072		239		957		2		5,441
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

- 39 -

The following tables present information relating to the Company’s nonperforming and impaired loans at September 30, 2015 and June 30, 2015. Loans reported as “90+ days past due accruing” in the table immediately below are also reported in the preceding contractual payment status table under the heading “90+ days past due”.

Performance Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	553,431	$	1,506,945	$	2,740	$	69,718	$	65,421	$	11,652	$	4,497	$	2,214,404
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,705		3,399		-		1,024		453		52		4		12,637
Total nonperforming		7,705		3,399		-		1,024		453		52		4		12,637
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Performing		57,958		81,696		333		24,918		5,181		8,856		77		179,019
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		113		3,949		2,013		1,585		292		918		2		8,872
Total nonperforming		113		3,949		2,013		1,585		292		918		2		8,872
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

- 40 -

Performance Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	522,474	$	1,214,653	$	3,328	$	69,819	$	63,563	$	10,854	$	4,203	$	1,888,894
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,836		3,372		-		1,839		462		26		1		13,536
Total nonperforming		7,836		3,372		-		1,839		462		26		1		13,536
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Performing		61,895		87,273		346		25,688		5,882		9,589		86		190,759
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		116		3,805		2,037		2,105		350		945		1		9,359
Total nonperforming		116		3,805		2,037		2,105		350		945		1		9,359
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

- 41 -

Impairment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	551,063		$	1,506,880		$	2,740	$	69,718		$	64,902		$	11,652		$	4,501	$	2,211,456
Impaired loans:
Impaired loans with no allowance   for impairment		7,434			2,062			-		1,002			880			52			-		11,430
Impaired loans with allowance   for impairment:
Recorded investment		2,639			1,402			-		22			92			-			-		4,155
Allowance for impairment		(218	)		(142	)		-		(22	)		(89	)		-			-		(471	)
Balance of impaired loans net of allowance for impairment		2,421			1,260			-		-			3			-			-		3,684
Total impaired loans, excluding   allowance for impairment:		10,073			3,464			-		1,024			972			52			-		15,585
Total originated and   purchased loans		561,136			1,510,344			2,740		70,742			65,874			11,704			4,501		2,227,041
Loans acquired at fair value:
Non-impaired loans		57,958			80,997			333		18,175			4,997			8,856			79		171,395
Impaired loans:
Impaired loans with no allowance   for impairment		113			4,213			2,013		8,192			476			484			-		15,491
Impaired loans with allowance   for impairment:
Recorded investment		-			435			-		136			-			434			-		1,005
Allowance for impairment		-			(108	)		-		(171	)		-			(2	)		-		(281	)
Balance of impaired loans net   of allowance for impairment		-			327			-		(35	)		-			432			-		724
Total impaired loans, excluding   allowance for impairment:		113			4,648			2,013		8,328			476			918			-		16,496
Total loans acquired at   fair value		58,071			85,645			2,346		26,503			5,473			9,774			79		187,891
Total loans	$	619,207		$	1,595,989		$	5,086	$	97,245		$	71,347		$	21,478		$	4,580	$	2,414,932
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,594		$	4,160		$	-	$	1,079		$	995		$	52		$	-	$	22,880
Loans acquired at fair value		146			4,954			2,113		9,794			499			975			-		18,481
Total impaired loans	$	16,740		$	9,114		$	2,113	$	10,873		$	1,494		$	1,027		$	-	$	41,361

- 42 -

Impairment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	520,070		$	1,214,586		$	3,328	$	69,797		$	63,034		$	10,854		$	4,204	$	1,885,873
Impaired loans:
Impaired loans with no allowance   for impairment		8,387			1,777			-		1,418			905			26			-		12,513
Impaired loans with allowance   for impairment:
Recorded investment		1,853			1,662			-		443			86			-			-		4,044
Allowance for impairment		(116	)		(415	)		-		(30	)		(12	)		-			-		(573	)
Balance of impaired loans net   of allowance for impairment		1,737			1,247			-		413			74			-			-		3,471
Total impaired loans, excluding   allowance for impairment:		10,240			3,439			-		1,861			991			26			-		16,557
Total originated and   purchased loans		530,310			1,218,025			3,328		71,658			64,025			10,880			4,204		1,902,430
Loans acquired at fair value:
Non-impaired loans		61,895			86,564			346		18,937			5,698			9,589			87		183,116
Impaired loans:
Impaired loans with no allowance   for impairment		116			4,072			2,037		8,214			534			488			-		15,461
Impaired loans with allowance   for impairment:
Recorded investment		-			442			-		642			-			457			-		1,541
Allowance for impairment		-			(114	)		-		(340	)		-			(24	)		-		(478	)
Balance of impaired loans net   of allowance for impairment		-			328			-		302			-			433			-		1,063
Total impaired loans, excluding   allowance for impairment:		116			4,514			2,037		8,856			534			945			-		17,002
Total loans acquired at   fair value		62,011			91,078			2,383		27,793			6,232			10,534			87		200,118
Total loans	$	592,321		$	1,309,103		$	5,711	$	99,451		$	70,257		$	21,414		$	4,291	$	2,102,548
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,985		$	4,103		$	-	$	2,036		$	1,014		$	26		$	-	$	24,164
Loans acquired at fair value		147			4,759			2,118		10,506			561			975			-		19,066
Total impaired loans	$	17,132		$	8,862		$	2,118	$	12,542		$	1,575		$	1,001		$	-	$	43,230

- 43 -

Impairment Status of Loans Receivable
Period Ended September 30, 2015 and 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
For the three months ended   September 30, 2015:
Average balance of impaired loans	$	10,037	$	7,973	$	2,025	$	10,290	$	1,519	$	958	$	-	$	32,802
Interest earned on impaired loans	$	70	$	12	$	-	$	217	$	14	$	-	$	-	$	313
For the three months ended   September 30, 2014:
Average balance of impaired loans	$	13,169	$	8,407	$	1,432	$	11,903	$	1,639	$	1,055	$	-	$	37,605
Interest earned on impaired loans	$	29	$	46	$	-	$	189	$	11	$	-	$	-	$	275

- 44 -

Troubled Debt Restructurings (“TDRs”). A modification to the terms of a loan is generally considered a TDR if the Bank grants a concession to the borrower that it would not otherwise consider for economic or legal reasons related to the debtor’s financial difficulties. In granting the concession, the Bank’s general objective is to make the best of a difficult situation by obtaining more cash or other value from the borrower or otherwise increase the probability of repayment.

A TDR may include, but is not necessarily limited to, the modification of loan terms such as a temporary or permanent reduction of the loan’s stated interest rate, extension of the maturity date and/or reduction or deferral of amounts owed under the terms of the loan agreement. In measuring the impairment associated with restructured loans that qualify as TDRs, the Company compares the cash flows under the loan’s existing terms with those that are expected to be received in accordance with its modified terms. The difference between the comparative cash flows is discounted at the loan’s effective interest rate prior to modification to measure the associated impairment. The impairment is charged off directly against the allowance for loan loss at the time of restructuring resulting in a reduction in carrying value of the modified loan that is accreted into interest income as a yield adjustment over the remaining term of the modified cash flows.

All restructured loans that qualify as TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of the borrower’s adherence to a TDR’s modified repayment terms during which time TDRs continue to be adversely classified and reported as impaired. TDRs may be returned to accrual status if (1) the borrower has paid timely P&I payments in accordance with the terms of the restructured loan agreement for no less than six consecutive months after restructuring, and (2) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the restructured loan agreement at which time the loan may also be returned to a non-adverse classification while retaining its impaired status.

We may obtain physical possession of one- to four-family real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. As of September 30, 2015, we held one single-family property in real estate owned with a carrying value of $395,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held 35 residential mortgage loans with aggregate carrying values totaling $4.4 million which were in the process of foreclosure.

- 45 -

The following table presents information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2015 and 2014 and any defaults during those periods of TDRs that were restructured within 12 months of the date of default.

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	693	$	-	$	-	$	-	$	-	$	-	$	-	$	693
Post-modification outstanding   recorded investment		431		-		-		-		-		-		-	$	431
Charge offs against the allowance   for loan loss recognized at   modification		231		-		-		-		-		-		-	$	231
Loans acquired at fair value
Number of loans		-		3		-		-		-		-		-		3
Pre-modification outstanding   recorded investment	$	-	$	2,285	$	-	$	-	$	-	$	-	$	-	$	2,285
Post-modification outstanding   recorded investment		-		2,290		-		-		-		-		-	$	2,290
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

- 46 -

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	664	$	-	$	-	$	-	$	-	$	-	$	-	$	664
Post-modification outstanding   recorded investment		673		-		-		-		-		-		-	$	673
Charge offs against the allowance   for loan loss recognized at   modification		33		-		-		-		-		-		-	$	33
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Pre-modification outstanding   recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Post-modification outstanding   recorded investment		-		-		-		-		-		-		-	$	-
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

- 47 -

The manner in which the terms of a loan are modified through a troubled debt restructuring generally includes one or more of the following changes to the loan’s repayment terms:

· Interest Rate Reduction: Temporary or permanent reduction of the interest rate charged against the outstanding balance of the loan.

· Capitalization of Prior Past Dues: Capitalization of prior amounts due to the outstanding balance of the loan.

· Extension of Maturity or Balloon Date: Extending the term of the loan past its original balloon or maturity date.

· Deferral of Principal Payments: Temporary deferral of the principal portion of a loan payment.

· Payment Recalculation and Re-amortization: Recalculation of the recurring payment obligation and resulting loan amortization/repayment schedule based on the loan’s modified terms.

11.     BORROWINGS

Fixed rate advances from the FHLB of New York mature as follows:

	September 30, 2015					June 30, 2015
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
	(Dollars in Thousands)
Maturing in years ending June 30:
2016	$	432,500		0.51	%	$	382,500		0.41	%
2017		3,000		1.05			3,000		1.05
2018		5,225		1.18			5,225		1.18
2021		647		4.94			671		4.94
2023		145,000		3.04			145,000		3.04
Total borrowings		586,372		1.15	%		536,396		1.13	%
Fair value adjustments		4					9
Total borrowings, net of   fair value adjustments	$	586,376				$	536,405

At September 30, 2015, $435.5 million in advances are due within one year while the remaining $150.9 million in advances are due after one year of which $145.0 million are callable in April 2018.

At September 30, 2015, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $955.2 million and $181.1 million, respectively. At June 30, 2015, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $894.6 million and $185.2 million, respectively.

Borrowings at September 30, 2015 and June 30, 2015 also included overnight borrowings in the form of depositor sweep accounts totaling $42.0 million and $35.1 million, respectively. Depositor sweep accounts are short term borrowings representing funds that are withdrawn from a customer’s noninterest-bearing deposit account and invested in an uninsured overnight investment account that is collateralized by specified investment securities owned by the Bank.

12.     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

At September 30, 2015 and June 30, 2015, the Company was subject to the terms of certain interest rate derivative agreements that were utilized by the Company to manage the interest rate exposure arising from specific wholesale funding positions. Such wholesale funding sources include floating-rate brokered money market deposits indexed to one-month LIBOR as well as a number of 90 day fixed-rate FHLB advances that are forecasted to be periodically redrawn at maturity for the same 90 day term as the original advance. The derivatives, comprising eight interest rate swaps and two interest rate caps, were designated as cash flow hedges with changes in their fair value recorded as an adjustment through other comprehensive income on an after-tax basis.

- 48 -

The effects of derivative instruments on the statements of condition included in the Consolidated Financial Statements at September 30, 2015 and June 30, 2015 and for the three months ended September 30, 2015 and September 30, 2014 are as follows:

	September 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(2,010	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,747	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(866	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(2,224	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(2,791	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(2,703	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(2,277	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(2,041	)	Other liabilities	December 28, 2020
		550,000		(16,659	)
Interest rate caps by effective date:
June 5, 2013		40,000		209		Other liabilities	June 5, 2018
July 1, 2013		35,000		181		Other liabilities	July 1, 2018
		75,000		390
Total	$	625,000	$	(16,269	)

	June 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(768	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,149	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(400	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(1,372	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(1,717	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(1,697	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(1,289	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(1,119	)	Other liabilities	December 28, 2020
		550,000		(9,511	)
Interest rate caps by effective date:
June 5, 2013		40,000		428		Other liabilities	June 5, 2018
July 1, 2013		35,000		366		Other liabilities	July 1, 2018
		75,000		794
Total	$	625,000	$	(8,717	)

- 49 -

	Three Months Ended September 30, 2015
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	(735	)	Not applicable	$	-
August 19, 2013		(354	)	Not applicable		-
October 9, 2013		(275	)	Not applicable		-
March 28, 2014		(504	)	Not applicable		-
June 5, 2015		(635	)	Not applicable		-
July 28, 2015		(595	)	Not applicable		-
September 28, 2015		(585	)	Not applicable		-
December 28, 2015		(545	)	Not applicable		-
		(4,228	)			-
Interest rate caps by effective date:
June 5, 2013		(110	)	Not applicable		-
July 1, 2013		(94	)	Not applicable		-
		(204	)			-
Total	$	(4,432	)		$	-

	Three Months Ended September 30, 2014
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	645		Not applicable	$	-
August 19, 2013		405		Not applicable		-
October 9, 2013		265		Not applicable		-
March 28, 2014		421		Not applicable		-
June 5, 2015		133		Not applicable		-
July 28, 2015		(126	)	Not applicable		-
September 28, 2015		(53	)	Not applicable		-
December 28, 2015		(52	)	Not applicable		-
		1,638				-
Interest rate caps by effective date:
June 5, 2013		53		Not applicable		-
July 1, 2013		31		Not applicable		-
		84				-
Total	$	1,722			$	-

- 50 -

The Company has in place enforceable master netting arrangements with all counterparties. All master netting arrangements include rights to offset associated with the Company’s recognized derivative assets, derivative liabilities, and cash collateral received and pledged.

At September 30, 2015, two of the Company’s derivatives were in an asset position totaling $390,000 while the remaining eight derivatives were in a liability position totaling $16.7 million. In total, the Company’s derivatives were in a net liability position of $16.3 million at September 30, 2015 and included in other liabilities as of that date. As required under the enforceable master netting arrangement with its derivatives counterparties, the Company posted financial collateral to two counterparties totaling $16.8 million at September 30, 2015.  The financial collateral posted was not included as an offsetting amount at September 30, 2015.

At June 30, 2015, two of the Company’s derivatives were in an asset position totaling $794,000 while the remaining eight derivatives were in a liability position totaling $9.5 million. In total, the Company’s derivatives were in a net liability position of $8.7 million at June 30, 2015 and included in other liabilities as of that date. As required under the enforceable master netting arrangement with its derivatives counterparty, the Company posted financial collateral in the amount of $8.7 million at June 30, 2015 that was not included as an offsetting amount.

13.     BENEFIT PLANS

Components of Net Periodic Expense

The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan and Atlas Bank Retirement Income Plan:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Service cost	$	59		$	57
Interest cost		121			82
Amortization of unrecognized past service    liability		9			12
Amortization of unrecognized loss		9			7
Expected return on assets		(64	)		-
Net periodic benefit cost	$	134		$	158

14.     FAIR VALUE OF FINANCIAL INSTRUMENTS

The guidance on fair value measurement establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy describes three levels of inputs that may be used to measure fair value:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Observable inputs other than Level 1 prices, such as quoted for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	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 the determination of fair value requires significant management judgment or estimation.

In addition, the guidance requires the Company to disclose the fair value for assets and liabilities on both a recurring and non-recurring basis.

- 51 -

Those assets and liabilities measured at fair value on a recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,159		$	-	$	7,159
Obligations of state and political subdivisions		-		27,466			-		27,466
Asset-backed securities		-		85,178			-		85,178
Collateralized loan obligations		-		127,412			-		127,412
Corporate bonds		-		161,174			-		161,174
Trust preferred securities		-		8,081			-		8,081
Total debt securities		-		416,470			-		416,470
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		69,313			-		69,313
Residential pass-through securities		-		250,505			-		250,505
Commercial pass-through securities		-		9,492			-		9,492
Total mortgage-backed securities		-		329,310			-		329,310
Total securities available for sale	$	-	$	745,780		$	-	$	745,780
Derivative instruments
Interest rate swaps	$	-	$	(16,659	)	$	-	$	(16,659	)
Interest rate caps		-		390			-		390
Total derivatives	$	-	$	(16,269	)	$	-	$	(16,269	)

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	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,263		$	-	$	7,263
Obligations of state and political subdivisions		-		26,835			-		26,835
Asset-backed securities		-		88,032			-		88,032
Collateralized loan obligations		-		128,171			-		128,171
Corporate bonds		-		162,608			-		162,608
Trust preferred securities		-		7,751			-		7,751
Total debt securities		-		420,660			-		420,660
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		71,877			-		71,877
Residential pass-through securities		-		263,613			-		263,613
Commercial pass-through securities		-		11,129			-		11,129
Total mortgage-backed securities		-		346,619			-		346,619
Total securities available for sale	$	-	$	767,279		$	-	$	767,279
Derivative instruments
Interest rate swaps	$	-	$	(9,511	)	$	-	$	(9,511	)
Interest rate caps		-		794			-		794
Total derivatives	$	-	$	(8,717	)	$	-	$	(8,717	)

The fair values of securities available for sale (carried at fair value) or held to maturity (carried at amortized cost) are primarily determined by obtaining matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The Company has contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate caps and swaps. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company.

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Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	8,636	$	8,636

	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	9,742	$	9,742
Real estate owned	$	-	$	-	$	547	$	547

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:

	September 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	8,636	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		8.21	%

	June 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	9,742	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		9.45	%
Real estate owned	$	547	Market valuation of property	(3)	Direct disposal costs	(2)	8%		8.00	%

_____________________________

(1) The fair value of impaired loans is generally determined based on an independent appraisal of the market value of a loan’s underlying collateral.

(2) The fair value basis of impaired loans and real estate owned is adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees, with such cost estimates generally ranging from 6% to 10% of collateral or property market value.

(3) The fair value basis of real estate owned is generally determined based upon the lower of an independent appraisal of the property’s market value or the applicable listing price or contracted sales price.

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An impaired loan is evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Market value is measured based on the value of the collateral securing the loan and is classified at a Level 3 in the fair value hierarchy. Once a loan is identified as individually impaired, management measures impairment in accordance with the FASB’s guidance on accounting by creditors for impairment of a loan with the fair value estimated using the market value of the collateral reduced by estimated disposal costs. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly.

At September 30, 2015, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $9.0 million and valuation allowances of $407,000 reflecting fair values of $8.6 million. By comparison, at June 30, 2015, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $10.8 million and valuation allowances of $1.1 million reflecting fair values of $9.7 million.

Once a loan is foreclosed, the fair value of the real estate owned continues to be evaluated based upon the market value of the repossessed real estate originally securing the loan. At September 30, 2015, the Company held no real estate owned whose carrying value was written down utilizing Level 3 inputs during the first three months of fiscal 2016.  At June 30, 2015, the Company held real estate owned totaling $547,000 whose carrying value was written down utilizing Level 3 inputs during fiscal 2015.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments at September 30, 2015 and June 30, 2015:

Cash and Cash Equivalents, Interest Receivable and Interest Payable. The carrying amounts for cash and cash equivalents, interest receivable and interest payable approximate fair value because they mature in three months or less.

Securities. See the discussion presented above concerning assets measured at fair value on a recurring basis.

Loans Receivable. Except for certain impaired loans as previously discussed, the fair value of loans receivable is estimated by discounting the future cash flows, using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, of such loans.

FHLB of New York Stock. The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities.

Deposits. The fair value of demand, savings and club accounts is equal to the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated using rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by deposit liabilities compared to the cost of borrowing funds in the market.

Advances from FHLB. Fair value is estimated using rates currently offered for advances of similar remaining maturities.

Interest Rate Derivatives. See the discussion presented above concerning assets measured at fair value on a recurring basis.

Commitments. The fair value of commitments to fund credit lines and originate or participate in loans is estimated using fees currently charged to enter into similar agreements taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest and the committed rates. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading Liquidity and Capital Resources.

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The carrying amounts and fair values of financial instruments are as follows:

	September 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	102,630		$	102,630		$	102,630	$	-		$	-
Debt securities available for sale		416,470			416,470			-		416,470			-
Mortgage-backed securities   available for sale		329,310			329,310			-		329,310			-
Debt securities held to maturity		228,597			228,757			-		228,757			-
Mortgage-backed securities   held to maturity		429,912			436,762			-		436,762			-
Loans receivable		2,399,822			2,382,594			-		-			2,382,594
FHLB Stock		29,717			29,717			-		-			29,717
Interest receivable		11,058			11,058			11,058		-			-
Financial liabilities:
Deposits (1)		2,463,890			2,474,572			1,450,660		-			1,023,912
Borrowings		628,351			643,227			-		-			643,227
Interest payable on borrowings		1,114			1,114			1,114		-			-
Derivative instruments:
Interest rate swaps		(16,659	)		(16,659	)		-		(16,659	)		-
Interest rate caps		390			390			-		390			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $78,000 at September 30, 2015.

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	June 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	340,136		$	340,136		$	340,136	$	-		$	-
Debt securities available for sale		420,660			420,660			-		420,660			-
Mortgage-backed securities   available for sale		346,619			346,619			-		346,619			-
Debt securities held to maturity		219,862			218,366			-		218,366			-
Mortgage-backed securities   held to maturity		443,479			445,501			-		445,501			-
Loans receivable		2,087,258			2,069,209			-		-			2,069,209
FHLB Stock		27,468			27,468			-		-			27,468
Interest receivable		9,873			9,873			9,873		-			-
Financial liabilities:
Deposits (1)		2,465,650			2,476,425			1,463,974		-			1,012,451
Borrowings		571,499			585,209			-		-			585,209
Interest payable on borrowings		1,020			1,020			1,020		-			-
Derivative instruments:
Interest rate swaps		(9,511	)		(9,511	)		-		(9,511	)		-
Interest rate caps		794			794			-		794			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $80,000 at June 30, 2015.

Limitations. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment, and advances from borrowers for taxes and insurance. In addition, the ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

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15.     COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in stockholders’ equity at September 30, 2015 and June 30, 2015 are as follows:

	September 30, 2015			June 30, 2015
	(In Thousands)
Net unrealized loss on securities available for sale	$	(1,598	)	$	(147	)
Tax effect		660			(108	)
Net of tax amount		(938	)		(255	)
Net unrealized loss on securities available for sale transferred to   held to maturity		(1,095	)		(1,065	)
Tax effect		448			435
Net of tax amount		(647	)		(630	)
Fair value adjustments on derivatives		(18,622	)		(11,130	)
Tax effect		7,607			4,547
Net of tax amount		(11,015	)		(6,583	)
Benefit plan adjustments		(1,388	)		(494	)
Tax effect		567			201
Net of tax amount		(821	)		(293	)
Total accumulated other comprehensive loss	$	(13,421	)	$	(7,761	)

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Other comprehensive loss and related tax effects for the months ended September 30, 2015 and September 30, 2014 are presented in the following table:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Net unrealized holding loss on securities   available for sale	$	(1,452	)	$	(3,071	)
Amortization of unrealized holding loss on   securities available for sale transferred to   held to maturity (3)		(30	)		2
Net unrealized (loss) gain on derivatives		(7,492	)		2,911
Benefit plans:
Amortization of:
Actuarial loss (1)		9			7
Past service cost (1)		9			12
New actuarial loss		(911	)		(363	)
Net change in benefit plan accrued expense		(893	)		(344	)
Other comprehensive loss before taxes		(9,867	)		(502	)
Tax effect (2)		4,207			(8	)
Total other comprehensive loss	$	(5,660	)	$	(510	)

_______________________________________________

(1) Represents amounts reclassified out of accumulated other comprehensive income and included in the computation of net periodic pension expense. See Note 14 – Benefit Plans for additional information.

(2) The amounts included in income taxes for items reclassified out of accumulated other comprehensive income totaled $(365) for the three ended September 30, 2015 and $(9) three months ended September 30, 2014, respectively.

(3) Represents amounts reclassified out of accumulated other comprehensive income and included in interest income on taxable securities.

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report on Form 10-Q may include certain forward-looking statements based on current management expectations. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “continue”, or similar terms or variations on those terms, or the negative of those terms. The actual results of the Company could differ materially from those management expectations. Factors that could cause future results to vary from current management expectations include, but are not limited to, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the federal government and changes in tax policies, rates and regulations of federal, state and local tax authorities. Additional potential factors include changes in interest rates, deposit flows, cost of funds, demand for loan products and financial services, competition and changes in the quality or composition of loan and investment portfolios of the Company. Other factors that could cause future results to vary from current management expectations include changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Further description of the risks and uncertainties to the business are included in the Company’s other filings with the Securities and Exchange Commission.

Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

Comparison of Financial Condition at September 30, 2015 and June 30, 2015

General. Total assets increased by $64.8 million to $4.30 billion at September 30, 2015 from $4.24 billion at June 30, 2015. The increase in total assets was primarily attributable to increases in the balances of loans and non-mortgage-backed securities that were partially offset by declines in the balances of cash and cash equivalents and mortgage-backed securities. The net increase in total assets was largely funded through an increase in the balance of borrowings that was partially offset by a net decrease in the balance of deposits.

Cash and Cash Equivalents. Cash and cash equivalents, which consist primarily of interest-earning and non-interest-earning deposits in other banks, decreased by $237.5 million to $102.6 million at September 30, 2015 from $340.1 million at June 30, 2015.  The decrease in cash and cash equivalents reflected the deployment of the remaining proceeds raised through the Company’s second-step conversion and stock offering that were not yet fully invested at June 30, 2015.  As noted in greater detail below, such funds were primarily reinvested into the loan portfolio during the quarter ended September 30, 2015. Management will continue to monitor and adjust the level of short-term, liquid assets in relation to the Company’s near-term operating liquidity needs while also considering the funding needed to support its longer-term strategic initiatives – particularly those relating to the expansion of its commercial lending functions and capital management strategies.

Debt Securities Available for Sale. Debt securities classified as available for sale decreased by $4.2 million to $416.5 million at September 30, 2015 from $420.7 million at June 30, 2015. The decrease partly reflected principal repayments, net of premium amortization and discount accretion, totaling $115,000 during the three months ended September 30, 2015.  The decrease also reflected a $4.1 million decline in the fair value of the portfolio to a net unrealized loss of $6.3 million at September 30, 2015 from a net unrealized loss of $2.2 million at June 30, 2015. The change in the net unrealized loss reflected changes in the fair value of various sectors within the portfolio arising from movements in market interest rates coupled with a widening of pricing spreads within certain sectors in the portfolio.

At September 30, 2015, the available for sale debt securities portfolio included U.S. agency debentures, single-issuer trust preferred securities, corporate bonds, asset-backed securities, collateralized loan obligations and municipal obligations. Based on its evaluation, management has concluded that no other-than-temporary impairment is present within this segment of the investment portfolio as of that date.

Additional information regarding debt securities available for sale at September 30, 2015 is presented in Note 7 and Note 9 to the unaudited consolidated financial statements.

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Mortgage-backed Securities Available for Sale. Mortgage-backed securities available for sale decreased by $17.3 million to $329.3 million at September 30, 2015 from $346.6 million at June 30, 2015. The net decrease reflected cash repayment of principal, net of discount accretion and premium amortization, totaling $19.9 million.  These decreases in the portfolio were partially offset by a $2.6 million increase in the fair value of the portfolio to an unrealized gain of $4.7 million at September 30, 2015 from an unrealized gain of $2.1 million at June 30, 2015.

At September 30, 2015, the available for sale mortgage-backed securities portfolio primarily included agency pass-through securities and agency collateralized mortgage obligations. As of that date, we also held one non-agency mortgage-backed security within the available for sale portfolio whose aggregate carrying value totaled $150,000.  Based on its evaluation, management has concluded that no other-than-temporary impairment is present within this segment of the investment portfolio as of that date.

Additional information regarding mortgage-backed securities available for sale at September 30, 2015 is presented in Note 7 and Note 9 to the unaudited consolidated financial statements.

Debt Securities Held to Maturity. Debt securities classified as held to maturity increased by $8.7 million to $228.6 million at September 30, 2015 from $219.9 million at June 30, 2015. The net increase partly reflected the purchase of $9.1 million in securities during the three months ended September 30, 2015. The net increase in the portfolio was partially offset by principal repayments, net of premium amortization and discount accretion, totaling $405,000 during the same period.

At September 30, 2015, the held to maturity debt securities portfolio included U.S. agency debentures and municipal obligations, a small portion of which represent non-rated, short term, bond anticipation notes (“BANs”) issued by New Jersey municipalities.  Based on its evaluation, management has concluded that no other-than-temporary impairment is present within this segment of the investment portfolio as of that date.

Additional information regarding debt securities held to maturity at September 30, 2015 is presented in Note 8 and Note 9 to the unaudited consolidated financial statements.

Mortgage-backed Securities Held to Maturity. Mortgage-backed securities held to maturity decreased by $13.6 million to $429.9 million at September 30, 2015 from $443.5 million at June 30, 2015. The decrease in the portfolio reflected cash repayment of principal, net of discount accretion and premium amortization, totaling $13.6 million during the three months ended September 30, 2015.

At September 30, 2015, the held to maturity mortgage-backed securities portfolio primarily included agency pass-through securities and agency collateralized mortgage obligations. As of that date, we also held four non-agency mortgage-backed securities in the held to maturity portfolio whose aggregate carrying value and fair value totaled $40,000 and $39,000, respectively. Based on its evaluation, management has concluded that no other-than-temporary impairment is present within this segment of the investment portfolio as of that date.

Additional information regarding mortgage-backed securities held to maturity at September 30, 2015 is presented in Note 8 and Note 9 to the unaudited consolidated financial statements.

Loans Receivable. Loans receivable, net of unamortized premiums, deferred costs and the allowance for loan losses, increased by $312.6 million to $2.40 billion at September 30, 2015 from $2.09 billion at June 30, 2015. The increase in net loans receivable was primarily attributable to new loan origination and purchase volume outpacing loan repayments during the three months ended September 30, 2015.

Residential mortgage loans, including home equity loans and lines of credit, increased by $28.0 million to $712.0 million at September 30, 2015 from $684.0 million at June 30, 2015. The components of the net increase included an increase in the balance of one-to-four family first mortgage loans of $26.9 million to $619.2 million at September 30, 2015 from $592.3 million at June 30, 2015.  The net increase also reflected a $1.1 million increase in the balance of home equity loans to $71.3 million at September 30, 2015 from $70.3 million at June 30, 2015 as well as a $64,000 increase in the balance of home equity lines of credit to $21.5 million at September 30, 2015 from $21.4 million at June 30, 2015.

The growth in the portfolio during the first three months of fiscal 2016 reflected the Company’s intent to modestly increase the outstanding balance of the residential mortgage portfolio while allowing the segment to continue to decline as a percentage of total loans and earning assets.  The Company intends to expand it residential lending infrastructure during fiscal 2016 to support strategies focused on increasing the origination volume of residential mortgage loans for sale into the secondary market.

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In total, residential mortgage loan origination and purchase volume for the threemonths ended September 30, 2015 were $23.3 million and $34.7 million, respectively, while aggregate originations of home equity loans and home equity lines of credit totaled $8.0 million for that same period.

Commercial loans, in aggregate, increased by $284.7 million to $1.69 billion at September 30, 2015 from $1.41 billion at June 30, 2015. The components of the aggregate increase included an increase in commercial mortgage loans totaling $286.9 million that was partially offset by a $2.2 million decrease in commercial business loans.  The ending balances of commercial mortgage loans and commercial business loans at September 30, 2015 were $1.60 billion and $97.2 million, respectively.

Commercial loan origination volume for the three months ended September 30, 2015 totaled $70.2 million, comprising $65.2 million and $5.0 million of commercial mortgage and commercial business loan originations, respectively. Commercial loan originations were augmented with the purchase of commercial mortgage loans and participations totaling $255.0 million coupled with the purchase of commercial business loans totaling $13.0 million during the three months ended September 30, 2015.

The outstanding balance of construction loans, net of loans-in-process, decreased by $625,000 to $5.1 million at September 30, 2015 from $5.7 million at June 30, 2015. Construction loan disbursements for the three months ended September 30, 2015 totaled $670,000.

Other loans, primarily comprising account loans, deposit account overdraft lines of credit and other consumer loans, increased by $288,000 to $4.6 million at September 30, 2015 from $4.3 million at June 30, 2015. Other loan originations for the three months ended September 30, 2015 totaled approximately $420,000.  Other loan originations were augmented with the funding of consumer loans totaling $787,000 that were acquired through a wholesale loan origination channel implemented during the quarter ended September 30, 2015. The new channel enables the Bank to originate and purchase high-quality, unsecured consumer loans that are originated through an online credit marketplace managed by an outsourced service provider.  All loans acquired through this channel are originated by a bank and subject to all applicable consumer protection, fair lending, and disclosure requirements.

Nonperforming Loans. Nonperforming loans decreased by $1.4 million to $21.5 million, or 0.89% of total loans at September 30, 2015, from $22.9 million or 1.09% of total loans at June 30, 2015. Nonperforming loans generally include loans reported as “accruing loans over 90 days past due” as well as loans reported as “nonaccrual”.  However, the balances of nonperforming loans at September 30, 2015 and June 30, 2015 were comprised entirely of nonaccrual loans with no loans reported as over 90 days past due and accruing.

The balance of loans at September 30, 2015 includes 63 residential mortgage loans with an aggregate carrying value totaling $18.7 million that were serviced by BAC Home Loan Servicing, a subsidiary of Bank of America (“BOA”).  Such loans include 34 nonperforming loans with carrying values totaling $6.4 million as of that date.  During the quarter ended September 30, 2015, the Bank and BOA mutually agreed to transfer the servicing of all remaining loans owned by the Bank, including the nonperforming loans, from BOA to the Bank during the quarter ending December 31, 2015.  

The terms of the applicable servicing transfer agreement include provisions requiring the Bank to reimburse BOA for all “scheduled” principal and interest (“P&I”) payments advanced to the Bank by BOA where such payments had not been paid by the borrower.  The agreement terms also require the Bank to reimburse BOA for all taxes and insurance (“T&I”) advances that have resulted in negative escrow balances as well as other corporate payments advanced by BOA to support the collections and foreclosure process on nonperforming loans where such payments have not been repaid by the borrower through the date of servicing transfer.

The Bank has generally reduced the carrying value of the applicable nonperforming loans by the amount of P&I payments advanced by BOA.  Consequently, the Bank’s reimbursement of such advances to BOA is expected to result in an increase in the carrying value of nonperforming loans during the quarter ending December 31, 2015.  Based on preliminary information provided by BOA, the Bank estimates that the transfer of servicing will increase the reportable balance of nonperforming loans by approximately $3.5 million.  However, the amount of the increase may vary from this estimate based on the final reconciliation and reimbursement of advances to BOA at the time of transfer.

The impairment analysis regularly conducted by the Company in conjunction with its periodic allowance for loan loss (“ALLL”) calculation consistently recognized the Bank’s ultimate obligation to reimburse BOA for all applicable advances on nonperforming loans.  As such, the Bank does not expect the transfer of servicing, nor the expected increase in the balance of the related nonperforming loans, to result in significant charge offs or additions to the required level of the ALLL.

The Bank reports the payment and accrual status of the BOA loans based on the borrower’s actual payment status rather than the “cash payment” basis that would otherwise reflect the “scheduled” P&I payments advanced to the Bank by BOA on delinquent loans.  

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As such, the Bank does not expect the transfer of servicing to result in significant changes to the number of past due or nonaccrual loans. However, the carrying value of such loans is expected to increase for the reasons noted above.

Other than the reimbursement of advances noted above, the Bank will pay no additional fees to BOA to complete the transfer of loan servicing discussed above.  Consequently, the annual servicing fee of 0.25% per loan currently paid to BOA will be discontinued at no additional cost to the Bank once the servicing transfer is completed during the quarter ending December 31, 2015.

Additional information about the Company’s nonperforming loans at September 30, 2015 is presented in Note 10 to the unaudited consolidated financial statements.

Allowance for Loan Losses. During the three months ended September 30, 2015, the balance of the allowance for loan losses increased by $2.1 million to $17.7 million, or 0.73% of total loans at September 30, 2015, from $15.6 million or 0.74% of total loans at June 30, 2015. The increase resulted from provisions of $2.6 million during the three months ended September 30, 2015 that were partially offset by charge offs, net of recoveries, totaling $557,000 during that same period.

With regard to loans individually evaluated for impairment, the balance of our allowance for loan losses attributable to such loans decreased by $299,000 to approximately $752,000 at September 30, 2015 from $1.1 million at June 30, 2015. The balance at September 30, 2015 reflected the allowance for impairment identified on $5.2 million of impaired loans while an additional $26.9 million of impaired loans had no allowance for impairment as of that date. By comparison, the balance at June 30, 2015 reflected the allowance for impairment identified on $5.6 million of impaired loans while an additional $28.0 million of impaired loans had no allowance for impairment as of that date. The outstanding balances of impaired loans reflected the cumulative effects of various adjustments including, but not limited to, purchase accounting valuations and prior charge-offs, where applicable, which are considered in the evaluation of impairment.

