10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2020

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	KRNY	The NASDAQ Stock Market LLC

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).    Yes ☒    No ☐

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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

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

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: November 2, 2020.

$0.01 par value common stock — 89,510,451 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, 2020 (Unaudited) and June 30, 2020	1
	Consolidated Statements of Income for the Three Months Ended September 30, 2020 and September 30, 2019 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the Three Months Ended September 30, 2020 and September 30, 2019 (Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended September 30, 2020 and September 30, 2019 (Unaudited)	5
	Consolidated Statements of Cash Flows for the Three Ended September 30, 2020 and September 30, 2019 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3:	Quantitative and Qualitative Disclosure About Market Risk	60
Item 4:	Controls and Procedures	63
PART II—OTHER INFORMATION
Item 1:	Legal Proceedings	64
Item 1A:	Risk Factors	64
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3:	Defaults Upon Senior Securities	64
Item 4:	Mine Safety Disclosures	64
Item 5:	Other Information	64
Item 6:	Exhibits	65
SIGNATURES		66

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share and Per Share Data)

	September 30,			June 30,
	2020			2020
	(Unaudited)
Assets
Cash and amounts due from depository institutions	$	18,628		$	20,391
Interest-bearing deposits in other banks		127,190			160,576
Cash and cash equivalents		145,818			180,967
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020		1,508,542			1,385,703
Investment securities held to maturity (fair value $33,136 and $34,069), respectively, net of allowance for credit losses of $0 at September 30, 2020		31,576			32,556
Loans held-for-sale		20,170			20,789
Loans receivable		4,954,750			4,498,397
Less: allowance for credit losses on loans		(64,860	)		(37,327	)
Net loans receivable		4,889,890			4,461,070
Premises and equipment		61,808			57,389
Federal Home Loan Bank ("FHLB") of New York stock		55,118			58,654
Accrued interest receivable		20,368			17,373
Goodwill		210,895			210,895
Core deposit intangibles		4,420			3,995
Bank owned life insurance		278,639			262,380
Deferred income tax assets, net		33,319			25,480
Other real estate owned		178			178
Other assets		49,468			40,746
Total Assets	$	7,310,209		$	6,758,175
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest-bearing	$	487,710		$	419,138
Interest-bearing		4,552,202			4,011,144
Total deposits		5,039,912			4,430,282
Borrowings		1,077,540			1,173,165
Advance payments by borrowers for taxes		17,008			16,569
Other liabilities		51,689			53,982
Total Liabilities		6,186,149			5,673,998
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;   89,510,451 shares and 83,663,192 shares issued and outstanding, respectively		895			837
Paid-in capital		769,269			722,871
Retained earnings		378,134			387,911
Unearned employee stock ownership plan shares;   2,910,115 shares and 2,960,289 shares, respectively		(28,212	)		(28,699	)
Accumulated other comprehensive income		3,974			1,257
Total Stockholders' Equity		1,124,060			1,084,177
Total Liabilities and Stockholders' Equity	$	7,310,209		$	6,758,175

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,
	2020			2019
Interest Income
Loans	$	52,180		$	48,600
Taxable investment securities		7,336			9,328
Tax-exempt investment securities		454			693
Other interest-earning assets		914			1,278
Total Interest Income		60,884			59,899
Interest Expense
Deposits		11,062			16,055
Borrowings		5,660			7,157
Total Interest Expense		16,722			23,212
Net Interest Income		44,162			36,687
Provision for (reversal of) credit losses		4,059			(782	)
Net Interest Income after Provision for (Reversal of) Credit Losses		40,103			37,469
Non-Interest Income
Fees and service charges		1,076			1,468
Loss on sale and call of securities		(377	)		(14	)
Gain on sale of loans		1,890			605
Income from bank owned life insurance		1,596			1,580
Electronic banking fees and charges		405			318
Bargain purchase gain		3,053			-
Other income		90			5
Total Non-Interest Income		7,733			3,962
Non-Interest Expense
Salaries and employee benefits		16,977			15,777
Net occupancy expense of premises		3,122			2,969
Equipment and systems		3,570			3,089
Advertising and marketing		500			535
Federal deposit insurance premium		472			-
Directors' compensation		748			770
Merger-related expenses		4,349			-
Other expense		3,835			3,104
Total Non-Interest Expense		33,573			26,244
Income before Income Taxes		14,263			15,187
Income tax expense		2,884			3,817
Net Income	$	11,379		$	11,370

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,
	2020		2019
Net Income per Common Share (EPS)
Basic	$	0.13	$	0.13
Diluted	$	0.13	$	0.13
Weighted Average Number of Common Shares Outstanding
Basic		86,008		84,756
Diluted		86,009		84,793

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands, Unaudited)

	Three Months Ended
	September 30,
	2020		2019
Net Income	$	11,379	$	11,370
Other Comprehensive Income, net of tax:
Net unrealized gain on securities available for sale		788		7,293
Amortization of net unrealized loss on securities available for sale transferred to held to maturity		-		421
Net realized loss on sale and call of securities available for sale		265		9
Fair value adjustments on derivatives		1,645		(2,207	)
Benefit plan adjustments		19		335
Total Other Comprehensive Income		2,717		5,851
Total Comprehensive Income	$	14,096	$	17,221

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In Thousands, Except Share and Per Share Data, Unaudited)

	Common Stock						Paid-In			Retained			Unearned ESOP			Accumulated Other Comprehensive
	Shares			Amount			Capital			Earnings			Shares			Income		Total
Balance - June 30, 2019		89,126		$	891		$	787,394		$	366,679		$	(30,644	)	$	2,839	$	1,127,159
Net income		-			-			-			11,370			-			-		11,370
Other comprehensive income, net   of income tax expense		-			-			-			-			-			5,851		5,851
ESOP shares committed to be   released (50 shares)		-			-			173			-			486			-		659
Stock option expense		-			-			451			-			-			-		451
Share repurchases		(2,326	)		(23	)		(30,559	)		-			-			-		(30,582	)
Restricted stock plan shares   earned (68 shares)		-			-			985			-			-			-		985
Cancellation of shares issued for   restricted stock awards		(14	)		-			(59	)		-			-			-		(59	)
Cash dividends declared   ($0.06 per common share)		-			-			-			(5,045	)		-			-		(5,045	)
Balance - September 30, 2019		86,786		$	868		$	758,385		$	373,004		$	(30,158	)	$	8,690	$	1,110,789

	Common Stock					Paid-In			Retained			Unearned ESOP			Accumulated Other Comprehensive
	Shares			Amount		Capital			Earnings			Shares			Income		Total
Balance - June 30, 2020		83,663		$	837	$	722,871		$	387,911		$	(28,699	)	$	1,257	$	1,084,177
Cumulative effect of change in accounting principle - Topic 326		-			-		-			(14,239	)		-			-		(14,239	)
Balance - July 1, 2020 as adjusted for change in accounting principle		83,663			837		722,871			373,672			(28,699	)		1,257		1,069,938
Net income		-			-		-			11,379			-			-		11,379
Other comprehensive income, net   of income tax		-			-		-			-			-			2,717		2,717
ESOP shares committed to be   released (50 shares)		-			-		(100	)		-			487			-		387
Stock option expense		-			-		456			-			-			-		456
Restricted stock plan shares   earned (69 shares)		-			-		1,016			-			-			-		1,016
Cancellation of shares issued for   restricted stock awards		(7	)		-		(49	)		-			-			-		(49	)
Shares issued in conjunction with the acquisition of MSB Financial Corp.		5,854			58		45,075			-			-			-		45,133
Cash dividends declared   ($0.08 per common share)		-			-		-			(6,917	)		-			-		(6,917	)
Balance - September 30, 2020		89,510		$	895	$	769,269		$	378,134		$	(28,212	)	$	3,974	$	1,124,060

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,
	2020			2019
Cash Flows from Operating Activities:
Net income	$	11,379		$	11,370
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment		1,425			1,126
Net accretion of premiums, discounts and loan fees and costs		(4,723	)		(3,045	)
Deferred income taxes and valuation allowance		855			1,365
Realized gain on bargain purchase		(3,053	)		-
Amortization of intangible assets		265			308
Amortization of benefit plans’ unrecognized net gain		21			475
Provision for (reversal of) credit losses		4,059			(782	)
Loans originated for sale		(121,596	)		(56,826	)
Proceeds from sale of mortgage loans held-for-sale		124,105			59,203
Gain on sale of mortgage loans held-for-sale, net		(1,890	)		(605	)
Realized loss on sale and call of investment securities available for sale		377			14
Realized loss on disposition of premises and equipment		-			106
Increase in cash surrender value of bank owned life insurance		(1,596	)		(1,580	)
ESOP, stock option plan and restricted stock plan expenses		1,859			2,095
Increase in interest receivable		(1,294	)		(33	)
Increase in other assets		(3,456	)		(16,714	)
Increase (decrease) in interest payable		62			(664	)
(Decrease) increase in other liabilities		(663	)		15,135
Net Cash Provided by Operating Activities		6,136			10,948
Cash Flows from Investing Activities:
Purchases of:
Investment securities available for sale		(259,381	)		(8,198	)
Proceeds from:
Repayments/calls/maturities of investment securities available for sale		120,894			36,674
Repayments/calls/maturities of investment securities held to maturity		940			-
Sales of investment securities available for sale		19,600			3,646
Purchase of loans		(21,586	)		(7,567	)
Net decrease in loans receivable		104,354			84,804
Purchase of interest rate caps		-			(1,476	)
Additions to premises and equipment		(1,367	)		(977	)
Redemption of FHLB stock		6,881			451
Net cash acquired in acquisition		4,296			-
Net Cash (Used in) Provided by Investing Activities	$	(25,369	)	$	107,357

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,
	2020			2019
Cash Flows from Financing Activities:
Net increase in deposits		150,000			49,978
Repayment of term FHLB advances		(865,000	)		(835,030	)
Proceeds from term FHLB advances		775,000			825,000
Net decrease in other short-term borrowings		(68,635	)		(31,271	)
Net decrease in advance payments by borrowers for taxes		(355	)		(785	)
Repurchase and cancellation of common stock of Kearny Financial Corp.		-			(30,582	)
Cancellation of shares repurchased on vesting to pay taxes		(49	)		(59	)
Dividends paid		(6,877	)		(5,186	)
Net Cash Used in Financing Activities		(15,916	)		(27,935	)
Net (Decrease) Increase in Cash and Cash Equivalents		(35,149	)		90,370
Cash and Cash Equivalents - Beginning		180,967			38,935
Cash and Cash Equivalents - Ending	$	145,818		$	129,305
Supplemental Disclosures of Cash Flows Information:
Cash paid during the period for:
Income taxes, net of refunds	$	5,371		$	2,429
Interest	$	16,660		$	23,876
Non-cash investing and financing activities:
Fair value of assets acquired, net of cash and cash equivalents acquired	$	567,816		$	-
Fair value of liabilities assumed	$	523,926		$	-
In conjunction with the adoption of ASU 2019-04, the following qualifying held to maturity securities were transferred to available for sale:
Debt securities transferred from held to maturity to available for sale	$	-		$	537,732
In conjunction with the adoption of ASU 2016-02, the following assets and liabilities were recognized:
Operating lease right-of-use assets	$	-		$	17,243
Operating lease liabilities	$	-		$	17,758

See notes to unaudited consolidated financial statements.