With regard to loans evaluated collectively for impairment, the balance of our allowance for loan losses attributable to such loans increased by $2.3 million to $16.9 million at September 30, 2015 from $14.6 million at June 30, 2015. The increase in valuation was partly attributable to an increase in the aggregate outstanding balance of loans collectively evaluated for impairment as well as the ongoing reallocation of loans within the portfolio in favor of commercial loans against which we generally assign comparatively higher historical and environmental loss factors in our ALLL calculation.

The change in the allowance also reflected updates to historical loss factors during the three months ended September 30, 2015. Specifically, our loan portfolio experienced a net annualized charge-off rate of 0.10% during the three months ended September 30, 2015 representing a decrease of six basis points from the 0.16% of charge-offs reported for fiscal 2015. The historical loss factors used in our allowance for loan loss calculation methodology were updated to reflect the effect of these charge offs on the average annualized historical charge off rates by loan segment over the two year look-back period used by that methodology. The change in average net charge-off rates coupled with the concurrent increase in the overall balance of the unimpaired portion of the loan portfolio resulted in a net decrease of $23,000 in the applicable portion of the allowance to $1.9 million as of September 30, 2015 compared to $1.9 million as of June 30, 2015.

In addition to updating historical loss factors, we also reviewed and reaffirmed our environmental loss factors resulting in no changes to such factors from June 30, 2015 to September 30, 2015.  As such, the increase in the overall balance of the unimpaired portion of the loan portfolio was the sole basis for the net increase of $2.4 million in the valuation allowances attributable to environmental loss factors  to $15.0 million at September 30, 2015 from $12.6 million at June 30, 2015.

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The tables on the following pages present the historical and environmental loss factors, reported as a percentage of outstanding loan principal, that were the basis for computing the portion of the allowance for loan losses attributable to loans collectively evaluated for impairment at September 30, 2015 and June 30, 2015.

Allowance for Loan Losses Allocation of Loss Factors on Loans Collectively Evaluated for Impairment
at September 30, 2015
	Historical Loss Factors				Environmental Loss Factors(2)			Total
Residential mortgage loans
Originated		-		%		0.27	%		0.27	%
Purchased		4.15				0.75			4.90
Acquired in merger (CJB) (3) (5)		(3.39	)			0.39			-
Acquired in merger (Atlas) (4)		-				0.09			0.09
Home equity loans
Originated		-				0.33			0.33
Acquired in merger (CJB) (3)		0.24				0.39			0.63
Acquired in merger (Atlas) (4)		-				0.09			0.09
Home equity lines of credit
Originated		-				0.33			0.33
Acquired in merger (CJB) (3)		0.12				0.39			0.51
Construction loans
1-4 family
Originated		-				0.69			0.69
Acquired in merger (CJB) (3)		-				0.39			0.39
Multi-family
Originated		-				0.69			0.69
Acquired in merger (CJB) (3)		-				0.39			0.39
Nonresidential
Originated		-				0.69			0.69
Acquired in merger (CJB) (3)		-				0.39			0.39
Commercial mortgage loans
Multi-family
Originated		-				0.84			0.84
Acquired in merger (CJB) (3)		-				0.39			0.39
Acquired in merger (Atlas) (4)		-				0.09			0.09
Nonresidential
Originated		0.02				0.81			0.83
Acquired in merger (CJB) (3)		(0.03	)			0.39			0.36
Acquired in merger (Atlas) (4)		-				0.09			0.09
Commercial business loans
Secured (1-4 family)
Originated		0.16				0.69			0.85
Acquired in merger (CJB) (3)		0.44				0.39			0.83
Secured (other)
Originated		0.13				0.69			0.82
Purchased		1.19				0.48			1.67
Acquired in merger (CJB) (3)		0.43				0.39			0.82
Unsecured
Originated		-				0.54			0.54
Acquired in merger (CJB) (3)		1.57				0.39			1.96

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Allowance for Loan Losses Allocation of Loss Factors on Loans Collectively Evaluated for Impairment
at September 30, 2015 (continued)
	Historical Loss Factors			Environmental Loss Factors(2)			Total
SBA 7A
Originated		-	%		0.84	%		0.84	%
Acquired in merger (CJB) (3)		13.43			0.57			14.00
SBA Express
Originated		-			0.84			0.84
Acquired in merger (CJB) (3)		36.65			0.57			37.22
SBA Line of credit
Originated		-			0.84			0.84
Acquired in merger (CJB) (3)		12.89			0.57			13.46
Other consumer loans (1)		-			-			-

________________________________

(1) ^“Base” environmental loss factors on consumer loans range from 0.09%  to 0.39% while historical loss factors range from 0.00% to 11.01% based on loan type. Resulting balances in the allowance for loan losses are immaterial and therefore excluded from the presentation.

(2) ^“Base” environmental factors reported excluding the effect of “weights” attributable to internal credit-rating classification as follows: “Pass-1”: 70%, “Pass-2”: 80%, “Pass-3”: 90%, “Pass-4”: 100%, “Watch”: 200%, “Special Mention”: 400%, “Substandard”: 600%, “Doubtful”: 800%.  (e.g. Environmental loss factor applicable to originated residential mortgage loan rated as “Substandard”: 0.27% X 600% = 1.62%).

(3) Includes loans originally acquired from Central Jersey Bank (“CJB”) on November 30, 2010.

(4) Includes loans originally acquired from Atlas Bank (“Atlas”) on June 30, 2014.

(5) The Company’s ALLL calculation limits the effects of negative historical loss factors on the aggregate level of required ALLL to an amount that fully offsets, but does not exceed, the portion of the required ALLL attributable to environmental loss factors.  Consequently, the sum of historical and environmental loss factors cannot fall below 0.00%.

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Allowance for Loan Losses Allocation of Loss Factors on Loans Collectively Evaluated for Impairment
at June 30, 2015
	Historical Loss Factors			Environmental Loss Factors(2)			Total
Residential mortgage loans
Originated		-	%		0.27	%		0.27	%
Purchased		3.47			0.75			4.22
Acquired in merger (CJB) (3)		-			0.39			0.39
Acquired in merger (Atlas) (4)		-			0.09			0.09
Home equity loans
Originated		0.01			0.33			0.34
Acquired in merger (CJB) (3)		0.67			0.39			1.06
Acquired in merger (Atlas) (4)		-			0.09			0.09
Home equity lines of credit
Originated		-			0.33			0.33
Acquired in merger (CJB) (3)		-			0.39			0.39
Construction loans
1-4 family
Originated		-			0.69			0.69
Acquired in merger (CJB) (3)		-			0.39			0.39
Multi-family
Originated		-			0.69			0.69
Acquired in merger (CJB) (3)		-			0.39			0.39
Nonresidential
Originated		-			0.69			0.69
Acquired in merger (CJB) (3)		-			0.39			0.39
Commercial mortgage loans
Multi-family
Originated		-			0.84			0.84
Acquired in merger (CJB) (3)		-			0.39			0.39
Acquired in merger (Atlas) (4)		-			0.09			0.09
Nonresidential
Originated		0.02			0.81			0.83
Acquired in merger (CJB) (3)		-			0.39			0.39
Acquired in merger (Atlas) (4)		-			0.09			0.09
Commercial business loans
Secured (1-4 family)
Originated		0.16			0.69			0.85
Acquired in merger (CJB) (3)		-			0.39			0.39
Secured (other)
Originated		0.42			0.69			1.11
Purchased		1.19			0.48			1.67
Acquired in merger (CJB) (3)		0.50			0.39			0.89
Unsecured
Originated		-			0.54			0.54
Acquired in merger (CJB) (3)		1.10			0.39			1.49

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Allowance for Loan Losses Allocation of Loss Factors on Loans Collectively Evaluated for Impairment
at June 30, 2015 (continued)
	Historical Loss Factors			Environmental Loss Factors(2)			Total
SBA 7A
Originated		-	%		0.84	%		0.84	%
Acquired in merger (CJB) (3)		16.86			0.57			17.43
SBA Express
Originated		-			0.84			0.84
Acquired in merger (CJB) (3)		43.97			0.57			44.54
SBA Line of credit
Originated		-			0.84			0.84
Acquired in merger (CJB) (3)		15.94			0.57			16.51
Other consumer loans (1)		-			-			-

________________________________

(1) ^“Base” environmental loss factors on consumer loans range from 0.09%  to 0.39% while historical loss factors range from 0.00% to 12.11% based on loan type. Resulting balances in the allowance for loan losses are immaterial and therefore excluded from the presentation.

(2) ^“Base” environmental factors reported excluding the effect of “weights” attributable to internal credit-rating classification as follows: “Pass-1”: 70%, “Pass-2”: 80%, “Pass-3”: 90%, “Pass-4”: 100%, “Watch”: 200%, “Special Mention”: 400%, “Substandard”: 600%, “Doubtful”: 800%.  (e.g. Environmental loss factor applicable to originated residential mortgage loan rated as “Substandard”: 0.27% X 600% = 1.62%).

(3) Includes loans originally acquired from Central Jersey Bank (“CJB”) on November 30, 2010.

(4) Includes loans originally acquired from Atlas Bank (“Atlas”) on June 30, 2014.

Additional information about our allowance for loan losses at September 30, 2015 is presented in Note 10 to the unaudited consolidated financial statements.

Other Assets. The aggregate balance of other assets, including premises and equipment, FHLB stock, interest receivable, goodwill, bank owned life insurance, deferred income taxes and other miscellaneous assets, increased by $16.0 million to $395.2 million at September 30, 2015 from $379.2 million at June 30, 2015.

The increase in other assets included a $6.6 million increase in miscellaneous assets which was primarily attributable to $5.2 million in funds disbursed in advance of the upcoming servicing transfer of residential mortgage loans from BOA to the Bank, as described above, as well as a $2.2 million increase in FHLB stock resulting from an increase in short-term advances drawn during the quarter ended September 30, 2015.  The increase in other assets also reflected a $4.5 million increase in deferred income taxes arising primarily from changes in the fair value of the Company’s available for sale securities and derivatives portfolios coupled with an increase in the allowance for loan losses.  

The noted increases in other assets included a $785,000 increase in the balance of real estate owned (“REO”) to $1.7 million, representing the carrying value of three properties at September 30, 2015, from $942,000, representing the carrying value of two properties at June 30, 2015.

The remaining increases and decreases in other assets during the three months ended September 30, 2015 generally comprised normal growth or operating fluctuations in their respective balances.

Deposits. Total deposits decreased by $1.8 million to $2.46 billion at September 30, 2015 from $2.47 billion at June 30, 2015.  The decrease in deposit balances reflected an $11.2 million decrease in interest-bearing deposits that was partially offset by a $9.4 million increase in non-interest-bearing checking accounts.  The net decrease in interest-bearing deposits comprised decreases in interest-bearing checking accounts and savings and club accounts totaling $13.7 million and $9.0 million, respectively. The noted decreases in interest-bearing deposits were partially offset by an $11.6 million increase in the balance of certificates of deposit.

The change in deposit balances for the period reflected changes in the balances of retail deposits as well as “non-retail” deposits acquired through various wholesale channels. The decrease in the balance of interest-bearing checking accounts included a $1.9 million decrease in the balance of brokered money market deposits acquired through Promontory’s IND program to $224.3 million, or 9.1% of total deposits at September 30, 2015, from $226.2 million, or 9.2% of total deposits at June 30, 2015. The terms of the IND program generally establish a reciprocal commitment for Promontory to deliver and for us to accept such deposits for a period of no less than five years during which time total aggregate balances shall be maintained within a range of $200.0 million to $230.0 million.

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Such deposits are generally sourced by Promontory from large retail and institutional brokerage firms whose individual clients seek to have a portion of their investments held in interest-bearing accounts at FDIC-insured institutions.

In addition to the decrease attributable to fluctuating IND program deposits, the decline in interest-bearing checking accounts also reflected an $11.8 million decrease in retail account balances, which was due primarily to the transfer of aggregate account balances totaling approximately $9.8 million associated with a single customer relationship to depositor “sweep accounts” during the period.

We continued to utilize a deposit listing service through which we attract “non-brokered” wholesale time deposits targeting institutional investors with a three-to-five year investment horizon. We generally prohibit the withdrawal of our listing service deposits prior to maturity. The balance of our listing service time deposits remained stable at $89.9 million, or 3.6% of total deposits, at September 30, 2015 and June 30, 2015.

We also maintain a small portfolio of longer-term, brokered certificates of deposit that were originally acquired during fiscal 2014 whose balances decreased by approximately $38,000 to $18.3 million at September 30, 2015 from $18.4 million at June 30, 2015. In combination with Promontory IND money market deposits noted above, our brokered deposits totaled $242.6 million, or 9.8% of deposits at September 30, 2015 compared to $244.6 million, or 9.9% of total deposits at June 30, 2015.

Given the overall stability in the balances of wholesale time deposits, the $11.6 million increase in certificates of deposit noted earlier was largely attributable to an increase in retail time deposits.  The increase in retail time deposits largely reflected our efforts to attract new deposits as a funding source for loan growth through promotional pricing strategies while providing opportunities to cross-sell other core deposit products to newly acquired customers.

Borrowings. The balance of borrowings increased by $56.9 million to $628.4 million at September 30, 2015 from $571.5 million at June 30, 2015. The increase in borrowings partly reflected an additional short-term advance of $50.0 million drawn during the quarter ended September 30, 2015 whose cost had been effectively fixed over a five-year period based on a previously executed interest rate swap transaction whose terms became effective during the period.  At September 30, 2015, the wholesale funding associated with all of the Company’s outstanding interest rate derivatives has been fully drawn with such swaps and caps expected to serve as effective cash flow hedges over their remaining terms to maturity.

The increase in borrowings also reflected a $6.9 million increase in outstanding overnight “sweep account” balances linked to customer demand deposits.  As noted above, the increase in depositor “sweep account” balances partly reflected the addition of approximately $9.8 million in balances associated with a single customer relationship that were transferred from interest-bearing checking accounts during the quarter ended September 30, 2015

Other Liabilities. The balance of other liabilities, including advance payments by borrowers for taxes and other miscellaneous liabilities, increased by $13.4 million to $46.1 million at September 30, 2015 from $32.7 million at June 30, 2015. The increase in other liabilities was partly attributable to a decrease in the fair value of our interest rate derivatives of approximately $7.5 million coupled with a $5.0 million “due to broker” to reflect a funding obligation relating to commercial business loans purchased prior to September 30, 2015 for which the funding settled after that date.  The remaining variance generally represented normal operating fluctuations in the balances of other liabilities.

Stockholders’ Equity. Stockholders’ equity decreased by $3.8 million to $1.16 billion at September 30, 2015 from $1.17 billion at June 30, 2015.  The net decrease in stockholders’ equity reflected a $5.7 million increase in accumulated other comprehensive loss due primarily to changes in the fair value of the Company’s available for sale securities portfolio and outstanding derivatives.  This increase was partially offset by net income of $3.0 million, less $1.8 million in cash dividends paid to shareholders, coupled with a $487,000 reduction of unearned ESOP shares for plan shares earned during the quarter ended September 30, 2015.

Comparison of Operating Results for the Three Months Ended September 30, 2015 and September 30, 2014

General. Net income for the three months ended September 30, 2015 was $3.0 million or $0.03 per diluted share; an increase of $53,000 from $2.9 million or $0.03 per diluted share for the three months ended September 30, 2014. The increase in net income reflected increases in net interest income and non-interest income that were largely offset by increases in the provision for loan losses and non-interest expense.  These factors contributed to an overall increase in pre-tax net income and a corresponding increase in the provision for income taxes that also reflected a comparatively higher effective tax rate for the three months ended September 30, 2015 compared to the three months ended September 30, 2014.

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Net Interest Income. Net interest income for the three months ended September 30, 2015 was $22.4 million; an increase of $2.9 million from $19.5 million for the three months ended September 30, 2014. The increase in net interest income between the comparative periods resulted from an increase in interest income that was partially offset by an increase in interest expense. The increase in interest income was attributable to an increase in the average balance of interest-earning assets that was partially offset by a decrease in their average yield.   The increase in interest expense resulted from an increase in the average balance of interest-bearing liabilities coupled with a concurrent increase in their average cost.

As a result of these factors, our net interest rate spread decreased 27 basis points to 2.01% for the three months ended September 30, 2015 from 2.28% for the three months ended September 30, 2014. The decrease in the net interest rate spread reflected a decrease in the average yield on interest-earning assets of 17 basis points to 3.00% for three months ended September 30, 2015 from 3.17% for the three months ended September 30, 2014 while the average cost of interest-bearing liabilities increased 10 basis points to 0.99% from 0.89% for the same comparative periods. A discussion of the factors contributing to changes in the average yield and average cost of categories within interest-earning assets and interest-bearing liabilities, respectively, is presented in the separate discussion and analysis of interest income and interest expense below.

The factors resulting in the reported decrease in our net interest rate spread also affected our net interest margin, which decreased by 13 basis points to 2.28% for the three months ended September 30, 2015 from 2.41% for the three months ended September 30, 2014.

Interest Income. Total interest income increased $3.7 million to $29.4 million for the three months ended September 30, 2015 from $25.7 million for the three months ended September 30, 2014. As noted above, the increase in interest income partly reflected a $685.8 million increase in the average balance of interest-earning assets to $3.93 billion for the three months ended September 30, 2015 from $3.24 billion for the three months ended September 30, 2014.  For those same comparative periods, the yield on earning assets decreased 17 basis points to 3.00% from 3.17%.

Interest income from loans increased $3.6 million to $22.0 million for the three months ended September 30, 2015 from $18.4 million for the three months ended September 30, 2014. The increase in interest income on loans was attributable to a net increase in the average balance of loans that was partially offset by a decline in their average yield.

The average balance of loans increased by $468.2 million to $2.22 billion for the three months ended September 30, 2015 from $1.75 billion for the three months ended September 30, 2014. The reported increase in the average balance of loans primarily reflected an aggregate increase of $451.9 million in the average balance of commercial loans to $1.51 billion for the three months ended September 30, 2015 from $1.06 billion for the three months ended September 30, 2014. Our commercial loans generally comprise commercial mortgage loans, including multi-family and nonresidential mortgage loans, as well as secured and unsecured commercial business loans.

The increase in the average balance of commercial loans was augmented by a $15.6 million increase in the average balance of residential mortgage loans to $696.0 million for the three months ended September 30, 2015 from $680.4 million for the three months ended September 30, 2014. Our residential mortgages generally comprise one- to four-family first mortgage loans, home equity loans and home equity lines of credit.

The noted increases in the average balances of loans were partially offset by a $988,000 decrease in the average balance of construction loans, which declined to $6.0 million for the three months ended September 30, 2015 from $6.9 million for the three months ended September 30, 2014. For those same comparative periods, the average balance of other loans, comprising account loans, deposit account overdraft lines of credit and other consumer loans, decreased by $813,000 to $3.9 million from $4.7 million.

The effect on interest income attributable to the net increase in the average balance of loans was partially offset by the noted decrease in their average yield. The average yield on loans decreased by 24 basis points to 3.97% for the three months ended September 30, 2015 from 4.21% for the three months ended September 30, 2014. The reduction in the overall yield on our loan portfolio largely reflected the effect of the comparatively lower average yield on newly originated loans in relation to that of the portfolio of existing loans which has reduced the overall yield of the aggregate portfolio.  To a lesser extent, the decline in the average yield generally reflects the effects of low market interest rates that provide “rate reduction” refinancing incentive to existing borrowers while also contributing to the downward re-pricing of adjustable rate loans.

Interest income from mortgage-backed securities decreased by $262,000 to $4.5 million for the three months ended September 30, 2015 from $4.8 million for the three months ended September 30, 2014. The decrease in interest income reflected a decrease in the average yield of mortgage-backed securities that was partially offset by an increase in their average balance.

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The average yield on mortgage-backed securities decreased by 29 basis points to 2.33% for the three months ended September 30, 2015 from 2.62%for the three months ended September 30, 2014. The reduction in the overall yield on mortgage-backed securities largely reflected the effect of the comparatively lower average yield on purchased securities in relation to that of the existing portfolio coupled with the continuing repayment of comparatively higher yielding securities within the portfolio.

For those same comparative periods, the average balance of mortgage-backed securities increased by $45.8 million to $775.8 million for the three months ended September 30, 2015 from $730.0 million for the three months ended September 30, 2014. The increase in the average balance of mortgage-backed securities largely reflected the level of aggregate security purchases outpacing principal repayments and security sales between comparative periods.

Interest income from debt securities increased by $210,000 to $2.4 million for the three months ended September 30, 2015 from $2.2 million for the three months ended September 30, 2014. The increase in interest income reflected an increase in the average balance of debt securities augmented by an increase in their average yield. The average balance of debt securities increased $19.6 million to $647.7 million for the three months ended September 30, 2015 from $628.1 million for the three months ended September 30, 2014. For those same comparative periods, the average yield on debt securities increased nine basis points to 1.50% from 1.41%.

The increase in the average balance of debt securities was partly attributable to a $10.0 million increase in the average balance of taxable securities to $538.7 million for the three months ended September 30, 2015 from $528.7 million for the three months ended September 30, 2014. For those same comparative periods, the average balance of tax-exempt securities increased by $9.6 million to $109.0 million from $99.4 million.

The increase in the average yield on debt securities reflected a 10 basis point increase in the yield on taxable securities to 1.41% during the three months ended September 30, 2015 from 1.31% during the three months ended September 30, 2014. For those same comparative periods, the yield on tax-exempt securities increased one basis point to 1.96% from 1.95%.

Interest income from other interest-earning assets increased by $142,000 to $439,000 for the three months ended September 30, 2015 from $297,000 for the three months ended September 30, 2014 reflecting an increase in the average balance that was partially offset by a decrease in the average yield. The average balance of other interest-earning assets increased by $152.1 million to $283.2 million for the three months ended September 30, 2015 from $131.1 million for the three months ended September 30, 2014. For those same comparative periods, the average yield on other interest-earning assets decreased by 29 basis points to 0.62% for the three months ended September 30, 2015 from 0.91% for the three months ended September 30, 2014.

The increase in the average balance of other interest-earning assets and the decline in their average yield primarily reflected the effects of the temporary increase in the average balance of comparatively lower yielding cash equivalents during the quarter ended September 30, 2015.  Such excess liquidity arose from the proceeds raised in conjunction with the completion of the Company’s second-step conversion and stock offering prior to their deployment into higher yielding assets.

Interest Expense. Total interest expense increased by $886,000 to $7.1 million for the three months ended September 30, 2015 from $6.2 million for the three months ended September 30, 2014. As noted earlier, the increase in interest expense resulted from an increase in the average balance of interest-bearing liabilities coupled with an increase in their average cost. The average balance of interest-bearing liabilities increased by $78.4 million to $2.85 billion for the three months ended September 30, 2015 from $2.77 billion for the three months ended September 30, 2014. For those same comparative periods, the average cost of interest-bearing liabilities increased 10 basis points to 0.99% from 0.89%.

Interest expense attributed to deposits increased by $226,000 to $4.1 million for the three months ended September 30, 2015 from $3.8 million for the three months ended September 30, 2014. The increase in interest expense was attributable to an increase in the average cost of interest-bearing deposits that was partially offset by a decrease in their average balance.

The average cost of interest-bearing deposits increased by five basis points to 0.73% for the three months ended September 30, 2015 from 0.68% for the three months ended September 30, 2014. The net increase in the average cost reflected an increase in the average cost of certificates of deposit which increased 10 basis points to 1.15% for the three months ended September 30, 2015 from 1.05% for the three months ended September 30, 2014. For those same comparative periods, the average cost of interest-bearing checking accounts increased three basis points to 0.56% from 0.53% while the average cost of savings and club accounts increased one basis point to 0.17% from 0.16%.

The average balance of interest-bearing deposits decreased by $16.7 million to $2.24 billion for the three months ended September 30, 2015 from $2.25 billion for the three months ended September 30, 2014. The net decrease in the average balance reflected a decrease in the average balance of certificates of deposit that was partially offset by an increase in the average balances of interest-bearing checking accounts and savings and club accounts.  For the comparative periods noted, the average balance of

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certificates of deposit decreased by $34.5 million to $991.5 million from $1.03 billion.  For the same comparative periods, the average balance of interest-bearing checking accounts increased by $13.3 million to $725.2 million from $711.9 million while the average balance of savings and club accounts increased by $4.6 million to $519.9 million from $515.3 million.

The net decrease in the average balance of interest-bearing deposits partly reflected the effects of $34.5 million in customer withdrawals during the prior quarter ended June 30, 2015 to fund purchases of the Company’s common stock in conjunction with the Company’s second step conversion and stock offering.

Interest expense attributed to borrowings increased by $660,000 to $3.0 million for the three months ended September 30, 2015 from $2.3 million for the three months ended September 30, 2014. The increase in interest expense on borrowings reflected an increase in their average balance coupled with an increase in their average cost. The average balance of borrowings increased by $95.1 million to $608.6 million for the three months ended September 30, 2015 from $513.4 million for the three months ended September 30, 2014. For those same comparative periods, the average cost of borrowings increased by 15 basis points to 1.96% from 1.81%.

The increase in the average balance of borrowings largely reflected an $88.0 million increase in the average balance of FHLB advances which increased to $571.8 million for the three months ended September 30, 2015 from $483.8 million for the three months ended September 30, 2014. For those same comparative periods, the average cost of FHLB advances increased 17 basis points to 2.06% from 1.89%. The noted increase in the average balance of FHLB advances was augmented by a $7.1 million increase in the average balance of other borrowings, comprised primarily of depositor sweep accounts, to $36.7 million from $29.6 million. The average cost of sweep accounts increased by one basis point to 0.51% from 0.50% between the same comparative periods.

Provision for Loan Losses. The provision for loan losses increased by $1.8 million to $2.6 million for the three months ended September 30, 2015 from $858,000 for the three months ended September 30, 2014.  The increase was primarily attributable to a larger provision on non-impaired loans evaluated collectively for impairment due to comparatively higher growth in such loans between periods.  The net increase in provision expense attributable to non-impaired loans also reflected quarterly updates to historical loss factors arising from net charge off activity for the quarter ended September 30, 2015.

The net increase in provision expense attributable to non-impaired loans was partially offset by a decrease in specific losses recognized on nonperforming loans individually reviewed for impairment.  This decrease in specific losses was augmented by an increase in recoveries of prior charge offs attributable to such loans between comparative periods.

Additional information regarding the allowance for loan losses and the associated provisions recognized during the three months ended September 30, 2015 is presented in Note 10 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at September 30, 2015 and June 30, 2015 presented earlier.

Non-Interest Income. Non-interest income, excluding security sale gains and losses on the sale and write-down of real estate owned, increased by $762,000 to $2.5 million for the three month period ended September 30, 2015 from $1.7 million for the three months ended September 30, 2014.  The increase was largely attributable to a $738,000 increase in income from bank-owned life insurance that was primarily attributable to an increase in the average balance of the underlying cash surrender value of the associated policies which provides the basis for the income earned on such policies.  The increase in the average balance of bank owned life insurance reflected the Company’s purchase of an additional $80.0 million in such policies during the prior quarter ended June 30, 2015.  The increase in non-interest income also reflected gains on sale of SBA loans of $72,000 for the three months ended September 30, 2015 compared to no such gains during the three months ended September 30, 2014.

The noted increases in non-interest income were partially offset by less noteworthy decreases in loan-related fees and service charges and other miscellaneous income.

Non-Interest Expenses. Non-interest expense increased $1.6 million to $18.4 million for the three months ended September 30, 2015 from $16.8 million for the three months ended September 30, 2014. The net increase in non-interest expense partly reflected increases in salary and employee benefit expense, premises occupancy expense, advertising and marketing expense, and miscellaneous expense.  Less noteworthy variances in other categories of non-interest expense such equipment and system expense, deposit insurance expense and director compensation expense reflected normal growth or operating fluctuations within those categories.

Salaries and employee benefits expense increased by $549,000 to $10.6 million for the three months ended September 30, 2015 from $10.1 million for the three months ended September 30, 2014.  The increase largely reflected the effects of annual increases in non-executive wages and salaries for fiscal 2016 and the cost of staffing additions within the lending and business development functions coupled with less noteworthy increases in employee incentive compensation and commissions expenses.  The increase in employee-compensation related expenses also reflected an increase in employee benefits expenses primarily reflecting an increase in the cost of employee health insurance benefits.

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Premises occupancy expense increased by $267,000 to $1.9 million for the three months ended September 30, 2015 from $1.6 million for the three months ended September 30, 2014.  The net increase in premises occupancy expense partly reflected an increase in property taxes that was largely attributable to the recognition of property tax refunds during the earlier comparative period resulting from successful tax appeals initiated by the Company during that period.  To a lesser extent, the increase in property taxes also reflected increases in assessments on other properties owned or leased by the Company.  The increase in premises occupancy expense also reflected an increase in facility repairs and maintenance expenses attributable to a variety of non-capitalized improvements to a variety of branch facilities.

Advertising and marketing expense increased by $280,000 to $428,000 for the three months ended September 30, 2015 from $148,000 for the three months ended September 30, 2014.  The increase largely reflected increases in advertising expenses across a variety of advertising formats including outdoor, print and electronic media in support of the Company’s loan and deposit growth initiatives.  Additionally, the level of advertising and marketing expenditures during the earlier comparative period reflected lower levels of such expenses in anticipation of the corporate name change and re-branding initiatives that commenced later in fiscal 2015.

Miscellaneous expense increased by $408,000 from $2.6 million for the three months ended September 30, 2015 from $2.2 million for the three months ended September 30, 2014.  The increase in miscellaneous expense partly reflected an increase in loan underwriting and servicing expenses arising from growth in loans originated, purchased and serviced by others during the period.  The variance in miscellaneous expense also reflected an increase in legal expense that was largely attributable to an increase in loan-related legal fees including those associated with new loan purchases, collections and foreclosure efforts on existing, nonperforming loans as well as the transfer of servicing from BOA to the Bank noted earlier.  To a lesser extent, the increase in legal expense also reflected an increase in fees associated with general corporate legal matters.  Additionally, the increase in miscellaneous expense reflected an increase in insurance expense arising from expanded coverage across several corporate policies as well as an increase in workers compensation expense.

Other professional services included in miscellaneous expense during the three months ended September 30, 2015 included a portion of the costs of engaging a third-party consulting firm to thoroughly review and analyze the Company’s current operating practices, policies and procedures and the effectiveness with which its supporting infrastructure, including human resources and systems, are organized, deployed and utilized.  The first phase of the consulting engagement is expected to be completed during the first two quarters of fiscal 2016.

Upon completing the first phase of the project, the consultant is expected to assist us in implementing a formal corporate profitability measurement regimen.  This second phase of the engagement is expected to be initiated during the second quarter of fiscal 2016 and carry into the second half of the fiscal year.  Once fully deployed and implemented, we expect the system will enable us to better measure and monitor the overall profitability and operating efficiency of our branches, departments and lines of business in relation to internal performance improvement goals and objectives.  Moreover, we expect the profitability system will enable us to compare the performance of our individual business units to those of a select group of institutions in our marketplace thereby providing us with a more succinct and meaningful basis to measure corporate performance in relation to peers.

Provision for Income Taxes. The provision for income taxes increased by $297,000 to $850,000 for the three months ended September 30, 2015 from $553,000 for the three months ended September 30, 2014.  The increase partly reflected a $416,000 reduction in income tax expense during the three months ended September 30, 2014 attributable to the exercise of stock options during that earlier period.  The remaining variance in income tax expense between comparative periods primarily reflected the underlying differences in the level of the taxable portion of pre-tax income between comparative periods.

Our effective tax rate during the three months ended September 30, 2015 was 22.2% which, in relation to statutory income tax rates, reflected the effects of recurring sources of tax-favored income included in pre-tax income. By comparison, our effective tax rate for the three months ended September 30, 2014 was 15.9% which reflected the effects of the recurring sources of tax-favored income as well as the noted effects of the stock options during that earlier period.

Liquidity and Capital Resources

Our liquidity, represented by cash and cash equivalents, is a product of our operating, investing and financing activities. Our primary sources of funds are deposits, borrowings, amortization, prepayments and maturities of mortgage-backed securities and outstanding loans, maturities and calls of debt securities and funds provided from operations. In addition to cash and cash equivalents, we invest excess funds in short-term interest-earning assets such as overnight deposits or U.S. agency securities, which provide liquidity to meet lending requirements. While scheduled payments from the amortization of loans and mortgage-backed securities and maturing securities and short-term investments are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and prepayments on loans and mortgage-backed securities.

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The Bank is required to have enough investments that qualify as liquid assets in order to maintain sufficient liquidity to ensure a safe operation. Toward that end, we generally maintain cash and cash equivalents whose balancesdecreased by $237.5 million to $102.6 million at September 30, 2015 from $340.1 million at June 30, 2015.  The decrease in cash and cash equivalents reflected the deployment of the excess liquidity previously held at June 30, 2015.  Such funds represented a portion of the new capital proceeds raised through the Company’s second-step conversion and stock offering that were temporarily held in cash equivalents at June 30, 2015 and subsequently deployed into the loan portfolio during the first quarter of fiscal 2016.

Investments that formally qualify as liquid assets are supplemented by our portfolio of securities classified as available for sale whose balances at September 30, 2015 included $329.3 million of mortgage-backed securities and $416.5 million of debt securities that can readily be sold if necessary.

At September 30, 2015, the Company had outstanding commitments to originate and purchase loans totaling approximately $112.7 million compared to $67.2 million at June 30, 2015. Construction loans in process and unused lines of credit were $468,000 and $56.7 million, respectively, at September 30, 2015 compared to $775,000 and $58.2 million, respectively, at June 30, 2015. The Company is also subject to the contingent liabilities resulting from letters of credit whose outstanding balances totaled $159,000 at September 30, 2015 and June 30, 2015.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

As noted earlier, for the three months ended September 30, 2015, the balance of total deposits decreased by $1.8 million to $2.46 billion.  The net decrease in deposits reflected a net decrease in interest-bearing deposits totaling $11.2 million that was partially offset by an increase in non-interest-bearing checking accounts totaling $9.4 million.  The net decrease in interest-bearing deposits reflected a decrease in interest-bearing checking accounts and savings and club accounts of $13.7 million and $9.0 million, respectively, which was partially offset by an increase in certificates of deposit totaling $11.5 million.  The balance of certificates of deposit with maturities within one year decreased to $501.2 million at September 30, 2015 compared to $526.5 million at June 30, 2015 with such balances representing 49.5 % and 52.6% of total certificates of deposit at the close of each period, respectively.

Advances from the FHLB of New York are available to supplement the Company’s liquidity position and, to the extent that maturing deposits do not remain with the Company, management may replace such funds with advances. As of September 30, 2015, the Company’s outstanding balance of FHLB advances, excluding fair value adjustments, totaled $586.4 million. Of these advances, $145.0 million represent long-term, fixed-rate advances maturing in 2023 that have terms enabling the FHLB to call the borrowing at their option prior to maturity. The remaining balance of long-term, fixed rate advances totaled $15.7 million representing four separate advances maturing during the fiscal years 2016, 2017 and 2018. Short-term FHLB advances at September 30, 2015 included $425.0 million of fixed-rate borrowings which have been effectively converted to longer duration funding sources through the use of interest rate derivatives.  The remaining $647,000 of advances represents one fixed-rate, amortizing advance maturing in 2021.

The Company has the capacity to borrow additional funds from the FHLB, through a line of credit or by taking additional short-term or long-term advances. Such borrowings are an option available to management if funding needs change or to lengthen the duration of liabilities. Most of the Bank’s mortgage-backed and debt securities are held in safekeeping at the FHLB of New York with a majority being available as collateral if necessary. In addition to the FHLB advances, the Bank has other borrowings totaling $42.0 million at September 30, 2015 representing overnight “sweep account” balances linked to customer demand deposits.

Consistent with its goals to operate a sound and profitable financial organization, the Bank actively seeks to maintain its status as a well-capitalized institution in accordance with regulatory standards. As of September 30, 2015, the Company and Bank exceeded all capital requirements of federal banking regulators.

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The following table sets forth the Bank’s capital position at September 30, 2015 and June 30, 2015, as compared to the minimum regulatory capital requirements that were in effect as of those dates:

	At September 30, 2015
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	700,238		26.97	%	$	207,693		8.00	%	$	259,616		10.00	%
Tier 1 capital (to risk-weighted assets)		682,548		26.29	%		155,770		6.00	%		207,693		8.00	%
Common equity tier 1 capital (to risk-weighted assets)		682,548		26.29	%		116,827		4.50	%		168,751		6.50	%
Tier 1 capital (to adjusted total assets)		682,548		16.40	%		166,478		4.00	%		208,098		5.00	%

	At June 30, 2015
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	695,002		30.42	%	$	182,764		8.00	%	$	228,455		10.00	%
Tier 1 capital (to risk-weighted assets)		679,396		29.74	%		137,073		6.00	%		182,764		8.00	%
Common equity tier 1 capital (to risk-weighted assets)		679,396		29.74	%		102,805		4.50	%		148,496		6.50	%
Tier 1 capital (to adjusted total assets)		679,396		16.47	%		165,045		4.00	%		206,306		5.00	%

The following table sets forth the Company’s capital position at September 30, 2015 and June 30, 2015, as compared to the minimum regulatory capital requirements that were in effect as of those dates:

	At September 30, 2015
	Actual					For Capital Adequacy Purposes
	Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	1,081,657		41.65	%	$	207,751		8.00	%
Tier 1 capital (to risk-weighted assets)		1,063,967		40.97	%		155,813		6.00	%
Common equity tier 1 capital (to risk-weighted assets)		1,063,967		40.97	%		116,860		4.50	%
Tier 1 capital (to adjusted total assets)		1,063,967		25.55	%		166,579		4.00	%

	At June 30, 2015
	Actual					For Capital Adequacy Purposes
	Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	1,077,938		47.16	%	$	182,857		8.00	%
Tier 1 capital (to risk-weighted assets)		1,062,332		46.48	%		137,143		6.00	%
Common equity tier 1 capital (to risk-weighted assets)		1,062,332		46.48	%		102,857		4.50	%
Tier 1 capital (to adjusted total assets)		1,062,332		25.82	%		164,587		4.00	%

In July 2013, the OCC and the other federal bank regulatory agencies issued a final rule to revise the risk-based and leverage capital requirements and the method for calculating risk-weighted assets, to make them consistent with the agreements that were reached by the international Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act.  The final rule applies to all depository institutions, top-tier bank holding companies and top-tier savings and loan holding companies with total consolidated assets of $1.0 billion or more (“banking organizations”).  Among other things, the rule establishes a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), sets the minimum leverage ratio for all banking organizations at a uniform 4% of total assets, increases the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted

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assets) and assigns a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property.  The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt out is exercised which the Company and the Bank intend to exercise.  The final rule limits a banking organization’s dividends, stock repurchases and other capital distributions, and certain discretionary bonus payments to executive officers, if the bank organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above regulatory minimum risk-based requirements.  The final rule became effective for us on January 1, 2015. The capital conservation buffer requirement will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer requirement will be effective.

Off-Balance Sheet Arrangements

We are a party to financial instruments with off-balance-sheet risk in the normal course of our business of investing in loans and securities as well as in the normal course of maintaining and improving Kearny Bank’s facilities. These financial instruments include significant purchase commitments, such as commitments related to capital expenditure plans and commitments to purchase securities or mortgage-backed securities and commitments to extend credit to meet the financing needs of our customers. At September 30, 2015, we had no significant off-balance sheet commitments to purchase securities or for capital expenditures.

Recent Accounting Pronouncements

For a discussion of the expected impact of recently issued accounting pronouncements that have yet to be adopted by the Company, please refer to Note 6 to the unaudited consolidated financial statements.

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ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Qualitative Analysis. The majority of our assets and liabilities are sensitive to changes in interest rates. Consequently, interest rate risk is a significant form of business risk that we must manage. Interest rate risk is generally defined in regulatory nomenclature as the risk to our earnings or capital arising from the movement of interest rates. It arises from several risk factors including: the differences between the timing of rate changes and the timing of cash flows (re-pricing risk); the changing rate relationships among different yield curves that affect bank activities (basis risk); the changing rate relationships across the spectrum of maturities (yield curve risk); and the interest-rate-related options embedded in bank products (option risk).

Regarding the risk to our earnings, movements in interest rates significantly influence the amount of net interest income we recognized. Net interest income is the difference between:

· the interest income recorded on our interest-earning assets, such as loans, securities and other interest-earning assets; and

· the interest expense recorded on our interest-bearing liabilities, such as interest-bearing deposits and borrowings.

Net interest income is, by far, our largest revenue source to which we add our non-interest income and from which we deduct our provision for loan losses, non-interest expense and income taxes to calculate net income. Movements in market interest rates, and the effect of such movements on the risk factors noted above, significantly influence the “spread” between the interest we earned on our loans, securities and other interest-earning assets and the interest paid on our deposits and borrowings. Movements in interest rates that increase, or “widen”, that net interest spread enhance our net income. Conversely, movements in interest rates that reduce, or “tighten”, that net interest spread adversely impact our net income.

For any given movement in interest rates, the resulting degree of movement in an institution’s yield on interest-earning assets compared with that of its cost of interest-bearing liabilities determines if an institution is deemed “asset sensitive” or “liability sensitive”. An asset sensitive institution is one whose yield on interest-earning assets reacts more quickly to movements in interest rates than its cost of interest-bearing liabilities. In general, the earnings of asset sensitive institutions are enhanced by upward movements in interest rates through which the yield on its interest-earning assets increases faster than its cost of interest-bearing liabilities resulting in a widening of its net interest spread. Conversely, the earnings of asset sensitive institutions are adversely impacted by downward movements in interest rates through which the yield on its interest-earning assets decreases faster than its cost of interest-bearing liabilities resulting in a tightening of its net interest spread.

In contrast, a liability sensitive institution is one whose cost of interest-bearing liabilities reacts more quickly to movements in interest rates than its yield on interest-earning assets. In general, the earnings of liability sensitive institutions are enhanced by downward movements in interest rates through which the cost of interest-bearing liabilities decreases faster than its yield on its interest-earning assets resulting in a widening of its net interest spread. Conversely, the earnings of liability sensitive institutions are adversely impacted by upward movements in interest rates through which the cost of interest-bearing liabilities increases faster than its yield on its interest-earning assets resulting in a tightening of its net interest spread.

The degree of an institution’s asset or liability sensitivity is traditionally represented by its “gap position”. In general, gap is a measurement that describes the net mismatch between the balance of an institution’s interest-earning assets that are maturing and/or re-pricing over a selected period of time compared to that of its interest-costing liabilities. Positive gaps represent the greater dollar amount of interest-earning assets maturing or re-pricing over the selected period of time than interest-costing liabilities. Conversely, negative gaps represent the greater dollar amount of interest-costing liabilities than interest-earning assets maturing or re-pricing over the selected period of time. The degree to which an institution is asset or liability sensitive is reported as a negative or positive percentage of assets, respectively. The industry commonly focuses on cumulative one-year and three-year gap percentages as fundamental indicators of interest rate risk sensitivity.

Based upon the findings of our internal interest rate risk analysis, we are considered to be liability sensitive. Liability sensitivity characterizes the balance sheets of many thrift institutions and is generally attributable to the comparatively shorter contractual maturity and/or re-pricing characteristics of the institution’s deposits and borrowings versus those of its loans and investment securities.

With respect to the maturity and re-pricing of our interest-bearing liabilities, at September 30, 2015, $501.2 million or 49.5% of our certificates of deposit mature within one year with an additional $214.9 million or 21.2% maturing after one year but within two years. The remaining $297.1 million or 29.3 % of certificates, at September 30, 2015 have remaining terms to maturity exceeding two years. Based on our current term deposit offering rates, the aggregate balance of certificates maturing over the next 12 months are projected to re-price to a level at or below their current rates to the extent they remain with us at maturity and are renewed at the same original term to maturity.

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Excluding fair value adjustments, the balance of FHLB advances totaled $586.4 million at September 30, 2015 and comprised both short-term and long-term advances with fixed rates of interest. Short-term FHLB advances generally have original maturities of less than one year and may include overnight borrowings which Kearny Bank typically utilizes to address short term funding needs as they arise. At September 30, 2015, Kearny Bank had a total of $425.0 million of short-term FHLB advances which represented 90-day FHLB term advances that are generally forecasted to be periodically redrawn at maturity for the same 90 day term as the original advance. Based on this presumption, Kearny Bank has utilized interest rate swaps to effectively extend the duration of each of these advances at the time they were drawn to effectively fix their cost for a period of five years.

Long-term advances generally include advances with original maturities of greater than one year. At September 30, 2015, our outstanding balance of long-term FHLB advances totaled $161.4 million. Such advances included $145.0 million of fixed-rate, callable term advances and $15.7 million of fixed-rate, non-callable term advances as well as a $647,000 fixed-rate amortizing advance.

With respect to the maturity and re-pricing of our interest-earning assets, at September 30, 2015, $43.9 million, or 1.8 % of our total loans will reach their contractual maturity dates within one year with the remaining $2.37 billion, or 98.2 % of total loans having remaining terms to contractual maturity in excess of one year. Of loans maturing after one year, $1.42 billion had fixed rates of interest while the remaining $952.1 million had adjustable rates of interest, with such loans representing 58.8 % and 39.4% of total loans, respectively.

At September 30, 2015, $27.3 million or 1.9 % of our securities will reach their contractual maturity dates within one year with the remaining $1.38 billion, or 98.1 % of total securities, having remaining terms to contractual maturity in excess of one year. Of the latter category, $1.01 billion comprising 72.1 % of our total securities had fixed rates of interest while the remaining $364.8 million comprising 26.0 % of our total securities had adjustable or floating rates of interest.

At September 30, 2015, mortgage-related assets, including mortgage loans and mortgage-backed securities, totaled $3.06 billion and comprise 77.8% of total earning assets. In addition to remaining term to maturity and interest rate type as discussed above, other factors contribute significantly to the level of interest rate risk associated with mortgage-related assets. In particular, the scheduled amortization of principal and the borrower’s option to prepay any or all of a mortgage loan’s principal balance, where applicable, have a significant effect on the average lives of such assets and, therefore, the interest rate risk associated with them. In general, the prepayment rate on lower yielding assets tends to slow as interest rates rise due to the reduced financial incentive for borrowers to refinance their loans. By contrast, the prepayment rate of higher yielding assets tends to accelerate as interest rates decline due to the increased financial incentive for borrowers to prepay or refinance their loans to comparatively lower interest rates. These characteristics tend to diminish the benefits of falling interest rates to liability sensitive institutions while exacerbating the adverse impact of rising interest rates.

We generally retained our liability sensitivity during the first three months of fiscal 2016 while the degree of that sensitivity, as measured internally by the institution’s one-year and three-year gap percentages increased during the period. Specifically, our cumulative one-year gap percentage changed to (10.74)% at September 30, 2015 from (5.51)% at June 30, 2015 while our cumulative three-year gap percentage changed to (4.35)% from (0.15)% over those same comparative periods.  Our one-year and three-year gap measures do not currently reflect the effect of our interest rate derivatives and the effective extension of liability duration arising from their use as cash flow hedges.  The increase in the gap percentages between periods partly reflected the effects of a decrease in short-term liquid assets attributable to the deployment of the excess liquidity that was temporarily held in cash and cash equivalents at June 30, 2015.  Such funds represented a portion of the new capital proceeds raised through the Company’s second-step conversion and stock offering that were subsequently deployed into the loan portfolio during the first quarter of fiscal 2016.

As a liability-sensitive institution, our net interest spread is generally expected to benefit from overall reductions in market interest rates. Conversely, our net interest spread is generally expected to be adversely impacted by overall increases in market interest rates. However, the general effects of movements in market interest rates can be diminished or exacerbated by “nonparallel” movements in interest rates across a yield curve. Nonparallel movements in interest rates generally occur when shorter term and longer term interest rates move disproportionately in a directionally consistent manner. For example, shorter term interest rates may decrease faster than longer term interest rates which would generally result in a “steeper” yield curve. Alternately, nonparallel movements in interest rates may also occur when shorter term and longer term interest rates move in a directionally inconsistent manner. For example, shorter term interest rates may rise while longer term interest rates remain steady or decline which would generally result in a “flatter” yield curve.

At its extreme, a yield curve may become “inverted” for a period of time during which shorter term interest rates exceed longer term interest rates. While inverted yield curves do occasionally occur, they are generally considered a “temporary” phenomenon portending a change in economic conditions that will restore the yield curve to its normal, positively sloped shape.

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In general, the interest rates paid on our deposits tend to be determined based upon the level of shorter term interest rates. By contrast, the interest rates earned on our loans and investment securities generally tend to be based upon the level of comparatively longer term interest rates to the extent such assets are fixed-rate in nature. As such, the overall “spread” between shorter term and longer term interest rates when earning assets and costing liabilities re-price greatly influences our overall net interest spread over time. In general, a wider spread between shorter term and longer term interest rates, implying a “steeper” yield curve, is beneficial to our net interest spread. By contrast, a narrower spread between shorter term and longer term interest rates, implying a “flatter” yield curve, or a negative spread between those measures, implying an inverted yield curve, adversely impacts our net interest spread.

We continue to execute various strategies to mitigate the risk to our net interest rate spread and margin arising from adverse changes in interest rates and the shape of the yield curve. Such strategies include deploying excess liquidity in higher yielding interest-earning assets, such as commercial loans and investment securities, while continuing to generally maintain our cost of interest-bearing liabilities at low levels while extending their duration through various deposit pricing strategies. For example, we have extended the duration of our wholesale funding sources through cost effective use of interest rate derivatives that effectively converted short-term wholesale funding sources into longer-term, fixed-rate funding sources.

Notwithstanding these efforts, the risk of further net interest rate spread and margin compression is significant as the yield on our interest-earning assets continues to reflect the impact of the greater declines in longer term market interest rates in recent years compared to the lesser concurrent reductions in shorter term market interest rates that affect the cost of our interest-bearing liabilities. In particular, our ability to further reduce the cost of our interest-bearing deposits is increasingly limited since most deposit offering rates are already well below 1.00% at September 30, 2015. Moreover, our liability sensitivity may adversely affect net income in the future when market interest rates ultimately increase from their historical lows and our cost of interest-bearing liabilities may rise faster than our yield on interest-earning assets.

Given the inherent liability sensitivity of our balance sheet, our business plan also calls for greater expansion into C&I lending. Toward that end, we are continuing to expand our retail lending resources with an experienced team of business lenders focused on the origination of floating-rate and shorter-term fixed-rate loans and the corresponding core deposit account balances typically associated with such relationships. As a complement to this retail business lending strategy, we have implemented strategies through which floating-rate and other shorter-term fixed-rate C&I loans are acquired through wholesale resources.

We maintain an Asset/Liability Management (“ALM”) Program to address all matters relating to the management of interest rate risk and liquidity risk. The program is overseen by the Board of Directors through our Interest Rate Risk Management Committee comprising five members of the Board with our Chief Operating Officer, Chief Financial Officer and Chief Risk Officer participating as management’s liaison to the committee. The committee meets quarterly to address management of our assets and liabilities, including review of our liquidity and interest rate risk profiles, loan and deposit pricing and production volumes, investment and wholesale funding strategies, and a variety of other asset and liability management topics. The results of the committee’s quarterly review are reported to the full Board, which adjusts our ALM policies and strategies, as it considers necessary and appropriate.

The Board of Directors has assigned the responsibility for the operational aspects of the ALM program to our Asset/Liability Management Committee (“ALCO”). The ALCO is a management committee comprising the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Lending Officer, Branch Administrator, Chief Risk Officer, Chief Investment Officer/Treasurer and Controller. Additional members of our management team may be asked to participate on the ALCO, as appropriate.

Responsibilities conveyed to the ALCO by the Board of Directors include:

· developing ALM-related policies and associated operating procedures and controls that will identify and measure the risks associated with ALM while establishing the limits and thresholds relating thereto;

· developing ALM-related operating strategies and tactics designed to manage the relevant risks within the applicable policy thresholds and limits while supporting the achievement of the goals and objectives of our strategic business plan;

· developing, implementing and maintaining a management- and Board-level ALM monitoring and reporting system;

· ensuring that the ALCO and the Board of Directors are kept abreast of current technologies, procedures and industry best practices that may be utilized to carry out their ALM-related duties and responsibilities;

· ensuring the periodic independent validation of Kearny Bank’s ALM risk management policies and operating practices and controls; and

· conducting periodic ALCO committee meetings to review all matters relating to ALM strategies and risk management activities.

- 78 -

Quantitative Analysis. The quantitative analysis regularly conducted by management measures interest rate risk from both a capital and earnings perspective. With regard to capital, our internal interest rate risk analysis calculates the sensitivity of our Economic Value of Equity (“EVE”) ratio to movements in interest rates. EVE represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities adjusted for the value of off-balance sheet contracts. The EVE ratio represents the dollar amount of our EVE divided by the present value of our total assets for a given interest rate scenario. In essence, EVE attempts to quantify our economic value using a discounted cash flow methodology while the EVE ratio reflects that value as a form of capital ratio. The degree to which the EVE ratio changes for any hypothetical interest rate scenario from its “base case” measurement is a reflection of an institution’s sensitivity to interest rate risk.

Our EVE ratio is first calculated in a “base case” scenario that assumes no change in interest rates as of the measurement date. The model then measures the change in the EVE ratio throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve up and down 100, 200 and 300 basis points with additional scenarios modeled where appropriate. The model requires that interest rates remain positive for all points along the yield curve for each rate scenario which may preclude the modeling of certain “down rate” scenarios during periods of lower market interest rates. Our interest rate risk management policy establishes acceptable floors for the EVE ratio and caps for the maximum change in the EVE ratio throughout the scenarios modeled.

As illustrated in the tables below, our EVE would be negatively impacted by an increase in interest rates. This result is expected given our liability sensitivity noted earlier. Specifically, based upon the comparatively shorter maturity and/or re-pricing characteristics of our interest-bearing liabilities compared with that of our interest-earning assets, an upward movement in interest rates would have a disproportionately adverse impact on the present value of our assets compared to the beneficial impact arising from the reduced present value of our liabilities. Hence, our EVE and EVE ratio decline in the increasing interest rate scenarios. Historically low interest rates at September 30, 2015 and June 30, 2015 precluded the modeling of certain scenarios as parallel downward shifts in the yield curve of 100 basis points or more would result in negative interest rates for many points along that curve.

The following tables present the results of our internal EVE analysis as of September 30, 2015 and June 30, 2015, respectively.

	At September 30, 2015
	Economic Value of Equity ("EVE")									EVE as a % of Present Value of Assets
Change in Interest Rates (1)	$ Amount of EVE		$ Change in EVE			% Change in EVE				EVE Ratio			Change in EVE Ratio
	(Dollars in Thousands)
+300 bps		872,426		(203,628	)		(19	)	%		22.66	%		(298	)	bps
+200 bps		947,423		(128,631	)		(12	)	%		23.88	%		(176	)	bps
+100 bps		1,018,976		(57,078	)		(5	)	%		24.94	%		(70	)	bps
0 bps		1,076,054	-			-					25.64	%	-

	At June 30, 2015
	Economic Value of Equity ("EVE")									EVE as a % of Present Value of Assets
Change in Interest Rates (1)	$ Amount of EVE		$ Change in EVE			% Change in EVE				EVE Ratio			Change in EVE Ratio
	(Dollars in Thousands)
+300 bps		913,154		(176,828	)		(16	)	%		23.98	%		(244	)	bps
+200 bps		977,112		(112,870	)		(10	)	%		24.96	%		(146	)	bps
+100 bps		1,039,242		(50,740	)		(5	)	%		25.84	%		(58	)	bps
0 bps		1,089,982	-			-					26.42	%	-

__________________________________

(1) The (100) bps, (200) bps and (300) bps scenarios are not shown due to the low prevailing interest rate environment.

As seen in the table above, the dollar amount of EVE and the EVE ratio have declined between comparative periods across all scenarios modeled while the sensitivity of those measures to movements in interest rates between comparative periods increased.  The changes to these risk measurements between comparative periods primarily reflected the deployment of the excess liquidity held at June 30, 2015, as discussed earlier.  As modeled in our EVE-based analysis, short-term liquid assets are generally expected to retain their market value throughout all rate change scenarios.  The excess balances of such funds held at June 30, 2015 temporarily reduced the overall sensitivity of earning assets and EVE to movements in interest rates as measured on that date.

- 79 -

There are numerous internal and external factors that may contribute to changes in an institution’s EVE ratio and its sensitivity. Internally, changes in the composition and allocation of an institution’s balance sheet and the interest rate risk characteristics of its components can significantly alter the exposure to interest rate risk as quantified by the changes in the EVE sensitivity measures. Toward that end, the reported increase in EVE sensitivity also reflect the aggregate effects of the various balance sheet management strategies we have undertaken to deploy capital through profitable growth and diversification strategies while managing our exposure to interest rate risk.  Changes to certain external factors, most notably changes in the level of market interest rates and overall shape of the yield curve, can also alter the projected cash flows of the institution’s interest-earning assets and interest-costing liabilities and the associated present values thereof. Changes in internal and external factors from period to period can complement one another’s effects to reduce overall sensitivity, partly or wholly offset one another’s effects, or exacerbate one another’s adverse effects and thereby increase the institution’s exposure to interest rate risk as quantified by EVE sensitivity measures.

Our internal interest rate risk analysis also includes an “earnings-based” component.  A quantitative, earnings-based approach to measuring interest rate risk is strongly encouraged by bank regulators as a complement to the “EVE-based” methodology. However, there are no commonly accepted “industry best practices” that specify the manner in which “earnings-based” interest rate risk analysis should be performed with regard to certain key modeling variables. Such variables include, but are not limited to, those relating to rate scenarios (e.g., immediate and permanent rate “shocks” versus gradual rate change “ramps”, “parallel” versus “nonparallel” yield curve changes), measurement periods (e.g., one year versus two year, cumulative versus noncumulative), measurement criteria (e.g., net interest income versus net income) and balance sheet composition and allocation (“static” balance sheet, reflecting reinvestment of cash flows into like instruments, versus “dynamic” balance sheet, reflecting internal budget and planning assumptions).

The absence of a commonly shared, industry-standard set of analysis criteria and assumptions on which to base an “earnings-based” analysis could result in inconsistent or misinterpreted disclosure concerning an institution’s level of interest rate risk. Consequently, we limit the presentation of our earnings-based interest rate risk analysis to the scenarios presented in the table below. Consistent with the EVE analysis above, such scenarios utilize immediate and permanent rate “shocks” that result in parallel shifts in the yield curve. For each scenario, projected net interest income is measured over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into the same instruments. Product pricing and earning asset prepayment speeds are appropriately adjusted for each rate scenario.

As illustrated in the tables below, at June 30, 2015, our net interest income (“NII”) would have been positively impacted by a parallel upward shift in the yield curve.  The “asset sensitivity” as measured from an NII perspective at June 30, 2015 reflected the effect of the temporary increase in short-term liquid assets that were held at that time.  In general, the forecasted interest income generated by these additional liquid assets would immediately and fully reflect any corresponding changes in market interest rates.  

During the first quarter of fiscal 2016, the excess liquidity previously held in cash equivalents was redeployed into the loan portfolio which had the effect of increasing the forecasted level of interest income across all rate scenarios modeled while significantly decreasing the level of NII-based asset sensitivity at September 30, 2015 compared to that reported at June 30, 2015,  As indicated in the tables below, our NII would no longer be significantly impacted, positively or negatively, by a parallel upward shift in the yield curve at September 30, 2015.   The changes in the sensitivity of net interest income to movements in interest rates also reflect the aggregate impact of the various balance sheet management strategies we have undertaken to deploy capital through profitable growth and diversification strategies while also reflecting the effects of changes in the level of market interest rates and overall shape of the yield curve.

- 80 -

To some degree, these findings contrast with those of the EVE analysis discussed above which indicates that the institution was generally liability sensitive at both June 30, 2015 and September 30, 2015.  To a large extent, the level and direction of risk exposure assessed by the NII-based and EVE-based methodologies may differ based on the comparative terms over which risk exposure is measured by those methodologies.  As noted earlier, EVE-based analysis generally takes a longer-term view of interest rate risk by measuring changes in the present value of cash flows of interest-earning assets and interest-bearing liabilities over their expected lives.  By contrast, the NII-based analysis presented below takes a comparatively shorter-term view of interest rate risk by measuring the forecasted changes in the net interest income generated by those interest-earning assets and interest-bearing liabilities over a one-year period.

			At September 30, 2015
			Net Interest Income ("NII")
Change in Interest Rates (1)	Balance Sheet Composition	Measurement Period	$ Amount of NII		$ Change in NII			% Change in NII
			(Dollars In Thousands)
+300 bps	Static	One Year	$	93,136	$	773			0.84		%
+200 bps	Static	One Year		92,857		494			0.53
+100 bps	Static	One Year		92,311		(52	)		(0.06	)
0 bps	Static	One Year		92,363		-			-

			At June 30, 2015
			Net Interest Income ("NII")
Change in Interest Rates (1)	Balance Sheet Composition	Measurement Period	$ Amount of NII		$ Change in NII		% Change in NII
			(Dollars In Thousands)
+300 bps	Static	One Year	$	93,543	$	8,524		10.03	%
+200 bps	Static	One Year		90,586		5,567		6.55
+100 bps	Static	One Year		87,420		2,401		2.82
0 bps	Static	One Year		85,019		-		-

__________________________________

(1) The (100) bps, (200) bps and (300) bps scenarios are not shown due to the low prevailing interest rate environment.

Notwithstanding the rate change scenarios presented in the EVE and earnings-based analyses above, future interest rates and their effect on net portfolio value or net interest income are not predictable. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, prepayments and deposit run-offs and should not be relied upon as indicative of actual results. Certain shortcomings are inherent in this type of computation. Although certain assets and liabilities may have similar maturity or periods of re-pricing, they may react at different times and in different degrees to changes in market interest rates. The interest rate on certain types of assets and liabilities, such as demand deposits and savings accounts, may fluctuate in advance of changes in market interest rates, while rates on other types of assets and liabilities may lag behind changes in market interest rates. Certain assets, such as adjustable-rate mortgages, generally have features which restrict changes in interest rates on a short-term basis and over the life of the asset. In the event of a change in interest rates, prepayments and early withdrawal levels could deviate significantly from those assumed in making calculations set forth above. Additionally, an increased credit risk may result as the ability of many borrowers to service their debt may decrease in the event of an interest rate increase.

- 81 -

ITEM 4.

CONTROLS AND PROCEDURES

As of the end of the period covered by the report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended). Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended September 30, 2015, there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 82 -

PART II

ITEM 1. Legal Proceedings

At September 30, 2015, neither the Company nor the Bank were 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 of the Company and the Bank.

ITEM 1A. Risk Factors

Management of the Company does not believe there have been any material changes with regard to the Risk Factors previously disclosed under Item 1A of the Company’s Form 10-K for the year ended June 30, 2015 previously filed with the Securities and Exchange Commission.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

ISSUER PURCHASES OF EQUITY SECURITIES

The following table reports information regarding repurchases of the Company’s common stock during the quarter ended September 30, 2015.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)		Maximum Number of Shares that May Yet Be Purchased Under the  Plans or Programs
July 1-31, 2015		-	$	-		-		-
August 1-31, 2015		-	$	-		-		-
September 1-30, 2015		-	$	-		-		-
Total		-	$	-		-		-

____________________

(1) On December 2, 2013, the Company announced the authorization of an eighth repurchase program for up to 1,052,748 shares or 5% of shares outstanding.   The plan was discontinued in conjunction with the closing of the Company’s second step conversion and stock offering on May 18, 2015.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

None.

 ITEM 6. Exhibits

The following Exhibits are filed as part of this report:

3.1 Articles of Incorporation of Kearny Financial Corp. (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 333-198602), originally filed on September 5, 2014)

3.2 Bylaws of Kearny Financial Corp. (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 333-198602), originally filed on September 5, 2014)

4 Form of Common Stock Certificate of Kearny Financial Corp. (Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 333-198602), originally filed on September 5, 2014)

- 83 -

10.1 Amended and Restated Employment Agreement between Kearny Bank and Craig Montanaro dated May 18, 2015 (Incorporated by reference to Exhibit 10.1 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015) † 

10.2 Amended and Restated Employment Agreement between Kearny Financial Corp. and Craig Montanaro dated May 18, 2015 (Incorporated by reference to Exhibit 10.2 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.3 Employment Agreement between Kearny Bank and William C. Ledgerwood dated May 18, 2015 (Incorporated by reference to Exhibit 10.3 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.4 Employment Agreement between Kearny Bank and Patrick M. Joyce dated May 18, 2015 (Incorporated by reference to Exhibit 10.4 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.5 Employment Agreement between Kearny Bank and Eric B. Heyer dated May 18, 2015 (Incorporated by reference to Exhibit 10.5 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.6 Employment Agreement between Kearny Bank and Erika K. Parisi dated May 18, 2015 (Incorporated by reference to Exhibit 10.6 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.7 Form of Two Year Change in Control Agreement between Kearny Bank and Certain Officers (Incorporated by reference to Exhibit 10.7 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.8 Directors Consultation and Retirement Plan as Amended and Restated (Incorporated by reference to Exhibit 10.8 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.9 Amended and Restated Benefit Equalization Plan for Pension Plan (Incorporated by reference to Exhibit 10.9 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.10 Amended and Restated Benefits Equalization Plan Related to the Employee Stock Ownership Plan (Incorporated by reference to Exhibit 10.10 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.11 Kearny Financial Corp. 2005 Stock Compensation and Incentive Plan (Incorporated by reference to Exhibit 4.1 to Kearny Financial Corp.’s Registration Statement on Form S-8 (File No. 333-130204), originally filed on December 8, 2005) †

10.12 Amendment Number One to 2005 Stock Compensation and Incentive Plan (Incorporated by reference to Exhibit 10.12 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.13 Kearny Bank Director Life Insurance Agreement (Incorporated by reference to Exhibit 10.1 to Kearny Financial Corp.’s Current Report on Form 8-K (File No. 000-51093), originally filed on August 18, 2005) †

10.14 Form of Amendment to Kearny Bank Director Life Insurance Agreement (Incorporated by reference to Exhibit 10.14 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.15 Kearny Bank Executive Life Insurance Agreement (Incorporated by reference to Exhibit 10.2 to Kearny Financial Corp.’s Current Report on Form 8-K (File No. 000-51093), originally filed on August 18, 2005) †

10.16 Form of Amendment to Kearny Bank Executive Life Insurance Agreement (Incorporated by reference to Exhibit 10.16 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015)†

10.17 Kearny Bank Officer Change in Control Severance Pay Plan (Incorporated by reference to Exhibit 10.17 to Kearny Financial Corp.’s Annual Report on Form 10-K (File No. 001-37399), originally filed on September 14, 2015) †

10.18 Kearny Bank Senior Management Incentive Compensation Plan (Incorporated by reference to Exhibit 10.1 to Kearny Financial Corp.’s Current Report on Form 8-K (File No. 000-51093), originally filed on September 2, 2014) †

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

- 84 -

101 The following materials from the Company’s Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholder’s Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements. 

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Labels Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

___________________________

† Management contract or compensatory plan or arrangement required to be filed as an exhibit.

- 85 -

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.

	KEARNY FINANCIAL CORP.
Date: November 9, 2015	By:	/s/ Craig L. Montanaro
		Craig L. Montanaro
		President and Chief Executive Officer
		(Duly authorized officer and principal executive officer)
Date: November 9, 2015	By:	/s/ Eric B. Heyer
		Eric B. Heyer
		Executive Vice President and
		Chief Financial Officer
		(Principal financial and accounting officer)

- 86 -

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Craig L. Montanaro, certify that:

1. I have reviewed this Form 10-Q of Kearny Financial Corp.;

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 period 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. 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 of the end of the period covered by this report based on such evaluation; and

d. 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.

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:

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: November 9, 2015	/s/ Craig L. Montanaro
	Craig L. Montanaro
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Eric B. Heyer, certify that:

1. I have reviewed this Form 10-Q of Kearny Financial Corp.;

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 period 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. 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 of the end of the period covered by this report based on such evaluation; and

d. 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.

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:

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: November 9, 2015	/s/ Eric B. Heyer
	Eric B. Heyer
	Executive Vice President and
	Chief Financial Officer
	(Principal financial officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kearny Financial Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Craig L. Montanaro, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: November 9, 2015	/s/ Craig L. Montanaro
	Craig L. Montanaro
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kearny Financial Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric B. Heyer, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: November 9, 2015	/s/ Eric B. Heyer
	Eric B. Heyer
	Executive Vice President and
	Chief Financial Officer

XML

Securities Available for Sale - Stratification by Contractual Maturity of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 20,007
Due after one year through five years, Amortized Cost	50,778
Due after five years through ten years, Amortized Cost	155,585
Due after ten years, Amortized Cost	196,419
Securities available for sale, Amortized Cost	422,789	$ 422,903
Due in one year or less, Fair Value	20,053
Due after one year through five years, Fair Value	50,098
Due after five years through ten years, Fair Value	153,828
Due after ten years, Fair Value	192,491
Fair Value	$ 416,470	$ 420,660

XML

Loan Quality and Allowance for Loan Losses - Troubled Debt Restructurings of Loans Receivable (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan
Originated and Purchased Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Loan	2	2
Pre-modification outstanding recorded investment	$ 693	$ 664
Post-modification outstanding recorded investment	431	673
Charge offs against the allowance for loan loss recognized at modification	$ 231	$ 33
Loans Acquired at Fair Value [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Loan	3
Pre-modification outstanding recorded investment	$ 2,285
Post-modification outstanding recorded investment	$ 2,290
Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Loan	35
Residential Mortgage [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Loan	2	2
Pre-modification outstanding recorded investment	$ 693	$ 664
Post-modification outstanding recorded investment	431	673
Charge offs against the allowance for loan loss recognized at modification	$ 231	$ 33
Commercial Mortgage [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Modifications [Line Items]
Number of loans | Loan	3
Pre-modification outstanding recorded investment	$ 2,285
Post-modification outstanding recorded investment	$ 2,290

XML

Loan Quality and Allowance for Loan Losses - Impaired Loans Acquired Accretable Yield Change (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Receivables [Abstract]
Beginning balance	$ 1,189	$ 1,891
Accretion to interest income	(105)	(64)
Ending balance	$ 1,084	$ 1,827

XML

Borrowings - Schedule of Fixed Rate Advances from FHLB (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Debt Disclosure [Abstract]
Federal Home Loan Bank Advances Maturities Summary Due In Remainder Of Fiscal Year	$ 432,500	$ 382,500
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two	3,000	3,000
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Three	5,225	5,225
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Six	647	671
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Eight	145,000	145,000
Federal Home Loan Bank, Advances, Total	586,372	536,396
Federal Home Loan Bank, Advances, Fair Value Adjustments	4	9
Total Federal Home Loan Bank, Advances, After Fair Value Adjustments	$ 586,376	$ 536,405
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due within One Year of Balance Sheet Date	0.51%	0.41%
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, One to Two Years from Balance Sheet Date	1.05%	1.05%
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Two to Three Years from Balance Sheet Date	1.18%	1.18%
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Five to Six Years from Balance Sheet Date	4.94%	4.94%
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, Seven to Eight to Years From Balance Sheet Date	3.04%	3.04%
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Weighted Average Interest Rate	1.15%	1.13%

XML

Impairment of Securities - Schedule of Temporary Impairment Losses, Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months: Fair Value	$ 24,973	$ 217,771
Less than 12 Months: Unrealized Losses	131	1,624
12 Months or More: Fair Value	103,084	151,008
12 Months or More: Unrealized Losses	251	683
Total: Fair Value	128,057	368,779
Total: Unrealized Losses	382	2,307
Collateralized Mortgage Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months: Fair Value	4,579
Less than 12 Months: Unrealized Losses	2
12 Months or More: Fair Value	39	41
12 Months or More: Unrealized Losses	1	1
Total: Fair Value	4,618	41
Total: Unrealized Losses	3	1
Residential Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months: Fair Value	2,031	142,789
Less than 12 Months: Unrealized Losses	30	556
Total: Fair Value	2,031	142,789
Total: Unrealized Losses	30	556
Commercial Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months: Fair Value		18,792
Less than 12 Months: Unrealized Losses		228
Total: Fair Value		18,792
Total: Unrealized Losses		228
Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Total: Unrealized Losses	349	1,522
Debt Securities [Member] | U.S. Agency Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
12 Months or More: Fair Value	94,948	143,002
12 Months or More: Unrealized Losses	40	332
Total: Fair Value	94,948	143,002
Total: Unrealized Losses	40	332
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months: Fair Value	18,363	56,190
Less than 12 Months: Unrealized Losses	99	840
12 Months or More: Fair Value	8,097	7,965
12 Months or More: Unrealized Losses	210	350
Total: Fair Value	26,460	64,155
Total: Unrealized Losses	$ 309	$ 1,190

XML

Fair Value of Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured At Fair Value on a Recurring Basis

Those assets and liabilities measured at fair value on a recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,159		$	-	$	7,159
Obligations of state and political subdivisions		-		27,466			-		27,466
Asset-backed securities		-		85,178			-		85,178
Collateralized loan obligations		-		127,412			-		127,412
Corporate bonds		-		161,174			-		161,174
Trust preferred securities		-		8,081			-		8,081
Total debt securities		-		416,470			-		416,470
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		69,313			-		69,313
Residential pass-through securities		-		250,505			-		250,505
Commercial pass-through securities		-		9,492			-		9,492
Total mortgage-backed securities		-		329,310			-		329,310
Total securities available for sale	$	-	$	745,780		$	-	$	745,780
Derivative instruments
Interest rate swaps	$	-	$	(16,659	)	$	-	$	(16,659	)
Interest rate caps		-		390			-		390
Total derivatives	$	-	$	(16,269	)	$	-	$	(16,269	)

	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,263		$	-	$	7,263
Obligations of state and political subdivisions		-		26,835			-		26,835
Asset-backed securities		-		88,032			-		88,032
Collateralized loan obligations		-		128,171			-		128,171
Corporate bonds		-		162,608			-		162,608
Trust preferred securities		-		7,751			-		7,751
Total debt securities		-		420,660			-		420,660
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		71,877			-		71,877
Residential pass-through securities		-		263,613			-		263,613
Commercial pass-through securities		-		11,129			-		11,129
Total mortgage-backed securities		-		346,619			-		346,619
Total securities available for sale	$	-	$	767,279		$	-	$	767,279
Derivative instruments
Interest rate swaps	$	-	$	(9,511	)	$	-	$	(9,511	)
Interest rate caps		-		794			-		794
Total derivatives	$	-	$	(8,717	)	$	-	$	(8,717	)

Schedule of Assets and Liabilities Measured At Fair Value on a Non-recurring Basis

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	8,636	$	8,636

	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	9,742	$	9,742
Real estate owned	$	-	$	-	$	547	$	547

Schedule of Quantitative Information about Level 3 Fair Value Measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:

	September 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	8,636	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		8.21	%

	June 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	9,742	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		9.45	%
Real estate owned	$	547	Market valuation of property	(3)	Direct disposal costs	(2)	8%		8.00	%

_____________________________

(1) The fair value of impaired loans is generally determined based on an independent appraisal of the market value of a loan’s underlying collateral.