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KEARNY FINANCIAL CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 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.

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 (loss) 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, 2020 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, 2020 was derived from the Company’s 2020 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 2020 Annual Report on Form 10-K.

Risks and Uncertainties

As previously disclosed, on March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, and may continue to adversely affect, local, national and global economic activity. The spread of the outbreak has caused significant disruptions to the U.S. economy, significant reductions in the targeted federal funds rate and has disrupted banking and other financial activity in the areas in which the Company operates. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic.

  These reductions in interest rates and other effects of the COVID-19 pandemic may continue to materially and adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company.  It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions, including estimates regarding expected credit losses on loans receivable, impairment of investment securities and impairment of goodwill. Although the Company continues to operate while taking steps to ensure the safety of employees and clients, COVID-19 could also potentially create widespread business continuity issues for the Company.

The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations in future periods will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic, as well as further actions the Company may take as may be required by government authorities or that the Company determines is in the best interests of its employees and clients. There is no certainty that such measures will be sufficient to mitigate the risks posed by the pandemic.

Adoption of New Accounting Standards

On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology.  The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after July 1, 2020 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.  At adoption, the Company increased its allowance for credit losses by $20.2 million, comprised of $19.6 million for loans receivable and $536,000 for unfunded commitments. Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax.

- 8 -

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.  If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include multi-family, nonresidential mortgage, commercial business, construction, one- to four-family residential, home equity and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount.

The Company estimates the allowance for credit losses on loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Furthermore, the Company considers the inherent uncertainty in quantitative models that are built upon historical data.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

- 9 -

Acquired Loans

Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Held to Maturity Securities

The Company’s entire portfolio of held to maturity securities consists of municipal bonds which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued Interest Receivable

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $16.2 million at September 30, 2020 and is excluded from the estimate of credit losses. Accrued interest receivable on available of sale securities and held to maturity securities, also a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $3.9 million and $241,000, respectively, at September 30, 2020 and is excluded from the estimate of credit losses.

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

Basic EPS is based on the weighted average number of common shares actually outstanding, including both vested and unvested 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 schedule shows the Company’s earnings per share calculations for the periods presented:

	Three Months Ended September 30,
	2020		2019
Net income	$	11,379	$	11,370
Weighted average number of common shares outstanding - basic		86,008		84,756
Effect of dilutive securities		1		37
Weighted average number of common shares outstanding- diluted		86,009		84,793
Basic earnings per share	$	0.13	$	0.13
Diluted earnings per share	$	0.13	$	0.13

Stock options for 3,910,398 and 3,245,000 shares of common stock were not considered in computing diluted earnings per share at September 30, 2020 and September 30, 2019, respectively, because they were considered anti-dilutive.

3.     SUBSEQUENT EVENTS

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2020, 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.

4.    ACQUISITION OF MSB FINANCIAL CORP.

On July 10, 2020, the Company completed its acquisition of MSB Financial Corp. (“MSB”), and its subsidiary Millington Bank.  In accordance with the merger agreement, approximately $9.8 million in cash and 5,853,811 shares of Company common stock was distributed to former MSB shareholders in exchange for their shares of MSB common stock.

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of July 10, 2020 based on management’s best estimate using the information available as of the merger date.  The application of the acquisition method of accounting resulted in the recognition of bargain purchase gain of $3.1 million and a core deposit intangible of $690,000.  Accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which runs through July 10, 2021, in the measurement period in which the adjustment amounts are determined.  The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Items that could be subject to adjustment include credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition.

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The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table:

	As Recorded by MSB			Fair Value Adjustments				As Recorded at Acquisition
	(In Thousands)
Cash paid for acquisition								$	9,830
Value of stock issued									45,133
Total purchase price								$	54,963
Cash and cash equivalents	$	14,126		$	-			$	14,126
Investment securities		4,000			(510	)	(a)		3,490
Loans receivable		537,589			(7,345	)	(b)		530,244
Allowance for loan losses		(6,037	)		6,037		(c)		-
Premises and equipment		7,698			(3,221	)	(d)		4,477
FHLB stock		3,345			-				3,345
Accrued interest receivable		1,701			-				1,701
Core deposit intangibles		-			690		(e)		690
Bank owned life insurance		14,663			-				14,663
Deferred income taxes, net		1,729			2,152		(f)		3,881
Other assets		4,830			495		(g)		5,325
Total assets acquired	$	583,644		$	(1,702	)		$	581,942
Deposits	$	458,392		$	1,786		(h)	$	460,178
FHLB borrowings		62,900			-				62,900
Advance payments by borrowers for taxes		794			-				794
Other liabilities		810			(756	)	(i)		54
Total liabilities assumed	$	522,896		$	1,030			$	523,926
Net assets acquired								$	58,016
Bargain purchase gain								$	(3,053	)

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustments on investment securities.

(b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

(c) Represents the elimination of MSB’s allowance for loan losses.

(d) Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e) Represents the intangible assets recorded to reflect the fair value of core deposits.  The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g) Represents an adjustment to other assets acquired.

(h) Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i) Represents an adjustment to other liabilities assumed.

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The fair value of loans acquired from MSB was estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. There was no carryover of MSB’s allowance for loan losses associated with the loans that were acquired.  For information regarding purchased loans which have been determined to be PCD, refer to Note 8, Loans Receivable.

The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the sum-of-the-years digits method.

The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.

5.    MERGER RELATED EXPENSES

Merger-related expenses were recorded in the Consolidated Statements of Income as a component of non-interest expense and include costs relating to the Company’s acquisition of MSB, as described above.  These charges represent one-time costs associated with acquisition activities and do not represent ongoing costs of the fully integrated combined organization.  Accounting guidance requires that acquisition-related transactional and restructuring costs incurred by the Company be charged to expense as incurred. Direct acquisition and other charges incurred in connection with the MSB merger totaled $4.3 million for the three months ended September 30, 2020 and $951,000 for the fiscal year ended June 30, 2020.  Direct acquisition and other charges were recorded in merger-related expense on the consolidated statements of income.

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6.     RECENT ACCOUNTING PRONOUNCEMENTS

In December 2019, the FASB issued ASU 2019-12, “Income taxes (Topic 740); Simplifying the Accounting for Income Taxes”. ASU 2019-12 provides amendments intended to reduce the cost and complexity in accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements.  ASU 2019-12 removes the following exceptions from ASC 740, Income Taxes: (i) exceptions to the incremental approach for intraperiod tax allocation; (ii) exceptions to accounting for basis differences when a foreign subsidiary becomes an equity method investment or a foreign equity method investment become a subsidiary; and (iii) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 provides the following amendments that simplify and improve guidance with Topic 740: (i) franchise taxes that are based partially on income; (ii) transactions that result in a step up in the tax basis of goodwill; (iii) separate financial statements of legal entities that are not subject to tax; (iv) enacted changes in tax laws in interim periods; and (v) employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in the ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

Adoption of New Accounting Standards

On July 1, 2020 the Company adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology.  The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost including loan receivables and held to maturity debt securities.  This ASU also applies to off-balance exposures.  In addition, this ASU made certain changes to the accounting for available for sale securities debt securities. Credit losses are required to be presented as an allowance rather than as a write-down on available for sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted Topic 326 and all its related updates on July 1, 2020, using the modified retrospective approach for financial assets measured at amortized cost.  Results for reporting periods after July 1, 2020 are presented in accordance to the guidance under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.  Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax. Additional information regarding the adoption of ASU 2016-13 is presented in Note 1, Summary of Significant Accounting Policies.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform a quantitative goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. For public entities, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017. The Company is applying the amendments of ASU 2017-04 prospectively for goodwill impairment testing conducted after July 1, 2020.

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7.     SECURITIES

At September 30, 2020, there was no allowance for credit losses on available for sale securities. The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated:

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	49,697	$	1,180	$	-	$	50,877
Asset-backed securities		260,174		239		1,612		258,801
Collateralized loan obligations		198,015		8		1,625		196,398
Corporate bonds		121,436		1,123		283		122,276
Trust preferred securities		2,967		-		194		2,773
Total debt securities		632,289		2,550		3,714		631,125
Mortgage-backed securities:
Collateralized mortgage obligations (1)		25,065		705		-		25,770
Residential pass-through securities (1)		611,981		13,734		-		625,715
Commercial pass-through securities (1)		215,166		10,794		28		225,932
Total mortgage-backed securities		852,212		25,233		28		877,417
Total securities available for sale	$	1,484,501	$	27,783	$	3,742	$	1,508,542

(1) Government-sponsored enterprises.

	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	52,843	$	1,211	$	-		54,054
Asset-backed securities		177,413		-		4,966		172,447
Collateralized loan obligations		198,619		-		4,831		193,788
Corporate bonds		142,942		1,267		570		143,639
Trust preferred securities		2,967		-		340		2,627
Total debt securities		574,784		2,478		10,707		566,555
Mortgage-backed securities:
Collateralized mortgage obligations (1)		30,043		860		-		30,903
Residential pass-through securities (1)		543,819		18,135		-		561,954
Commercial pass-through securities (1)		214,575		11,716		-		226,291
Total mortgage-backed securities		788,437		30,711		-		819,148
Total securities available for sale	$	1,363,221	$	33,189	$	10,707	$	1,385,703

(1) Government-sponsored enterprises.

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	September 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	31,576	$	1,560	$	-	$	33,136
Total debt securities		31,576		1,560		-		33,136
Total securities held to maturity	$	31,576	$	1,560	$	-	$	33,136

	June 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	32,556	$	1,513	$	-	$	34,069
Total debt securities		32,556		1,513		-		34,069
Total securities held to maturity	$	32,556	$	1,513	$	-	$	34,069

The following tables present the amortized cost and estimated fair values of debt securities, by contractual maturity, at September 30, 2020:

	September 30, 2020
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities:
Due in one year or less	$	6,696	$	6,727
Due after one year through five years		85,068		86,141
Due after five years through ten years		289,819		291,495
Due after ten years		282,282		279,898
Total	$	663,865	$	664,261

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Sales of securities available for sale were as follows for the periods presented below:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities	$	19,600		$	3,646
Gross realized gains	$	-		$	12
Gross realized losses		(385	)		(28	)
Net loss on sales of securities	$	(385	)	$	(16	)

Calls of securities available for sale during the three months ended September 30, 2020 and September 30, 2019 resulted in gross gains of $8,000 and $2,000, respectively.  During the three months ended September 30, 2020 and September 30, 2019, there were no gains or losses recorded on sales and calls of securities held to maturity.