(2) The fair value basis of impaired loans and real estate owned is adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees, with such cost estimates generally ranging from 6% to 10% of collateral or property market value.

(3) The fair value basis of real estate owned is generally determined based upon the lower of an independent appraisal of the property’s market value or the applicable listing price or contracted sales price.

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The carrying amounts and fair values of financial instruments are as follows:

	September 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	102,630		$	102,630		$	102,630	$	-		$	-
Debt securities available for sale		416,470			416,470			-		416,470			-
Mortgage-backed securities   available for sale		329,310			329,310			-		329,310			-
Debt securities held to maturity		228,597			228,757			-		228,757			-
Mortgage-backed securities   held to maturity		429,912			436,762			-		436,762			-
Loans receivable		2,399,822			2,382,594			-		-			2,382,594
FHLB Stock		29,717			29,717			-		-			29,717
Interest receivable		11,058			11,058			11,058		-			-
Financial liabilities:
Deposits (1)		2,463,890			2,474,572			1,450,660		-			1,023,912
Borrowings		628,351			643,227			-		-			643,227
Interest payable on borrowings		1,114			1,114			1,114		-			-
Derivative instruments:
Interest rate swaps		(16,659	)		(16,659	)		-		(16,659	)		-
Interest rate caps		390			390			-		390			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $78,000 at September 30, 2015.

	June 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	340,136		$	340,136		$	340,136	$	-		$	-
Debt securities available for sale		420,660			420,660			-		420,660			-
Mortgage-backed securities   available for sale		346,619			346,619			-		346,619			-
Debt securities held to maturity		219,862			218,366			-		218,366			-
Mortgage-backed securities   held to maturity		443,479			445,501			-		445,501			-
Loans receivable		2,087,258			2,069,209			-		-			2,069,209
FHLB Stock		27,468			27,468			-		-			27,468
Interest receivable		9,873			9,873			9,873		-			-
Financial liabilities:
Deposits (1)		2,465,650			2,476,425			1,463,974		-			1,012,451
Borrowings		571,499			585,209			-		-			585,209
Interest payable on borrowings		1,020			1,020			1,020		-			-
Derivative instruments:
Interest rate swaps		(9,511	)		(9,511	)		-		(9,511	)		-
Interest rate caps		794			794			-		794			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $80,000 at June 30, 2015.

XML

Derivative Instruments and Hedging Activities - Additional Information (Detail)	Sep. 30, 2015 USD ($) Instruments	Jun. 30, 2015 USD ($) Instruments Derivative
Derivative [Line Items]
Estimated net fair value of derivatives	$ (16,269,000)	$ (8,717,000)
Asset position	390,000	794,000
Liability position	16,700,000	9,500,000
Counter Party [Member]
Derivative [Line Items]
Derivative asset, collateral, Obligation to return cash, offset	16,800,000	$ 8,700,000
Other Assets [Member]
Derivative [Line Items]
Number of interest rate derivative instruments held | Derivative		2
Other Liabilities [Member]
Derivative [Line Items]
Number of interest rate derivative instruments held | Derivative		8
Estimated net fair value of derivatives	$ (16,269,000)	$ (8,717,000)
Interest Rate Swaps [Member]
Derivative [Line Items]
Number of interest rate derivative instruments held | Instruments	8
Estimated net fair value of derivatives	$ (16,659,000)	(9,511,000)
Interest Rate Swaps [Member] | Other Liabilities [Member]
Derivative [Line Items]
Estimated net fair value of derivatives	(16,659,000)	$ (9,511,000)
Interest Rate Caps [Member]
Derivative [Line Items]
Number of interest rate derivative instruments held | Instruments		2
Estimated net fair value of derivatives	390,000	$ 794,000
Interest Rate Caps [Member] | Other Liabilities [Member]
Derivative [Line Items]
Estimated net fair value of derivatives	$ 390,000	$ 794,000

XML

Net Income Per Common Share ("EPS") (Tables)

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share Computations

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:

	Three Months Ended September 30, 2015
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,976
Basic earnings per share, income   available to common stockholders	$	2,976		89,590	$	0.03
Effect of dilutive securities:
Stock options		-		29
	$	2,976		89,619	$	0.03

	Three Months Ended September 30, 2014
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,923
Basic earnings per share, income   available to common stockholders	$	2,923		92,452	$	0.03
Effect of dilutive securities:
Stock options		-		547
	$	2,923		92,999	$	0.03

XML

Loan Quality and Allowance for Loan Losses - Credit-Rating Classification of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 2,414,932	$ 2,102,548
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,086	5,711
Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,580	4,291
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	619,207	592,321
Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,595,989	1,309,103
Commercial Business [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	97,245	99,451
Home Equity Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	71,347	70,257
Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	21,478	21,414
Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,227,041	1,902,430
Originated and Purchased Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,740	3,328
Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,501	4,204
Originated and Purchased Loans [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,208,183	1,882,772
Originated and Purchased Loans [Member] | Non-Classified [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,594	3,328
Originated and Purchased Loans [Member] | Non-Classified [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,493	4,201
Originated and Purchased Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,558	1,399
Originated and Purchased Loans [Member] | Special Mention [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	146
Originated and Purchased Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	17,206	17,992
Originated and Purchased Loans [Member] | Substandard [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5	3
Originated and Purchased Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	94	267
Originated and Purchased Loans [Member] | Doubtful [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	3
Originated and Purchased Loans [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	18,858	19,658
Originated and Purchased Loans [Member] | Total Classified Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	146
Originated and Purchased Loans [Member] | Total Classified Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	8	3
Originated and Purchased Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	561,136	530,310
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	549,597	518,592
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	948	955
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	10,591	10,763
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	11,539	11,718
Originated and Purchased Loans [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,510,344	1,218,025
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,505,511	1,213,307
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	361	256
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,381	4,195
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	91	267
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,833	4,718
Originated and Purchased Loans [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	70,742	71,658
Originated and Purchased Loans [Member] | Commercial Business [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	69,697	69,662
Originated and Purchased Loans [Member] | Commercial Business [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross		58
Originated and Purchased Loans [Member] | Commercial Business [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,045	1,938
Originated and Purchased Loans [Member] | Commercial Business [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,045	1,996
Originated and Purchased Loans [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	65,874	64,025
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	64,688	62,902
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	54	56
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,132	1,067
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,186	1,123
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	11,704	10,880
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	11,603	10,780
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	49	74
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	52	26
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	101	100
Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	187,891	200,118
Loans Acquired at Fair Value [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,346	2,383
Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	79	87
Loans Acquired at Fair Value [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	164,077	171,254
Loans Acquired at Fair Value [Member] | Non-Classified [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	54	60
Loans Acquired at Fair Value [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	7,703	12,102
Loans Acquired at Fair Value [Member] | Special Mention [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	333	346
Loans Acquired at Fair Value [Member] | Special Mention [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	21	24
Loans Acquired at Fair Value [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	16,105	16,756
Loans Acquired at Fair Value [Member] | Substandard [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,013	2,037
Loans Acquired at Fair Value [Member] | Substandard [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4	3
Loans Acquired at Fair Value [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	6	6
Loans Acquired at Fair Value [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	23,814	28,864
Loans Acquired at Fair Value [Member] | Total Classified Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	2,346	2,383
Loans Acquired at Fair Value [Member] | Total Classified Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	25	27
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	58,071	62,011
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	56,663	60,593
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	370	372
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,038	1,046
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,408	1,418
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	85,645	91,078
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	79,943	82,068
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	123	3,425
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,579	5,585
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,702	9,010
Loans Acquired at Fair Value [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	26,503	27,793
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	14,080	13,749
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	6,538	7,617
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,879	6,421
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	6	6
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	12,423	14,044
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,473	6,232
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	4,872	5,588
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	76	76
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	525	568
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	601	644
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	9,774	10,534
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Non-Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	8,465	9,196
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	242	242
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	1,067	1,096
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Total Classified Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 1,309	$ 1,338

XML

Securities Held to Maturity - Stratification by Contractual Maturity of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 228,597	$ 219,862
Held-to-maturity Securities, Fair Value Total	228,757	218,366
Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Due in one year or less, Amortized Cost	6,356
Due after one year through five years, Amortized Cost	154,535
Due after five years through ten years, Amortized Cost	41,391
Due after ten years, Amortized Cost	26,315
Amortized Cost	228,597	219,862
Due in one year or less, Fair Value	6,360
Due after one year through five years, Fair Value	154,490
Due after five years through ten years, Fair Value	41,539
Due after ten years, Fair Value	26,368
Held-to-maturity Securities, Fair Value Total	$ 228,757	$ 218,366

XML

Plan of Conversion and Stock Offering - Additional Information (Detail) $ / shares in Units, $ in Millions			3 Months Ended
	May. 18, 2015 USD ($) $ / shares shares	May. 05, 2015 USD ($) shares	Sep. 30, 2015 USD ($) shares	Jun. 30, 2015 shares
Plan Of Reorganization [Abstract]
Number of common stock issued for funding of KeamyBank Foundation | shares	500,000	500,000
Cash contribution to KeamyBank Foundation	$ 5.0	$ 5.0
Number of common stock shares sold | shares	71,750,000
Common stock price | $ / shares	$ 10.00
Proceeds from common stock shares sold	$ 717.5
Stock issued during period, value, Employee Stock Ownership Plan | shares	3,612,500
Stock issued during period, shares, Employee Stock Ownership Plan	$ 36.1
Value of the additional common stock shares issued	$ 5.0
Conversion and public offering costs			$ 10.7
Increase in equity capital			670.7
Additional investment in bank's common equity			$ 353.4
Common stock, shares outstanding | shares			93,528,092	93,528,092
Share exchange shares exchanged | shares			21,278,092
Stock exchange ratio			1.3804

XML

Loan Quality and Allowance for Loan Losses - Performance Status of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	$ 2,414,932	$ 2,102,548
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	5,086	5,711
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	4,580	4,291
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	619,207	592,321
Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	1,595,989	1,309,103
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	97,245	99,451
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	71,347	70,257
Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	21,478	21,414
Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	2,227,041	1,902,430
Originated and Purchased Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	2,740	3,328
Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	4,501	4,204
Originated and Purchased Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	2,214,404	1,888,894
Originated and Purchased Loans [Member] | Performing Financing Receivable [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	2,740	3,328
Originated and Purchased Loans [Member] | Performing Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	4,497	4,203
Originated and Purchased Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	12,637	13,536
Total nonperforming	12,637	13,536
Originated and Purchased Loans [Member] | Nonperforming Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	4	1
Total nonperforming	4	1
Originated and Purchased Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	561,136	530,310
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	553,431	522,474
Originated and Purchased Loans [Member] | Residential Mortgage [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	7,705	7,836
Total nonperforming	7,705	7,836
Originated and Purchased Loans [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	1,510,344	1,218,025
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	1,506,945	1,214,653
Originated and Purchased Loans [Member] | Commercial Mortgage [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,399	3,372
Total nonperforming	3,399	3,372
Originated and Purchased Loans [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	70,742	71,658
Originated and Purchased Loans [Member] | Commercial Business [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	69,718	69,819
Originated and Purchased Loans [Member] | Commercial Business [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,024	1,839
Total nonperforming	1,024	1,839
Originated and Purchased Loans [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	65,874	64,025
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	65,421	63,563
Originated and Purchased Loans [Member] | Home Equity Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	453	462
Total nonperforming	453	462
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	11,704	10,880
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	11,652	10,854
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	52	26
Total nonperforming	52	26
Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	187,891	200,118
Loans Acquired at Fair Value [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	2,346	2,383
Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	79	87
Loans Acquired at Fair Value [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	179,019	190,759
Loans Acquired at Fair Value [Member] | Performing Financing Receivable [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	333	346
Loans Acquired at Fair Value [Member] | Performing Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	77	86
Loans Acquired at Fair Value [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	8,872	9,359
Total nonperforming	8,872	9,359
Loans Acquired at Fair Value [Member] | Nonperforming Financing Receivable [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,013	2,037
Total nonperforming	2,013	2,037
Loans Acquired at Fair Value [Member] | Nonperforming Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2	1
Total nonperforming	2	1
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	58,071	62,011
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	57,958	61,895
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	113	116
Total nonperforming	113	116
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	85,645	91,078
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	81,696	87,273
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,949	3,805
Total nonperforming	3,949	3,805
Loans Acquired at Fair Value [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	26,503	27,793
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	24,918	25,688
Loans Acquired at Fair Value [Member] | Commercial Business [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,585	2,105
Total nonperforming	1,585	2,105
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	5,473	6,232
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	5,181	5,882
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	292	350
Total nonperforming	292	350
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	9,774	10,534
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	8,856	9,589
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	918	945
Total nonperforming	$ 918	$ 945

XML

Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Total accumulated other comprehensive (loss) income	$ (13,421)	$ (7,761)
Net Unrealized Gain on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income, before tax	(1,598)	(147)
Tax effect	660	(108)
Total accumulated other comprehensive (loss) income	(938)	(255)
Net Unrealized Loss on Securities Transferred from Available for Sale to Held to Maturity [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income, before tax	(1,095)	(1,065)
Tax effect	448	435
Total accumulated other comprehensive (loss) income	(647)	(630)
Fair Value Adjustments on Derivatives [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income, before tax	(18,622)	(11,130)
Tax effect	7,607	4,547
Total accumulated other comprehensive (loss) income	(11,015)	(6,583)
Benefit Plan Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income, before tax	(1,388)	(494)
Tax effect	567	201
Total accumulated other comprehensive (loss) income	$ (821)	$ (293)

XML

Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured At Fair Value on a Non-recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring	$ 8,636	$ 9,742
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring	$ 8,636	9,742
Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring		547
Real Estate Owned [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring		$ 547

XML

Loan Quality and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2015 USD ($) Segment Loan	Jun. 30, 2015 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance of impaired loans	$ 41,361	$ 43,230
Unsecured consumer and commercial loans loss, days past due	120 days
Percentage of valuation allowance	100.00%
Number of loan portfolio segments | Segment	7
Annual net charge-off rates	2 years
Qualitative and environmental adjustment for allowance for loan loss calculation	For each category of the loan portfolio, a level of risk, developed from a number of internal and external resources, is assigned to each of the qualitative criteria utilizing a scale ranging from zero (negligible risk) to 15 (high risk), with higher values potentially ascribed to exceptional levels of risk that exceed the standard range, as appropriate. The sum of the risk values, expressed as a whole number, is multiplied by .01% to arrive at an overall environmental loss factor, expressed in basis points, for each loan category.
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance of impaired loans	$ 16,740	17,132
Number of loans | Loan	35
Carrying value	$ 4,400
Residential Mortgage [Member] | Single-family Property [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of loans | Loan	1
Carrying value	$ 395
Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance of impaired loans	18,481	19,066
Financing receivable, allowance for credit losses, individually evaluated for impairment	$ 281	397
Number of loans | Loan	3
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance of impaired loans	$ 146	147
Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with deteriorated credit quality	8,243	8,363
Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with deteriorated credit quality	113	116
Nonperforming Financing Receivable [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance of impaired loans	8,243	8,363
Financing receivable, recorded investment, nonaccrual status	8,872	9,359
Nonperforming Financing Receivable [Member] | Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable, recorded investment, nonaccrual status	113	116
Nonperforming Financing Receivable [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with deteriorated credit quality	9,873	9,900
Uncertain Cash Flow [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable, recorded investment, nonaccrual status	1,302	1,322
Financing receivable, allowance for credit losses, individually evaluated for impairment	$ 0	$ 81

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net Income	$ 2,976	$ 2,923
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	736	752
Net amortization of premiums, discounts and loan fees and costs	1,117	593
Deferred income taxes	(282)	2,339
Amortization of intangible assets	43	28
Amortization of benefit plans’ unrecognized net (gain) loss	(458)	20
Provision for Loan Losses	2,641	858
Loss on write-down and sales of real estate owned		151
Realized gain on sale of loans	(72)
Proceeds from sale of loans	878
Realized gain on disposition of premises and equipment	(14)	(25)
Increase in cash surrender value of bank owned life insurance	(1,390)	(652)
ESOP, stock option plan and restricted stock plan expenses	708	679
Increase in interest receivable	(1,185)	(294)
Increase in other assets	(13,448)	(3,650)
Increase in interest payable	92	54
Increase in other liabilities	12,654	1,752
Net Cash Provided by Operating Activities	4,996	5,528
Cash Flows from Investing Activities:
Purchase of debt securities available for sale		(3,968)
Proceeds from repayments of debt securities available for sale	141	43
Principal repayments on mortgage-backed securities available for sale	19,591	19,144
Purchase of debt securities held to maturity	(9,140)	(350)
Proceeds from repayments of debt securities held to maturity	350	1,257
Purchases of mortgage-backed securities held to maturity		(16,695)
Principal repayments on mortgage-backed securities held to maturity	12,964	3,202
Purchase of loans	(303,549)	(12,868)
Net increase in loans receivable	(13,389)	(17,667)
Proceeds from sale of real estate owned		17
Additions to premises and equipment	(812)	(457)
Proceeds from cash settlement of premises and equipment	14	44
Purchase of FHLB stock	(2,475)	(6,480)
Redemption of FHLB stock	226	5,087
Net Cash Used in Investing Activities	(296,079)	(29,691)
Cash Flows from Financing Activities:
Net decrease in deposits	(1,740)	(30,568)
Repayment of term FHLB advances	(375,024)	(303,023)
Proceeds from term FHLB advances	425,000	375,000
Net change in overnight borrowings		(17,000)
Increase (decrease) in other short-term borrowings	6,881	(2,369)
Increase (decrease) in advance payments by borrowers for taxes	249	(302)
Issuance of common stock of Kearny Financial Corp. from treasury		1,365
Cash dividends paid	(1,789)
Payment of cash for exercise of stock options		(7,188)
Net Cash Provided by Financing Activities	53,577	15,915
Net Decrease in Cash and Cash Equivalents	(237,506)	(8,248)
Cash and Cash Equivalents - Beginning	340,136	135,034
Cash and Cash Equivalents - Ending	102,630	126,786
Cash paid during the year for:
Income taxes, net of refunds	1,656	1,000
Interest	6,967	6,119
Non-cash investing and financing activities:
Acquisition of real estate owned in settlement of loans	$ 786	$ 118

XML

Fair Value of Financial Instruments - Schedule of Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Impaired Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Assets, Fair Value Disclosure, Non-recurring	$ 8,636	$ 9,742
Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Direct Disposal Costs [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Assets, Fair Value Disclosure, Non-recurring	$ 8,636	$ 9,742
Valuation Techniques	Market valuation of underlying collateral
Unobservable Input	Direct disposal costs
Weighted Average	8.21%	9.45%
Impaired Loans [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	6.00%	6.00%
Impaired Loans [Member] | Minimum [Member] | Market Valuation of Underlying Collateral [Member] | Direct Disposal Costs [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	6.00%	6.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	10.00%	10.00%
Impaired Loans [Member] | Maximum [Member] | Market Valuation of Underlying Collateral [Member] | Direct Disposal Costs [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	10.00%	10.00%
Real Estate Owned [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Assets, Fair Value Disclosure, Non-recurring		$ 547
Real Estate Owned [Member] | Market Valuation of Property [Member] | Direct Disposal Costs [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Assets, Fair Value Disclosure, Non-recurring		$ 547
Range		8.00%
Weighted Average		8.00%
Real Estate Owned [Member] | Minimum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range		6.00%
Real Estate Owned [Member] | Maximum [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range		10.00%

XML

Securities Held to Maturity - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Proceeds from sales of securities held to maturity	$ 0	$ 0
Securities Held to Maturity [Member] | Public Funds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Available for sale securities pledged to secure public funds on deposit	7,900,000		$ 7,900,000
Securities Held to Maturity [Member] | FHLB of New York [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held to maturity securities pledged as collateral	$ 126,700,000		$ 126,900,000

XML

Loan Quality and Allowance for Loan Losses (Tables)

3 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Impaired Loans Acquired Accretable Yield Change

The following table presents the changes in the accretable yield relating to the acquired credit-impaired loans for the three months ended September 30, 2015 and September 30, 2014.

	Three Months Ended September 30,
	2015			2014
	(In Thousands)
Beginning balance	$	1,189		$	1,891
Accretion to interest income		(105	)		(64	)
Disposals		-			-
Reclassifications from nonaccretable difference		-			-
Ending balance	$	1,084		$	1,827

Allowance for Loan Losses and Loans Receivable

The following tables present the balance of the allowance for loan losses at September 30, 2015 and June 30, 2015 based upon the calculation methodology described above. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates as well as the activity in the allowance for loan losses for the three months ended September 30, 2015 and September 30, 2014. Unless otherwise noted, the balance of loans reported in the tables below excludes yield adjustments and the allowance for loan loss.

Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	218	$	142	$	-	$	22	$	89	$	-	$	-	$	471
Loans collectively evaluated   for impairment		2,158		12,576		24		969		185		36		26		15,974
Allowance for loan losses on   originated and purchased loans		2,376		12,718		24		991		274		36		26		16,445
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		-		-		-		-		-
Other acquired loans individually   evaluated for impairment		-		108		-		171		-		2		-		281
Acquired loans collectively   evaluated for impairment		93		355		5		416		37		57		1		964
Allowance for loan losses on   loans acquired at fair value		93		463		5		587		37		59		1		1,245
Total allowance for loan losses	$	2,469	$	13,181	$	29	$	1,578	$	311	$	95	$	27	$	17,690

Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage			Commercial Mortgage		Construction			Commercial Business			Home Equity Loans		Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2015:
At June 30, 2015:
Allocated	$	2,210		$	11,120	$	34		$	1,860		$	260	$	106		$	16	$	15,606
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses		2,210			11,120		34			1,860			260		106			16		15,606
Total charge offs		(538	)		-		-			(96	)		-		(24	)		-		(658	)
Total recoveries		-			-		-			59			41		-			1		101
Total allocated provisions		797			2,061		(5	)		(245	)		10		13			10		2,641
Total unallocated provisions		-			-		-			-			-		-			-		-
At September 30, 2015:
Allocated		2,469			13,181		29			1,578			311		95			27		17,690
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses	$	2,469		$	13,181	$	29		$	1,578		$	311	$	95		$	27	$	17,690

Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage			Commercial Mortgage			Construction			Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2014:
At June 30, 2014:
Allocated	$	2,729		$	7,737		$	67		$	1,284		$	460		$	88		$	22	$	12,387
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses		2,729			7,737			67			1,284			460			88			22		12,387
Total charge offs		(303	)		(346	)		-			(192	)		-			-			-		(841	)
Total recoveries		-			-			-			2			-			-			-		2
Total allocated provisions		149			551			(9	)		268			(98	)		(4	)		1		858
Total unallocated provisions		-			-			-			-			-			-			-		-
At September 30, 2014:
Allocated		2,575			7,942			58			1,362			362			84			23		12,406
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses	$	2,575		$	7,942		$	58		$	1,362		$	362		$	84		$	23	$	12,406

Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,073	$	3,464	$	-	$	1,024	$	972	$	52	$	-	$	15,585
Loans collectively evaluated   for impairment		551,063		1,506,880		2,740		69,718		64,902		11,652		4,501		2,211,456
Total originated and purchased   loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		113		314		-		7,816		-		-		-		8,243
Other acquired loans individually   evaluated for impairment		-		4,334		2,013		512		476		918		-		8,253
Acquired loans collectively   evaluated for impairment		57,958		80,997		333		18,175		4,997		8,856		79		171,395
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580		2,414,932
Unamortized yield   adjustments																2,580
Loans receivable, net of    yield adjustments															$	2,417,512

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	116	$	415	$	-	$	30	$	12	$	-	$	-	$	573
Loans collectively evaluated   for impairment		2,031		10,162		29		989		184		33		15		13,443
Allowance for loan losses on   originated and purchased loans		2,147		10,577		29		1,019		196		33		15		14,016
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		81		-		-		-		81
Other acquired loans individually   evaluated for impairment		-		114		-		259		-		24		-		397
Acquired loans collectively   evaluated for impairment		63		429		5		501		64		49		1		1,112
Allowance for loan losses on   loans acquired at fair value		63		543		5		841		64		73		1		1,590
Total allowance for loan losses	$	2,210	$	11,120	$	34	$	1,860	$	260	$	106	$	16	$	15,606

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,240	$	3,439	$	-	$	1,861	$	991	$	26	$	-	$	16,557
Loans collectively evaluated   for impairment		520,070		1,214,586		3,328		69,797		63,034		10,854		4,204		1,885,873
Total originated and purchased   loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		116		318		-		7,929		-		-		-		8,363
Other acquired loans individually   evaluated for impairment		-		4,196		2,037		927		534		945		-		8,639
Acquired loans collectively   evaluated for impairment		61,895		86,564		346		18,937		5,698		9,589		87		183,116
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291		2,102,548
Unamortized yield   adjustments																316
Loans receivable, net of    yield adjustments															$	2,102,864

Credit-Rating Classification of Loans Receivable

The following tables present key indicators of credit quality regarding the Company’s loan portfolio based upon loan classification and contractual payment status at September 30, 2015 and June 30, 2015.

Credit-Rating Classification of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	549,597	$	1,505,511	$	2,594	$	69,697	$	64,688	$	11,603	$	4,493	$	2,208,183
Classified:
Special Mention		948		361		146		-		54		49		-		1,558
Substandard		10,591		4,381		-		1,045		1,132		52		5		17,206
Doubtful		-		91		-		-		-		-		3		94
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,539		4,833		146		1,045		1,186		101		8		18,858
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Non-classified		56,663		79,943		-		14,080		4,872		8,465		54		164,077
Classified:
Special Mention		370		123		333		6,538		76		242		21		7,703
Substandard		1,038		5,579		2,013		5,879		525		1,067		4		16,105
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,408		5,702		2,346		12,423		601		1,309		25		23,814
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Credit-Rating Classification of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	518,592	$	1,213,307	$	3,328	$	69,662	$	62,902	$	10,780	$	4,201	$	1,882,772
Classified:
Special Mention		955		256		-		58		56		74		-		1,399
Substandard		10,763		4,195		-		1,938		1,067		26		3		17,992
Doubtful		-		267		-		-		-		-		-		267
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,718		4,718		-		1,996		1,123		100		3		19,658
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Non-classified		60,593		82,068		-		13,749		5,588		9,196		60		171,254
Classified:
Special Mention		372		3,425		346		7,617		76		242		24		12,102
Substandard		1,046		5,585		2,037		6,421		568		1,096		3		16,756
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,418		9,010		2,383		14,044		644		1,338		27		28,864
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

Contractual Payment Status of Loans Receivable

Contractual Payment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	554,530	$	1,508,899	$	2,740	$	70,434	$	65,377	$	11,562	$	4,497	$	2,218,039
Past due:
30-59 days		1,583		65		-		-		44		90		-		1,782
60-89 days		614		-		-		22		-		-		1		637
90+ days		4,409		1,380		-		286		453		52		3		6,583
Total past due		6,606		1,445		-		308		497		142		4		9,002
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Current		57,291		84,076		1,582		24,802		5,194		8,563		72		181,580
Past due:
30-59 days		780		259		-		148		17		12		4		1,220
60-89 days		-		438		-		-		76		281		1		796
90+ days		-		872		764		1,553		186		918		2		4,295
Total past due		780		1,569		764		1,701		279		1,211		7		6,311
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Contractual Payment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	524,780	$	1,216,644	$	3,328	$	70,529	$	63,457	$	10,828	$	4,199	$	1,893,765
Past due:
30-59 days		420		256		-		23		114		-		4		817
60-89 days		685		-		-		-		-		26		-		711
90+ days		4,425		1,125		-		1,106		454		26		1		7,137
Total past due		5,530		1,381		-		1,129		568		52		5		8,665
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Current		61,895		89,796		1,610		25,721		5,993		9,577		85		194,677
Past due:
30-59 days		116		-		-		-		134		12		-		262
60-89 days		-		468		-		-		-		-		1		469
90+ days		-		814		773		2,072		105		945		1		4,710
Total past due		116		1,282		773		2,072		239		957		2		5,441
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

Performance Status of Loans Receivable

The following tables present information relating to the Company’s nonperforming and impaired loans at September 30, 2015 and June 30, 2015. Loans reported as “90+ days past due accruing” in the table immediately below are also reported in the preceding contractual payment status table under the heading “90+ days past due”.

Performance Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	553,431	$	1,506,945	$	2,740	$	69,718	$	65,421	$	11,652	$	4,497	$	2,214,404
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,705		3,399		-		1,024		453		52		4		12,637
Total nonperforming		7,705		3,399		-		1,024		453		52		4		12,637
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Performing		57,958		81,696		333		24,918		5,181		8,856		77		179,019
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		113		3,949		2,013		1,585		292		918		2		8,872
Total nonperforming		113		3,949		2,013		1,585		292		918		2		8,872
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Performance Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	522,474	$	1,214,653	$	3,328	$	69,819	$	63,563	$	10,854	$	4,203	$	1,888,894
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,836		3,372		-		1,839		462		26		1		13,536
Total nonperforming		7,836		3,372		-		1,839		462		26		1		13,536
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Performing		61,895		87,273		346		25,688		5,882		9,589		86		190,759
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		116		3,805		2,037		2,105		350		945		1		9,359
Total nonperforming		116		3,805		2,037		2,105		350		945		1		9,359
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

Impairment Status of Loans Receivable

Impairment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	551,063		$	1,506,880		$	2,740	$	69,718		$	64,902		$	11,652		$	4,501	$	2,211,456
Impaired loans:
Impaired loans with no allowance   for impairment		7,434			2,062			-		1,002			880			52			-		11,430
Impaired loans with allowance   for impairment:
Recorded investment		2,639			1,402			-		22			92			-			-		4,155
Allowance for impairment		(218	)		(142	)		-		(22	)		(89	)		-			-		(471	)
Balance of impaired loans net   of allowance for impairment		2,421			1,260			-		-			3			-			-		3,684
Total impaired loans, excluding   allowance for impairment:		10,073			3,464			-		1,024			972			52			-		15,585
Total originated and   purchased loans		561,136			1,510,344			2,740		70,742			65,874			11,704			4,501		2,227,041
Loans acquired at fair value:
Non-impaired loans		57,958			80,997			333		18,175			4,997			8,856			79		171,395
Impaired loans:
Impaired loans with no allowance   for impairment		113			4,213			2,013		8,192			476			484			-		15,491
Impaired loans with allowance   for impairment:
Recorded investment		-			435			-		136			-			434			-		1,005
Allowance for impairment		-			(108	)		-		(171	)		-			(2	)		-		(281	)
Balance of impaired loans net   of allowance for impairment		-			327			-		(35	)		-			432			-		724
Total impaired loans, excluding   allowance for impairment:		113			4,648			2,013		8,328			476			918			-		16,496
Total loans acquired at   fair value		58,071			85,645			2,346		26,503			5,473			9,774			79		187,891
Total loans	$	619,207		$	1,595,989		$	5,086	$	97,245		$	71,347		$	21,478		$	4,580	$	2,414,932
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,594		$	4,160		$	-	$	1,079		$	995		$	52		$	-	$	22,880
Loans acquired at fair value		146			4,954			2,113		9,794			499			975			-		18,481
Total impaired loans	$	16,740		$	9,114		$	2,113	$	10,873		$	1,494		$	1,027		$	-	$	41,361

Impairment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	520,070		$	1,214,586		$	3,328	$	69,797		$	63,034		$	10,854		$	4,204	$	1,885,873
Impaired loans:
Impaired loans with no allowance   for impairment		8,387			1,777			-		1,418			905			26			-		12,513
Impaired loans with allowance   for impairment:
Recorded investment		1,853			1,662			-		443			86			-			-		4,044
Allowance for impairment		(116	)		(415	)		-		(30	)		(12	)		-			-		(573	)
Balance of impaired loans net   of allowance for impairment		1,737			1,247			-		413			74			-			-		3,471
Total impaired loans, excluding   allowance for impairment:		10,240			3,439			-		1,861			991			26			-		16,557
Total originated and   purchased loans		530,310			1,218,025			3,328		71,658			64,025			10,880			4,204		1,902,430
Loans acquired at fair value:
Non-impaired loans		61,895			86,564			346		18,937			5,698			9,589			87		183,116
Impaired loans:
Impaired loans with no allowance   for impairment		116			4,072			2,037		8,214			534			488			-		15,461
Impaired loans with allowance   for impairment:
Recorded investment		-			442			-		642			-			457			-		1,541
Allowance for impairment		-			(114	)		-		(340	)		-			(24	)		-		(478	)
Balance of impaired loans net   of allowance for impairment		-			328			-		302			-			433			-		1,063
Total impaired loans, excluding   allowance for impairment:		116			4,514			2,037		8,856			534			945			-		17,002
Total loans acquired at   fair value		62,011			91,078			2,383		27,793			6,232			10,534			87		200,118
Total loans	$	592,321		$	1,309,103		$	5,711	$	99,451		$	70,257		$	21,414		$	4,291	$	2,102,548
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,985		$	4,103		$	-	$	2,036		$	1,014		$	26		$	-	$	24,164
Loans acquired at fair value		147			4,759			2,118		10,506			561			975			-		19,066
Total impaired loans	$	17,132		$	8,862		$	2,118	$	12,542		$	1,575		$	1,001		$	-	$	43,230

Impairment Status of Loans Receivable
Period Ended September 30, 2015 and 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
For the three months ended   September 30, 2015:
Average balance of impaired loans	$	10,037	$	7,973	$	2,025	$	10,290	$	1,519	$	958	$	-	$	32,802
Interest earned on impaired loans	$	70	$	12	$	-	$	217	$	14	$	-	$	-	$	313
For the three months ended   September 30, 2014:
Average balance of impaired loans	$	13,169	$	8,407	$	1,432	$	11,903	$	1,639	$	1,055	$	-	$	37,605
Interest earned on impaired loans	$	29	$	46	$	-	$	189	$	11	$	-	$	-	$	275

Troubled Debt Restructurings of Loans Receivable

The following table presents information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2015 and 2014 and any defaults during those periods of TDRs that were restructured within 12 months of the date of default.

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	693	$	-	$	-	$	-	$	-	$	-	$	-	$	693
Post-modification outstanding   recorded investment		431		-		-		-		-		-		-	$	431
Charge offs against the allowance   for loan loss recognized at   modification		231		-		-		-		-		-		-	$	231
Loans acquired at fair value
Number of loans		-		3		-		-		-		-		-		3
Pre-modification outstanding   recorded investment	$	-	$	2,285	$	-	$	-	$	-	$	-	$	-	$	2,285
Post-modification outstanding   recorded investment		-		2,290		-		-		-		-		-	$	2,290
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	664	$	-	$	-	$	-	$	-	$	-	$	-	$	664
Post-modification outstanding   recorded investment		673		-		-		-		-		-		-	$	673
Charge offs against the allowance   for loan loss recognized at   modification		33		-		-		-		-		-		-	$	33
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Pre-modification outstanding   recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Post-modification outstanding   recorded investment		-		-		-		-		-		-		-	$	-
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

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Impairment of Securities (Tables)

3 Months Ended

Sep. 30, 2015

Securities Available for Sale [Member]

Schedule of Fair Values and Gross Unrealized Losses on Investments

The following two tables summarize the fair values and gross unrealized losses within the available for sale and held to maturity portfolios

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,510	$	10	$	673	$	5	$	2,183	$	15
Obligations of state and political   subdivisions		7,501		123		3,031		101		10,532		224
Asset-backed securities		60,361		1,969		14,685		561		75,046		2,530
Collateralized loan obligations		43,350		405		69,213		851		112,563		1,256
Corporate bonds		24,487		530		93,590		1,455		118,077		1,985
Trust preferred securities		-		-		7,064		833		7,064		833
Collateralized mortgage obligations		-		-		50,649		719		50,649		719
Residential pass-through securities		21		1		48,995		380		49,016		381
Total	$	137,230	$	3,038	$	287,900	$	4,905	$	425,130	$	7,943

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,533	$	7	$	695	$	4	$	2,228	$	11
Obligations of state and political   subdivisions		20,575		515		2,943		189		23,518		704
Asset-backed securities		23,855		293		20,067		168		43,922		461
Collateralized loan obligations		49,694		117		59,551		511		109,245		628
Corporate bonds		19,880		120		74,295		754		94,175		874
Trust preferred securities		-		-		6,734		1,160		6,734		1,160
Collateralized mortgage obligations		5,479		29		52,105		1,197		57,584		1,226
Residential pass-through securities		61,896		1,140		50,513		883		112,409		2,023
Total	$	182,912	$	2,221	$	266,903	$	4,866	$	449,815	$	7,087

Securities Held to Maturity [Member]

Schedule of Fair Values and Gross Unrealized Losses on Investments

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	94,948	$	40	$	94,948	$	40
Obligations of state and political   subdivisions		18,363		99		8,097		210		26,460		309
Collateralized mortgage obligations		4,579		2		39		1		4,618		3
Residential pass-through securities		2,031		30		-		-		2,031		30
Total	$	24,973	$	131	$	103,084	$	251	$	128,057	$	382

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	143,002	$	332	$	143,002	$	332
Obligations of state and political   subdivisions		56,190		840		7,965		350		64,155		1,190
Collateralized mortgage obligations		-		-		41		1		41		1
Residential pass-through securities		142,789		556						142,789		556
Commercial pass-through securities		18,792		228		-		-		18,792		228
Total	$	217,771	$	1,624	$	151,008	$	683	$	368,779	$	2,307

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Borrowings - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months	$ 435.5
Federal Home Loan Bank, advances, maturities summary, due from after one year of balance sheet date	150.9
Federal Home Loan Bank, advances, callable summary, due within one year of balance sheet date	145.0
Other borrowings, sweep accounts	42.0	$ 35.1
Mortgage-Backed Securities [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged	181.1	185.2
Investment in Federal Home Loan Bank Stock [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged	$ 955.2	$ 894.6

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Impairment of Securities - Schedule of Fair Values and Gross Unrealized Losses on Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	$ 137,230	$ 182,912
Less than 12 Months: Unrealized Losses	3,038	2,221
12 Months or More: Fair Value	287,900	266,903
12 Months or More: Unrealized Losses	4,905	4,866
Total: Fair Value	425,130	449,815
Total: Unrealized Losses	7,943	7,087
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value		5,479
Less than 12 Months: Unrealized Losses		29
12 Months or More: Fair Value	50,649	52,105
12 Months or More: Unrealized Losses	719	1,197
Total: Fair Value	50,649	57,584
Total: Unrealized Losses	719	1,226
Residential Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	21	61,896
Less than 12 Months: Unrealized Losses	1	1,140
12 Months or More: Fair Value	48,995	50,513
12 Months or More: Unrealized Losses	380	883
Total: Fair Value	49,016	112,409
Total: Unrealized Losses	381	2,023
Debt Securities [Member] | Trust Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or More: Fair Value	7,064	6,734
12 Months or More: Unrealized Losses	833	1,160
Total: Fair Value	7,064	6,734
Total: Unrealized Losses	833	1,160
Debt Securities [Member] | U.S. Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	1,510	1,533
Less than 12 Months: Unrealized Losses	10	7
12 Months or More: Fair Value	673	695
12 Months or More: Unrealized Losses	5	4
Total: Fair Value	2,183	2,228
Total: Unrealized Losses	15	11
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	7,501	20,575
Less than 12 Months: Unrealized Losses	123	515
12 Months or More: Fair Value	3,031	2,943
12 Months or More: Unrealized Losses	101	189
Total: Fair Value	10,532	23,518
Total: Unrealized Losses	224	704
Debt Securities [Member] | Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	60,361	23,855
Less than 12 Months: Unrealized Losses	1,969	293
12 Months or More: Fair Value	14,685	20,067
12 Months or More: Unrealized Losses	561	168
Total: Fair Value	75,046	43,922
Total: Unrealized Losses	2,530	461
Debt Securities [Member] | Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	24,487	19,880
Less than 12 Months: Unrealized Losses	530	120
12 Months or More: Fair Value	93,590	74,295
12 Months or More: Unrealized Losses	1,455	754
Total: Fair Value	118,077	94,175
Total: Unrealized Losses	1,985	874
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months: Fair Value	43,350	49,694
Less than 12 Months: Unrealized Losses	405	117
12 Months or More: Fair Value	69,213	59,551
12 Months or More: Unrealized Losses	851	511
Total: Fair Value	112,563	109,245
Total: Unrealized Losses	$ 1,256	$ 628

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Borrowings (Tables)

3 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of Fixed Rate Advances from FHLB

Fixed rate advances from the FHLB of New York mature as follows:

	September 30, 2015					June 30, 2015
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
	(Dollars in Thousands)
Maturing in years ending June 30:
2016	$	432,500		0.51	%	$	382,500		0.41	%
2017		3,000		1.05			3,000		1.05
2018		5,225		1.18			5,225		1.18
2021		647		4.94			671		4.94
2023		145,000		3.04			145,000		3.04
Total borrowings		586,372		1.15	%		536,396		1.13	%
Fair value adjustments		4					9
Total borrowings, net of   fair value adjustments	$	586,376				$	536,405

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

The effects of derivative instruments on the statements of condition included in the Consolidated Financial Statements at September 30, 2015 and June 30, 2015 and for the three months ended September 30, 2015 and September 30, 2014 are as follows:

	September 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(2,010	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,747	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(866	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(2,224	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(2,791	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(2,703	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(2,277	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(2,041	)	Other liabilities	December 28, 2020
		550,000		(16,659	)
Interest rate caps by effective date:
June 5, 2013		40,000		209		Other liabilities	June 5, 2018
July 1, 2013		35,000		181		Other liabilities	July 1, 2018
		75,000		390
Total	$	625,000	$	(16,269	)

	June 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(768	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,149	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(400	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(1,372	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(1,717	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(1,697	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(1,289	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(1,119	)	Other liabilities	December 28, 2020
		550,000		(9,511	)
Interest rate caps by effective date:
June 5, 2013		40,000		428		Other liabilities	June 5, 2018
July 1, 2013		35,000		366		Other liabilities	July 1, 2018
		75,000		794
Total	$	625,000	$	(8,717	)

	Three Months Ended September 30, 2015
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	(735	)	Not applicable	$	-
August 19, 2013		(354	)	Not applicable		-
October 9, 2013		(275	)	Not applicable		-
March 28, 2014		(504	)	Not applicable		-
June 5, 2015		(635	)	Not applicable		-
July 28, 2015		(595	)	Not applicable		-
September 28, 2015		(585	)	Not applicable		-
December 28, 2015		(545	)	Not applicable		-
		(4,228	)			-
Interest rate caps by effective date:
June 5, 2013		(110	)	Not applicable		-
July 1, 2013		(94	)	Not applicable		-
		(204	)			-
Total	$	(4,432	)		$	-

	Three Months Ended September 30, 2014
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	645		Not applicable	$	-
August 19, 2013		405		Not applicable		-
October 9, 2013		265		Not applicable		-
March 28, 2014		421		Not applicable		-
June 5, 2015		133		Not applicable		-
July 28, 2015		(126	)	Not applicable		-
September 28, 2015		(53	)	Not applicable		-
December 28, 2015		(52	)	Not applicable		-
		1,638				-
Interest rate caps by effective date:
June 5, 2013		53		Not applicable		-
July 1, 2013		31		Not applicable		-
		84				-
Total	$	1,722			$	-

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement Of Stockholders Equity [Abstract]
ESOP shares committed to be released, shares	50	50
Restricted stock plan shares earned, shares	9	10
Dividends Declared Per Common Share	$ 0.02

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Benefit Plans (Tables)

3 Months Ended

Sep. 30, 2015

Compensation And Retirement Disclosure [Abstract]

Schedule of Net Periodic Benefit Expense

The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan and Atlas Bank Retirement Income Plan:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Service cost	$	59		$	57
Interest cost		121			82
Amortization of unrecognized past service    liability		9			12
Amortization of unrecognized loss		9			7
Expected return on assets		(64	)		-
Net periodic benefit cost	$	134		$	158

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Securities Available for Sale - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of debt securities available for sale	$ 0	$ 0
Securities Available for Sale [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale pledged as collateral for borrowings Federal Home Loan Bank	54,500,000		$ 58,300,000
Available for sale securities pledged to secure public funds on deposit	$ 1,200,000		$ 1,400,000

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Loan Quality and Allowance for Loan Losses - Impairment Status of Loans Receivable (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	$ 2,414,932		$ 2,102,548
Unpaid principal balance of impaired loans	41,361		43,230
Average balance of impaired loans	32,802	$ 37,605
Interest earned on impaired loans	313	275
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	5,086		5,711
Unpaid principal balance of impaired loans	2,113		2,118
Average balance of impaired loans	2,025	1,432
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	4,580		4,291
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	619,207		592,321
Unpaid principal balance of impaired loans	16,740		17,132
Average balance of impaired loans	10,037	13,169
Interest earned on impaired loans	70	29
Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	1,595,989		1,309,103
Unpaid principal balance of impaired loans	9,114		8,862
Average balance of impaired loans	7,973	8,407
Interest earned on impaired loans	12	46
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	97,245		99,451
Unpaid principal balance of impaired loans	10,873		12,542
Average balance of impaired loans	10,290	11,903
Interest earned on impaired loans	217	189
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	71,347		70,257
Unpaid principal balance of impaired loans	1,494		1,575
Average balance of impaired loans	1,519	1,639
Interest earned on impaired loans	14	11
Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	21,478		21,414
Unpaid principal balance of impaired loans	1,027		1,001
Average balance of impaired loans	958	$ 1,055
Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	2,211,456		1,885,873
Impaired loans with no allowance for impairment	11,430		12,513
Recorded investment	4,155		4,044
Allowance for impairment	(471)		(573)
Balance of impaired loans net of allowance for impairment	3,684		3,471
Total impaired loans, excluding allowance for impairment:	15,585		16,557
Loans and Leases Receivable, Gross	2,227,041		1,902,430
Unpaid principal balance of impaired loans	22,880		24,164
Originated and Purchased Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	2,740		3,328
Loans and Leases Receivable, Gross	2,740		3,328
Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	4,501		4,204
Loans and Leases Receivable, Gross	4,501		4,204
Originated and Purchased Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	551,063		520,070
Impaired loans with no allowance for impairment	7,434		8,387
Recorded investment	2,639		1,853
Allowance for impairment	(218)		(116)
Balance of impaired loans net of allowance for impairment	2,421		1,737
Total impaired loans, excluding allowance for impairment:	10,073		10,240
Loans and Leases Receivable, Gross	561,136		530,310
Unpaid principal balance of impaired loans	16,594		16,985
Originated and Purchased Loans [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	1,506,880		1,214,586
Impaired loans with no allowance for impairment	2,062		1,777
Recorded investment	1,402		1,662
Allowance for impairment	(142)		(415)
Balance of impaired loans net of allowance for impairment	1,260		1,247
Total impaired loans, excluding allowance for impairment:	3,464		3,439
Loans and Leases Receivable, Gross	1,510,344		1,218,025
Unpaid principal balance of impaired loans	4,160		4,103
Originated and Purchased Loans [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	69,718		69,797
Impaired loans with no allowance for impairment	1,002		1,418
Recorded investment	22		443
Allowance for impairment	(22)		(30)
Balance of impaired loans net of allowance for impairment			413
Total impaired loans, excluding allowance for impairment:	1,024		1,861
Loans and Leases Receivable, Gross	70,742		71,658
Unpaid principal balance of impaired loans	1,079		2,036
Originated and Purchased Loans [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	64,902		63,034
Impaired loans with no allowance for impairment	880		905
Recorded investment	92		86
Allowance for impairment	(89)		(12)
Balance of impaired loans net of allowance for impairment	3		74
Total impaired loans, excluding allowance for impairment:	972		991
Loans and Leases Receivable, Gross	65,874		64,025
Unpaid principal balance of impaired loans	995		1,014
Originated and Purchased Loans [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	11,652		10,854
Impaired loans with no allowance for impairment	52		26
Total impaired loans, excluding allowance for impairment:	52		26
Loans and Leases Receivable, Gross	11,704		10,880
Unpaid principal balance of impaired loans	52		26
Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	171,395		183,116
Impaired loans with no allowance for impairment	15,491		15,461
Recorded investment	1,005		1,541
Allowance for impairment	(281)		(478)
Balance of impaired loans net of allowance for impairment	724		1,063
Total impaired loans, excluding allowance for impairment:	16,496		17,002
Loans and Leases Receivable, Gross	187,891		200,118
Unpaid principal balance of impaired loans	18,481		19,066
Loans Acquired at Fair Value [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	333		346
Impaired loans with no allowance for impairment	2,013		2,037
Total impaired loans, excluding allowance for impairment:	2,013		2,037
Loans and Leases Receivable, Gross	2,346		2,383
Unpaid principal balance of impaired loans	2,113		2,118
Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	79		87
Loans and Leases Receivable, Gross	79		87
Loans Acquired at Fair Value [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	57,958		61,895
Impaired loans with no allowance for impairment	113		116
Total impaired loans, excluding allowance for impairment:	113		116
Loans and Leases Receivable, Gross	58,071		62,011
Unpaid principal balance of impaired loans	146		147
Loans Acquired at Fair Value [Member] | Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	80,997		86,564
Impaired loans with no allowance for impairment	4,213		4,072
Recorded investment	435		442
Allowance for impairment	(108)		(114)
Balance of impaired loans net of allowance for impairment	327		328
Total impaired loans, excluding allowance for impairment:	4,648		4,514
Loans and Leases Receivable, Gross	85,645		91,078
Unpaid principal balance of impaired loans	4,954		4,759
Loans Acquired at Fair Value [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	18,175		18,937
Impaired loans with no allowance for impairment	8,192		8,214
Recorded investment	136		642
Allowance for impairment	(171)		(340)
Balance of impaired loans net of allowance for impairment	(35)		302
Total impaired loans, excluding allowance for impairment:	8,328		8,856
Loans and Leases Receivable, Gross	26,503		27,793
Unpaid principal balance of impaired loans	9,794		10,506
Loans Acquired at Fair Value [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	4,997		5,698
Impaired loans with no allowance for impairment	476		534
Total impaired loans, excluding allowance for impairment:	476		534
Loans and Leases Receivable, Gross	5,473		6,232
Unpaid principal balance of impaired loans	499		561
Loans Acquired at Fair Value [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans	8,856		9,589
Impaired loans with no allowance for impairment	484		488
Recorded investment	434		457
Allowance for impairment	(2)		(24)
Balance of impaired loans net of allowance for impairment	432		433
Total impaired loans, excluding allowance for impairment:	918		945
Loans and Leases Receivable, Gross	9,774		10,534
Unpaid principal balance of impaired loans	$ 975		$ 975

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Assets
Cash and amounts due from depository institutions	$ 19,379	$ 15,529
Interest-bearing deposits in other banks	83,251	324,607
Cash and cash equivalents	102,630	340,136
Debt securities available for sale (amortized cost $422,789 and $422,903)	416,470	420,660
Mortgage-backed securities available for sale (amortized cost $324,589 and $344,523)	329,310	346,619
Securities available for sale	745,780	767,279
Debt securities held to maturity (fair value $228,757 and $218,366)	228,597	219,862
Mortgage-backed securities held to maturity (fair value $436,762 and $445,501)	429,912	443,479
Securities held to maturity	658,509	663,341
Loans receivable, including unamortized yield adjustments of $2,580 and $316	2,417,512	2,102,864
Less allowance for loan losses	(17,690)	(15,606)
Net loans receivable	2,399,822	2,087,258
Premises and equipment	39,256	39,180
Federal Home Loan Bank of New York ("FHLB") stock	29,717	27,468
Accrued interest receivable	11,058	9,873
Goodwill	108,591	108,591
Bank owned life insurance	171,842	170,452
Deferred income tax assets, net	22,316	17,827
Other assets	12,420	5,782
Total Assets	4,301,941	4,237,187
Liabilities
Deposits: Non-interest-bearing	227,941	218,533
Deposits: Interest-bearing	2,235,949	2,247,117
Total deposits	2,463,890	2,465,650
Borrowings	628,351	571,499
Advance payments by borrowers for taxes	9,292	9,043
Other liabilities	36,798	23,620
Total Liabilities	$ 3,138,331	$ 3,069,812
Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value; 800,000,000 shares authorized; 93,528,092 shares issued and outstanding	$ 935	$ 935
Paid-in capital	870,701	870,480
Retained earnings	343,335	342,148
Unearned employee stock ownership plan shares; 3,913,601 shares and 3,963,776 shares, respectively	(37,940)	(38,427)
Accumulated other comprehensive loss	(13,421)	(7,761)
Total Stockholders' Equity	1,163,610	1,167,375
Total Liabilities and Stockholders' Equity	$ 4,301,941	$ 4,237,187

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Impairment of Securities - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2015 USD ($) Security Municipality Securities Financial_Institution	Jun. 30, 2015 USD ($) Security
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	90	119
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions	72	166
Credit-related OTTI securities | $	$ 0	$ 0
Number of additional trust preferred securities | Securities	2
Collateralized Loan Obligations [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	18	16
Marketable securities | $	$ 127,400,000
Investments percent of total investments	9.10%
Investments percent of total assets	3.00%
Trust Preferred Securities [Member] | Chase Capital II [Member]
Schedule Of Investments [Line Items]
Number of securities	2
Securities amortized cost | $	$ 3,000,000
Collateralized Mortgage Obligations [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	6	8
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions	5	4
Residential Pass-Through Securities [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	9	13
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions	1	15
Commercial Pass-Through Securities [Member]
Schedule Of Investments [Line Items]
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions		4
Mortgage-Backed Securities [Member]
Schedule Of Investments [Line Items]
Marketable securities | $	$ 759,200,000
Investments percent of total investments	54.10%
Investments percent of total assets	17.60%
Debt Securities [Member] | Trust Preferred Securities [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	5	4
Marketable securities | $	$ 8,100,000
Number of securities held | Securities	5
Debt Securities [Member] | Trust Preferred Securities [Member] | BankBoston Capital Trust IV and MBNA Capital Trust B [Member]
Schedule Of Investments [Line Items]
Securities amortized cost | $	$ 4,900,000
Debt Securities [Member] | Trust Preferred Securities [Member] | Maximum [Member]
Schedule Of Investments [Line Items]
Investments percent of total investments	1.00%
Debt Securities [Member] | Trust Preferred Securities [Member] | Impaired Securities that Maintained Credit Rating [Member]
Schedule Of Investments [Line Items]
Number of securities held | Securities	4
Number of issuing financial institutions | Financial_Institution	3
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	29	62
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions	61	136
Marketable securities | $	$ 112,700,000
Investments percent of total investments	8.00%
Investments percent of total assets	2.60%
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member] | BANs [Member] | New Jersey [Member]
Schedule Of Investments [Line Items]
Marketable securities | $	$ 6,400,000
Number of securities	10
Number of municipalities | Municipality	7
Debt Securities [Member] | Asset-backed Securities [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	7	4
Marketable securities | $	$ 85,200,000
Investments percent of total investments	6.10%
Investments percent of total assets	2.00%
Government guarantees	97.00%
Debt Securities [Member] | Corporate Bonds [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	12	7
Marketable securities | $	$ 161,200,000
Investments percent of total investments	11.50%
Investments percent of total assets	3.70%
Debt Securities [Member] | U.S. Agency Securities [Member]
Schedule Of Investments [Line Items]
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions	4	4
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions	5	7
Marketable securities | $	$ 150,500,000
Investments percent of total investments	10.70%
Investments percent of total assets	3.50%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Deferred income tax benefit, Unrealized loss on securities available for sale arising during the period	$ (768)	$ (1,041)
Deferred income tax (benefit) expense, Net (loss) gain on securities transferred from available for sale to held to maturity	(13)	0
Deferred income tax (benefit) expense, Fair value adjustments on derivatives	(3,060)	1,189
Deferred tax benefit, Benefit plans	$ (366)	$ (140)

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Benefit Plans - Schedule of Net Periodic Benefit Expense (Detail) - Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan and Atlas Bank Retirement Income Plan [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 59	$ 57
Interest cost	121	82
Amortization of unrecognized past service liability	9	12
Amortization of unrecognized loss	9	7
Expected return on assets	(64)
Net periodic benefit cost	$ 134	$ 158

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Net Income Per Common Share (EPS) - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Income (Numerator): Net income	$ 2,976	$ 2,923
Income (Numerator): Basic earnings per share, income available to common stockholders	2,976	2,923
Income (Numerator): Diluted earnings per share	$ 2,976	$ 2,923
Shares (Denominator): Basic earnings per share, income available to common stockholders	89,590	92,452
Shares (Denominator): Stock options	29	547
Shares (Denominator): Diluted earnings per share	89,619	92,999
Per Share Amount: Basic earnings per share, income available to common stockholders	$ 0.03	$ 0.03
Per Share Amount: Diluted earnings per share	$ 0.03	$ 0.03

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Fair Value of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Carrying Amount	$ 102,630	$ 340,136	$ 126,786	$ 135,034
Debt securities available for sale, Carrying Amount	416,470	420,660
Mortgage-backed securities available for sale, Carrying Amount	329,310	346,619
Debt securities held to maturity, Carrying Amount	228,597	219,862
Mortgage-backed securities held to maturity, Carrying Amount	429,912	443,479
Loans receivable, Carrying Amount	2,399,822	2,087,258
FHLB stock, Carrying Amount	29,717	27,468
Interest receivable, Carrying Amount	11,058	9,873
Deposits, Carrying Amount	2,463,890	2,465,650
Borrowings, Carrying Amount	628,351	571,499
Interest payable on borrowings, Carrying Amount	1,114	1,020
Cash and cash equivalents, Fair Value	102,630	340,136
Debt securities available for sale (amortized cost $422,789 and $422,903)	416,470	420,660
Mortgage-backed securities available for sale, Fair Value	329,310	346,619
Debt securities held to maturity, Fair Value	228,757	218,366
Mortgage-backed securities held to maturity, Fair Value	436,762	445,501
Loans receivable, Fair Value	2,382,594	2,069,209
FHLB stock, Fair Value	29,717	27,468
Interest receivable, Fair Value	11,058	9,873
Deposits, Fair Value	2,474,572	2,476,425
Borrowings, Fair Value	643,227	585,209
Interest payable on borrowings, Fair Value	1,114	1,020
Derivative instruments, Fair Value, Net	(16,269)	(8,717)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents, Fair Value	102,630	340,136
Interest receivable, Fair Value	11,058	9,873
Deposits, Fair Value	1,450,660	1,463,974
Interest payable on borrowings, Fair Value	1,114	1,020
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	416,470	420,660
Mortgage-backed securities available for sale, Fair Value	329,310	346,619
Debt securities held to maturity, Fair Value	228,757	218,366
Mortgage-backed securities held to maturity, Fair Value	436,762	445,501
Derivative instruments, Fair Value, Net	(16,269)	(8,717)
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans receivable, Fair Value	2,382,594	2,069,209
FHLB stock, Fair Value	29,717	27,468
Deposits, Fair Value	1,023,912	1,012,451
Borrowings, Fair Value	643,227	585,209
Interest Rate Swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Carrying Amount	(16,659)	(9,511)
Derivative instruments, Fair Value, Net	(16,659)	(9,511)
Interest Rate Swaps [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	(16,659)	(9,511)
Interest Rate Caps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Carrying Amount	390	794
Derivative instruments, Fair Value, Net	390	794
Interest Rate Caps [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	$ 390	$ 794

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Benefit Plans

3 Months Ended

Sep. 30, 2015

Compensation And Retirement Disclosure [Abstract]

Benefit Plans

13.     BENEFIT PLANS

Components of Net Periodic Expense

The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan and Atlas Bank Retirement Income Plan:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Service cost	$	59		$	57
Interest cost		121			82
Amortization of unrecognized past service    liability		9			12
Amortization of unrecognized loss		9			7
Expected return on assets		(64	)		-
Net periodic benefit cost	$	134		$	158

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Net Income Per Common Share (EPS) - Additional Information (Detail) - shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Average number of options anti-dilutive	276,080	255,374

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Comprehensive Loss

3 Months Ended

Sep. 30, 2015

Equity [Abstract]

Comprehensive Loss

15.     COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in stockholders’ equity at September 30, 2015 and June 30, 2015 are as follows:

	September 30, 2015			June 30, 2015
	(In Thousands)
Net unrealized loss on securities available for sale	$	(1,598	)	$	(147	)
Tax effect		660			(108	)
Net of tax amount		(938	)		(255	)
Net unrealized loss on securities available for sale transferred to   held to maturity		(1,095	)		(1,065	)
Tax effect		448			435
Net of tax amount		(647	)		(630	)
Fair value adjustments on derivatives		(18,622	)		(11,130	)
Tax effect		7,607			4,547
Net of tax amount		(11,015	)		(6,583	)
Benefit plan adjustments		(1,388	)		(494	)
Tax effect		567			201
Net of tax amount		(821	)		(293	)
Total accumulated other comprehensive loss	$	(13,421	)	$	(7,761	)

Other comprehensive loss and related tax effects for the months ended September 30, 2015 and September 30, 2014 are presented in the following table:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Net unrealized holding loss on securities   available for sale	$	(1,452	)	$	(3,071	)
Amortization of unrealized holding loss on   securities available for sale transferred to   held to maturity (3)		(30	)		2
Net unrealized (loss) gain on derivatives		(7,492	)		2,911
Benefit plans:
Amortization of:
Actuarial loss (1)		9			7
Past service cost (1)		9			12
New actuarial loss		(911	)		(363	)
Net change in benefit plan accrued expense		(893	)		(344	)
Other comprehensive loss before taxes		(9,867	)		(502	)
Tax effect (2)		4,207			(8	)
Total other comprehensive loss	$	(5,660	)	$	(510	)

_______________________________________________

(1) Represents amounts reclassified out of accumulated other comprehensive income and included in the computation of net periodic pension expense. See Note 14 – Benefit Plans for additional information.

(2) The amounts included in income taxes for items reclassified out of accumulated other comprehensive income totaled $(365) for the three ended September 30, 2015 and $(9) three months ended September 30, 2014, respectively.

(3) Represents amounts reclassified out of accumulated other comprehensive income and included in interest income on taxable securities.

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Comprehensive Loss - Schedule of Comprehensive Loss (Detail) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Comprehensive Income Net Of Tax [Abstract]
Net unrealized holding loss on securities available for sale		$ (1,452)	$ (3,071)
Amortization of unrealized holding loss on securities available for sale transferred to held to maturity	[1]	(30)	2
Net unrealized (loss) gain on derivatives		(7,492)	2,911
Benefit plans, Amortization of Actuarial loss	[2]	9	7
Benefit plans, Amortization of Past service cost	[2]	9	12
Benefit plans, Amortization of New actuarial (loss)		(911)	(363)
Net change in benefit plan accrued expense		(893)	(344)
Other comprehensive loss before taxes		(9,867)	(502)
Tax effect	[3]	4,207	(8)
Total Other Comprehensive Loss		$ (5,660)	$ (510)

[1] Represents amounts reclassified out of accumulated other comprehensive income and included in interest income on taxable securities.

[2] Represents amounts reclassified out of accumulated other comprehensive income and included in the computation of net periodic pension expense. See Note 14 – Benefit Plans for additional information.

[3] The amounts included in income taxes for items reclassified out of accumulated other comprehensive income totaled $(365) for the three ended September 30, 2015 and $(9) three months ended September 30, 2014, respectively.

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock Outstanding [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Unearned ESOP Shares [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]
Balance (in value) at Jun. 30, 2014	$ 494,676	$ 7,378	$ 231,870	$ 336,355	$ (3,879)	$ (74,768)	$ (2,280)
Balance (in shares) at Jun. 30, 2014		92,856,000
Net Income	2,923			2,923
Other comprehensive income (loss), net of income tax benefit	(510)						(510)
ESOP shares committed to be released	547		184		363
Stock option expense	50		50
Treasury stock reissued for stock option exercises (in value)	1,365		132			1,233
Treasury stock reissued for stock option exercises (in shares)		148,000
Restricted stock plan shares earned (in value)	82		82
Settlement of stock options with cash in lieu of shares, value	(7,188)		(7,188)
Balance (in value) at Sep. 30, 2014	491,945	$ 7,378	225,130	339,278	(3,516)	$ (73,535)	(2,790)
Balance (in shares) at Sep. 30, 2014		93,004,000
Balance (in value) at Jun. 30, 2015	$ 1,167,375	$ 935	870,480	342,148	(38,427)		(7,761)
Balance (in shares) at Jun. 30, 2015	93,528,092	93,528,000
Net Income	$ 2,976			2,976
Other comprehensive income (loss), net of income tax benefit	(5,660)						(5,660)
ESOP shares committed to be released	574		87		487
Stock option expense	53		53
Restricted stock plan shares earned (in value)	81		81
Balance (in value) at Sep. 30, 2015	$ 1,163,610	$ 935	$ 870,701	343,335	$ (37,940)		$ (13,421)
Balance (in shares) at Sep. 30, 2015	93,528,092	93,528,000
Cash dividend declared	$ (1,789)			$ (1,789)

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Statement Of Financial Position [Abstract]
Securities available for sale, Amortized cost	$ 422,789	$ 422,903
Mortgage-backed securities available for sale, amortized cost	324,589	344,523
Securities held to maturity, estimated fair value	228,757	218,366
Mortgage-backed securities held to maturity, fair value disclosure	436,762	445,501
Loans receivable, unamortized yield adjustments	$ 2,580	$ 316
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	93,528,092	93,528,092
Common stock, shares outstanding	93,528,092	93,528,092
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares	3,913,601	3,963,776

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Securities Held to Maturity

3 Months Ended

Sep. 30, 2015

Securities Held to Maturity [Member]

Schedule of Held-to-maturity Securities [Line Items]

Securities

8.     SECURITIES HELD TO MATURITY

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities held to maturity at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities held to maturity at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,335	$	7	$	40	$	143,302
Obligations of state and political subdivisions		85,262		502		309		85,455
Total debt securities		228,597		509		349		228,757
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		14,519		24		2		14,541
Federal National Mortgage Association		212		25		-		237
Non-agency securities		40		-		1		39
Total collateralized mortgage obligations		14,771		49		3		14,817
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		43,746		88		-		43,834
Federal National Mortgage Association		203,664		2,375		30		206,009
Total residential pass-through securities		247,418		2,464		30		249,852
Commercial pass-through securities:
Government National Mortgage Association		10,012		89		-		10,101
Federal National Mortgage Association		157,711		4,281		-		161,992
Total commercial pass-through securities		167,723		4,370		-		172,093
Total mortgage-backed securities		429,912		6,883		33		436,762
Total securities held to maturity	$	658,509	$	7,392	$	382	$	665,519

	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities held to maturity:
Due in one year or less	$	6,356	$	6,360
Due after one year through five years		154,535		154,490
Due after five years through ten years		41,391		41,539
Due after ten years		26,315		26,368
Total	$	228,597	$	228,757

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,334	$	-	$	332	$	143,002
Obligations of state and political subdivisions		76,528		26		1,190		75,364
Total debt securities		219,862		26		1,522		218,366
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		15,121		5		-		15,126
Federal National Mortgage Association		221		24		-		245
Non-agency securities		42		-		1		41
Total collateralized mortgage obligations		15,384		29		1		15,412
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		44,905		16		218		44,703
Federal National Mortgage Association		214,150		1,090		338		214,902
Total residential pass-through securities		259,063		1,107		556		259,614
Commercial pass-through securities:
Government National Mortgage Association		10,111		32		-		10,143
Federal National Mortgage Association		158,921		1,639		228		160,332
Total commercial pass-through securities		169,032		1,671		228		170,475
Total mortgage-backed securities		443,479		2,807		785		445,501
Total securities held to maturity	$	663,341	$	2,833	$	2,307	$	663,867

There were no sales of securities held to maturity during the three months ended September 30, 2015 and September 30, 2014.

At September 30, 2015 and June 30, 2015, securities held to maturity with carrying values of approximately $126.7 million and $126.9 million, respectively, were utilized as collateral for borrowings from the FHLB of New York. As of those same dates, securities held to maturity with total carrying values of approximately $7.9 million and $7.9 million, respectively, were pledged to secure public funds on deposit.

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Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	KRNY
Entity Registrant Name	Kearny Financial Corp.
Entity Central Index Key	0001617242
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		93,528,092

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Impairment of Securities

3 Months Ended

Sep. 30, 2015

Investments Debt And Equity Securities [Abstract]

Impairment of Securities

9.     IMPAIRMENT OF SECURITIES

The following two tables summarize the fair values and gross unrealized losses within the available for sale and held to maturity portfolios at September 30, 2015 and June 30, 2015. The gross unrealized losses, presented by security type, represent temporary impairments of value within each portfolio as of the dates presented. Temporary impairments within the available for sale portfolio have been recognized through other comprehensive income as reductions in stockholders’ equity on a tax-effected basis.

The tables are followed by a discussion that summarizes the Company’s rationale for recognizing impairments, where applicable, as “temporary” versus those identified as “other-than-temporary”. Such rationale is presented by investment type and generally applies consistently to both the “available for sale” and “held to maturity” portfolios, except where specifically noted.

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,510	$	10	$	673	$	5	$	2,183	$	15
Obligations of state and political   subdivisions		7,501		123		3,031		101		10,532		224
Asset-backed securities		60,361		1,969		14,685		561		75,046		2,530
Collateralized loan obligations		43,350		405		69,213		851		112,563		1,256
Corporate bonds		24,487		530		93,590		1,455		118,077		1,985
Trust preferred securities		-		-		7,064		833		7,064		833
Collateralized mortgage obligations		-		-		50,649		719		50,649		719
Residential pass-through securities		21		1		48,995		380		49,016		381
Total	$	137,230	$	3,038	$	287,900	$	4,905	$	425,130	$	7,943

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Available for Sale:
U.S. agency securities	$	1,533	$	7	$	695	$	4	$	2,228	$	11
Obligations of state and political   subdivisions		20,575		515		2,943		189		23,518		704
Asset-backed securities		23,855		293		20,067		168		43,922		461
Collateralized loan obligations		49,694		117		59,551		511		109,245		628
Corporate bonds		19,880		120		74,295		754		94,175		874
Trust preferred securities		-		-		6,734		1,160		6,734		1,160
Collateralized mortgage obligations		5,479		29		52,105		1,197		57,584		1,226
Residential pass-through securities		61,896		1,140		50,513		883		112,409		2,023
Total	$	182,912	$	2,221	$	266,903	$	4,866	$	449,815	$	7,087

The number of available for sale securities with unrealized losses at September 30, 2015 totaled 90 and included five U.S. agency securities, 29 municipal obligations, seven asset-backed securities, 18 collateralized loan obligations, 12 corporate obligations, four trust preferred securities, six collateralized mortgage obligations and nine residential pass-through securities. The number of available for sale securities with unrealized losses at June 30, 2015 totaled 119 and included five U.S. agency securities, 62 municipal obligations, four asset-backed securities, 16 collateralized loan obligations, seven corporate obligations, four trust preferred securities, eight collateralized mortgage obligations and 13 residential pass-through securities.

	September 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	94,948	$	40	$	94,948	$	40
Obligations of state and political   subdivisions		18,363		99		8,097		210		26,460		309
Collateralized mortgage obligations		4,579		2		39		1		4,618		3
Residential pass-through securities		2,031		30		-		-		2,031		30
Total	$	24,973	$	131	$	103,084	$	251	$	128,057	$	382

	June 30, 2015
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Securities Held to Maturity:
U.S. agency securities	$	-	$	-	$	143,002	$	332	$	143,002	$	332
Obligations of state and political   subdivisions		56,190		840		7,965		350		64,155		1,190
Collateralized mortgage obligations		-		-		41		1		41		1
Residential pass-through securities		142,789		556						142,789		556
Commercial pass-through securities		18,792		228		-		-		18,792		228
Total	$	217,771	$	1,624	$	151,008	$	683	$	368,779	$	2,307

The number of held to maturity securities with unrealized losses at September 30, 2015 totaled 72 and included five U.S. agency securities, 61 municipal obligations, five collateralized mortgage obligations, and one residential pass-through security.  The number of held to maturity securities with unrealized losses at June 30, 2015 totaled 166 and included seven U.S. agency securities, 136 municipal obligations, four collateralized mortgage obligations, 15 residential pass-through securities and four commercial pass-through securities.

In general, if the fair value of a debt security is less than its amortized cost basis at the time of evaluation, the security is “impaired” and the impairment is to be evaluated to determine if it is other than temporary. The Company evaluates the impaired securities in its portfolio for possible other than temporary impairment (OTTI) on at least a quarterly basis. The following represents the circumstances under which an impaired security is determined to be other than temporarily impaired:

· When the Company intends to sell the impaired debt security;

· When the Company more likely than not will be required to sell the impaired debt security before recovery of its amortized cost (for example, whether liquidity requirements or contractual or regulatory obligations indicate that the security will be required to be sold before a forecasted recovery occurs); or

· When an impaired debt security does not meet either of the two conditions above, but the Company does not expect to recover the entire amortized cost of the security. According to applicable accounting guidance for debt securities, this is generally when the present value of cash flows expected to be collected is less than the amortized cost of the security.