The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below:

	September 30,		June 30,
	2020		2020
	(In Thousands)
Securities pledged:
Pledged for borrowings at the FHLB of New York	$	166,267	$	155,288
Pledged to secure public funds on deposit		107,260		19,944
Pledged for potential borrowings at the Federal Reserve Bank of New York		342,601		366,482
Pledged as collateral for depositor sweep accounts		-		7,830
Total carrying value of securities pledged	$	616,128	$	549,544

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The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	81,712	$	1,006	$	54,166	$	606		13	$	135,878	$	1,612
Collateralized loan obligations		53,946		228		134,037		1,397		18		187,983		1,625
Corporate bonds		33,302		199		19,916		84		7		53,218		283
Trust preferred securities		-		-		2,773		194		2		2,773		194
Commercial pass-through securities		15,496		28		-		-		1		15,496		28
Total	$	184,456	$	1,461	$	210,892	$	2,281		41	$	395,348	$	3,742

	June 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	146,494	$	3,962	$	25,954	$	1,004		16	$	172,448	$	4,966
Collateralized loan obligations		71,282		1,245		122,506		3,586		19		193,788		4,831
Corporate bonds		24,764		236		39,651		334		8		64,415		570
Trust preferred securities		-		-		2,626		340		2		2,626		340
Total	$	242,540	$	5,443	$	190,737	$	5,264		45	$	433,277	$	10,707

At September 30, 2020 and June 30, 2020, there were no held to maturity securities with unrecognized losses.

Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the consolidated statement of income when management intends to sell, or may be required to sell, the securities before they recover in value.  The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at September 30, 2020. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. Therefore, no allowance for credit losses was recorded at September 30, 2020.

At September 30, 2020, the Company’s entire portfolio of held to maturity securities consists of municipal bonds which are highly rated by major rating agencies and have a long history of no credit losses.  None of the securities in the Company’s portfolio of held to maturity municipal bonds were in an unrealized loss position. The Company continually monitors the municipal bond sector of the market and reviews collectability including such factors as the financial condition of the issuers including credit ratings in effect as of the reporting period.  

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8.     LOANS RECEIVABLE

The following table sets forth the composition of the Company’s loan portfolio at September 30, 2020 and June 30, 2020:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Commercial loans:
Multi-family mortgage	$	2,110,300		$	2,059,568
Nonresidential mortgage		1,124,330			960,853
Commercial business (1)		255,888			138,788
Construction		79,178			20,961
Total commercial loans		3,569,696			3,180,170
One- to four-family residential mortgage		1,353,197			1,273,022
Consumer loans:
Home equity loans		71,540			82,920
Other consumer		4,136			3,991
Total consumer loans		75,676			86,911
Total loans		4,998,569			4,540,103
Unaccreted yield adjustments		(43,819	)		(41,706	)
Total loans receivable, net of yield adjustments	$	4,954,750		$	4,498,397

(1) Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Past Due Loans

Past due status is based on the contractual payment terms of the loans. The following tables present the payment status of past due loans as of September 30, 2020 and June 30, 2020, by loan segment:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,110,300	$	1,100,082	$	255,524	$	79,154	$	1,345,532	$	71,057	$	4,129	$	4,965,778
Past due:
30-59 days		-		6,171		-		24		1,558		6		2		7,761
60-89 days		-		497		60		-		1,024		6		-		1,587
90 days and over		-		17,580		304		-		5,083		471		5		23,443
Total past due		-		24,248		364		24		7,665		483		7		32,791
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,059,568	$	941,714	$	138,439	$	20,961	$	1,264,267	$	82,358	$	3,981	$	4,511,288
Past due:
30-59 days		-		-		-		-		3,211		169		-		3,380
60-89 days		-		14,478		-		-		1,038		13		5		15,534
90 days and over		-		4,661		349		-		4,506		380		5		9,901
Total past due		-		19,139		349		-		8,755		562		10		28,815
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Nonperforming Loans

Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all principal and interest payments (“P&I”) owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 days past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and we expect to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement.  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. The Company did not recognize interest income on non-accrual loans for the three months ended September 30, 2020 and September 30, 2019.

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The following tables present information relating to the Company’s nonperforming loans as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,107,376	$	1,097,576	$	255,349	$	76,640	$	1,341,463	$	70,959	$	4,131	$	4,953,494
Nonperforming:
90 days and over past due accruing		-		238		-		-		-		-		-		238
Nonaccrual loans with allowance for credit losses		-		3,191		124		-		1,401		6		5		4,727
Nonaccrual loans with no allowance for credit losses		2,924		23,325		415		2,538		10,333		575		-		40,110
Total nonperforming		2,924		26,754		539		2,538		11,734		581		5		45,075
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,056,606	$	936,917	$	138,196	$	20,961	$	1,264,663	$	82,078	$	3,986	$	4,503,407
Nonperforming:
90 days and over past due accruing		-		-		-		-		-		-		5		5
Nonaccrual		2,962		23,936		592		-		8,359		842		-		36,691
Total nonperforming		2,962		23,936		592		-		8,359		842		5		36,696
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

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Troubled Debt Restructurings (“TDRs”)

On a case-by-case basis, the Company may agree to modify the contractual terms of a loan to assist a borrower who may be experiencing financial difficulty, as well as to preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR.  At September 30, 2020, the Company had TDRs totaling $20.1 million. The allowance for credit losses associated with the TDRs presented in the tables below totaled $210,000 and $8,000 as of September 30, 2020 and June 30, 2020, respectively. As of September 30, 2020, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured in a TDR.

The following tables present total TDR loans at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,924		1	$	2,924
Nonresidential mortgage		1		110		8		2,755		9		2,865
Commercial business		5		5,103		5		434		10		5,537
Construction		-		-		1		2,538		1		2,538
Total commercial loans		6		5,213		15		8,651		21		13,864
One- to four-family residential mortgage		14		2,067		19		3,541		33		5,608
Consumer loans:
Home equity loans		8		543		1		97		9		640
Total		28	$	7,823		35	$	12,289		63	$	20,112

	June 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,962		1	$	2,962
Nonresidential mortgage		1		112		9		5,442		10		5,554
Commercial business		5		5,179		6		446		11		5,625
Total commercial loans		6		5,291		16		8,850		22		14,141
One- to four-family residential mortgage		14		2,407		20		3,811		34		6,218
Consumer loans:
Home equity loans		12		715		2		448		14		1,163
Total		32	$	8,413		38	$	13,109		70	$	21,522

- 22 -

The following tables present information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2020 and September 30, 2019.

	Three Months Ended September 30, 2020
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Residential mortgage		1	$	309	$	308
Total		1	$	309	$	308

	Three Months Ended September 30, 2019
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Commercial business		3		1,775		1,829
Residential mortgage		2		1,002		938
Home equity loans		1		82		81
Total		6	$	2,859	$	2,848

During the three months ended September 30, 2019, TDRs resulted in charge-offs of $8,000 which were recognized at modification. During the three months ended September 30, 2020, there were no charge-offs related to TDRs. During the three months ended September 30, 2020 and 2019, there were no troubled debt restructuring defaults.

Loan modifications generally involve a reduction in interest rates and/or extension of maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. The residential mortgage loan which qualified as a TDR during the three months ended September 30, 2020, capitalized prior past due amounts and modified the loan’s repayment terms.

- 23 -

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications.  The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extension of repayment terms, or other delays in payment that are insignificant. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans were not to be considered TDRs if they were performing at December 31, 2019 and other considerations set forth in the interagency statements were met. Borrowers considered current are those that are less than 30 days past due at the time a modification program is implemented or at December 31, 2019. As of September 30, 2020, the Company had 63 non-TDR modified loans totaling approximately $76.9 million.  

The following table sets forth the composition of these loans by loan segments as of September 30, 2020:

	September 30, 2020
	# of Loans (1)		Balance (1)
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		7	$	15,910
Nonresidential mortgage		11		41,660
Commercial business		4		2,684
Construction		1		2,537
Total commercial loans		23		62,791
Residential mortgage		36		13,866
Consumer loans:
Home equity loans		4		252
Total loans		63	$	76,909

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Individually Analyzed Loans

Effective July 1, 2020, individually analyzed loans include loans which do not share similar risk characteristics with other loans. TDR’s will generally be evaluated for individual impairment, however, after a period of sustained repayment performance which permits the credit to be returned to accrual status, a TDR would generally be removed from individual impairment analysis and returned to its corresponding pool. As of September 30, 2020, the carrying value of individually analyzed loans totaled $44.8 million, of which $32.5 million were considered collateral dependent.

For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral, less costs to sell, and the amortized cost basis of the loan as of the measurement date. See Note 16 for additional disclosure regarding fair value of individually analyzed collateral dependent loans.

The following table presents the carrying value of collateral dependent individually analyzed loans:

	September 30, 2020
	Carrying Value		Related Allowance
	(In Thousands)
Commercial loans:
Nonresidential mortgage (1)	$	24,120	$	580
Commercial business (2)		199		-
Total commercial loans		24,319		580
Residential mortgage (3)		7,722		218
Consumer loans:
Home equity loans (3)		471		-
Total	$	32,512	$	798

(1) Secured by income-producing property.

(2) Secured by business assets.

(3) Secured by one- to four-family properties.

- 25 -

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment by portfolio segment as of June 30, 2020:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans		Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Non-impaired loans	$	2,056,606	$	936,805		$	132,999		$	20,961	$	1,262,256		$	81,363	$	3,991	$	4,494,981
Impaired loans:
Impaired loans with no allowance   for impairment		2,962		22,516			5,622			-		10,659			1,557		-		43,316
Impaired loans with allowance   for impairment:
Recorded investment		-		1,532			167			-		107			-		-		1,806
Allowance for impairment		-		(41	)		(47	)		-		(1	)		-		-		(89	)
Balance of impaired loans net   of allowance for impairment		-		1,491			120			-		106			-		-		1,717
Total impaired loans, excluding   allowance for impairment:		2,962		24,048			5,789			-		10,766			1,557		-		45,122
Total loans	$	2,059,568	$	960,853		$	138,788		$	20,961	$	1,273,022		$	82,920	$	3,991	$	4,540,103
Unpaid principal balance   of impaired loans:
Total impaired loans	$	3,544	$	25,898		$	8,778		$	73	$	12,908		$	1,950	$	-	$	53,151

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually to classify the loans as to credit risk.  The Company uses the following definitions for risk ratings:

Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

Special Mention – Loans 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.

Substandard – Loans which are 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 Company will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans which 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.

Loss – Loans which considered uncollectible or of so little value that their continuance as assets is not warranted.