In the first two circumstances noted above, the amount of OTTI recognized in earnings is the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. In the third circumstance, however, the OTTI is to be separated into the amount representing the credit loss from the amount related to all other factors. The credit loss component is to be recognized in earnings while the non-credit loss component is to be recognized in other comprehensive income. In these cases, OTTI is generally predicated on an adverse change in cash flows (e.g. principal and/or interest payment deferrals or losses) versus those expected at the time of purchase. The absence of an adverse change in expected cash flows generally indicates that a security’s impairment is related to other “non-credit loss” factors and is thereby generally not recognized as OTTI.

The Company considers a variety of factors when determining whether a credit loss exists for an impaired security including, but not limited to:

· The length of time and the extent (a percentage) to which the fair value has been less than the amortized cost basis;

· Adverse conditions specifically related to the security, an industry, or a geographic area (e.g. changes in the financial condition of the issuer of the security, or in the case of an asset backed debt security, in the financial condition of the underlying loan obligors, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement);

· The historical and implied volatility of the fair value of the security;

· The payment structure of the debt security;

· Actual or expected failure of the issuer of the security to make scheduled interest or principal payments;

· Changes to the rating of the security by external rating agencies; and

· Recoveries or additional declines in fair value subsequent to the balance sheet date.

At September 30, 2015 and June 30, 2015, the Company held no securities on which credit-related OTTI had been recognized in earnings. The following discussion summarizes the Company’s rationale for recognizing the impairments reported in the tables above as “temporary” versus “other-than-temporary”. Such rationale is presented by investment type and generally applies consistently to both the available for sale and held to maturity portfolios, except where specifically noted.

Mortgage-backed Securities.

The carrying value of the Company’s mortgage-backed securities totaled $759.2 million at September 30, 2015 and comprised 54.1% of total investments and 17.6% of total assets as of that date.  This category of securities primarily includes mortgage pass-through securities and collateralized mortgage obligations issued by U.S. government agencies and/or GSEs such as Ginnie Mae, Fannie Mae and Freddie Mac who guarantee the contractual cash flows associated with those securities.   Those guarantees were strengthened during the 2008-2009 financial crisis at which time Fannie Mae and Freddie Mac were placed into receivership by the federal government.  Through those actions, the U.S. government effectively reinforced the guarantees of their agencies thereby strengthening the creditworthiness of the mortgage-backed securities issued by those agencies.

With credit risk being reduced to negligible levels due primarily to the U.S. government’s support of most of these agencies, the unrealized losses on the Company’s investment in U.S. agency mortgage-backed securities are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s mortgage-backed securities, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates or adjustable rates that lag the movement in market interest rates, decline and vice-versa.

Additionally, movements in market interest rates significantly impact the average lives of mortgage-backed securities by influencing the rate of principal prepayment attributable to refinancing activity.  Changes in the expected average lives of such securities significantly impact their fair values due to the extension or contraction of the cash flows that an investor expects to receive over the life of the security.  Generally, lower market interest rates prompt greater refinancing activity thereby shortening the average lives of mortgage-backed securities and vice-versa.  The historically low mortgage rates prevalent in the marketplace during recent years created significant refinancing incentive for qualified borrowers.

Prepayment rates are also influenced by fluctuating real estate values and the overall availability of credit in the marketplace which significantly impacts the ability of borrowers to qualify for refinancing.  The residential real estate marketplace in recent years has been characterized by diminished property values and reduced availability of credit due to tightening underwriting standards.  As a consequence, the ability of certain borrowers to qualify for the refinancing of existing loans has been reduced while residential real estate purchase activity has been stifled.  These factors have partially offset the effects of historically low interest rates on mortgage-backed security prepayment rates.

The market price of mortgage-backed securities, being the key measure of the fair value to an investor in such securities, is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of a security decreases its price.

In sum, the factors influencing the fair value of the Company’s U.S. agency mortgage-backed securities, as described above, generally result from movements in market interest rates and changing real estate and financial market conditions which affect the supply and demand for such securities.  Such market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss. Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015 and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Moreover, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its U.S. agency and GSE mortgage-backed securities with unrealized losses at September 30, 2015  to be “other-than-temporarily” impaired as of that date.

In addition to those mortgage-backed securities issued by U.S. agencies and GSEs, the Company held a nominal balance of non-agency mortgage-backed securities at September 30, 2015.  Unlike agency and GSE mortgage-backed securities, non-agency collateralized mortgage obligations are not explicitly guaranteed by a U.S. government sponsored entity.  Rather, such securities generally utilize the structure of the larger investment vehicle to reallocate credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying mortgage loans.  The creditworthiness of certain tranches may also be further enhanced by additional credit insurance protection embedded within the terms of the total investment vehicle.

The fair values of the non-agency mortgage-backed securities are subject to many of the factors applicable to the agency securities that may result in “temporary” impairments in value.  However, due to the lack of agency guaranty, the Company also monitors the general level of credit risk for each of its non-agency mortgage-backed securities based upon a variety of factors including, but not limited to, the ratings assigned to its specific tranches by one or more credit rating agencies, where available.  As noted above, the level of such ratings and changes thereto, is one of several factors considered by the Company in identifying those securities that may be other-than-temporarily impaired.

The applicable securities generally maintained their credit-ratings at levels supporting the investment grade assessment by the Company.  The Company has the stated ability and intent to “hold to maturity” those securities at September 30, 2015 and has further concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its non-agency mortgage-backed securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

U.S. Agency Debt Securities.

The carrying value of the Company’s U.S. agency debt securities totaled $150.5 million at September 30, 2015 and comprised 10.7% of total investments and 3.5% of total assets as of that date.  Such securities included fixed-rate U.S. agency debentures and securitized pools of loans issued and fully guaranteed by the Small Business Administration (“SBA”), a U.S. government agency.

With credit risk being reduced to negligible levels due to the issuer’s guarantee, the unrealized losses on the Company’s investment in U.S. agency debentures are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s U.S. agency debentures, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates, decline and vice-versa.

The market price of U.S. agency debentures is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s U.S. agency debentures, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015  and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its balance of U.S. agency securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Obligations of State and Political Subdivisions.

The carrying value of the Company’s securities representing obligations of state and political subdivisions totaled $112.7 million at September 30, 2015 and comprised 8.0% of total investments and 2.6% of total assets as of that date.  Such securities primarily included fixed-rate, bank-qualified securities representing general obligations of municipalities located within the U.S. or the obligations of their related entities such as boards of education or school districts.  The balance of municipal obligations at September 30, 2015 included $6.4 million of non-rated bond anticipation and special emergency notes (“BANs”) comprising ten short-term obligations issued by a total of seven New Jersey municipalities.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its municipal obligations.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with municipal obligations whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired municipal obligations were consistently rated by Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Financial Services (“S&P”) well above the thresholds that generally support the Company’s investment grade assessment with such ratings equaling “A” or higher by S&P and/or “A3” or higher by Moody’s, where rated by those agencies.  In the absence of such ratings, the Company relies upon its own internal analysis of the issuer’s financial condition to validate its investment grade assessment.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in municipal obligations are due largely to the combined effects of several market-related factors including, most notably, changes in market interest rates.  In general, the fair value of certain debt securities, including the Company’s municipal obligations, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities, which are generally characterized by fixed interest rates, decline and vice-versa.

The market price of municipal obligations is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect investors’ assessment of an issuer’s creditworthiness and resulting expectations for timely and full repayment in accordance with the terms of the applicable security agreement.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s municipal obligations, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company has the stated ability and intent to “hold to maturity” those securities so designated at September 30, 2015 and does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of that date.  In light of the factors noted, the Company does not consider its balance of obligations of state and political subdivisions with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Asset-backed Securities.

The carrying value of the Company’s asset-backed securities totaled $85.2 million at September 30, 2015 and comprised 6.1% of total investments and 2.0% of total assets as of that date.  This category of securities is comprised entirely of structured, floating-rate securities representing securitized federal education loans with 97% U.S. government guarantees.  The securities represent tranches of a larger investment vehicle designed to reallocate credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying loans.  The Company’s securities represent the highest credit-quality tranches within the overall structures with each being rated “AA+” or better by S&P at September 30, 2015.

With credit risk being reduced to nominal levels due to the guarantees and structural support noted above, the unrealized losses on the Company’s investment in asset-backed securities are due largely to the combined effects of several market-related factors, including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s asset-backed securities, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s asset-backed securities greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of asset-backed securities is also influenced by the overall supply and demand for such securities in the marketplace.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s asset-backed securities, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  In light of the factors noted, the Company does not consider its balance of asset-backed securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Collateralized Loan Obligations.

The outstanding balance of the Company’s collateralized loan obligations totaled $127.4 million at September 30, 2015 and comprised 9.1% of total investments and 3.0% of total assets as of that date.  This category of securities is comprised entirely of structured, floating-rate securities comprised of securitized commercial loans to large U.S. corporations.  The Company’s securities represent tranches of a larger investment vehicle designed to reallocate cash flows and credit risk among the individual tranches comprised within that vehicle.  Through this process, investors in different tranches are subject to varying degrees of risk that the cash flows of their tranche will be adversely impacted by borrowers defaulting on the underlying loans.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its collateralized loan obligations.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with collateralized loan obligations whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired collateralized loan obligations were consistently rated by Moody’s and S&P well above the thresholds that generally support the Company’s investment grade assessment, with such ratings equaling “AA” or higher by S&P and “Aa2” or higher by Moody’s, where rated by those agencies.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in collateralized loan obligations are due largely to the combined effects of several market-related factors, including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s collateralized loan obligations, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s collateralized loan obligations greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of collateralized loan obligations is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect the performance of the underlying collateral in conjunction with the resiliency of the security’s structural support as they affect investors’ expectations for timely and full repayment.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s collateralized loan obligations, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

During fiscal 2015, the Company reviewed the underlying security agreements for each of its collateralized loan obligations to determine if the terms of such agreements could potentially allow for the inclusion of ineligible assets within the security’s structure in the future thereby making it an ineligible investment under the terms of the “Volcker Rule” and related regulations enacted by regulatory agencies in conjunction with the ongoing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. To the extent the agreements contained such provisions and could or would not be modified by the issuer to ensure ongoing compliance with the Volcker Rule, the Bank sold such securities during fiscal 2015.

At September 30, 2015, the Company’s entire portfolio of collateralized loan obligations remains compliant with the Volcker Rule.  As such, the Company concluded that the possibility of being required to sell its collateralized loan obligations prior to their anticipated recovery is currently unlikely, which is further reinforced by the overall strength of the Company’s liquidity, asset quality and capital position as of that date. Moreover, the Company does not otherwise intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost at September 30, 2015.

In light of the factors noted, the Company does not consider its balance of collateralized loan obligations with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Corporate Bonds.

The carrying value of the Company’s corporate bonds totaled $161.2 million at September 30, 2015 and comprised 11.5% of total investments and 3.7% of total assets as of that date.  This category of securities is comprised entirely of floating-rate corporate debt obligations of large financial institutions.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where available, in its evaluation of the impairment attributable to each of its corporate bonds.  The Company uses such ratings, in conjunction with the other criteria noted earlier, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with corporate bonds whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s periodic internal investment grade assessment of the security.

At September 30, 2015, each of the Company’s impaired corporate bonds were consistently rated by Moody’s and S&P above the thresholds that generally support the Company’s investment grade assessment with such ratings equaling “BBB+” or higher by S&P and/or “A3” or higher by Moody’s, where rated by those agencies.

Given the absence of any expectation for an adverse change in cash flows signifying a credit loss, the unrealized losses on the Company’s investment in corporate bonds are due largely to the combined effects of several market-related factors including changes in market interest rates and fluctuating demand for such securities in the marketplace.  In general, the fair value of certain debt securities, including the Company’s corporate bonds, move inversely with changes in market interest rates.  As market interest rates increase, the value of the securities decline and vice-versa.  However, the floating-rate nature of the Company’s corporate bonds greatly reduces their sensitivity to such changes in market rates.

More significantly, the market price of corporate bonds is also influenced by the overall supply and demand for such securities in the marketplace.  While these factors may generally reflect the level of available liquidity in the marketplace, demand for individual securities will specifically reflect investors’ assessment of an issuer’s creditworthiness and resulting expectations for timely and full repayment in accordance with the terms of the applicable security agreement.  Absent other factors, an increase in the demand for, or a decrease in the supply of, a security increases its price.  Conversely, a decrease in the demand for, or an increase in the supply of, a security decreases its price.

In sum, the factors influencing the fair value of the Company’s corporate bonds, as described above, generally result from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Those market conditions may fluctuate over time resulting in certain securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not necessarily reflective of an expectation for an adverse change in cash flows signifying a credit loss.  Consequently, the impairments of value resulting directly from these changing market conditions are considered “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  In light of the factors noted, the Company does not consider its balance of corporate bonds with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

Trust Preferred Securities.

The carrying value of the Company’s trust preferred securities totaled $8.1 million at September 30, 2015 and comprised less than one percent of total investments and total assets as of that date.  The category comprises a total of five “single-issuer” (i.e. non-pooled) trust preferred securities, four of which are impaired as of September 30, 2015, that were originally issued by four separate financial institutions.  As a result of bank mergers involving the issuers of these securities, the Company’s five trust preferred securities currently represent the de-facto obligations of three separate financial institutions.

As noted earlier, the Company considers the ratings assigned by one or more credit rating agencies, where such ratings are available, in its evaluation of the impairment attributable to each of its trust preferred securities.  The Company uses such ratings, in conjunction with other criteria, to identify those securities whose impairments are potentially “credit-related” versus “noncredit-related”.

Unrealized losses associated with trust preferred securities whose credit ratings exceed certain internally defined thresholds are considered to be indicative of “noncredit-related” impairment given the nominal level of credit losses that would be expected based upon such ratings.  That conclusion is generally reinforced, as appropriate, by additional internal analysis supporting the Company’s internal investment grade assessment of the security.

At September 30, 2015, the Company owned two securities at an amortized cost of $3.0 million that were consistently rated by Moody’s and S&P above the thresholds that generally support the Company’s investment grade assessment. The securities were originally issued through Chase Capital II and currently represent de-facto obligations of JPMorgan Chase & Co.

The Company has attributed the unrealized losses on these securities to the combined effects of several market-related factors, including movements in market interest rates and general level of liquidity of such securities in the marketplace based on overall supply and demand.

With regard to interest rates, the Company’s impaired trust preferred securities are variable rate securities whose interest rates generally float with three-month LIBOR plus a margin.  Based upon the historically low level of short-term market interest rates, the current yield on these securities is comparatively low.  Consequently, the fair value of the securities, as determined based upon their market price, reflects the adverse effects of the historically low market interest rates at September 30, 2015.

More significantly, the market prices of the impaired trust preferred securities also currently reflect the effect of reduced demand for such securities in the current marketplace.

In addition to the securities noted above, the Company owned two additional trust preferred securities at an amortized cost of $4.9 million whose external credit ratings by both S&P and Moody’s fell below the thresholds that the Company normally associates with investment grade securities. The securities were originally issued through BankBoston Capital Trust IV and MBNA Capital B and currently represent de-facto obligations of Bank of America Corporation.

The Company’s evaluation of the unrealized loss associated with these securities considered a variety of factors to determine if any portion of the impairment was credit-related at September 30, 2015.  Factors generally considered in such evaluations included the financial strength and viability of the issuer and its parent company, the security’s historical performance through prior business and economic cycles, rating consistency or variability among rating companies, the security’s current and anticipated status regarding payment default or deferral of contractual payments to investors and the impact of these factors on the present value of the security’s expected future cash flows in relation to its amortized cost basis.

In its evaluation, the Company noted the overall financial strength and continuing expected viability of the issuing entity’s parent, particularly given their systemically critical role in the marketplace.  The Company noted the security’s absence of historical defaults or payment deferrals throughout prior business cycles including the recent fiscal crisis that triggered the current economic weaknesses prevalent in the marketplace.  Given these factors, the Company had no basis upon which to estimate an adverse change in the expected cash flows over the securities’ remaining terms to maturity.

In sum, the factors influencing the fair value of the Company’s trust preferred securities and the resulting impairment attributable to each generally resulted from movements in market interest rates and changing market conditions which affect the supply and demand for such securities.  Such market conditions may generally fluctuate over time resulting in the securities being impaired for periods in excess of 12 months.  However, the longevity of such impairment is not reflective of an expectation for an adverse change in cash flows signifying a credit loss. Consequently, the impairments of value arising from these changing market conditions are both “noncredit-related” and “temporary” in nature.

Finally, the Company does not intend to sell the temporarily impaired available for sale securities prior to the recovery of their fair value to a level equal to or greater than the Company’s amortized cost.  Furthermore, the Company has concluded that the possibility of being required to sell the securities prior to their anticipated recovery is unlikely based upon its strong liquidity, asset quality and capital position as of September 30, 2015.  Moreover, as “single issuer” obligations, these securities fall outside the scope of the Volcker Rule discussed earlier that originally identified pooled trust preferred securities as potentially ineligible investments for banks.  In light of the factors noted, the Company does not consider its investments in trust preferred securities with unrealized losses at September 30, 2015 to be “other-than-temporarily” impaired as of that date.

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Interest Income
Loans	$ 22,032	$ 18,405
Mortgage-backed securities	4,514	4,776
Debt securities:
Taxable	1,896	1,735
Tax-exempt	534	485
Other interest-earning assets	439	297
Total Interest Income	29,415	25,698
Interest Expense
Deposits	4,072	3,846
Borrowings	2,987	2,327
Total Interest Expense	7,059	6,173
Net Interest Income	22,356	19,525
Provision for Loan Losses	2,641	858
Net Interest Income after Provision for Loan Losses	19,715	18,667
Non-Interest Income
Fees and service charges	673	699
Gain on sale of loans	72
Loss on sale and write down of real estate owned		(151)
Income from bank owned life insurance	1,390	652
Electronic banking fees and charges	286	284
Miscellaneous	72	96
Total Non-Interest Income	2,493	1,580
Non-Interest Expense
Salaries and employee benefits	10,625	10,076
Net occupancy expense of premises	1,909	1,642
Equipment and systems	1,978	1,930
Advertising and marketing	428	148
Federal deposit insurance premium	662	589
Directors' compensation	182	196
Miscellaneous	2,598	2,190
Total Non-Interest Expense	18,382	16,771
Income before Income Taxes	3,826	3,476
Income taxes	850	553
Net Income	$ 2,976	$ 2,923
Net Income per Common Share (EPS)
Basic	$ 0.03	$ 0.03
Diluted	$ 0.03	$ 0.03
Weighted Average Number of Common Shares Outstanding
Basic	89,590	92,452
Diluted	89,619	92,999
Dividends Declared Per Common Share	$ 0.02

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Net Income Per Common Share ("EPS")

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Net Income Per Common Share (EPS)

3.     NET INCOME PER COMMON SHARE (“EPS”)

Basic EPS is based on the weighted average number of common shares actually outstanding including restricted stock awards adjusted for Employee Stock Ownership Plan (“ESOP”) shares not yet committed to be released. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as outstanding stock options, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effect of contracts or securities exercisable or which could be converted into common stock, if dilutive, using the treasury stock method. Shares issued and reacquired during any period are weighted for the portion of the period they were outstanding.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations:

	Three Months Ended September 30, 2015
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,976
Basic earnings per share, income   available to common stockholders	$	2,976		89,590	$	0.03
Effect of dilutive securities:
Stock options		-		29
	$	2,976		89,619	$	0.03

	Three Months Ended September 30, 2014
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(In Thousands, Except Per Share Data)
Net income	$	2,923
Basic earnings per share, income   available to common stockholders	$	2,923		92,452	$	0.03
Effect of dilutive securities:
Stock options		-		547
	$	2,923		92,999	$	0.03

During the three months ended September 30, 2015, the average number of options which were considered anti-dilutive totaled approximately 276,080. During the three ended September 30, 2014, the average number of options which were considered anti-dilutive totaled approximately 255,374.

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Basis of Presentation

3 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

2.     BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, income, comprehensive income, changes in stockholders’ equity and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the unaudited consolidated financial statements have been included. The results of operations for the three- month period ended September 30, 2015, are not necessarily indicative of the results that may be expected for the entire fiscal year or any other period.

The data in the consolidated statement of financial condition for June 30, 2015 was derived from the Company’s 2015 annual report on Form 10-K. That data, along with the interim unaudited financial information presented in the consolidated statements of financial condition, income, comprehensive income, changes in stockholders’ equity and cash flows should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2015 annual report on Form 10-K.

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Fair Value of Financial Instruments

3 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

14.     FAIR VALUE OF FINANCIAL INSTRUMENTS

The guidance on fair value measurement establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy describes three levels of inputs that may be used to measure fair value:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Observable inputs other than Level 1 prices, such as quoted for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:	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 the determination of fair value requires significant management judgment or estimation.

In addition, the guidance requires the Company to disclose the fair value for assets and liabilities on both a recurring and non-recurring basis.

Those assets and liabilities measured at fair value on a recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,159		$	-	$	7,159
Obligations of state and political subdivisions		-		27,466			-		27,466
Asset-backed securities		-		85,178			-		85,178
Collateralized loan obligations		-		127,412			-		127,412
Corporate bonds		-		161,174			-		161,174
Trust preferred securities		-		8,081			-		8,081
Total debt securities		-		416,470			-		416,470
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		69,313			-		69,313
Residential pass-through securities		-		250,505			-		250,505
Commercial pass-through securities		-		9,492			-		9,492
Total mortgage-backed securities		-		329,310			-		329,310
Total securities available for sale	$	-	$	745,780		$	-	$	745,780
Derivative instruments
Interest rate swaps	$	-	$	(16,659	)	$	-	$	(16,659	)
Interest rate caps		-		390			-		390
Total derivatives	$	-	$	(16,269	)	$	-	$	(16,269	)

	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Debt securities available for sale:
U.S. agency securities	$	-	$	7,263		$	-	$	7,263
Obligations of state and political subdivisions		-		26,835			-		26,835
Asset-backed securities		-		88,032			-		88,032
Collateralized loan obligations		-		128,171			-		128,171
Corporate bonds		-		162,608			-		162,608
Trust preferred securities		-		7,751			-		7,751
Total debt securities		-		420,660			-		420,660
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		71,877			-		71,877
Residential pass-through securities		-		263,613			-		263,613
Commercial pass-through securities		-		11,129			-		11,129
Total mortgage-backed securities		-		346,619			-		346,619
Total securities available for sale	$	-	$	767,279		$	-	$	767,279
Derivative instruments
Interest rate swaps	$	-	$	(9,511	)	$	-	$	(9,511	)
Interest rate caps		-		794			-		794
Total derivatives	$	-	$	(8,717	)	$	-	$	(8,717	)

The fair values of securities available for sale (carried at fair value) or held to maturity (carried at amortized cost) are primarily determined by obtaining matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The Company has contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate caps and swaps. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company.

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	8,636	$	8,636

	June 30, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Impaired loans	$	-	$	-	$	9,742	$	9,742
Real estate owned	$	-	$	-	$	547	$	547

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:

	September 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	8,636	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		8.21	%

	June 30, 2015
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans	$	9,742	Market valuation of underlying collateral	(1)	Direct disposal costs	(2)	6% - 10%		9.45	%
Real estate owned	$	547	Market valuation of property	(3)	Direct disposal costs	(2)	8%		8.00	%

_____________________________

(1) The fair value of impaired loans is generally determined based on an independent appraisal of the market value of a loan’s underlying collateral.

(2) The fair value basis of impaired loans and real estate owned is adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees, with such cost estimates generally ranging from 6% to 10% of collateral or property market value.

(3) The fair value basis of real estate owned is generally determined based upon the lower of an independent appraisal of the property’s market value or the applicable listing price or contracted sales price.

An impaired loan is evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Market value is measured based on the value of the collateral securing the loan and is classified at a Level 3 in the fair value hierarchy. Once a loan is identified as individually impaired, management measures impairment in accordance with the FASB’s guidance on accounting by creditors for impairment of a loan with the fair value estimated using the market value of the collateral reduced by estimated disposal costs. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly.

At September 30, 2015, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $9.0 million and valuation allowances of $407,000 reflecting fair values of $8.6 million. By comparison, at June 30, 2015, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $10.8 million and valuation allowances of $1.1 million reflecting fair values of $9.7 million.

Once a loan is foreclosed, the fair value of the real estate owned continues to be evaluated based upon the market value of the repossessed real estate originally securing the loan. At September 30, 2015, the Company held no real estate owned whose carrying value was written down utilizing Level 3 inputs during the first three months of fiscal 2016.  At June 30, 2015, the Company held real estate owned totaling $547,000 whose carrying value was written down utilizing Level 3 inputs during fiscal 2015.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments at September 30, 2015 and June 30, 2015:

Cash and Cash Equivalents, Interest Receivable and Interest Payable. The carrying amounts for cash and cash equivalents, interest receivable and interest payable approximate fair value because they mature in three months or less.

Securities. See the discussion presented above concerning assets measured at fair value on a recurring basis.

Loans Receivable. Except for certain impaired loans as previously discussed, the fair value of loans receivable is estimated by discounting the future cash flows, using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, of such loans.

FHLB of New York Stock. The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities.

Deposits. The fair value of demand, savings and club accounts is equal to the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated using rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by deposit liabilities compared to the cost of borrowing funds in the market.

Advances from FHLB. Fair value is estimated using rates currently offered for advances of similar remaining maturities.

Interest Rate Derivatives. See the discussion presented above concerning assets measured at fair value on a recurring basis.

Commitments. The fair value of commitments to fund credit lines and originate or participate in loans is estimated using fees currently charged to enter into similar agreements taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest and the committed rates. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading Liquidity and Capital Resources.

The carrying amounts and fair values of financial instruments are as follows:

	September 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	102,630		$	102,630		$	102,630	$	-		$	-
Debt securities available for sale		416,470			416,470			-		416,470			-
Mortgage-backed securities   available for sale		329,310			329,310			-		329,310			-
Debt securities held to maturity		228,597			228,757			-		228,757			-
Mortgage-backed securities   held to maturity		429,912			436,762			-		436,762			-
Loans receivable		2,399,822			2,382,594			-		-			2,382,594
FHLB Stock		29,717			29,717			-		-			29,717
Interest receivable		11,058			11,058			11,058		-			-
Financial liabilities:
Deposits (1)		2,463,890			2,474,572			1,450,660		-			1,023,912
Borrowings		628,351			643,227			-		-			643,227
Interest payable on borrowings		1,114			1,114			1,114		-			-
Derivative instruments:
Interest rate swaps		(16,659	)		(16,659	)		-		(16,659	)		-
Interest rate caps		390			390			-		390			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $78,000 at September 30, 2015.

	June 30, 2015
	Carrying Amount			Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	340,136		$	340,136		$	340,136	$	-		$	-
Debt securities available for sale		420,660			420,660			-		420,660			-
Mortgage-backed securities   available for sale		346,619			346,619			-		346,619			-
Debt securities held to maturity		219,862			218,366			-		218,366			-
Mortgage-backed securities   held to maturity		443,479			445,501			-		445,501			-
Loans receivable		2,087,258			2,069,209			-		-			2,069,209
FHLB Stock		27,468			27,468			-		-			27,468
Interest receivable		9,873			9,873			9,873		-			-
Financial liabilities:
Deposits (1)		2,465,650			2,476,425			1,463,974		-			1,012,451
Borrowings		571,499			585,209			-		-			585,209
Interest payable on borrowings		1,020			1,020			1,020		-			-
Derivative instruments:
Interest rate swaps		(9,511	)		(9,511	)		-		(9,511	)		-
Interest rate caps		794			794			-		794			-

___________________________________

⁽¹⁾ Includes accrued interest payable on deposits of $80,000 at June 30, 2015.

Limitations. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment, and advances from borrowers for taxes and insurance. In addition, the ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

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Loan Quality and Allowance for Loan Losses

3 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loan Quality and Allowance for Loan Losses

10.     LOAN QUALITY AND ALLOWANCE FOR LOAN LOSSES

Past Due Loans. A loan’s “past due” status is generally determined based upon its “P&I delinquency” status in conjunction with its “past maturity” status, where applicable. A loan’s “P&I delinquency” status is based upon the number of calendar days between the date of the earliest P&I payment due and the “as of” measurement date. A loan’s “past maturity” status, where applicable, is based upon the number of calendar days between a loan’s contractual maturity date and the “as of” measurement date. Based upon the larger of these criteria, loans are categorized into the following “past due” tiers for financial statement reporting and disclosure purposes: Current (including 1-29 days past due), 30-59 days, 60-89 days and 90 or more days.

Nonaccrual Loans. Loans are generally placed on nonaccrual status when contractual payments become 90 days or more past due, and are otherwise placed on nonaccrual status when the Company does not expect to receive all P&I payments owed substantially in accordance with the terms of the loan agreement. Loans that become 90 days past maturity, but remain non-delinquent with regard to ongoing P&I payments, may remain on accrual status if: (1) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the loan agreement, past maturity status notwithstanding, and (2) the borrower is working actively and cooperatively with the Company to remedy the past maturity status through an expected refinance, payoff or modification of the loan agreement that is not expected to result in a troubled debt restructuring (“TDR”) classification. All TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of past due status. The sum of nonaccrual loans plus accruing loans that are 90 days or more past due are generally defined collectively as “nonperforming loans”.

Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan for financial statement purposes. When a loan is returned to accrual status, any accumulated interest payments previously applied to the carrying value of the loan during its nonaccrual period are recognized as interest income as an adjustment to the loan’s yield over its remaining term.

Loans that are not considered to be TDRs are generally returned to accrual status when payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Non-TDR loans may also be returned to accrual status when a loan’s payment status falls below 90 days past due and the Company: (1) expects receipt of the remaining past due amounts within a reasonable timeframe, and (2) expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement.

Acquired Loans. Loans that we acquire through acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest.

The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable yield. The nonaccretable yield represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require us to evaluate the need for an allowance for credit losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable yield which we then reclassify as accretable yield that is recognized into interest income over the remaining life of the loan using the interest method. Our evaluation of the amount of future cash flows that we expect to collect is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable yield portion of the fair value adjustment.

Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield.

At September 30, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $9,873,000 and $8,243,000, respectively. By comparison, at June 30, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $9,900,000 and $8,363,000, respectively.

The carrying amount of acquired credit-impaired loans for which interest is not being recognized due to the uncertainty of the cash flows relating to such loans totaled $1,302,000 and $1,322,000 at September 30, 2015 and June 30, 2015, respectively.

The balance of the allowance for loan losses at June 30, 2015 included approximately $81,000 of valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans. The valuation allowances were attributable to additional impairment recognized on the applicable loans subsequent to their acquisition, net of any charge offs recognized during that time.  There were no valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans at September 30, 2015.

The following table presents the changes in the accretable yield relating to the acquired credit-impaired loans for the three months ended September 30, 2015 and September 30, 2014.

	Three Months Ended September 30,
	2015			2014
	(In Thousands)
Beginning balance	$	1,189		$	1,891
Accretion to interest income		(105	)		(64	)
Disposals		-			-
Reclassifications from nonaccretable difference		-			-
Ending balance	$	1,084		$	1,827

Classification of Assets. In compliance with regulatory guidelines, the Company’s loan review system includes an evaluation process through which certain loans exhibiting adverse credit quality characteristics are classified “Special Mention”, “Substandard”, “Doubtful” or “Loss”.

An asset is classified as “Substandard” if it is inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as “Doubtful” have all of the weaknesses inherent in those classified as “Substandard”, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets, or portions thereof, classified as “Loss” are considered uncollectible or of so little value that their continuance as assets is not warranted.

Management evaluates loans classified as substandard or doubtful for impairment in accordance with applicable accounting requirements. As discussed in greater detail below, a valuation allowance is established through the provision for loan losses for any impairment identified through such evaluations.

To the extent that impairment identified on a loan is classified as “Loss”, that portion of the loan is charged off against the allowance for loan losses. The classification of loan impairment as “Loss” is based upon a confirmed expectation for loss. For loans primarily secured by real estate, the expectation for loss is generally confirmed when: (a) impairment is identified on a loan individually evaluated in the manner described below, and (b) the loan is presumed to be collateral-dependent such that the source of loan repayment is expected to arise solely from sale of the collateral securing the applicable loan. Impairment identified on non-collateral-dependent loans may or may not be eligible for a “Loss” classification depending upon the other salient facts and circumstances that affect the manner and likelihood of loan repayment. However, loan impairment that is classified as “Loss” is charged off against the allowance for loan losses concurrent with that classification.

The timeframe between when loan impairment is first identified by the Company and when such impairment may ultimately be charged off varies by loan type. For example, unsecured consumer and commercial loans are generally classified as “Loss” at 120 days past due, resulting in their outstanding balances being charged off at that time. For the Company’s secured loans, the condition of collateral dependency generally serves as the basis upon which a “Loss” classification is ascribed to a loan’s impairment thereby confirming an expected loss and triggering charge off of that impairment. While the facts and circumstances that effect the manner and likelihood of repayment vary from loan to loan, the Company generally considers the referral of a loan to foreclosure, coupled with the absence of other viable sources of loan repayment, to be demonstrable evidence of collateral dependency. Depending upon the nature of the collections process applicable to a particular loan, an early determination of collateral dependency could result in a nearly concurrent charge off of a newly identified impairment. By contrast, a presumption of collateral dependency may only be determined after the completion of lengthy loan collection and/or workout efforts, including bankruptcy proceedings, which may extend several months or more after a loan’s impairment is first identified.

In a limited number of cases, the entire net carrying value of a loan may be determined to be impaired based upon a collateral-dependent impairment analysis. However, the borrower’s adherence to contractual repayment terms precludes the recognition of a “Loss” classification and charge off. In these limited cases, a valuation allowance equal to 100% of the impaired loan’s carrying value may be maintained against the net carrying value of the asset.

Assets which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses are designated as “Special Mention” by management. Adversely classified assets, together with those rated as “Special Mention”, are generally referred to as “Classified Assets”. Non-classified assets are internally rated within one of four “Pass” categories or as “Watch” with the latter denoting a potential deficiency or concern that warrants increased oversight or tracking by management until remediated.

Management performs a classification of assets review, including the regulatory classification of assets, generally on a monthly basis. The results of the classification of assets review are validated by the Company’s third party loan review firm during their quarterly independent review. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will generally utilize the more critical or conservative rating or classification. Final loan ratings and regulatory classifications are presented monthly to the Board of Directors and are reviewed by regulators during the examination process.

Allowance for Loan Losses. The allowance for loan losses is a valuation account that reflects the Company’s estimation of the losses in its loan portfolio to the extent they are both probable and reasonable to estimate. The balance of the allowance is generally maintained through provisions for loan losses that are charged to income in the period that estimated losses on loans are identified by the Company’s loan review system. The Company charges confirmed losses on loans against the allowance as such losses are identified. Recoveries on loans previously charged-off are added back to the allowance.

The Company’s allowance for loan loss calculation methodology utilizes a “two-tier” loss measurement process that is generally performed monthly. Based upon the results of the classification of assets and credit file review processes described earlier, the Company first identifies the loans that must be reviewed individually for impairment. Factors considered in identifying individual loans to be reviewed include, but may not be limited to, loan type, classification status, contractual payment status, performance/accrual status and impaired status.

The loans considered by the Company to be eligible for individual impairment review include its commercial mortgage loans, comprising multi-family and nonresidential real estate loans, construction loans, commercial business loans as well as its one-to-four family mortgage loans, home equity loans and home equity lines of credit.

A reviewed loan is deemed to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, management performs an analysis to determine the amount of impairment associated with that loan.

In measuring the impairment associated with collateral-dependent loans, the fair value of the collateral securing the loan is generally used as a measurement proxy for that of the impaired loan itself as a practical expedient. In the case of real estate collateral, such values are generally determined based upon a discounted market value obtained through an automated valuation module or prepared by a qualified, independent real estate appraiser. The value of non-real estate collateral is similarly determined based upon an independent assessment of fair market value by a qualified resource.

The Company generally obtains independent appraisals on properties securing mortgage loans when such loans are initially placed on nonperforming or impaired status with such values updated approximately every six to twelve months thereafter throughout the collections, bankruptcy and/or foreclosure processes. Appraised values are typically updated at the point of foreclosure, where applicable, and approximately every six to twelve months thereafter while the repossessed property is held as real estate owned.

As supported by accounting and regulatory guidance, the Company reduces the fair value of the collateral by estimated selling costs, such as real estate brokerage commissions, to measure impairment when such costs are expected to reduce the cash flows available to repay the loan.

The Company establishes valuation allowances in the fiscal period during which the loan impairments are identified. The results of management’s individual loan impairment evaluations are validated by the Company’s third party loan review firm during their quarterly independent review. Such valuation allowances are adjusted in subsequent fiscal periods, where appropriate, to reflect any changes in carrying value or fair value identified during subsequent impairment evaluations which are generally updated monthly by management.

The second tier of the loss measurement process involves estimating the probable and estimable losses which addresses loans not otherwise reviewed individually for impairment as well as those individually reviewed loans that are determined to be non-impaired. Such loans include groups of smaller-balance homogeneous loans that may generally be excluded from individual impairment analysis, and therefore collectively evaluated for impairment, as well as the non-impaired loans within categories that are otherwise eligible for individual impairment review.