- 26 -

The following table presents the risk category of loans as of September 30, 2020 by loan segment and vintage year:

	Term Loans Amortized Cost by Origination Year for Fiscal Years ended June 30,
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
	(In Thousands)
Multi-family mortgage:
Pass	$	71,975	$	261,063	$	436,822	$	413,844	$	416,703	$	486,683	$	-	$	2,087,090
Special Mention		-		-		-		-		-		10,060		-		10,060
Substandard		-		-		-		2,924		10,226		-		-		13,150
Doubtful		-		-		-		-		-		-		-		-
Total multi-family mortgage		71,975		261,063		436,822		416,768		426,929		496,743		-		2,110,300
Non-residential mortgage:
Pass		10,968		85,510		79,459		79,873		296,213		533,504		6,249		1,091,776
Special Mention		-		-		-		-		-		4,373		-		4,373
Substandard		-		-		-		-		16,028		12,153		-		28,181
Doubtful		-		-		-		-		-		-		-		-
Total non-residential mortgage		10,968		85,510		79,459		79,873		312,241		550,030		6,249		1,124,330
Commercial business:
Pass		18,802		97,441		5,086		28,363		11,684		26,666		62,032		250,074
Special Mention		-		-		11		2,370		147		15		-		2,543
Substandard		-		84		-		1,598		65		1,337		187		3,271
Doubtful		-		-		-		-		-		-		-		-
Total commercial business		18,802		97,525		5,097		32,331		11,896		28,018		62,219		255,888
Construction loans:
Pass		1,454		17,123		14,354		20,643		15,715		1,592		5,735		76,616
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		2,562		-		2,562
Doubtful		-		-		-		-		-		-		-		-
Total construction loans		1,454		17,123		14,354		20,643		15,715		4,154		5,735		79,178
Residential mortgage:
Pass		50,150		204,875		114,802		111,794		178,430		673,678		921		1,334,650
Special Mention		-		-		-		-		-		713		-		713
Substandard		-		452		589		-		573		16,220		-		17,834
Doubtful		-		-		-		-		-		-		-		-
Total residential mortgage		50,150		205,327		115,391		111,794		179,003		690,611		921		1,353,197
Home equity loans:
Pass		206		4,672		8,192		4,158		3,366		20,943		28,637		70,174
Special Mention		-		-		-		-		-		175		26		201
Substandard		-		-		-		-		68		1,097		-		1,165
Doubtful		-		-		-		-		-		-		-		-
Total home equity loans		206		4,672		8,192		4,158		3,434		22,215		28,663		71,540
Other consumer loans
Pass		280		565		818		240		137		1,899		75		4,014
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		1		1
Doubtful		-		-		-		-		-		5		116		121
Other consumer loans		280		565		818		240		137		1,904		192		4,136
Total loans	$	153,835	$	671,785	$	660,133	$	665,807	$	949,355	$	1,793,675	$	103,979	$	4,998,569

- 27 -

The following table presents, under previously applicable GAAP, the risk category of loans as of June 30, 2020 by loan segment:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Pass	$	2,055,520	$	932,202	$	132,818	$	20,961	$	1,258,246	$	81,120	$	3,979	$	4,484,846
Special Mention		1,086		4,373		2,585		-		981		157		5		9,187
Substandard		2,962		24,278		3,385		-		13,795		1,643		6		46,069
Doubtful		-		-		-		-		-		-		1		1
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Purchased Credit Deteriorated Loans

Loans acquired in a business combination after July 1, 2020 are recorded in accordance with ASC Topic 326, after which acquired loans are separated into two types. PCD loans are acquired loans that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD loans are acquired loans that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired loans, the Company evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. The determining criteria may involve loan specific characteristics such as payment status, debt service coverage or other changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the pandemic.

As part of the acquisition of MSB, the Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination.  The carrying amount of those loans is as follows:

	At July 10, 2020
	(In Thousands)
Purchase price of PCD loans at acquisition	$	69,415
Allowance for credit losses at acquisition		(3,901	)
Non-credit discount at acquisition		(167	)
Amortized cost of acquired PCD loans at acquisition	$	65,347

Residential Mortgage Loans in Foreclosure

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, 2020, we held one single-family property in other real estate owned with an aggregate carrying value of $178,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held nine residential mortgage loans with aggregate carrying values totaling $1.7 million which were in the process of foreclosure.

As of June 30, 2020, we held one single-family property in other real estate owned with an aggregate carrying value of $178,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held nine residential mortgage loans with aggregate carrying values totaling $1.9 million which were in the process of foreclosure.

The States of New Jersey and New York have issued executive orders and enacted legislation declaring moratoriums on removing individuals from a residential property as a result of an eviction or foreclosure proceeding. The New Jersey order will be in effect until two months after the Governor has declared an end to the COVID-19 health crisis. The New York law will be in effect until the state’s COVID-19-related executive orders are no longer in effect. As a result, since March 28, 2020, the Company has temporarily suspended residential property foreclosure sales and evictions.

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9.     ALLOWANCE FOR CREDIT LOSSES

Adoption of Topic 326

On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology, referred to as the “CECL” methodology.  See Note 1, Summary of Significant Accounting Policies for additional information on the adoption of Topic 326.

Allowance for Credit Losses on Loans Receivable

The following tables present the balance of the allowance for credit losses at September 30, 2020 and June 30, 2020.  For the three months ended September 30, 2020, the balance of the allowance for credit losses is based on the CECL methodology, as noted above. For the year ended June 30, 2020, the allowance for loan losses is based upon the calculation methodology as described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. 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.

Allowance for Credit Losses
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for credit losses:
Loans acquired with deteriorated   credit quality individually   analyzed	$	-	$	527	$	-	$	-	$	218	$	-	$	-	$	745
Loans acquired with deteriorated   credit quality collectively   analyzed		211		1,126		854		136		249		22		-		2,598
Loans individually   evaluated for impairment		-		54		681		-		1		-		-		736
Loans collectively   evaluated for impairment		28,355		13,387		2,820		969		14,367		836		47		60,781
Total allowance for credit losses	$	28,566	$	15,094	$	4,355	$	1,105	$	14,835	$	858	$	47	$	64,860

Balance of Loans Receivable
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality  individually   evaluated	$	-	$	1,658	$	200	$	-	$	3,853	$	366	$	-	$	6,077
Loans acquired with deteriorated   credit quality collectively   evaluated		5,690		31,733		11,711		9,408		4,995		369		5		63,911
Loans individually   evaluated for impairment		2,924		24,858		339		2,538		7,881		215		-		38,755
Loans collectively   evaluated for impairment		2,101,686		1,066,081		243,638		67,232		1,336,468		70,590		4,131		4,889,826
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569
Unaccreted yield adjustments																(43,819	)
Loans receivable, net of yield adjustments															$	4,954,750

- 29 -

Allowance for Loan Losses
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans individually   evaluated for impairment		-		41		47		-		1		-		-		89
Loans collectively   evaluated for impairment		20,916		8,722		1,879		236		4,859		568		58		37,238
Total allowance for loan losses	$	20,916	$	8,763	$	1,926	$	236	$	4,860	$	568	$	58	$	37,327

Balance of Loans Receivable
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	222	$	-	$	77	$	-	$	-		299
Loans individually   evaluated for impairment		2,962		24,048		5,567		-		10,689		1,557		-		44,823
Loans collectively   evaluated for impairment		2,056,606		936,805		132,999		20,961		1,262,256		81,363		3,991		4,494,981
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103
Unaccreted yield adjustments																(41,706	)
Loans receivable, net of yield adjustments															$	4,498,397

- 30 -

The following table presents the activity in the ACL on loans for the three months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Multi-Family Mortgage			Non- Residential Mortgage		Commercial Business			Construction		Residential Mortgage		Home Equity Loans		Other Consumer			Total
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020 (prior to adoption of ASC 326):	$	20,916		$	8,763	$	1,926		$	236	$	4,860	$	568	$	58		$	37,327
Impact of adopting Topic 326		8,408			2,390		(421	)		80		9,106		92		(15	)		19,640
Charge offs		-			-		(63	)		-		-		-		(10	)		(73	)
Recoveries		-			-		2			-		-		-		4			6
Initial allowance on PCD loans		250			1,720		1,007			99		720		105		-			3,901
Provision for credit losses		(1,008	)		2,221		1,904			690		149		93		10			4,059
Total allowance for credit losses	$	28,566		$	15,094	$	4,355		$	1,105	$	14,835	$	858	$	47		$	64,860

For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2019:

	Three Months Ended September 30, 2019
	Multi-Family Mortgage			Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans			Other Consumer			Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2019:
At June 30, 2019:	$	16,959		$	9,672		$	2,467		$	136	$	3,377		$	491		$	172		$	33,274
Total charge offs		-			-			-			-		-			-			(64	)		(64	)
Total recoveries		-			-			-			-		-			-			4			4
Total provisions		(257	)		(301	)		(174	)		4		(70	)		(13	)		29			(782	)
Total allowance for loan losses	$	16,702		$	9,371		$	2,293		$	140	$	3,307		$	478		$	141		$	32,432

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Allowance for Credit Losses on Off Balance Sheet Commitments

The following table presents the activity in the ACL on off balance sheet commitments for the three months ended September 30, 2020:

	Three Months Ended
	September 30, 2020
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020	$	-
Impact of adopting Topic 326 (1)		536
Provision recorded in other non-interest expense		468
Total allowance for credit losses on off balance sheet commitments	$	1,004

(1) Adoption of CECL accounting standard effective July 1, 2020.

10.     LEASES

The Company adopted ASU 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 on July 1, 2019. Topic 842 requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. At the time of adoption, operating lease right-of-use assets of approximately $17.2 million and operating lease liabilities of approximately $17.8 million were recorded in other assets and other liabilities, respectively, on our Consolidated Statements of Financial Condition. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. The discount rate used in determining the lease liability for each individual lease was the Company’s incremental borrowing rate at the time of adoption of ASU 2016-02, on a collateralized basis, over a similar term.

As of September 30, 2020, the weighted average remaining lease term for operating leases was 7.91 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.36%.  

The Company has elected to account for lease and non-lease components separately since such amounts are readily determinable under the Company’s lease contracts.  Total operating lease costs for the three months ended September 30, 2020 and September 30, 2019 was $1.0 million and $1.1 million, respectively.

There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three months ended September 30, 2020.  At September 30, 2020, the Company had no leases that had not yet commenced.

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at September 30, 2020 is as follows:

	September 30,
	2020
	(In Thousands)
Less than one year	$	3,649
After one year but within two years		3,311
After two years but within three years		2,606
After three years but within four years		1,877
After four years but within five years		1,498
Greater than five years		7,007
Total undiscounted cash flows		19,948
Less: discount on cash flows		(2,028	)
Total lease liability	$	17,920

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11.     DEPOSITS

Deposits are summarized as follows:

	September 30,		June 30,
	2020			2020
	(In Thousands)
Non-interest-bearing demand	$	487,710	$	419,138
Interest-bearing demand		1,561,135		1,264,151
Savings		1,025,245		906,597
Certificates of deposits		1,965,822		1,840,396
Total deposits	$	5,039,912	$	4,430,282

12.     BORROWINGS

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

	September 30, 2020						June 30, 2020
	Balance			Weighted Average Interest Rate			Balance			Weighted Average Interest Rate
	(Dollars in Thousands)
By remaining period to maturity:
Less than one year	$	775,000			0.40	%	$	865,000			0.45	%
One to two years		27,000			2.85			27,000			2.85
Two to three years		145,000			3.04			145,000			3.04
Three to four years		22,500			2.63			22,500			2.63
Four to five years		103,500			2.68			103,500			2.68
Greater than five years		6,500			2.82			6,500			2.82
Total advances		1,079,500			1.10	%		1,169,500			1.08	%
Unamortized fair value adjustments		(1,960	)					(2,071	)
Total advances, net of   fair value adjustments	$	1,077,540					$	1,167,429

At September 30, 2020, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $3.13 billion and $166.3 million, respectively. At June 30, 2020, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $3.21 billion and $155.3 million, respectively.

Borrowings at June 30, 2020 also included overnight borrowings in the form of depositor sweep accounts totaling $5.7 million, while there were no such borrowings at September 30, 2020.

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13.     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to specific wholesale funding positions.

Fair Values of Derivative Instruments on the Statement of Financial Condition

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	175	Other liabilities	$	15,857
Total		$	175		$	15,857

	June 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	235	Other liabilities	$	18,177
Total		$	235		$	18,177

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using derivatives are primarily to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps and caps as part of its interest rate risk management strategy.  These interest rate products are designated as cash flow hedges.  As of September 30, 2020, the Company had a total of 14 interest rate swaps and caps with a total notional amount of $1.23 billion hedging specific wholesale funding positions.

For derivatives designated as cash flow hedges, the gain or loss on the derivative is recorded in other comprehensive income, net of tax, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate wholesale funding positions.  During the three months ended September 30, 2020, the Company had $2.4 million of reclassifications to interest expense.  During the next twelve months, the Company estimates that $7.3 million will be reclassified as an increase in interest expense.

- 34 -

The tables below present the pre-tax effects of the Company’s derivative instruments on the Consolidated Statements of Income for the three months ended September 30, 2020 and 2019:

	Three Months Ended September 30, 2020
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(111	)	Interest expense	$	(2,372	)
Total	$	(111	)		$	(2,372	)

	Three Months Ended September 30, 2019
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(1,759	)	Interest expense	$	1,371
Total	$	(1,759	)		$	1,371

Offsetting Derivatives

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of September 30, 2020 and June 30, 2020, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

	September 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	479	$	(304	)	$	175	$	-	$	-		$	175
Total	$	479	$	(304	)	$	175	$	-	$	-		$	175
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-
Total	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-

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	June 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	592	$	(357	)	$	235	$	-	$	-		$	235
Total	$	592	$	(357	)	$	235	$	-	$	-		$	235
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-
Total	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.  The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty.  As of September 30, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to those agreements was $16.5 million.  

As required under the enforceable master netting arrangement with its derivatives counterparties, at September 30, 2020, the Company posted financial collateral of $15.9 million that was not included as offsetting amount.

In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at September 30, 2020 and June 30, 2020, included $124.5 million and $127.2 million, respectively, of in process loans whose terms included interest rate locks to borrowers, which are considered free-standing derivative instruments whose fair values are not material to our financial condition or results of operations.

14.     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						Affected Line Item in the Consolidated
	September 30,						Statements of Income
	2020			2019
	(In Thousands)
Service cost	$	26		$	20		Salaries and employee benefits
Interest cost		66			81		Miscellaneous non-interest  expense
Amortization of unrecognized loss		21			5		Miscellaneous non-interest  expense
Expected return on assets		(28	)		(28	)	Miscellaneous non-interest  expense
Net periodic benefit cost	$	85		$	78

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15.     INCOME TAXES

The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rate of 21% to income for the three months ended September 30, 2020 and September 30, 2019:

	Three Months Ended
	September 30,
	2020			2019
	(Dollars in Thousands)
Income before income taxes	$	14,263		$	15,187
Statutory federal tax rate		21	%		21	%
Federal income tax expense at statutory rate	$	2,995		$	3,189
(Reduction) increases in income taxes resulting from:
Tax exempt interest		(94	)		(144	)
State tax, net of federal tax effect		784			1,241
Incentive stock option compensation expense		20			17
Income from bank-owned life insurance		(327	)		(333	)
Non-deductible merger-related expenses		49			-
Bargain purchase gain		(641	)
Other items, net		98			(153	)
Total income tax expense	$	2,884		$	3,817
Effective income tax rate		20.22	%		25.13	%

The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:

	September 30,			June 30,
	2020				2020
	(Unaudited)
	(In Thousands)
Deferred income tax assets:
Purchase accounting	$	12,134		$	11,668
Accumulated other comprehensive income:
Defined benefit plans		414			416
Derivatives		5,114			5,730
Allowance for credit losses		19,370			11,047
Benefit plans		2,302			2,290
Compensation		434			1,287
Stock-based compensation		2,684			2,482
Uncollected interest		1,460			1,362
Depreciation		978			268
Net operating loss carryover		6			6
Capital loss carryforward		339			329
Deferred loan fees and costs		236			10
Other items		796			1,039
		46,267			37,934
Valuation allowance		(523	)		(535	)
		45,744			37,399
Deferred income tax liabilities:
Accumulated other comprehensive income:
Unrealized gain on securities available for sale		7,047			6,541
Goodwill		4,632			4,655
Other items		746			723
		12,425			11,919
Net deferred income tax asset	$	33,319		$	25,480

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16.     FAIR VALUE OF FINANCIAL INSTRUMENTS

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments”. This guidance amends existing guidance to improve accounting standards for financial instruments including clarification and simplification of accounting and disclosure requirements and the requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The Company adopted the guidance effective July 1, 2018.  Upon adoption, the fair value of the Company’s loan portfolio is now presented using an exit price method.

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: 

Level 1:	Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:	Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from, or corroborated by, market data by correlation or other means.
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.

Assets Measured on a Recurring Basis:

The following methods and significant assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30 2020 and June 30, 2020:

Investment Securities Available for Sale

The Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.  From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.

Derivatives

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.  

- 38 -

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

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		50,877		-		50,877
Asset-backed securities		-		258,801		-		258,801
Collateralized loan obligations		-		196,398		-		196,398
Corporate bonds		-		122,276		-		122,276
Trust preferred securities		-		2,773		-		2,773
Total debt securities		-		631,125		-		631,125
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		25,770		-		25,770
Residential pass-through securities		-		625,715		-		625,715
Commercial pass-through securities		-		225,932		-		225,932
Total mortgage-backed securities		-		877,417		-		877,417
Total securities available for sale	$	-	$	1,508,542	$	-	$	1,508,542
Interest rate contracts		-		175		-		175
Total assets	$	-	$	1,508,717	$	-	$	1,508,717
Liabilities:
Interest rate contracts	$	-	$	15,857	$	-	$	15,857
Total liabilities	$	-	$	15,857	$	-	$	15,857

- 39 -

	June 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		54,054		-		54,054
Asset-backed securities		-		172,447		-		172,447
Collateralized loan obligations		-		193,788		-		193,788
Corporate bonds		-		143,639		-		143,639
Trust preferred securities		-		2,627		-		2,627
Total debt securities		-		566,555		-		566,555
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		30,903		-		30,903
Residential pass-through securities		-		561,954		-		561,954
Commercial pass-through securities		-		226,291		-		226,291
Total mortgage-backed securities		-		819,148		-		819,148
Total securities available for sale		-		1,385,703		-		1,385,703
Interest rate contracts		-		235		-		235
Total assets	$	-	$	1,385,938	$	-	$	1,385,938
Liabilities:
Interest rate contracts	$	-	$	18,177	$	-	$	18,177
Total liabilities	$	-	$	18,177	$	-	$	18,177

Assets Measured on a Non-Recurring Basis:

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at September 30, 2020 and June 30, 2020:

Collateral Dependent Individually Analyzed / Impaired Loans:

The fair value of collateral dependent loans that are individually analyzed or were previously deemed impaired is determined based upon the appraised fair value of the underlying collateral, less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the collateral. Internal valuations may be utilized to determine the fair value of other business assets. For non-collateral-dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Collateral dependent individually analyzed / impaired loans are considered a Level 3 valuation by the Company.

- 40 -

Other Real Estate Owned  

Other real estate owned is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience.  When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions.

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

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	-	$	-	$	2,731	$	2,731
Non-residential mortgage		-		-		3,401		3,401
Total	$	-	$	-	$	6,132	$	6,132
Other real estate owned, net:
Residential mortgage	$	-	$	-	$	178	$	178
Total	$	-	$	-	$	178	$	178

	June 30, 2020
	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:
Residential mortgage	$	-	$	-	$	2,339	$	2,339
Non-residential mortgage		-		-		2,282		2,282
Commercial business		-		-		129		129
Total	$	-	$	-	$	4,750	$	4,750
Other real estate owned, net:
Residential mortgage		-		-		178		178
Total	$	-	$	-	$	178	$	178

- 41 -

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, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	2,731	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 10%		7.90	%
Non-residential mortgage		3,401	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.02	%
Total	$	6,132
Other real estate owned, net:
Residential mortgage	$	178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

	June 30, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans:
Residential mortgage	$	2,339	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 9%		8.17	%
Non-residential mortgage		2,282	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.27	%
Commercial business		129	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	0% - 0%		0.00	%
Total	$	4,750
Other real estate owned, net:
Residential mortgage		178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

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

(2) The fair value basis of impaired loans and other real estate owned is adjusted to reflect management’s estimates of selling costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees.

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

At September 30, 2020, collateral dependent loans valued using Level 3 inputs comprised loans with principal balances totaling $6.9 million and valuation allowances of $800,000 reflecting fair values of $6.1 million. By comparison, at June 30, 2020, under previously applicable GAAP, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $4.8 million and valuation allowances of $89,000 reflecting fair values of $4.8 million.

Once a loan is foreclosed, the fair value of the other real estate owned continues to be evaluated based upon the fair value of the repossessed real estate originally securing the loan.  At September 30, 2020, the Company held other real estate owned totaling $178,000 whose carrying value was written down utilizing Level 3 inputs.  By comparison, at June 30, 2020, the Company held other real estate owned totaling $178,000 whose carrying value was written down utilizing Level 3 inputs.