Valuation allowances established through the second tier of the loss measurement process utilize historical and environmental loss factors to collectively estimate the level of probable losses within defined segments of the Company’s loan portfolio. These segments aggregate homogeneous subsets of loans with similar risk characteristics based upon loan type. For allowance for loan loss calculation and reporting purposes, the Company currently stratifies its loan portfolio into seven primary segments: residential mortgage loans, commercial mortgage loans, construction loans, commercial business loans, home equity loans, home equity lines of credit and other consumer loans.

The risks presented by residential mortgage loans are primarily related to adverse changes in the borrower’s financial condition that threaten repayment of the loan in accordance with its contractual terms. Such risk to repayment can arise from job loss, divorce, illness and the personal bankruptcy of the borrower. For collateral dependent residential mortgage loans, additional risk of loss is presented by potential declines in the fair value of the collateral securing the loan.

Home equity loans and home equity lines of credit generally share the same risks as those applicable to residential mortgage loans. However, to the extent that such loans represent junior liens, they are comparatively more susceptible to such risks given their subordinate position behind senior liens.

In addition to sharing similar risks as those presented by residential mortgage loans, risks relating to commercial mortgage loans also arise from comparatively larger loan balances to single borrowers or groups of related borrowers. Moreover, the repayment of such loans is typically dependent on the successful operation of an underlying real estate project and may be further threatened by adverse changes to demand and supply of commercial real estate as well as changes generally impacting overall business or economic conditions.

The risks presented by construction loans are generally considered to be greater than those attributable to residential and commercial mortgage loans. Risks from construction lending arise, in part, from the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost, including interest, of the project. The nature of these loans is such that they are comparatively more difficult to evaluate and monitor than permanent mortgage loans.

Commercial business loans are also considered to present a comparatively greater risk of loss due to the concentration of principal in a limited number of loans and/or borrowers and the effects of general economic conditions on the business. Commercial business loans may be secured by varying forms of collateral including, but not limited to, business equipment, receivables, inventory and other business assets which may not provide an adequate source of repayment of the outstanding loan balance in the event of borrower default. Moreover, the repayment of commercial business loans is primarily dependent on the successful operation of the underlying business which may be threatened by adverse changes to the demand for the business’ products and/or services as well as the overall efficiency and effectiveness of the business’ operations and infrastructure.

Finally, our unsecured consumer loans generally have shorter terms and higher interest rates than other forms of lending but generally involve more credit risk due to the lack of collateral to secure the loan in the event of borrower default. Consumer loan repayment is dependent on the borrower’s continuing financial stability, and therefore is more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. By contrast, our consumer loans also include account loans that are fully secured by the borrower’s deposit accounts and generally present nominal risk to the Bank.

Each primary segment is further stratified to distinguish between loans originated and purchased through third parties from loans acquired through business combinations. Commercial business loans include secured and unsecured loans as well as loans originated through SBA programs. Additional criteria may be used to further group loans with common risk characteristics. For example, such criteria may distinguish between loans secured by different collateral types or separately identify loans supported by government guarantees such as those issued by the SBA.

In regard to historical loss factors, the Company’s allowance for loan loss calculation calls for an analysis of historical charge-offs and recoveries for each of the defined segments within the loan portfolio. The Company utilizes a two-year moving average of annual net charge-off rates (charge-offs net of recoveries) by loan segment, where available, to calculate its actual, historical loss experience. The outstanding principal balance of the non-impaired portion of each loan segment is multiplied by the applicable historical loss factor to estimate the level of probable losses based upon the Company’s historical loss experience.

As noted, the second tier of the Company’s allowance for loan loss calculation also utilizes environmental loss factors to estimate the probable losses within the loan portfolio. Environmental loss factors are based upon specific qualitative criteria representing key sources of risk within the loan portfolio. Such risk criteria includes the level of and trends in nonperforming loans; the effects of changes in credit policy; the experience, ability and depth of the lending function’s management and staff; national and local economic trends and conditions; credit risk concentrations and changes in local and regional real estate values. During fiscal 2014, the environmental factors utilized by the Company in its allowance for loan loss calculation were expanded to include changes in the nature, volume and terms of loans, changes in the quality of loan review systems and resources and the effects of regulatory, legal and other external factors.

For each category of the loan portfolio, a level of risk, developed from a number of internal and external resources, is assigned to each of the qualitative criteria utilizing a scale ranging from zero (negligible risk) to 15 (high risk), with higher values potentially ascribed to exceptional levels of risk that exceed the standard range, as appropriate. The sum of the risk values, expressed as a whole number, is multiplied by .01% to arrive at an overall environmental loss factor, expressed in basis points, for each loan category.

The Company incorporates its credit-rating classification system into the calculation of environmental loss factors by loan type by including risk-rating classification “weights” in its calculation of those factors. The Company’s risk-rating classification system ascribes a numerical rating of “1” through “9” to each loan within the portfolio. The ratings “5” through “9” represent the numerical equivalents of the traditional loan classifications “Watch”, “Special Mention”, “Substandard”, “Doubtful” and “Loss”, respectively, while lower ratings, “1” through “4”, represent risk-ratings within the least risky “Pass” category. The environmental loss factor applicable to each non-impaired loan within a category, as described above, is “weighted” by a multiplier based upon the loan’s risk-rating classification. Within any single loan category, a “higher” environmental loss factor is ascribed to those loans with comparatively higher risk-rating classifications resulting in a proportionately greater ALLL requirement attributable to such loans compared to the comparatively lower risk-rated loans within that category.

The sum of the probable and estimable loan losses calculated through the first and second tiers of the loss measurement processes as described above, represents the total targeted balance for the Company’s allowance for loan losses at the end of a fiscal period. As noted earlier, the Company establishes all additional valuation allowances in the fiscal period during which additional individually identified loan impairments and additional estimated losses on loans collectively evaluated for impairment are identified. The Company adjusts its balance of valuation allowances through the provision for loan losses as required to ensure that the balance of the allowance for loan losses reflects all probable and estimable loans losses at the close of the fiscal period. Notwithstanding calculation methodology and the noted distinction between valuation allowances established on loans collectively versus individually evaluated for impairment, the Company’s entire allowance for loan losses is available to cover all charge-offs that arise from the loan portfolio.

Although the Company’s allowance for loans losses is established in accordance with management’s best estimate, actual losses are dependent upon future events and, as such, further additions to the level of loan loss allowances may be necessary.

The following tables present the balance of the allowance for loan losses at September 30, 2015 and June 30, 2015 based upon the calculation methodology described above. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates as well as the activity in the allowance for loan losses for the three months ended September 30, 2015 and September 30, 2014. Unless otherwise noted, the balance of loans reported in the tables below excludes yield adjustments and the allowance for loan loss.

Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	218	$	142	$	-	$	22	$	89	$	-	$	-	$	471
Loans collectively evaluated   for impairment		2,158		12,576		24		969		185		36		26		15,974
Allowance for loan losses on   originated and purchased loans		2,376		12,718		24		991		274		36		26		16,445
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		-		-		-		-		-
Other acquired loans individually   evaluated for impairment		-		108		-		171		-		2		-		281
Acquired loans collectively   evaluated for impairment		93		355		5		416		37		57		1		964
Allowance for loan losses on   loans acquired at fair value		93		463		5		587		37		59		1		1,245
Total allowance for loan losses	$	2,469	$	13,181	$	29	$	1,578	$	311	$	95	$	27	$	17,690

Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage			Commercial Mortgage		Construction			Commercial Business			Home Equity Loans		Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2015:
At June 30, 2015:
Allocated	$	2,210		$	11,120	$	34		$	1,860		$	260	$	106		$	16	$	15,606
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses		2,210			11,120		34			1,860			260		106			16		15,606
Total charge offs		(538	)		-		-			(96	)		-		(24	)		-		(658	)
Total recoveries		-			-		-			59			41		-			1		101
Total allocated provisions		797			2,061		(5	)		(245	)		10		13			10		2,641
Total unallocated provisions		-			-		-			-			-		-			-		-
At September 30, 2015:
Allocated		2,469			13,181		29			1,578			311		95			27		17,690
Unallocated		-			-		-			-			-		-			-		-
Total allowance for loan losses	$	2,469		$	13,181	$	29		$	1,578		$	311	$	95		$	27	$	17,690

Allowance for Loan Losses and Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage			Commercial Mortgage			Construction			Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2014:
At June 30, 2014:
Allocated	$	2,729		$	7,737		$	67		$	1,284		$	460		$	88		$	22	$	12,387
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses		2,729			7,737			67			1,284			460			88			22		12,387
Total charge offs		(303	)		(346	)		-			(192	)		-			-			-		(841	)
Total recoveries		-			-			-			2			-			-			-		2
Total allocated provisions		149			551			(9	)		268			(98	)		(4	)		1		858
Total unallocated provisions		-			-			-			-			-			-			-		-
At September 30, 2014:
Allocated		2,575			7,942			58			1,362			362			84			23		12,406
Unallocated		-			-			-			-			-			-			-		-
Total allowance for loan losses	$	2,575		$	7,942		$	58		$	1,362		$	362		$	84		$	23	$	12,406

Allowance for Loan Losses and Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,073	$	3,464	$	-	$	1,024	$	972	$	52	$	-	$	15,585
Loans collectively evaluated   for impairment		551,063		1,506,880		2,740		69,718		64,902		11,652		4,501		2,211,456
Total originated and purchased   loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		113		314		-		7,816		-		-		-		8,243
Other acquired loans individually   evaluated for impairment		-		4,334		2,013		512		476		918		-		8,253
Acquired loans collectively   evaluated for impairment		57,958		80,997		333		18,175		4,997		8,856		79		171,395
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580		2,414,932
Unamortized yield   adjustments																2,580
Loans receivable, net of    yield adjustments															$	2,417,512

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	116	$	415	$	-	$	30	$	12	$	-	$	-	$	573
Loans collectively evaluated   for impairment		2,031		10,162		29		989		184		33		15		13,443
Allowance for loan losses on   originated and purchased loans		2,147		10,577		29		1,019		196		33		15		14,016
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		-		-		-		81		-		-		-		81
Other acquired loans individually   evaluated for impairment		-		114		-		259		-		24		-		397
Acquired loans collectively   evaluated for impairment		63		429		5		501		64		49		1		1,112
Allowance for loan losses on   loans acquired at fair value		63		543		5		841		64		73		1		1,590
Total allowance for loan losses	$	2,210	$	11,120	$	34	$	1,860	$	260	$	106	$	16	$	15,606

Allowance for Loan Losses and Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Originated and purchased loans:
Loans individually evaluated   for impairment	$	10,240	$	3,439	$	-	$	1,861	$	991	$	26	$	-	$	16,557
Loans collectively evaluated   for impairment		520,070		1,214,586		3,328		69,797		63,034		10,854		4,204		1,885,873
Total originated and purchased   loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Loans acquired with deteriorated   credit quality		116		318		-		7,929		-		-		-		8,363
Other acquired loans individually   evaluated for impairment		-		4,196		2,037		927		534		945		-		8,639
Acquired loans collectively   evaluated for impairment		61,895		86,564		346		18,937		5,698		9,589		87		183,116
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291		2,102,548
Unamortized yield   adjustments																316
Loans receivable, net of    yield adjustments															$	2,102,864

The following tables present key indicators of credit quality regarding the Company’s loan portfolio based upon loan classification and contractual payment status at September 30, 2015 and June 30, 2015.

Credit-Rating Classification of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	549,597	$	1,505,511	$	2,594	$	69,697	$	64,688	$	11,603	$	4,493	$	2,208,183
Classified:
Special Mention		948		361		146		-		54		49		-		1,558
Substandard		10,591		4,381		-		1,045		1,132		52		5		17,206
Doubtful		-		91		-		-		-		-		3		94
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,539		4,833		146		1,045		1,186		101		8		18,858
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Non-classified		56,663		79,943		-		14,080		4,872		8,465		54		164,077
Classified:
Special Mention		370		123		333		6,538		76		242		21		7,703
Substandard		1,038		5,579		2,013		5,879		525		1,067		4		16,105
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,408		5,702		2,346		12,423		601		1,309		25		23,814
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Credit-Rating Classification of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Non-classified	$	518,592	$	1,213,307	$	3,328	$	69,662	$	62,902	$	10,780	$	4,201	$	1,882,772
Classified:
Special Mention		955		256		-		58		56		74		-		1,399
Substandard		10,763		4,195		-		1,938		1,067		26		3		17,992
Doubtful		-		267		-		-		-		-		-		267
Loss		-		-		-		-		-		-		-		-
Total classified loans		11,718		4,718		-		1,996		1,123		100		3		19,658
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Non-classified		60,593		82,068		-		13,749		5,588		9,196		60		171,254
Classified:
Special Mention		372		3,425		346		7,617		76		242		24		12,102
Substandard		1,046		5,585		2,037		6,421		568		1,096		3		16,756
Doubtful		-		-		-		6		-		-		-		6
Loss		-		-		-		-		-		-		-		-
Total classified loans		1,418		9,010		2,383		14,044		644		1,338		27		28,864
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

Contractual Payment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	554,530	$	1,508,899	$	2,740	$	70,434	$	65,377	$	11,562	$	4,497	$	2,218,039
Past due:
30-59 days		1,583		65		-		-		44		90		-		1,782
60-89 days		614		-		-		22		-		-		1		637
90+ days		4,409		1,380		-		286		453		52		3		6,583
Total past due		6,606		1,445		-		308		497		142		4		9,002
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Current		57,291		84,076		1,582		24,802		5,194		8,563		72		181,580
Past due:
30-59 days		780		259		-		148		17		12		4		1,220
60-89 days		-		438		-		-		76		281		1		796
90+ days		-		872		764		1,553		186		918		2		4,295
Total past due		780		1,569		764		1,701		279		1,211		7		6,311
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Contractual Payment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Current	$	524,780	$	1,216,644	$	3,328	$	70,529	$	63,457	$	10,828	$	4,199	$	1,893,765
Past due:
30-59 days		420		256		-		23		114		-		4		817
60-89 days		685		-		-		-		-		26		-		711
90+ days		4,425		1,125		-		1,106		454		26		1		7,137
Total past due		5,530		1,381		-		1,129		568		52		5		8,665
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Current		61,895		89,796		1,610		25,721		5,993		9,577		85		194,677
Past due:
30-59 days		116		-		-		-		134		12		-		262
60-89 days		-		468		-		-		-		-		1		469
90+ days		-		814		773		2,072		105		945		1		4,710
Total past due		116		1,282		773		2,072		239		957		2		5,441
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

The following tables present information relating to the Company’s nonperforming and impaired loans at September 30, 2015 and June 30, 2015. Loans reported as “90+ days past due accruing” in the table immediately below are also reported in the preceding contractual payment status table under the heading “90+ days past due”.

Performance Status of Loans Receivable
at September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	553,431	$	1,506,945	$	2,740	$	69,718	$	65,421	$	11,652	$	4,497	$	2,214,404
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,705		3,399		-		1,024		453		52		4		12,637
Total nonperforming		7,705		3,399		-		1,024		453		52		4		12,637
Total originated and   purchased loans		561,136		1,510,344		2,740		70,742		65,874		11,704		4,501		2,227,041
Loans acquired at fair value:
Performing		57,958		81,696		333		24,918		5,181		8,856		77		179,019
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		113		3,949		2,013		1,585		292		918		2		8,872
Total nonperforming		113		3,949		2,013		1,585		292		918		2		8,872
Total loans acquired at   fair value		58,071		85,645		2,346		26,503		5,473		9,774		79		187,891
Total loans	$	619,207	$	1,595,989	$	5,086	$	97,245	$	71,347	$	21,478	$	4,580	$	2,414,932

Performance Status of Loans Receivable
at June 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Originated and purchased loans:
Performing	$	522,474	$	1,214,653	$	3,328	$	69,819	$	63,563	$	10,854	$	4,203	$	1,888,894
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		7,836		3,372		-		1,839		462		26		1		13,536
Total nonperforming		7,836		3,372		-		1,839		462		26		1		13,536
Total originated and   purchased loans		530,310		1,218,025		3,328		71,658		64,025		10,880		4,204		1,902,430
Loans acquired at fair value:
Performing		61,895		87,273		346		25,688		5,882		9,589		86		190,759
Nonperforming:
90+ days past due accruing		-		-		-		-		-		-		-		-
Nonaccrual		116		3,805		2,037		2,105		350		945		1		9,359
Total nonperforming		116		3,805		2,037		2,105		350		945		1		9,359
Total loans acquired at   fair value		62,011		91,078		2,383		27,793		6,232		10,534		87		200,118
Total loans	$	592,321	$	1,309,103	$	5,711	$	99,451	$	70,257	$	21,414	$	4,291	$	2,102,548

Impairment Status of Loans Receivable
at September 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	551,063		$	1,506,880		$	2,740	$	69,718		$	64,902		$	11,652		$	4,501	$	2,211,456
Impaired loans:
Impaired loans with no allowance   for impairment		7,434			2,062			-		1,002			880			52			-		11,430
Impaired loans with allowance   for impairment:
Recorded investment		2,639			1,402			-		22			92			-			-		4,155
Allowance for impairment		(218	)		(142	)		-		(22	)		(89	)		-			-		(471	)
Balance of impaired loans net   of allowance for impairment		2,421			1,260			-		-			3			-			-		3,684
Total impaired loans, excluding   allowance for impairment:		10,073			3,464			-		1,024			972			52			-		15,585
Total originated and   purchased loans		561,136			1,510,344			2,740		70,742			65,874			11,704			4,501		2,227,041
Loans acquired at fair value:
Non-impaired loans		57,958			80,997			333		18,175			4,997			8,856			79		171,395
Impaired loans:
Impaired loans with no allowance   for impairment		113			4,213			2,013		8,192			476			484			-		15,491
Impaired loans with allowance   for impairment:
Recorded investment		-			435			-		136			-			434			-		1,005
Allowance for impairment		-			(108	)		-		(171	)		-			(2	)		-		(281	)
Balance of impaired loans net   of allowance for impairment		-			327			-		(35	)		-			432			-		724
Total impaired loans, excluding   allowance for impairment:		113			4,648			2,013		8,328			476			918			-		16,496
Total loans acquired at   fair value		58,071			85,645			2,346		26,503			5,473			9,774			79		187,891
Total loans	$	619,207		$	1,595,989		$	5,086	$	97,245		$	71,347		$	21,478		$	4,580	$	2,414,932
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,594		$	4,160		$	-	$	1,079		$	995		$	52		$	-	$	22,880
Loans acquired at fair value		146			4,954			2,113		9,794			499			975			-		18,481
Total impaired loans	$	16,740		$	9,114		$	2,113	$	10,873		$	1,494		$	1,027		$	-	$	41,361

Impairment Status of Loans Receivable
at June 30, 2015
	Residential Mortgage			Commercial Mortgage			Construction		Commercial Business			Home Equity Loans			Home Equity Lines of Credit			Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Originated and purchased loans:
Non-impaired loans	$	520,070		$	1,214,586		$	3,328	$	69,797		$	63,034		$	10,854		$	4,204	$	1,885,873
Impaired loans:
Impaired loans with no allowance   for impairment		8,387			1,777			-		1,418			905			26			-		12,513
Impaired loans with allowance   for impairment:
Recorded investment		1,853			1,662			-		443			86			-			-		4,044
Allowance for impairment		(116	)		(415	)		-		(30	)		(12	)		-			-		(573	)
Balance of impaired loans net   of allowance for impairment		1,737			1,247			-		413			74			-			-		3,471
Total impaired loans, excluding   allowance for impairment:		10,240			3,439			-		1,861			991			26			-		16,557
Total originated and   purchased loans		530,310			1,218,025			3,328		71,658			64,025			10,880			4,204		1,902,430
Loans acquired at fair value:
Non-impaired loans		61,895			86,564			346		18,937			5,698			9,589			87		183,116
Impaired loans:
Impaired loans with no allowance   for impairment		116			4,072			2,037		8,214			534			488			-		15,461
Impaired loans with allowance   for impairment:
Recorded investment		-			442			-		642			-			457			-		1,541
Allowance for impairment		-			(114	)		-		(340	)		-			(24	)		-		(478	)
Balance of impaired loans net   of allowance for impairment		-			328			-		302			-			433			-		1,063
Total impaired loans, excluding   allowance for impairment:		116			4,514			2,037		8,856			534			945			-		17,002
Total loans acquired at   fair value		62,011			91,078			2,383		27,793			6,232			10,534			87		200,118
Total loans	$	592,321		$	1,309,103		$	5,711	$	99,451		$	70,257		$	21,414		$	4,291	$	2,102,548
Unpaid principal balance   of impaired loans:
Originated and purchased loans	$	16,985		$	4,103		$	-	$	2,036		$	1,014		$	26		$	-	$	24,164
Loans acquired at fair value		147			4,759			2,118		10,506			561			975			-		19,066
Total impaired loans	$	17,132		$	8,862		$	2,118	$	12,542		$	1,575		$	1,001		$	-	$	43,230

Impairment Status of Loans Receivable
Period Ended September 30, 2015 and 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
For the three months ended   September 30, 2015:
Average balance of impaired loans	$	10,037	$	7,973	$	2,025	$	10,290	$	1,519	$	958	$	-	$	32,802
Interest earned on impaired loans	$	70	$	12	$	-	$	217	$	14	$	-	$	-	$	313
For the three months ended   September 30, 2014:
Average balance of impaired loans	$	13,169	$	8,407	$	1,432	$	11,903	$	1,639	$	1,055	$	-	$	37,605
Interest earned on impaired loans	$	29	$	46	$	-	$	189	$	11	$	-	$	-	$	275

  Troubled Debt Restructurings (“TDRs”). A modification to the terms of a loan is generally considered a TDR if the Bank grants a concession to the borrower that it would not otherwise consider for economic or legal reasons related to the debtor’s financial difficulties. In granting the concession, the Bank’s general objective is to make the best of a difficult situation by obtaining more cash or other value from the borrower or otherwise increase the probability of repayment.

A TDR may include, but is not necessarily limited to, the modification of loan terms such as a temporary or permanent reduction of the loan’s stated interest rate, extension of the maturity date and/or reduction or deferral of amounts owed under the terms of the loan agreement. In measuring the impairment associated with restructured loans that qualify as TDRs, the Company compares the cash flows under the loan’s existing terms with those that are expected to be received in accordance with its modified terms. The difference between the comparative cash flows is discounted at the loan’s effective interest rate prior to modification to measure the associated impairment. The impairment is charged off directly against the allowance for loan loss at the time of restructuring resulting in a reduction in carrying value of the modified loan that is accreted into interest income as a yield adjustment over the remaining term of the modified cash flows.

All restructured loans that qualify as TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of the borrower’s adherence to a TDR’s modified repayment terms during which time TDRs continue to be adversely classified and reported as impaired. TDRs may be returned to accrual status if (1) the borrower has paid timely P&I payments in accordance with the terms of the restructured loan agreement for no less than six consecutive months after restructuring, and (2) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the restructured loan agreement at which time the loan may also be returned to a non-adverse classification while retaining its impaired status.

We may obtain physical possession of one- to four-family real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. As of September 30, 2015, we held one single-family property in real estate owned with a carrying value of $395,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held 35 residential mortgage loans with aggregate carrying values totaling $4.4 million which were in the process of foreclosure.

The following table presents information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2015 and 2014 and any defaults during those periods of TDRs that were restructured within 12 months of the date of default.

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2015
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	693	$	-	$	-	$	-	$	-	$	-	$	-	$	693
Post-modification outstanding   recorded investment		431		-		-		-		-		-		-	$	431
Charge offs against the allowance   for loan loss recognized at   modification		231		-		-		-		-		-		-	$	231
Loans acquired at fair value
Number of loans		-		3		-		-		-		-		-		3
Pre-modification outstanding   recorded investment	$	-	$	2,285	$	-	$	-	$	-	$	-	$	-	$	2,285
Post-modification outstanding   recorded investment		-		2,290		-		-		-		-		-	$	2,290
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2015
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Troubled Debt Restructurings of Loans Receivable
Period Ended September 30, 2014
	Residential Mortgage		Commercial Mortgage		Construction		Commercial Business		Home Equity Loans		Home Equity Lines of Credit		Other Consumer		Total
	(In Thousands)
Troubled debt restructuring activity   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		2		-		-		-		-		-		-		2
Pre-modification outstanding   recorded investment	$	664	$	-	$	-	$	-	$	-	$	-	$	-	$	664
Post-modification outstanding   recorded investment		673		-		-		-		-		-		-	$	673
Charge offs against the allowance   for loan loss recognized at   modification		33		-		-		-		-		-		-	$	33
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Pre-modification outstanding   recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Post-modification outstanding   recorded investment		-		-		-		-		-		-		-	$	-
Charge offs against the allowance   for loan loss recognized at   modification		-		-		-		-		-		-		-	$	-
Troubled debt restructuring defaults   for the three months ended   September 30, 2014
Originated and purchased loans
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans acquired at fair value
Number of loans		-		-		-		-		-		-		-		-
Outstanding recorded investment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The manner in which the terms of a loan are modified through a troubled debt restructuring generally includes one or more of the following changes to the loan’s repayment terms:

· Interest Rate Reduction: Temporary or permanent reduction of the interest rate charged against the outstanding balance of the loan.

· Capitalization of Prior Past Dues: Capitalization of prior amounts due to the outstanding balance of the loan.

· Extension of Maturity or Balloon Date: Extending the term of the loan past its original balloon or maturity date.

· Deferral of Principal Payments: Temporary deferral of the principal portion of a loan payment.

· Payment Recalculation and Re-amortization: Recalculation of the recurring payment obligation and resulting loan amortization/repayment schedule based on the loan’s modified terms.

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Recent Accounting Pronouncements

3 Months Ended

Sep. 30, 2015

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

6.     RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The purpose of the ASU is to reduce diversity in the application of guidance by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. This ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The ASU’s core principle 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 objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine 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 a performance obligation. For public entities, the guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017.  The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860) Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The purpose of the ASU is to address the concern that current accounting guidance distinguishes between repurchase agreements that settle at the same time as the maturity of the transferred financial asset and those that settle any time before maturity. In particular, repurchase-to-maturity transactions are generally accounted for as sales with forward agreements under current accounting, whereas typical repurchase agreements that settle before the maturity of the transferred financial asset are accounted for as secured borrowings. Additionally, current accounting guidance requires an evaluation of whether an initial transfer of a financial asset and a contemporaneous repurchase agreement (a repurchase financing) should be accounted for separately or linked. If linked, the arrangement is accounted for on a combined basis as a forward agreement. Those outcomes often are referred to as off-balance-sheet accounting. The ASU changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The amendments also require two new related disclosures. This ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.  The purpose of the ASU is to address a practice issue related to the classification of certain foreclosed residential and nonresidential mortgage loans that are either fully or partially guaranteed under government programs. Specifically, creditors should reclassify loans that meet certain conditions to "other receivables" upon foreclosure, rather than reclassifying them to other real estate owned (OREO). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor.  The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting).  The purpose of the ASU is to codify an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets.  Given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement.  The ASU was immediately effective upon its announcement and its adoption did not have a significant impact on the Company’s consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.  The ASU requires adjustments to provisional amounts that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined.  This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.

In addition, the amendments in the Update would require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

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Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured At Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	$ 416,470	$ 420,660
Mortgage-backed securities available for sale	329,310	346,619
Securities available for sale	745,780	767,279
Derivative instruments, Fair Value, Net	(16,269)	(8,717)
Interest Rate Swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	(16,659)	(9,511)
Interest Rate Caps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	390	794
Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	69,313	71,877
Residential Pass-Through Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	250,505	263,613
Commercial Pass-Through Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	9,492	11,129
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	416,470	420,660
Mortgage-backed securities available for sale	329,310	346,619
Securities available for sale	745,780	767,279
Derivative instruments, Fair Value, Net	(16,269)	(8,717)
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swaps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	(16,659)	(9,511)
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Caps [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instruments, Fair Value, Net	390	794
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	69,313	71,877
Significant Other Observable Inputs (Level 2) [Member] | Residential Pass-Through Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	250,505	263,613
Significant Other Observable Inputs (Level 2) [Member] | Commercial Pass-Through Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage-backed securities available for sale	9,492	11,129
Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	416,470	420,660
Debt Securities [Member] | Trust Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	8,081	7,751
Debt Securities [Member] | U.S. Agency Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	7,159	7,263
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	27,466	26,835
Debt Securities [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	85,178	88,032
Debt Securities [Member] | Corporate Bonds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	161,174	162,608
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	127,412	128,171
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trust Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	8,081	7,751
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	7,159	7,263
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	27,466	26,835
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	85,178	88,032
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	161,174	162,608
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available for sale (amortized cost $422,789 and $422,903)	$ 127,412	$ 128,171

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Subsequent Events

3 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

4.     SUBSEQUENT EVENTS

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2015, for items that should potentially be recognized or disclosed in these consolidated financial statements.  The evaluation was conducted through the date this document was filed.

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Plan of Conversion and Stock Offering

3 Months Ended

Sep. 30, 2015

Plan Of Reorganization [Abstract]

Plan of Conversion and Stock Offering

5.     PLAN OF CONVERSION AND STOCK OFFERING

On September 4, 2014, the Boards of Directors of Kearny MHC, our prior holding company (also named Kearny Financial Corp.) and the Bank adopted a Plan of Conversion and Reorganization (the “Plan”). Pursuant to the Plan, Kearny MHC would convert from the mutual holding company form of organization to the fully public form. Kearny MHC would be merged into the prior holding company, and Kearny MHC would no longer exist. The prior holding company would then merge into a new Maryland corporation, also named Kearny Financial Corp., which would become the holding company for the Bank.

On May 5, 2015, the stockholders of the prior holding company and members of Kearny MHC approved the plan of conversion and reorganization.  Additionally, on May 5, 2015, the Company’s stockholders and Kearny MHC’s members each approved the establishment and funding of the KearnyBank Foundation with a contribution of 500,000 shares of New Kearny common stock and $5.0 million in cash.  The transactions contemplated by the Plan were also subject to approval by the Board of Governors of the Federal Reserve System, which was received in March 2015.

On May 18, 2015, the Company completed its second-step conversion and stock offering as outlined in the Plan described above.  In conjunction with that transaction, the Company sold 71,750,000 shares of its common stock at $10.00 per share, resulting in gross proceeds of $717.5 million.  The new shares issued included 3,612,500 shares sold to the Bank’s Employee Stock Ownership Plan (“ESOP”) with an aggregate value of $36.1 million based on the sales price of $10.00 per share.  Concurrent with the closing of the transaction, the Company also issued an additional 500,000 shares of its common stock with an aggregate value of $5.0 million and contributed these shares with an additional $5.0 million in cash to the KearnyBank Foundation.

The Company recognized direct stock offering costs of approximately $10.7 million in conjunction with the transaction which reduced the net proceeds credited to capital.  After adjusting for transaction costs and the value of the shares issued to the Bank’s ESOP, the Company recognized a net increase in equity capital of approximately $670.7 million, of which approximately $353.4 million was contributed to the Bank by the Company as an additional investment in the Bank’s common equity.

The outstanding shares held by the Company’s public stockholders immediately prior to the closing of the conversion and stock offering were “exchanged” or converted into 1.3804 shares of the Company’s new common stock.  All shares previously held by Kearny MHC, the former mutual holding company, as well as the remaining shares previously repurchased by the Company and held in treasury were cancelled concurrent with the closing of the transaction.

At September 30, 2015, the Company had 93,528,092 shares outstanding, comprising 71,750,000 new shares sold in the stock offering, 500,000 new shares issued to the KearnyBank Foundation and 21,278,092 exchanged shares, as adjusted for the cash settlement of fractional shares.  As a result of the completion of the second-step conversion and stock offering, all historical share and per share information has been revised to reflect the 1.3804-to-one exchange ratio to support the comparability of information between periods.

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Securities Available for Sale

3 Months Ended

Sep. 30, 2015

Securities Available for Sale [Member]

Schedule of Available-for-sale Securities [Line Items]

Securities

7.     SECURITIES AVAILABLE FOR SALE

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities available for sale at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities available for sale at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,063	$	111	$	15	$	7,159
Obligations of state and political subdivisions		27,507		183		224		27,466
Asset-backed securities		87,646		62		2,530		85,178
Collateralized loan obligations		128,633		35		1,256		127,412
Corporate bonds		163,042		117		1,985		161,174
Trust preferred securities		8,898		16		833		8,081
Total debt securities		422,789		524		6,843		416,470
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		25,776		174		150		25,800
Federal National Mortgage Association		43,867		64		568		43,363
Non-agency securities		151		-		1		150
Total collateralized mortgage obligations		69,794		238		719		69,313
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,290		208		1		2,497
Federal Home Loan Mortgage Corporation		147,342		2,393		242		149,493
Federal National Mortgage Association		95,897		2,756		138		98,515
Total residential pass-through securities		245,529		5,357		381		250,505
Commercial pass-through securities:
Federal National Mortgage Association		9,266		226		-		9,492
Total commercial pass-through securities		9,266		226		-		9,492
Total mortgage-backed securities		324,589		5,821		1,100		329,310
Total securities available for sale	$	747,378	$	6,345	$	7,943	$	745,780

	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities available for sale:
Due in one year or less	$	20,007	$	20,053
Due after one year through five years		50,778		50,098
Due after five years through ten years		155,585		153,828
Due after ten years		196,419		192,491
Total	$	422,789	$	416,470

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,208	$	66	$	11	$	7,263
Obligations of state and political subdivisions		27,513		26		704		26,835
Asset-backed securities		87,614		879		461		88,032
Collateralized loan obligations		128,624		175		628		128,171
Corporate bonds		163,049		433		874		162,608
Trust preferred securities		8,895		16		1,160		7,751
Total debt securities		422,903		1,595		3,838		420,660
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		27,392		10		324		27,078
Federal National Mortgage Association		45,522		12		900		44,634
Non-agency securities		167		-		2		165
Total collateralized mortgage obligations		73,081		22		1,226		71,877
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,430		225		-		2,655
Federal Home Loan Mortgage Corporation		155,522		2,286		1,358		156,450
Federal National Mortgage Association		102,424		2,749		665		104,508
Total residential pass-through securities		260,376		5,260		2,023		263,613
Commercial pass-through securities:
Federal National Mortgage Association		11,066		63		-		11,129
Total commercial pass-through securities		11,066		63		-		11,129
Total mortgage-backed securities		344,523		5,345		3,249		346,619
Total securities available for sale	$	767,426	$	6,940	$	7,087	$	767,279

There were no sales of securities available for sale during the three months ended September 30, 2015 and September 30, 2014.

At September 30, 2015 and June 30, 2015, securities available for sale with carrying values of approximately $54.5 million and $58.3 million, respectively, were utilized as collateral for borrowings through the FHLB of New York. As of those same dates, securities available for sale with total carrying values of approximately $1.2 million and $1.4 million, respectively, were pledged to secure public funds on deposit.

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Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands	Sep. 30, 2015 USD ($) Property	Jun. 30, 2015 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans and Leases Receivable, Gross	$ 2,382,594	$ 2,069,209
Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring	8,636	9,742
Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring		547
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Loans and Leases Receivable, Gross	2,382,594	2,069,209
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring	8,636	9,742
Financing receivable, allowance for credit losses, individually evaluated for impairment	407	1,100
Loans and Leases Receivable, Gross	$ 9,000	10,800
Significant Unobservable Inputs (Level 3) [Member] | Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Non-recurring		$ 547
Properties written down | Property	0

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Fair Value of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Accrued interest payable on deposits	$ 78,000	$ 80,000

XML

Fair Value of Financial Instruments - Schedule of Quantitative Information about Level 3 Fair Value Measurements (Parenthetical) (Detail)	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Minimum [Member] | Impaired Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	6.00%	6.00%
Minimum [Member] | Real Estate Owned [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range		6.00%
Maximum [Member] | Impaired Loans [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range	10.00%	10.00%
Maximum [Member] | Real Estate Owned [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Range		10.00%

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Comprehensive Loss (Tables)

3 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders’ equity at September 30, 2015 and June 30, 2015 are as follows:

	September 30, 2015			June 30, 2015
	(In Thousands)
Net unrealized loss on securities available for sale	$	(1,598	)	$	(147	)
Tax effect		660			(108	)
Net of tax amount		(938	)		(255	)
Net unrealized loss on securities available for sale transferred to   held to maturity		(1,095	)		(1,065	)
Tax effect		448			435
Net of tax amount		(647	)		(630	)
Fair value adjustments on derivatives		(18,622	)		(11,130	)
Tax effect		7,607			4,547
Net of tax amount		(11,015	)		(6,583	)
Benefit plan adjustments		(1,388	)		(494	)
Tax effect		567			201
Net of tax amount		(821	)		(293	)
Total accumulated other comprehensive loss	$	(13,421	)	$	(7,761	)

Schedule of Comprehensive Loss

Other comprehensive loss and related tax effects for the months ended September 30, 2015 and September 30, 2014 are presented in the following table:

	Three Months Ended September 30,
		2015			2014
	(In Thousands)
Net unrealized holding loss on securities   available for sale	$	(1,452	)	$	(3,071	)
Amortization of unrealized holding loss on   securities available for sale transferred to   held to maturity (3)		(30	)		2
Net unrealized (loss) gain on derivatives		(7,492	)		2,911
Benefit plans:
Amortization of:
Actuarial loss (1)		9			7
Past service cost (1)		9			12
New actuarial loss		(911	)		(363	)
Net change in benefit plan accrued expense		(893	)		(344	)
Other comprehensive loss before taxes		(9,867	)		(502	)
Tax effect (2)		4,207			(8	)
Total other comprehensive loss	$	(5,660	)	$	(510	)

_______________________________________________

(1) Represents amounts reclassified out of accumulated other comprehensive income and included in the computation of net periodic pension expense. See Note 14 – Benefit Plans for additional information.