- 42 -

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	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	$	145,818	$	145,818	$	145,818	$	-	$	-
Investment securities available for sale		1,508,542		1,508,542		-		1,508,542		-
Investment securities held to maturity		31,576		33,136		-		33,136		-
Loans held-for-sale		20,170		20,956		-		20,956		-
Net loans receivable		4,889,890		4,926,728		-		-		4,926,728
FHLB Stock		55,118		-		-		-		-
Interest receivable		20,368		20,368		2		4,131		16,235
Interest rate contracts		175		175		-		175		-
Financial liabilities:
Deposits		5,039,912		5,057,201		3,074,090		-		1,983,111
Borrowings		1,077,540		1,117,783		-		-		1,117,783
Interest payable on deposits		500		500		258		-		242
Interest payable on borrowings		1,680		1,680		-		-		1,680
Interest rate contracts		15,857		15,857		-		15,857		-

	June 30, 2020
	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	$	180,967	$	180,967	$	180,967	$	-	$	-
Investment securities available for sale		1,385,703		1,385,703		-		1,385,703		-
Investment securities held to maturity		32,556		34,069		-		34,069		-
Loans held-for-sale		20,789		21,550		-		21,550		-
Net loans receivable		4,461,070		4,462,232		-		-		4,462,232
FHLB Stock		58,654		-		-		-		-
Interest receivable		17,373		17,373		4		4,154		13,215
Interest rate contracts		235		235		-		235		-
Financial liabilities:
Deposits		4,430,282		4,449,877		2,589,886		-		1,859,991
Borrowings		1,173,165		1,215,529		-		-		1,215,529
Interest payable on deposits		395		395		295		-		100
Interest payable on borrowings		1,723		1,723		-		-		1,723
Interest rate contracts		18,177		18,177		-		18,177		-

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Commitments. The fair value of commitments to fund credit lines and originate or participate in loans held in portfolio or loans held for sale 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, including those relating to loans held for sale that are considered derivative instruments for financial statement reporting purposes, the 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.

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 fair 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.

Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.

17.     COMPREHENSIVE INCOME

The components of accumulated other comprehensive income included in stockholders’ equity at September 30, 2020 and June 30, 2020 are as follows:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Net unrealized gain on securities available for sale	$	24,041		$	22,482
Tax effect		(7,047	)		(6,541	)
Net of tax amount		16,994			15,941
Fair value adjustments on derivatives		(17,157	)		(19,418	)
Tax effect		5,114			5,730
Net of tax amount		(12,043	)		(13,688	)
Benefit plan adjustments		(1,391	)		(1,412	)
Tax effect		414			416
Net of tax amount		(977	)		(996	)
Total accumulated other comprehensive income	$	3,974		$	1,257

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Other comprehensive income and related tax effects for the three months ended September 30, 2020 and September 30, 2019 are presented in the following table:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Net unrealized holding gain on securities   available for sale	$	1,182		$	10,157
Amortization of net unrealized holding loss on   securities available for sale transferred to held   to maturity (1)		-			596
Net realized loss on sale and call of securities   available for sale (2)		377			13
Fair value adjustments on derivatives		2,261			(3,130	)
Benefit plans:
Amortization of actuarial loss		21			5
Net actuarial loss (3)		-			470
Net change in benefit plan accrued expense		21			475
Other comprehensive income before taxes		3,841			8,111
Tax effect		(1,124	)		(2,260	)
Total other comprehensive income	$	2,717		$	5,851

(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 gain on sale of securities on the consolidated statements of income.

(3) 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.

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18.     REVENUE RECOGNITION

Effective July 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of OREO.

The Company, using a modified retrospective transition approach, determined that there was no cumulative effect adjustment to retained earnings as a result of adopting the new standard, nor did the standard have a material impact on our consolidated financial statements including the timing or amounts of revenue recognized.

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the three months ended September 30, 2020 and 2019.  Sources of revenue outside the scope of ASC 606 are noted as such.

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Non-interest income:
Deposit-related fees and charges	$	349		$	476
Loan-related fees and charges (1)		727			992
Loss on sale and call of securities (1)		(377	)		(14	)
Gain on sale of loans (1)		1,890			605
Income from bank owned life insurance (1)		1,596			1,580
Electronic banking fees and charges (interchange income)		405			318
Bargain purchase gain (1)		3,053			-
Other income (1)		90			5
Total non-interest income	$	7,733		$	3,962

(1) Not within the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 is as follows:

Service Charges on Deposit Accounts

The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

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Gains/Losses on Sales of OREO

The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. Gain/Losses on the sales of OREO falls within the scope of ASC 606, if the Company finances the transaction.  Under ASC 606, if the Company finances the sale of OREO to the buyer, the Company is required to assess whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Generally, the Company does not finance the sale of OREO properties.

Interchange Income

The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution.

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q 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.  This includes statements regarding general economic conditions, public health crisis such as the governmental, social and economic effects of the novel coronavirus, legislative and regulatory changes, monetary and fiscal policies of the federal government, changes in tax policies, rates and regulations of federal, state and local tax authorities and failure to integrate or profitably operate acquired businesses. 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.

Acquisition of MSB

On July 10, 2020 the Company completed its acquisition of MSB, and its subsidiary Millington Bank. In conjunction with the acquisition, the Company acquired assets with fair values totaling $583.3 million, including loans and securities with fair values of $530.7 million and $4.8 million, respectively. The Company also assumed liabilities with fair values totaling $525.3 million, including deposits and borrowings with fair values of $460.2 million and $62.9 million, respectively. Merger consideration totaled $55.0 million and included approximately $9.8 million of cash and 5,853,811 shares of the Company’s common stock, which was distributed to former MSB shareholders in exchange for their shares of MSB common stock. As the fair value of net assets acquired exceeded the purchase price, a bargain purchase gain of $3.1 million was recognized.

Impact of COVID-19

As the Company’s business is primarily conducted within the states of New Jersey and New York, and those states have been significantly impacted by COVID-19, the operations and operating results of the Company have been similarly impacted.

Employee Matters.  As the COVID-19 pandemic has unfolded, and stay-at-home orders were mandated by government officials, the majority of our non-branch personnel have transitioned to working remotely, and have continued to do so through September 30, 2020. Our information technology infrastructure has afforded us the ability to work remotely with little interruption as we continue to service the needs of our clients. For those essential employees who are unable to work from home, we have provided personal protective equipment, established guidelines to maintain appropriate social distancing and have initiated enhanced cleaning of our facilities to ensure a safe working environment.

Retail Branches.  At the outset of the pandemic we modified our branch hours and access to ensure the safety of our employees and clients. Where possible, branch lobbies were transitioned to appointment-only access, with the majority of branch operations being conducted via our drive-up windows. As certain branches did not have drive-up capabilities, or suitable alternatives, we temporarily closed certain locations. In the months following and in accordance with the protocols recommended by the CDC, we have outfitted our branches with protective barriers and continued to provide our staff with personal protective equipment. In addition, we have instituted policies requiring our clients to wear face masks and to adhere to social distancing protocols while visiting our branch locations. With these modifications, as of September 30, 2020, all of our branches had re-opened their lobbies and were fully operational.

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Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and Paycheck Protection Program and Health Care Enhancement Act (“PPP Enhancement Act”).  On March 27, 2020 the CARES Act was signed into law.  Among the more significant components of the CARES Act, as it pertains to the Company, was the creation of the Paycheck Protection Program (“PPP”), the modification of rules and regulations surrounding troubled debt restructured loans and modifications to the tax code to allow for the carryback of net operating losses.

The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program. As part of this program the SBA will guarantee 100% of the PPP loans made to eligible borrowers. As a qualified SBA lender, the Bank is automatically authorized to originate PPP loans. On April 16, 2020, the original authorization of $349 billion in funding for the PPP program was exhausted. On April 23, 2020, the PPP Enhancement Act was signed into law and provided an additional $310 billion in funding for the PPP program. As of September 30, 2020 and including loans acquired in conjunction with the Company’s acquisition of MSB, we had approximately 940 loans with total outstanding balances of $83.4 million under the PPP.

Under Section 4013 of the CARES Act, and based upon regulatory guidance promulgated by federal banking regulators, qualifying short-term loan modifications resulting in payment deferrals that are attributable to the adverse impact of COVID-19, are not considered to be troubled debt restructurings (“TDRs”). Additional information regarding loans modified in accordance with this guidance are provided in the tables below.

The CARES Act included multiple provisions which impacted the tax code. One such provision restored net operating loss (“NOL”) carrybacks that were eliminated by the 2017 Tax Cuts and Jobs Act. The new carryback provision allows for a five year carryback of NOLs incurred by corporations in the 2018, 2019 and 2020 tax years. As a result of this provision the Company was able to carry back NOLs, which had been recorded at the current statutory federal rate of 21%, at the prior statutory rate of 34%.

Loan Portfolio.  The government-mandated closure of certain businesses and the curtailment of non-essential travel has created an increased level of risk to certain segments of the loan portfolio. Additional disclosures surrounding portfolio-wide loan-to-value ratios for real estate secured loans, exposures to certain loan sectors and non-TDR loan modifications granted under section 4013 of the CARES Act are provided below.

The following table sets forth the composition of our real estate secured loans indicating the loan-to-value, by loan category, at September 30, 2020:

	September 30, 2020
	Balance (1)		LTV
	(In Thousands)
Commercial mortgage loans:
Multi-family mortgage loans	$	2,110,300	63%
Nonresidential mortgage loans		1,124,330	53%
Total commercial mortgage loans		3,234,630	60%
One- to four-family residential mortgage		1,353,197	58%
Consumer loans:
Home equity loans		71,540	44%
Total mortgage loans	$	4,659,367	59%

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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The following table identifies our exposure to various loan sectors at September 30, 2020:

	September 30, 2020
	Real-Estate Secured (1)							Non-Real Estate Secured (1)				Total
	# of Loans		Balance		LTV			# of Loans		Balance		# of Loans		Balance
	(Dollars In Thousands)
Hotel		4	$	4,357		51	%		7	$	1,479		11	$	5,836
Restaurant		15		9,805		51	%		36		3,888		51		13,693
Retail shopping center		129		321,787		52	%		2		55		131		321,842
Entertainment & recreation		5		5,153		45	%		14		871		19		6,024
Wholesale commercial business		-		-	N/A				15		20,569		15		20,569
Wholesale consumer unsecured		-		-	N/A				107		202		107		202
Total		153	$	341,102		52	%		181	$	27,064		334	$	368,166

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

Total modifications represent any modification made during the year, including those made by MSB prior to acquisition.  Active modifications in the table below reflect those loans whose modification includes a deferral that was still in effect at September 30, 2020.  As of September 30, 2020, the Company had active modifications on 63 loans totaling $76.9 million in principal balances, representing 1.5% of total loans. Through September 30, 2020, the Company had modified a total of 843 non-TDR loans with an aggregate principal balance of $882.9 million.

The following table sets forth the composition of these loans by loan segments as of September 30, 2020:

	September 30, 2020
	Active Modifications (1)				Total Modifications (1)				Increase/(Decrease)
	# of Loans		Balance		# of Loans		Balance		# of Loans			Balance
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage		7	$	15,910		143	$	393,156		(136	)	$	(377,246	)
Nonresidential mortgage		11		41,660		168		305,841		(157	)		(264,181	)
Commercial business		4		2,684		60		10,107		(56	)		(7,423	)
Construction		1		2,537		5		12,240		(4	)		(9,703	)
Total commercial loans		23		62,791		376		721,344		(353	)		(658,553	)
One- to four-family residential mortgage		36		13,866		420		156,963		(384	)		(143,097	)
Consumer loans:
Home equity loans		4		252		47		4,603		(43	)		(4,351	)
Total		63	$	76,909		843	$	882,910		(780	)	$	(806,001	)

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Comparison of Financial Condition at September 30, 2020 and June 30, 2020

Executive Summary.  Total assets increased by $552.0 million to $7.31 billion at September 30, 2020 from $6.76 billion at June 30, 2020.  As described in greater detail below, the increase was reflected in various categories of interest-earning and non-interest-earning assets and was primarily due to the Company’s acquisition of MSB. The net increase in total assets primarily reflected increases in investment securities, net loans receivable and other assets, partially offset by decreases in cash and equivalents and loans held-for-sale.