(2) The amounts included in income taxes for items reclassified out of accumulated other comprehensive income totaled $(365) for the three ended September 30, 2015 and $(9) three months ended September 30, 2014, respectively.

(3) Represents amounts reclassified out of accumulated other comprehensive income and included in interest income on taxable securities.

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Loan Quality and Allowance for Loan Losses - Contractual Payment Status of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	$ 2,414,932	$ 2,102,548
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	5,086	5,711
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	4,580	4,291
Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,218,039	1,893,765
Total past due	9,002	8,665
Loans and Leases Receivable, Gross	2,227,041	1,902,430
Originated and Purchased Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,740	3,328
Loans and Leases Receivable, Gross	2,740	3,328
Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,497	4,199
Total past due	4	5
Loans and Leases Receivable, Gross	4,501	4,204
Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	181,580	194,677
Total past due	6,311	5,441
Loans and Leases Receivable, Gross	187,891	200,118
Loans Acquired at Fair Value [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,582	1,610
Total past due	764	773
Loans and Leases Receivable, Gross	2,346	2,383
Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	72	85
Total past due	7	2
Loans and Leases Receivable, Gross	79	87
Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,782	817
Past due: 30-59 days [Member] | Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		4
Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,220	262
Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4
Past due: 60-89 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	637	711
Past due: 60-89 days [Member] | Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1
Past due: 60-89 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	796	469
Past due: 60-89 days [Member] | Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1	1
Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	6,583	7,137
Past due: 90+ days [Member] | Originated and Purchased Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3	1
Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,295	4,710
Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	764	773
Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2	1
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	619,207	592,321
Residential Mortgage [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	554,530	524,780
Total past due	6,606	5,530
Loans and Leases Receivable, Gross	561,136	530,310
Residential Mortgage [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	57,291	61,895
Total past due	780	116
Loans and Leases Receivable, Gross	58,071	62,011
Residential Mortgage [Member] | Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,583	420
Residential Mortgage [Member] | Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	780	116
Residential Mortgage [Member] | Past due: 60-89 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	614	685
Residential Mortgage [Member] | Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,409	4,425
Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	1,595,989	1,309,103
Commercial Mortgage [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,508,899	1,216,644
Total past due	1,445	1,381
Loans and Leases Receivable, Gross	1,510,344	1,218,025
Commercial Mortgage [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	84,076	89,796
Total past due	1,569	1,282
Loans and Leases Receivable, Gross	85,645	91,078
Commercial Mortgage [Member] | Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	65	256
Commercial Mortgage [Member] | Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	259
Commercial Mortgage [Member] | Past due: 60-89 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	438	468
Commercial Mortgage [Member] | Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,380	1,125
Commercial Mortgage [Member] | Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	872	814
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	97,245	99,451
Commercial Business [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	70,434	70,529
Total past due	308	1,129
Loans and Leases Receivable, Gross	70,742	71,658
Commercial Business [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	24,802	25,721
Total past due	1,701	2,072
Loans and Leases Receivable, Gross	26,503	27,793
Commercial Business [Member] | Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		23
Commercial Business [Member] | Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	148
Commercial Business [Member] | Past due: 60-89 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	22
Commercial Business [Member] | Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	286	1,106
Commercial Business [Member] | Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,553	2,072
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	71,347	70,257
Home Equity Loans [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	65,377	63,457
Total past due	497	568
Loans and Leases Receivable, Gross	65,874	64,025
Home Equity Loans [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,194	5,993
Total past due	279	239
Loans and Leases Receivable, Gross	5,473	6,232
Home Equity Loans [Member] | Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	44	114
Home Equity Loans [Member] | Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	17	134
Home Equity Loans [Member] | Past due: 60-89 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	76
Home Equity Loans [Member] | Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	453	454
Home Equity Loans [Member] | Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	186	105
Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	21,478	21,414
Home Equity Lines of Credit [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	11,562	10,828
Total past due	142	52
Loans and Leases Receivable, Gross	11,704	10,880
Home Equity Lines of Credit [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,563	9,577
Total past due	1,211	957
Loans and Leases Receivable, Gross	9,774	10,534
Home Equity Lines of Credit [Member] | Past due: 30-59 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	90
Home Equity Lines of Credit [Member] | Past due: 30-59 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	12	12
Home Equity Lines of Credit [Member] | Past due: 60-89 days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		26
Home Equity Lines of Credit [Member] | Past due: 60-89 days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	281
Home Equity Lines of Credit [Member] | Past due: 90+ days [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	52	26
Home Equity Lines of Credit [Member] | Past due: 90+ days [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 918	$ 945

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Derivative Instruments and Hedging Activities

3 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

12.     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

At September 30, 2015 and June 30, 2015, the Company was subject to the terms of certain interest rate derivative agreements that were utilized by the Company to manage the interest rate exposure arising from specific wholesale funding positions. Such wholesale funding sources include floating-rate brokered money market deposits indexed to one-month LIBOR as well as a number of 90 day fixed-rate FHLB advances that are forecasted to be periodically redrawn at maturity for the same 90 day term as the original advance. The derivatives, comprising eight interest rate swaps and two interest rate caps, were designated as cash flow hedges with changes in their fair value recorded as an adjustment through other comprehensive income on an after-tax basis.

The effects of derivative instruments on the statements of condition included in the Consolidated Financial Statements at September 30, 2015 and June 30, 2015 and for the three months ended September 30, 2015 and September 30, 2014 are as follows:

	September 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(2,010	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,747	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(866	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(2,224	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(2,791	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(2,703	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(2,277	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(2,041	)	Other liabilities	December 28, 2020
		550,000		(16,659	)
Interest rate caps by effective date:
June 5, 2013		40,000		209		Other liabilities	June 5, 2018
July 1, 2013		35,000		181		Other liabilities	July 1, 2018
		75,000		390
Total	$	625,000	$	(16,269	)

	June 30, 2015
	Notional/ Contract Amount		Fair Value			Balance Sheet Location	Expiration Date
	(Dollars in Thousands)
Derivatives designated   as hedging instruments
Interest rate swaps by effective date:
July 1, 2013	$	165,000	$	(768	)	Other liabilities	July 1, 2018
August 19, 2013		75,000		(1,149	)	Other liabilities	August 20, 2018
October 9, 2013		50,000		(400	)	Other liabilities	October 9, 2018
March 28, 2014		75,000		(1,372	)	Other liabilities	March 28, 2019
June 5, 2015		60,000		(1,717	)	Other liabilities	June 5, 2020
July 28, 2015		50,000		(1,697	)	Other liabilities	July 28, 2020
September 28, 2015		40,000		(1,289	)	Other liabilities	September 28, 2020
December 28, 2015		35,000		(1,119	)	Other liabilities	December 28, 2020
		550,000		(9,511	)
Interest rate caps by effective date:
June 5, 2013		40,000		428		Other liabilities	June 5, 2018
July 1, 2013		35,000		366		Other liabilities	July 1, 2018
		75,000		794
Total	$	625,000	$	(8,717	)

	Three Months Ended September 30, 2015
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	(735	)	Not applicable	$	-
August 19, 2013		(354	)	Not applicable		-
October 9, 2013		(275	)	Not applicable		-
March 28, 2014		(504	)	Not applicable		-
June 5, 2015		(635	)	Not applicable		-
July 28, 2015		(595	)	Not applicable		-
September 28, 2015		(585	)	Not applicable		-
December 28, 2015		(545	)	Not applicable		-
		(4,228	)			-
Interest rate caps by effective date:
June 5, 2013		(110	)	Not applicable		-
July 1, 2013		(94	)	Not applicable		-
		(204	)			-
Total	$	(4,432	)		$	-

	Three Months Ended September 30, 2014
	Amount of Loss Recognized in OCI on Derivatives, net of Tax (Effective Portion)			Location of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)	Amount of Gain (Loss) Recognized in Income of Derivatives (Ineffective Portion)
	(Dollars in Thousands)
Derivatives in cash flow hedges
Interest rate swaps by effective date:
July 1, 2013	$	645		Not applicable	$	-
August 19, 2013		405		Not applicable		-
October 9, 2013		265		Not applicable		-
March 28, 2014		421		Not applicable		-
June 5, 2015		133		Not applicable		-
July 28, 2015		(126	)	Not applicable		-
September 28, 2015		(53	)	Not applicable		-
December 28, 2015		(52	)	Not applicable		-
		1,638				-
Interest rate caps by effective date:
June 5, 2013		53		Not applicable		-
July 1, 2013		31		Not applicable		-
		84				-
Total	$	1,722			$	-

The Company has in place enforceable master netting arrangements with all counterparties. All master netting arrangements include rights to offset associated with the Company’s recognized derivative assets, derivative liabilities, and cash collateral received and pledged.

At September 30, 2015, two of the Company’s derivatives were in an asset position totaling $390,000 while the remaining eight derivatives were in a liability position totaling $16.7 million. In total, the Company’s derivatives were in a net liability position of $16.3 million at September 30, 2015 and included in other liabilities as of that date. As required under the enforceable master netting arrangement with its derivatives counterparties, the Company posted financial collateral to two counterparties totaling $16.8 million at September 30, 2015.  The financial collateral posted was not included as an offsetting amount at September 30, 2015.

At June 30, 2015, two of the Company’s derivatives were in an asset position totaling $794,000 while the remaining eight derivatives were in a liability position totaling $9.5 million. In total, the Company’s derivatives were in a net liability position of $8.7 million at June 30, 2015 and included in other liabilities as of that date. As required under the enforceable master netting arrangement with its derivatives counterparty, the Company posted financial collateral in the amount of $8.7 million at June 30, 2015 that was not included as an offsetting amount.

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Securities Available for Sale (Tables)

3 Months Ended

Sep. 30, 2015

Schedule of Available-for-sale Securities [Line Items]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities available for sale at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities available for sale at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,063	$	111	$	15	$	7,159
Obligations of state and political subdivisions		27,507		183		224		27,466
Asset-backed securities		87,646		62		2,530		85,178
Collateralized loan obligations		128,633		35		1,256		127,412
Corporate bonds		163,042		117		1,985		161,174
Trust preferred securities		8,898		16		833		8,081
Total debt securities		422,789		524		6,843		416,470
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		25,776		174		150		25,800
Federal National Mortgage Association		43,867		64		568		43,363
Non-agency securities		151		-		1		150
Total collateralized mortgage obligations		69,794		238		719		69,313
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,290		208		1		2,497
Federal Home Loan Mortgage Corporation		147,342		2,393		242		149,493
Federal National Mortgage Association		95,897		2,756		138		98,515
Total residential pass-through securities		245,529		5,357		381		250,505
Commercial pass-through securities:
Federal National Mortgage Association		9,266		226		-		9,492
Total commercial pass-through securities		9,266		226		-		9,492
Total mortgage-backed securities		324,589		5,821		1,100		329,310
Total securities available for sale	$	747,378	$	6,345	$	7,943	$	745,780

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities available for sale:
Debt securities:
U.S. agency securities	$	7,208	$	66	$	11	$	7,263
Obligations of state and political subdivisions		27,513		26		704		26,835
Asset-backed securities		87,614		879		461		88,032
Collateralized loan obligations		128,624		175		628		128,171
Corporate bonds		163,049		433		874		162,608
Trust preferred securities		8,895		16		1,160		7,751
Total debt securities		422,903		1,595		3,838		420,660
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		27,392		10		324		27,078
Federal National Mortgage Association		45,522		12		900		44,634
Non-agency securities		167		-		2		165
Total collateralized mortgage obligations		73,081		22		1,226		71,877
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		2,430		225		-		2,655
Federal Home Loan Mortgage Corporation		155,522		2,286		1,358		156,450
Federal National Mortgage Association		102,424		2,749		665		104,508
Total residential pass-through securities		260,376		5,260		2,023		263,613
Commercial pass-through securities:
Federal National Mortgage Association		11,066		63		-		11,129
Total commercial pass-through securities		11,066		63		-		11,129
Total mortgage-backed securities		344,523		5,345		3,249		346,619
Total securities available for sale	$	767,426	$	6,940	$	7,087	$	767,279

Securities Available for Sale [Member]

Schedule of Available-for-sale Securities [Line Items]

Stratification by Contractual Maturity of Securities

	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities available for sale:
Due in one year or less	$	20,007	$	20,053
Due after one year through five years		50,778		50,098
Due after five years through ten years		155,585		153,828
Due after ten years		196,419		192,491
Total	$	422,789	$	416,470

XML

Loan Quality and Allowance for Loan Losses - Allowance for Loan Losses and Loans Receivable (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	$ 17,690	$ 12,406
Allowance	15,606	12,387
Total charge offs	(658)	(841)
Total recoveries	101	2
Loans and Leases Receivable, Gross	2,414,932		$ 2,102,548
Loans receivable, unamortized yield adjustments	2,580		316
Loans receivable, including unamortized yield adjustments of $2,580 and $316	2,417,512		2,102,864
Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	17,690	12,406
Allowance	15,606	12,387
Provision (reversal) for Loan Losses	2,641	858
Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	471		573
Allowance, Loans collectively evaluated for impairment	15,974		13,443
Allowance	16,445
Allowance	14,016
Loans individually evaluated for impairment	15,585		16,557
Loans collectively evaluated for impairment	2,211,456		1,885,873
Loans and Leases Receivable, Gross	2,227,041		1,902,430
Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	281		397
Allowance, Loans collectively evaluated for impairment	964		1,112
Allowance	1,245
Allowance	1,590
Loans individually evaluated for impairment	8,253		8,639
Loans collectively evaluated for impairment	171,395		183,116
Loans and Leases Receivable, Gross	187,891		200,118
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	29	58
Allowance	34	67
Loans and Leases Receivable, Gross	5,086		5,711
Construction [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	29	58
Allowance	34	67
Provision (reversal) for Loan Losses	(5)	(9)
Construction [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	24		29
Allowance	24
Allowance	29
Loans collectively evaluated for impairment	2,740		3,328
Loans and Leases Receivable, Gross	2,740		3,328
Construction [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	5		5
Allowance	5
Allowance	5
Loans individually evaluated for impairment	2,013		2,037
Loans collectively evaluated for impairment	333		346
Loans and Leases Receivable, Gross	2,346		2,383
Other Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	27	23
Allowance	16	22
Total recoveries	1
Loans and Leases Receivable, Gross	4,580		4,291
Other Consumer [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	27	23
Allowance	16	22
Provision (reversal) for Loan Losses	10	1
Other Consumer [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	26		15
Allowance	26
Allowance	15
Loans collectively evaluated for impairment	4,501		4,204
Loans and Leases Receivable, Gross	4,501		4,204
Other Consumer [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	1		1
Allowance	1
Allowance	1
Loans collectively evaluated for impairment	79		87
Loans and Leases Receivable, Gross	79		87
Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality			81
Loans acquired with deteriorated credit quality	8,243		8,363
Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	2,469	2,575
Allowance	2,210	2,729
Total charge offs	(538)	(303)
Loans and Leases Receivable, Gross	619,207		592,321
Residential Mortgage [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	2,469	2,575
Allowance	2,210	2,729
Provision (reversal) for Loan Losses	797	149
Residential Mortgage [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	218		116
Allowance, Loans collectively evaluated for impairment	2,158		2,031
Allowance	2,376
Allowance	2,147
Loans individually evaluated for impairment	10,073		10,240
Loans collectively evaluated for impairment	551,063		520,070
Loans and Leases Receivable, Gross	561,136		530,310
Residential Mortgage [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	93		63
Allowance	93
Allowance	63
Loans collectively evaluated for impairment	57,958		61,895
Loans and Leases Receivable, Gross	58,071		62,011
Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	113		116
Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	13,181	7,942
Allowance	11,120	7,737
Total charge offs		(346)
Loans and Leases Receivable, Gross	1,595,989		1,309,103
Commercial Mortgage [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	13,181	7,942
Allowance	11,120	7,737
Provision (reversal) for Loan Losses	2,061	551
Commercial Mortgage [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	142		415
Allowance, Loans collectively evaluated for impairment	12,576		10,162
Allowance	12,718
Allowance	10,577
Loans individually evaluated for impairment	3,464		3,439
Loans collectively evaluated for impairment	1,506,880		1,214,586
Loans and Leases Receivable, Gross	1,510,344		1,218,025
Commercial Mortgage [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	108		114
Allowance, Loans collectively evaluated for impairment	355		429
Allowance	463
Allowance	543
Loans individually evaluated for impairment	4,334		4,196
Loans collectively evaluated for impairment	80,997		86,564
Loans and Leases Receivable, Gross	85,645		91,078
Commercial Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	314		318
Commercial Business [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	1,578	1,362
Allowance	1,860	1,284
Total charge offs	(96)	(192)
Total recoveries	59	2
Loans and Leases Receivable, Gross	97,245		99,451
Commercial Business [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	1,578	1,362
Allowance	1,860	1,284
Provision (reversal) for Loan Losses	(245)	268
Commercial Business [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	22		30
Allowance, Loans collectively evaluated for impairment	969		989
Allowance	991
Allowance	1,019
Loans individually evaluated for impairment	1,024		1,861
Loans collectively evaluated for impairment	69,718		69,797
Loans and Leases Receivable, Gross	70,742		71,658
Commercial Business [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	171		259
Allowance, Loans collectively evaluated for impairment	416		501
Allowance	587
Allowance	841
Loans individually evaluated for impairment	512		927
Loans collectively evaluated for impairment	18,175		18,937
Loans and Leases Receivable, Gross	26,503		27,793
Commercial Business [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality			81
Loans acquired with deteriorated credit quality	7,816		7,929
Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	311	362
Allowance	260	460
Total recoveries	41
Loans and Leases Receivable, Gross	71,347		70,257
Home Equity Loans [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	311	362
Allowance	260	460
Provision (reversal) for Loan Losses	10	(98)
Home Equity Loans [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	89		12
Allowance, Loans collectively evaluated for impairment	185		184
Allowance	274
Allowance	196
Loans individually evaluated for impairment	972		991
Loans collectively evaluated for impairment	64,902		63,034
Loans and Leases Receivable, Gross	65,874		64,025
Home Equity Loans [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	37		64
Allowance	37
Allowance	64
Loans individually evaluated for impairment	476		534
Loans collectively evaluated for impairment	4,997		5,698
Loans and Leases Receivable, Gross	5,473		6,232
Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	95	84
Allowance	106	88
Total charge offs	(24)
Loans and Leases Receivable, Gross	21,478		21,414
Home Equity Lines of Credit [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance	95	84
Allowance	106	88
Provision (reversal) for Loan Losses	13	$ (4)
Home Equity Lines of Credit [Member] | Originated and Purchased Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans collectively evaluated for impairment	36		33
Allowance	36
Allowance	33
Loans individually evaluated for impairment	52		26
Loans collectively evaluated for impairment	11,652		10,854
Loans and Leases Receivable, Gross	11,704		10,880
Home Equity Lines of Credit [Member] | Loans Acquired at Fair Value [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance, Loans individually evaluated for impairment	2		24
Allowance, Loans collectively evaluated for impairment	57		49
Allowance	59
Allowance	73
Loans individually evaluated for impairment	918		945
Loans collectively evaluated for impairment	8,856		9,589
Loans and Leases Receivable, Gross	$ 9,774		$ 10,534

XML

Securities Held to Maturity - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 228,597	$ 219,862
Gross Unrealized Gains	7,392	2,833
Gross Unrealized Losses	382	2,307
Fair Value	228,757	218,366
Securities held to maturity	658,509	663,341
Fair Value	665,519	663,867
Residential Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	247,418	259,063
Gross Unrealized Gains	2,464	1,107
Gross Unrealized Losses	30	556
Fair Value	249,852	259,614
Commercial Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	167,723	169,032
Gross Unrealized Gains	4,370	1,671
Gross Unrealized Losses		228
Fair Value	172,093	170,475
Residential Pass-Through Securities: Government National Mortgage Association [Member] | Residential Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	8	8
Gross Unrealized Gains	1	1
Fair Value	9	9
Residential Pass-Through Securities: Federal Home Loan Mortgage Corporation [Member] | Residential Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	43,746	44,905
Gross Unrealized Gains	88	16
Gross Unrealized Losses		218
Fair Value	43,834	44,703
Residential Pass-Through Securities: Federal National Mortgage Association [Member] | Residential Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	203,664	214,150
Gross Unrealized Gains	2,375	1,090
Gross Unrealized Losses	30	338
Fair Value	206,009	214,902
Commercial Pass-Through Securities: Government National Mortgage Association [Member] | Commercial Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	10,012	10,111
Gross Unrealized Gains	89	32
Fair Value	10,101	10,143
Commercial Pass-Through Securities: Federal National Mortgage Association [Member] | Commercial Pass-Through Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	157,711	158,921
Gross Unrealized Gains	4,281	1,639
Gross Unrealized Losses		228
Fair Value	161,992	160,332
Mortgage-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	429,912	443,479
Gross Unrealized Gains	6,883	2,807
Gross Unrealized Losses	33	785
Fair Value	436,762	445,501
Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	228,597	219,862
Gross Unrealized Gains	509	26
Gross Unrealized Losses	349	1,522
Fair Value	228,757	218,366
Debt Securities [Member] | U.S. Agency Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	143,335	143,334
Gross Unrealized Gains	7
Gross Unrealized Losses	40	332
Fair Value	143,302	143,002
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	85,262	76,528
Gross Unrealized Gains	502	26
Gross Unrealized Losses	309	1,190
Fair Value	85,455	75,364
Collateralized Mortgage Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	14,771	15,384
Gross Unrealized Gains	49	29
Gross Unrealized Losses	3	1
Fair Value	14,817	15,412
Collateralized Mortgage Obligations [Member] | Federal Home Loan Mortgage Corporation [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	14,519	15,121
Gross Unrealized Gains	24	5
Gross Unrealized Losses	2
Fair Value	14,541	15,126
Collateralized Mortgage Obligations [Member] | Federal National Mortgage Association [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	212	221
Gross Unrealized Gains	25	24
Fair Value	237	245
Collateralized Mortgage Obligations [Member] | Non-Agency Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity	40	42
Gross Unrealized Losses	1	1
Fair Value	$ 39	$ 41

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net Income	$ 2,976	$ 2,923
Other Comprehensive Loss:
Net unrealized loss on securities available for sale, net of deferred income tax benefit of: 2015 $(768); 2014 $(1,041)	(683)	(2,030)
Net (loss) gain on securities transferred from available for sale to held to maturity, net of deferred income tax (benefit) expense of: 2015 $(13); 2014 $0	(17)	2
Fair value adjustments on derivatives, net of deferred income tax (benefit) expense of: 2015 $(3,060); 2014 $1,189	(4,432)	1,722
Benefit plan adjustments, net of deferred income tax benefit of: 2015 $(366); 2014 $(140)	(528)	(204)
Total Other Comprehensive Loss	(5,660)	(510)
Total Comprehensive (Loss) Income	$ (2,684)	$ 2,413

XML

Principles of Consolidation

3 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Principles of Consolidation

1.     PRINCIPLES OF CONSOLIDATION

The unaudited consolidated financial statements include the accounts of Kearny Financial Corp. (the “Company”), its wholly-owned subsidiary, Kearny Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, CJB Investment Corp. and KFS Financial Services, Inc. and its wholly-owned subsidiary, KFS Insurance Services, Inc. The Company conducts its business principally through the Bank. Management prepared the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), including the elimination of all significant inter-company accounts and transactions during consolidation.

XML

Derivative Instruments and Hedging Activities - Schedule of Interest Rate Derivatives (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Derivative [Line Items]
Fair Value	$ (16,269)		$ (8,717)
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	(4,432)	$ 1,722
Other Liabilities [Member]
Derivative [Line Items]
Notional/Contract Amount	625,000		625,000
Fair Value	(16,269)		(8,717)
Interest Rate Swaps [Member]
Derivative [Line Items]
Fair Value	(16,659)		$ (9,511)
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (4,228)	1,638
Interest Rate Swaps [Member] | Effective July 1, 2013 [Member]
Derivative [Line Items]
Expiration Date	Jul. 01, 2018		Jul. 01, 2018
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (735)	645
Interest Rate Swaps [Member] | Effective August 19, 2013 [Member]
Derivative [Line Items]
Expiration Date	Aug. 20, 2018		Aug. 20, 2018
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (354)	405
Interest Rate Swaps [Member] | Effective October 9, 2013 [Member]
Derivative [Line Items]
Expiration Date	Oct. 09, 2018		Oct. 09, 2018
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (275)	265
Interest Rate Swaps [Member] | Effective March 28, 2014 [Member]
Derivative [Line Items]
Expiration Date	Mar. 28, 2019		Mar. 28, 2019
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (504)	421
Interest Rate Swaps [Member] | Effective June 5, 2015 [Member]
Derivative [Line Items]
Expiration Date	Jun. 05, 2020		Jun. 05, 2020
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (635)	133
Interest Rate Swaps [Member] | Effective July 28, 2015 [Member]
Derivative [Line Items]
Expiration Date	Jul. 28, 2020		Jul. 28, 2020
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (595)	(126)
Interest Rate Swaps [Member] | Effective September 28, 2015 [Member]
Derivative [Line Items]
Expiration Date	Sep. 28, 2020		Sep. 28, 2020
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (585)	(53)
Interest Rate Swaps [Member] | Effective December 28, 2015 [Member]
Derivative [Line Items]
Expiration Date	Dec. 28, 2020		Dec. 28, 2020
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (545)	(52)
Interest Rate Swaps [Member] | Other Liabilities [Member]
Derivative [Line Items]
Notional/Contract Amount	550,000		$ 550,000
Fair Value	(16,659)		(9,511)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective July 1, 2013 [Member]
Derivative [Line Items]
Notional/Contract Amount	165,000		165,000
Fair Value	(2,010)		(768)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective August 19, 2013 [Member]
Derivative [Line Items]
Notional/Contract Amount	75,000		75,000
Fair Value	(1,747)		(1,149)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective October 9, 2013 [Member]
Derivative [Line Items]
Notional/Contract Amount	50,000		50,000
Fair Value	(866)		(400)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective March 28, 2014 [Member]
Derivative [Line Items]
Notional/Contract Amount	75,000		75,000
Fair Value	(2,224)		(1,372)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective June 5, 2015 [Member]
Derivative [Line Items]
Notional/Contract Amount	60,000		60,000
Fair Value	(2,791)		(1,717)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective July 28, 2015 [Member]
Derivative [Line Items]
Notional/Contract Amount	50,000		50,000
Fair Value	(2,703)		(1,697)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective September 28, 2015 [Member]
Derivative [Line Items]
Notional/Contract Amount	40,000		40,000
Fair Value	(2,277)		(1,289)
Interest Rate Swaps [Member] | Other Liabilities [Member] | Effective December 28, 2015 [Member]
Derivative [Line Items]
Notional/Contract Amount	35,000		35,000
Fair Value	(2,041)		(1,119)
Interest Rate Caps [Member]
Derivative [Line Items]
Fair Value	390		$ 794
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (204)	84
Interest Rate Caps [Member] | Effective July 1, 2013 [Member]
Derivative [Line Items]
Expiration Date	Jul. 01, 2018		Jul. 01, 2018
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (94)	31
Interest Rate Caps [Member] | Effective June 5, 2013 [Member]
Derivative [Line Items]
Expiration Date	Jun. 05, 2018		Jun. 05, 2018
Amount of Gain (Loss) Recognized in OCI on Derivatives, net of Tax (Effective Portion)	$ (110)	$ 53
Interest Rate Caps [Member] | Other Liabilities [Member]
Derivative [Line Items]
Notional/Contract Amount	75,000		$ 75,000
Fair Value	390		794
Interest Rate Caps [Member] | Other Liabilities [Member] | Effective July 1, 2013 [Member]
Derivative [Line Items]
Notional/Contract Amount	35,000		35,000
Fair Value	181		366
Interest Rate Caps [Member] | Other Liabilities [Member] | Effective June 5, 2013 [Member]
Derivative [Line Items]
Notional/Contract Amount	40,000		40,000
Fair Value	$ 209		$ 428

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Comprehensive Loss - Schedule of Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Tax effect	[1]	$ (4,207)	$ 8
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Tax effect		$ (365)	$ (9)

[1] The amounts included in income taxes for items reclassified out of accumulated other comprehensive income totaled $(365) for the three ended September 30, 2015 and $(9) three months ended September 30, 2014, respectively.

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Securities Held to Maturity (Tables)

3 Months Ended

Sep. 30, 2015

Schedule of Held-to-maturity Securities [Line Items]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities

The amortized cost, gross unrealized gains and losses and fair values of debt and mortgage-backed securities held to maturity at September 30, 2015 and June 30, 2015 and stratification by contractual maturity of debt securities held to maturity at September 30, 2015 are presented below:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,335	$	7	$	40	$	143,302
Obligations of state and political subdivisions		85,262		502		309		85,455
Total debt securities		228,597		509		349		228,757
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		14,519		24		2		14,541
Federal National Mortgage Association		212		25		-		237
Non-agency securities		40		-		1		39
Total collateralized mortgage obligations		14,771		49		3		14,817
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		43,746		88		-		43,834
Federal National Mortgage Association		203,664		2,375		30		206,009
Total residential pass-through securities		247,418		2,464		30		249,852
Commercial pass-through securities:
Government National Mortgage Association		10,012		89		-		10,101
Federal National Mortgage Association		157,711		4,281		-		161,992
Total commercial pass-through securities		167,723		4,370		-		172,093
Total mortgage-backed securities		429,912		6,883		33		436,762
Total securities held to maturity	$	658,509	$	7,392	$	382	$	665,519

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities held to maturity:
Debt securities:
U.S. agency securities	$	143,334	$	-	$	332	$	143,002
Obligations of state and political subdivisions		76,528		26		1,190		75,364
Total debt securities		219,862		26		1,522		218,366
Mortgage-backed securities:
Collateralized mortgage obligations:
Federal Home Loan Mortgage Corporation		15,121		5		-		15,126
Federal National Mortgage Association		221		24		-		245
Non-agency securities		42		-		1		41
Total collateralized mortgage obligations		15,384		29		1		15,412
Mortgage pass-through securities:
Residential pass-through securities:
Government National Mortgage Association		8		1		-		9
Federal Home Loan Mortgage Corporation		44,905		16		218		44,703
Federal National Mortgage Association		214,150		1,090		338		214,902
Total residential pass-through securities		259,063		1,107		556		259,614
Commercial pass-through securities:
Government National Mortgage Association		10,111		32		-		10,143
Federal National Mortgage Association		158,921		1,639		228		160,332
Total commercial pass-through securities		169,032		1,671		228		170,475
Total mortgage-backed securities		443,479		2,807		785		445,501
Total securities held to maturity	$	663,341	$	2,833	$	2,307	$	663,867

Securities Held to Maturity [Member]

Schedule of Held-to-maturity Securities [Line Items]

Stratification by Contractual Maturity of Securities

	September 30, 2015
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities held to maturity:
Due in one year or less	$	6,356	$	6,360
Due after one year through five years		154,535		154,490
Due after five years through ten years		41,391		41,539
Due after ten years		26,315		26,368
Total	$	228,597	$	228,757

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Securities Available for Sale - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	$ 422,789	$ 422,903
Securities available for sale, Fair value	416,470	420,660
Securities available for sale, Amortized Cost	747,378	767,426
Securities available for sale, Fair value	745,780	767,279
Securities available for sale, Gross Unrealized Gains	6,345	6,940
Securities available for sale, Gross Unrealized Losses	7,943	7,087
Residential Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	245,529	260,376
Mortgage-backed securities, Gross Unrealized Gains	5,357	5,260
Mortgage-backed securities, Gross Unrealized Losses	381	2,023
Securities available for sale, Fair value	250,505	263,613
Commercial Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	9,266	11,066
Mortgage-backed securities, Gross Unrealized Gains	226	63
Securities available for sale, Fair value	9,492	11,129
Residential Pass-Through Securities: Government National Mortgage Association [Member] | Residential Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	2,290	2,430
Mortgage-backed securities, Gross Unrealized Gains	208	225
Mortgage-backed securities, Gross Unrealized Losses	1
Securities available for sale, Fair value	2,497	2,655
Residential Pass-Through Securities: Federal Home Loan Mortgage Corporation [Member] | Residential Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	147,342	155,522
Mortgage-backed securities, Gross Unrealized Gains	2,393	2,286
Mortgage-backed securities, Gross Unrealized Losses	242	1,358
Securities available for sale, Fair value	149,493	156,450
Residential Pass-Through Securities: Federal National Mortgage Association [Member] | Residential Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	95,897	102,424
Mortgage-backed securities, Gross Unrealized Gains	2,756	2,749
Mortgage-backed securities, Gross Unrealized Losses	138	665
Securities available for sale, Fair value	98,515	104,508
Commercial Pass-Through Securities: Federal National Mortgage Association [Member] | Commercial Pass-Through Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	9,266	11,066
Mortgage-backed securities, Gross Unrealized Gains	226	63
Securities available for sale, Fair value	9,492	11,129
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	324,589	344,523
Mortgage-backed securities, Gross Unrealized Gains	5,821	5,345
Mortgage-backed securities, Gross Unrealized Losses	1,100	3,249
Securities available for sale, Fair value	329,310	346,619
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	422,789	422,903
Securities available for sale, Gross Unrealized Gains	524	1,595
Securities available for sale, Gross Unrealized Losses	6,843	3,838
Securities available for sale, Fair value	416,470	420,660
Debt Securities [Member] | U.S. Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	7,063	7,208
Securities available for sale, Gross Unrealized Gains	111	66
Securities available for sale, Gross Unrealized Losses	15	11
Securities available for sale, Fair value	7,159	7,263
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	27,507	27,513
Securities available for sale, Gross Unrealized Gains	183	26
Securities available for sale, Gross Unrealized Losses	224	704
Securities available for sale, Fair value	27,466	26,835
Debt Securities [Member] | Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	87,646	87,614
Securities available for sale, Gross Unrealized Gains	62	879
Securities available for sale, Gross Unrealized Losses	2,530	461
Securities available for sale, Fair value	85,178	88,032
Debt Securities [Member] | Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	163,042	163,049
Securities available for sale, Gross Unrealized Gains	117	433
Securities available for sale, Gross Unrealized Losses	1,985	874
Securities available for sale, Fair value	161,174	162,608
Debt Securities [Member] | Trust Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	8,898	8,895
Securities available for sale, Gross Unrealized Gains	16	16
Securities available for sale, Gross Unrealized Losses	833	1,160
Securities available for sale, Fair value	8,081	7,751
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	128,633	128,624
Securities available for sale, Gross Unrealized Gains	35	175
Securities available for sale, Gross Unrealized Losses	1,256	628
Securities available for sale, Fair value	127,412	128,171
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	69,794	73,081
Mortgage-backed securities, Gross Unrealized Gains	238	22
Mortgage-backed securities, Gross Unrealized Losses	719	1,226
Securities available for sale, Fair value	69,313	71,877
Collateralized Mortgage Obligations [Member] | Federal Home Loan Mortgage Corporation [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	25,776	27,392
Mortgage-backed securities, Gross Unrealized Gains	174	10
Mortgage-backed securities, Gross Unrealized Losses	150	324
Securities available for sale, Fair value	25,800	27,078
Collateralized Mortgage Obligations [Member] | Federal National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	43,867	45,522
Mortgage-backed securities, Gross Unrealized Gains	64	12
Mortgage-backed securities, Gross Unrealized Losses	568	900
Securities available for sale, Fair value	43,363	44,634
Collateralized Mortgage Obligations [Member] | Non-Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	151	167
Mortgage-backed securities, Gross Unrealized Losses	1	2
Securities available for sale, Fair value	$ 150	$ 165

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Borrowings

3 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Borrowings

11.     BORROWINGS

Fixed rate advances from the FHLB of New York mature as follows:

	September 30, 2015					June 30, 2015
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
	(Dollars in Thousands)
Maturing in years ending June 30:
2016	$	432,500		0.51	%	$	382,500		0.41	%
2017		3,000		1.05			3,000		1.05
2018		5,225		1.18			5,225		1.18
2021		647		4.94			671		4.94
2023		145,000		3.04			145,000		3.04
Total borrowings		586,372		1.15	%		536,396		1.13	%
Fair value adjustments		4					9
Total borrowings, net of   fair value adjustments	$	586,376				$	536,405

At September 30, 2015, $435.5 million in advances are due within one year while the remaining $150.9 million in advances are due after one year of which $145.0 million are callable in April 2018.

At September 30, 2015, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $955.2 million and $181.1 million, respectively. At June 30, 2015, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $894.6 million and $185.2 million, respectively.

Borrowings at September 30, 2015 and June 30, 2015 also included overnight borrowings in the form of depositor sweep accounts totaling $42.0 million and $35.1 million, respectively. Depositor sweep accounts are short term borrowings representing funds that are withdrawn from a customer’s noninterest-bearing deposit account and invested in an uninsured overnight investment account that is collateralized by specified investment securities owned by the Bank.