Investment Securities.  Investment securities classified as available for sale increased by $122.8 million to $1.51 billion at September 30, 2020 from $1.39 billion at June 30, 2020. Included in this increase were securities acquired from MSB with a fair value that totaled $3.5 million at the time of acquisition. In addition, the net increase in the portfolio during the quarter ended September 30, 2020 reflected security purchases totaling $259.4 million and a $1.6 million increase in the fair value of the portfolio to a net unrealized gain of $24.0 million. The net increase in the portfolio was partially offset by security sales totaling $19.9 million and $121.6 million in principal repayment, net of premium amortization and discount accretion.

Investment securities classified as held to maturity decreased by $980,000 to $31.6 million at September 30, 2020 from $32.6 million at June 30, 2020. This decrease was attributable to principal repayment, net of discount accretion and premium amortization.

Additional information regarding investment securities as of those dates is presented in Note 7 to the unaudited consolidated financial statements.

Loans Held-for-Sale. Loans held-for-sale totaled $20.2 million at September 30, 2020 as compared to $20.8 million at June 30, 2020 and are reported separately from the balance of net loans receivable. During the quarter ended September 30, 2020, $122.2 million of residential mortgage loans were sold, resulting in net gains on sale of $1.9 million.

Net Loans Receivable.  Net loans receivable increased by $428.8 million to $4.89 billion at September 30, 2020 from $4.46 billion at June 30, 2020. The increase largely reflected loans with fair values totaling $530.2 million that were acquired in conjunction with the acquisition of MSB. The increase in net loans receivable also reflected elevated levels of loan prepayment activity which outpaced new loan origination and purchase volume during the quarter ended September 30, 2020. Detail regarding the changes in the loan portfolio is presented below:

	September 30,			June 30,			Increase/
	2020			2020			(Decrease)
	(In Thousands)
Commercial loans:
Multi-family mortgage	$	2,110,300		$	2,059,568		$	50,732
Nonresidential mortgage		1,124,330			960,853			163,477
Commercial business		255,888			138,788			117,100
Construction		79,178			20,961			58,217
Total commercial loans		3,569,696			3,180,170			389,526
One- to four-family residential mortgage		1,353,197			1,273,022			80,175
Consumer loans:
Home equity loans		71,540			82,920			(11,380	)
Other consumer		4,136			3,991			145
Total consumer		75,676			86,911			(11,235	)
Total loans		4,998,569			4,540,103			458,466
Unaccreted yield adjustments		(43,819	)		(41,706	)		(2,113	)
Allowance for credit losses		(64,860	)		(37,327	)		(27,533	)
Net loans receivable	$	4,889,890		$	4,461,070		$	428,820

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Commercial loan origination volume for the quarter ended September 30, 2020 totaled $100.4 million, which comprised $66.2 million of commercial mortgage loan originations augmented by $27.8 million of commercial business loan originations and construction loan disbursements of $6.4 million.

At September 30, 2020, the balance of commercial business loans included PPP loans totaling $83.4 million and include loans acquired in conjunction with the Company’s acquisition of MSB. Commercial loan originations were augmented with the funding of purchased loans totaling $21.6 million during the quarter ended September 30, 2020.  Additionally, we acquired commercial business loans with fair values totaling approximately $389.3 million in our acquisition of MSB.

One- to four-family residential mortgage loan origination volume for the quarter ended September 30, 2020, excluding loans held-for-sale, totaled $80.9 million. Home equity loan and line of credit origination volume for the quarter ended September 30, 2020 totaled $3.3 million. Additionally, we acquired one- to four-family residential mortgage loan and home equity loans and lines of credit with fair values totaling approximately $121.7 million and $19.1 million, respectively, in our acquisition of MSB.

Additional information about the Company’s loans at September 30, 2020 and June 30, 2020 is presented in Note 8 to the unaudited consolidated financial statements.

Nonperforming Loans and Troubled Debt Restructurings (“TDRs”).  Nonperforming loans increased by $8.4 million to $45.1 million, or 0.91% of total loans at September 30, 2020, from $36.7 million, or 0.82% of total loans at June 30, 2020.  This increase was largely attributable to $5.8 million of non-performing loans acquired from MSB, whose fair values at acquisition reflected various levels of impairment.  Non-performing loans at September 30, 2020 did not include $63.9 million of performing PCD loans acquired from MSB.

Troubled debt restructurings are loans where the Company has modified the contractual terms of the loan as a result of the financial condition of the borrower.  Subsequent to their modification, TDRs are placed on non-accrual until such time as satisfactory payment performance has been demonstrated, at which time the loan may be returned to accrual. At September 30, 2020, the Company had accruing TDRs totaling $7.8 million, a decrease of $590,000 from $8.4 million at June 30, 2020. At September 30, 2020, the Company had non-accrual TDRs totaling $12.3 million, a decrease of $820,000 from $13.1 million at June 30, 2020.

Additional information about the Company’s nonperforming loans at September 30, 2020 and June 30, 2020 is presented in Note 8 to the unaudited consolidated financial statements.

Allowance for Credit Losses (“ACL”). At September 30, 2020, the ACL totaled $64.9 million, or 1.30% of total loans, reflecting an increase of $27.5 million from $37.3 million, or 0.82% of total loans at June 30, 2020. This increase resulted from the adoption of CECL totaling $19.6 million and the establishment of an ACL for loans acquired from MSB totaling $9.0 million, partially offset by a reduction in ACL attributable to the effects of a decrease in the overall balance of the portion of the loan portfolio that was collectively evaluated for impairment and net charge-offs.

See Note 1 to the unaudited consolidated financial statements regarding the process and methodology employed to estimate the ACL.  Additional information about the ACL at September 30, 2020 and June 30, 2020 is presented in Note 9 to the unaudited consolidated financial statements.

Other Assets.  The aggregate balance of other assets, including premises and equipment, FHLB stock, interest receivable, goodwill, core deposit intangibles, bank owned life insurance, deferred income taxes, other real estate owned and other assets, increased by $37.1 million to $714.2 million at September 30, 2020 from $677.1 million at June 30, 2020.  

The increase in other assets primarily reflected the impact of the MSB acquisition through which the Company acquired other assets with fair values totaling $5.3 million. The increase in other assets also reflected the Company’s recognition of a core deposit intangible totaling $690,000.

The remaining increases and decreases in other assets for the quarter ended September 30, 2020 generally reflected normal operating fluctuations in their respective balances.

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Deposits.  Total deposits increased by $609.6 million to $5.04 billion at September 30, 2020 from $4.43 billion at June 30, 2020.  The increase in deposits reflected the impact of the MSB acquisition through which the Company assumed deposits with fair values totaling $460.2 million, as well as organic growth in deposits of $149.4 million. The following table sets forth the distribution of total deposits, by type, at the dates indicated:

	September 30,		June 30,		Increase/
	2020			2020	(Decrease)
	(In Thousands)
Deposits:
Non-interest-bearing deposits	$	487,710	$	419,138	$	68,572
Interest-bearing demand		1,561,135		1,264,151		296,984
Savings		1,025,245		906,597		118,648
Certificates of deposit		1,965,822		1,840,396		125,426
Interest-bearing deposits		4,552,202		4,011,144		541,058
Total deposits	$	5,039,912	$	4,430,282	$	609,630

Additional information about the Company’s deposits at September 30, 2020 and June 30, 2020 is presented in Note 11 to the unaudited consolidated financial statements.

Borrowings.  The balance of borrowings decreased by $95.6 million to $1.08 billion at September 30, 2020 from $1.17 billion at June 30, 2020 and largely reflected the repayment of maturing FHLB advances totaling $90.0 million and a decrease in depositor sweep accounts totaling $5.6 million. In conjunction with the acquisition of MSB the Company assumed overnight FHLB advances with fair values totaling $62.9 million, which were immediately repaid.  

Additional information about the Company’s borrowings at September 30, 2020 and June 30, 2020 is presented in Note 12 to the unaudited consolidated financial statements.

Other Liabilities.  The balance of other liabilities decreased by $1.9 million to $68.7 million at September 30, 2020 from $70.6 million at June 30, 2020. The change in the balance of other liabilities reflected the adoption of CECL, as noted above. At adoption the Company increased its ACL by $536,000 for unfunded loan commitments while also recording a provision for ACL of $468,000 during the quarter. The remaining change generally reflected normal operating fluctuations in the balances of other liabilities during the period.

Stockholders’ Equity.  Stockholders’ equity increased by $39.9 million to $1.12 billion at September 30, 2020 from $1.08 billion at June 30, 2020. The increase in stockholders’ equity for the quarter ended September 30, 2020 largely reflected $45.1 million of capital stock issued by the Company in conjunction with the acquisition of MSB, net income of $11.4 million and an increase of $2.7 million in accumulated other comprehensive income. Partially offsetting that increase were cash dividends paid totaling $6.9 million and a $14.2 million cumulative effect adjustment related to the adoption of CECL.

Book value per share decreased by $0.40 to $12.56 at September 30, 2020 while tangible book value per share decreased by $0.24 to $10.15 at September 30, 2020. These decreases were largely attributable to the combined effects of the July 1, 2020 adoption of CECL and the July 10, 2020 acquisition of MSB.

In March 2019 the Company announced its fourth share repurchase plan which authorized the repurchase of 9,218,324 shares, or 10%, of the outstanding shares as of that date. On October 19, 2020, the Company announced the resumption of that plan which had, on March 25, 2020, been temporarily suspended due to the risks and uncertainties associated with the COVID-19 pandemic. 761,030 shares of common stock remain to be repurchased under this plan. In addition, the Company announced the approval of a new repurchase plan totaling 4,475,523 shares, or 5% of the Company’s outstanding common stock which will be implemented upon the completion of the current stock repurchase plan. Cumulatively, the Company has repurchased a total of 8,457,294 shares or 91.7% of the shares to be repurchased under its current repurchase plan at a total cost of $111.1 million and at an average cost of $13.14 per share.  

- 53 -

Comparison of Operating Results for the Quarter ended September 30, 2020 and September 30, 2019

Net Income.  Net income for the quarters ended September 30, 2020 and September 30, 2019 was $11.4 million, or $0.13, respectively, per basic and diluted share. Although the levels of net income and earnings per share were unchanged for the comparative periods, there were various changes among the components of net income during the quarters ended September 30, 2020 and September 30, 2019. Such changes included an increase in net interest income, as detailed below, an increase in non-interest income, a decrease in income tax expense that was partially offset by an increase to the provision for loan losses and an increase in non-interest expense. Net income for the quarter ended September 30, 2020 also reflected various non-recurring items recognized in conjunction with the Company’s acquisition of MSB.

Net Interest Income.  Net interest income increased by $7.5 million to $44.2 million for the quarter ended September 30, 2020. The increase between the comparative periods resulted from a decrease of $6.5 million in interest expense coupled with an increase of $985,000 in interest income.

The increase in the average balances of interest-earning assets and interest-bearing liabilities reflected the impact of the MSB acquisition. The Company recorded purchase accounting adjustments to the carrying value of all assets acquired and liabilities assumed from MSB to reflect their fair values at the time of acquisition. Such adjustments generally accrete or amortize into interest income and interest expense, respectively, on a level-yield/cost basis over their estimated remaining lives. As a result, the post-acquisition yield or cost recognized by the Company on the assets and liabilities acquired generally reflects the comparable market interest rates for such instruments at the time of their acquisition.

The decrease in interest expense for the quarter ended September 30, 2020, reflected a 60 basis points decrease in the average cost of interest-bearing liabilities to 1.20%, partially offset by a $443.9 million increase in the average balance of interest-bearing liabilities to $5.59 billion. For the same period, interest expense on deposits decreased $5.0 million to $11.1 million and was attributable to a 67 basis points decrease in the cost of interest-bearing deposits partially offset by a $596.6 million increase in their average balance. For the quarter ended September 30, 2020, interest expense on borrowings decreased by $1.5 million to $5.7 million and was attributable to a decrease of $152.8 million in the average balance of borrowings coupled with a 22 basis points decrease in their cost.

The increase in interest income of $985,000 reflected an increase to the average balance of interest-earning assets of $580.6 million to $6.64 billion, partially offset by a 28 basis points decrease in their yield to 3.67%. Interest income on loans increased by $3.6 million to $52.2 million for the quarter ended September 30, 2020 and was primarily attributable to a $302.1 million increase in the average balance of loans to $4.96 billion. For the same period, the average yield on loans increased three basis points to 4.21%. The decrease in interest income on interest-earning assets, excluding loans, was due to decreases in interest income on taxable securities, tax-exempt securities and other interest-earning assets.

Net interest spread increased by 32 basis points to 2.47% for the quarter ended September 30, 2020, from 2.15% for the quarter ended September 30, 2019. Net interest margin increased 24 basis points to 2.66%, from 2.42%, for the same comparative periods. The increase in the spread and margin reflected a decrease in the average cost of interest-bearing liabilities that was partially offset by a decrease in the average yield on interest-earning assets.

Additional details surrounding the composition of, and changes to, net interest income are presented in the table below.

The following table reflects the components of the average balance sheet and of net interest income for the periods indicated. We derived the average yields and costs by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented with daily balances used to derive average balances.  No tax equivalent adjustments have been made to yield or costs. Non-accrual loans were included in the calculation of average balances, however interest receivable on these loans has been fully reserved for and therefore not included in interest income. The yields and costs set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense and exclude the impact of prepayment penalties, which are recorded to non-interest income.

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	For the Quarter ended September 30,
	2020								2019
	Average Balance			Interest		Average Yield/ Cost			Average Balance			Interest		Average Yield/ Cost
	(Dollars in Thousands)
Interest-earning assets:
Loans receivable (1)	$	4,958,293		$	52,180		4.21	%	$	4,656,192		$	48,600		4.18	%
Taxable investment securities (2)		1,350,511			7,336		2.17			1,147,698			9,328		3.25
Tax-exempt securities (2)		82,603			454		2.20			129,339			693		2.14
Other interest-earning assets (3)		247,543			914		1.48			125,114			1,278		4.09
Total interest-earning assets		6,638,950			60,884		3.67			6,058,343			59,899		3.95
Non-interest-earning assets		624,252								585,826
Total assets	$	7,263,202							$	6,644,169
Interest-bearing liabilities:
Interest-bearing demand	$	1,464,238		$	2,182		0.60		$	883,843		$	2,880		1.30
Savings		1,006,075			1,445		0.57			799,181			1,530		0.77
Certificates of deposit		1,988,689			7,435		1.50			2,179,333			11,645		2.14
Total interest-bearing deposits		4,459,002			11,062		0.99			3,862,357			16,055		1.66
Borrowings		1,134,404			5,660		2.00			1,287,157			7,157		2.22
Total interest-bearing liabilities		5,593,406			16,722		1.20			5,149,514			23,212		1.80
Non-interest-bearing liabilities (4)		558,761								380,719
Total liabilities		6,152,167								5,530,233
Stockholders' equity		1,111,035								1,113,936
Total liabilities and stockholders'   equity	$	7,263,202							$	6,644,169
Net interest income				$	44,162							$	36,687
Interest rate spread (5)							2.47	%							2.15	%
Net interest margin (6)							2.66	%							2.42	%
Ratio of interest-earning assets   to interest-bearing liabilities		1.19	X							1.18	X

(1) Loans held-for-sale and non-accruing loans have been included in loans receivable and the effect of such inclusion was not material. Allowance for loan losses has been included in non-interest-earning assets.

(2) Fair value adjustments have been excluded in the balances of interest-earning assets.

(3) Includes interest-bearing deposits at other banks and FHLB of New York capital stock.

(4) Includes average balances of non-interest-bearing deposits of $479,141,000 and $320,641,000, for the quarter ended September 30, 2020, and 2019, respectively.

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

(6) Net interest margin represents net interest income as a percentage of average interest-earning assets.

Provision for Credit Losses.  The provision for credit losses increased by $4.8 million to $4.1 million for the quarter ended September 30, 2020 as compared to a provision reversal of $782,000 for the quarter ended September 30, 2019. This increase was largely attributable to $5.1 million of provision expense on non-PCD loans acquired in connection with the acquisition of MSB, partially offset by the effects of a decrease in the balance of the portion of the loan portfolio that was collectively evaluated for impairment.

Additional information regarding the allowance for credit losses and the associated provisions recognized during the quarter ended September 30, 2020 and 2019 is presented in Note 9 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at September 30, 2020 and June 30, 2020.  

Non-Interest Income.  Non-interest income increased by $3.8 million to $7.7 million for the quarter ended September 30, 2020, primarily as the result of the $3.1 million bargain purchase gain recognized in conjunction with the acquisition of MSB. The remaining increases and decreases in non-interest income reflected the effects of several offsetting factors, as described below.

Fees and service charges decreased by $392,000 to $1.1 million for the quarter ended September 30, 2020. The decrease primarily reflected a decrease in loan-related fees attributable to a decrease in commercial loan prepayment activity.

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Gain (loss) on sale and call of securities reflected a net loss of $377,000 during the quarter ended September 30, 2020 compared to a net loss of $14,000 during the earlier comparative period.

Gain on sale of loans increased by $1.3 million to $1.9 million for the quarter ended September 30, 2020. The increase in loan sale gains reflected changes in the volume of loans originated and sold between comparative periods coupled with an increase in the margin at which such loans were sold.

Other non-interest income increased by $85,000 to $90,000 for the quarter ended September 30, 2020. The increase primarily reflected $106,000 of non-recurring losses on asset disposals recognized in the prior comparative period.

The remaining changes in the other components of non-interest income between comparative periods generally reflected normal operating fluctuations within those line items.

Non-Interest Expenses. Total non-interest expense increased by $7.3 million to $33.6 million for the quarter ended September 30, 2020 and was largely attributable to recurring and non-recurring expenses associated with the acquisition of MSB.

Salaries and employee benefits expense increased by $1.2 million to $17.0 million for the quarter ended September 30, 2020.  The increase in salaries and employees benefits expense generally reflected increases associated with the additional employees retained in conjunction with the MSB acquisition while also reflecting increases in certain compensation and benefit expenses attributable to the Company’s existing roster of employees. These increases were partially offset by decreases in employee severance, and ESOP expense.

Net occupancy expense of premises increased by $153,000 to $3.1 million for the quarter ended September 30, 2020. This increase was largely attributable to the ongoing operating expenses associated with the owned and leased office facilities acquired by the Company in conjunction with the MSB acquisition. The change in net occupancy expense also reflected $187,000 of lease termination costs incurred in the prior comparative period for which no such costs were recorded in the current period.

Equipment and systems expense increased by $481,000 to $3.6 million for the quarter ended September 30, 2020. This increase was largely attributable to increases in technology infrastructure expense coupled with additional core processing and electronic banking delivery channel expense associated with the growth in clients and accounts associated with the acquisition of MSB.

Advertising and marketing expense decreased by $35,000 to $500,000 for the quarter ended September 30, 2020.  This decrease largely reflected changes in advertising expense across a variety of advertising formats reflecting normal fluctuations in the timing of certain campaigns supporting our loan and deposit growth initiatives.

FDIC insurance premiums totaled $472,000 for the quarter ended September 30, 2020 for which no comparable expense was recorded during the prior comparative period. No expense was recorded in the prior comparative period as a result of credits available to the Bank under the FDIC’s Small Bank Assessment Credit program.

Merger-related expenses, associated with the Company’s acquisition of MSB, totaled $4.3 million for the quarter ended September 30, 2020. No comparable expense was recorded during the prior comparative period.

Other expense increased by $731,000 to $3.8 million for the quarter ended September 30, 2020. The increase in other expense was largely attributable to $469,000 of credit loss expense for off-balance sheet exposure required in connection with the Company’s adoption of CECL.

Provision for Income Taxes.  Provision for income taxes decreased by $933,000 to $2.9 million for the quarter ended September 30, 2020, from $3.8 million for the quarter ended September 30, 2019, resulting in effective tax rates of 20.2% and 25.1%, respectively.

This decrease reflected the effects of various non-recurring items recorded in conjunction with the Company’s acquisition of MSB, including a non-taxable bargain purchase gain and non-deductible merger related expenses, whose effects collectively decreased the effective tax rate and provision expense. In addition, the variance in income tax expense reflected a lower level of pre-tax net income, as compared to the prior period, resulting in a lower provision for income tax expense.  

- 56 -

Liquidity and Capital Resources

Liquidity, represented by cash and cash equivalents, is a product of operating, investing and financing activities. The Company’s primary sources of funds are deposits, borrowings, cash flows from investment securities and loans receivable and funds provided from operations. While scheduled payments from the amortization and maturity of loans and investment securities are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and prepayments on loans and securities.

Liquidity, at September 30, 2020, included $145.8 million of short-term cash and equivalents supplemented by $1.51 billion of investment securities classified as available for sale. In addition, as of September 30, 2020, the Company had the capacity to borrow additional funds totaling $1.57 billion and $296.3 million, without pledging additional collateral, from the FHLB of New York and FRB, respectively. The Company also had the capacity to borrow, as of September 30, 2020, $615.0 million of additional funds, on an unsecured basis, via lines of credit established with other financial institutions.

At September 30, 2020, the Company had outstanding commitments to originate and purchase loans totaling approximately $74.3 million while such commitments totaled $45.6 million at June 30, 2020.  As of those same dates, the Company’s pipeline of loans held for sale included $124.5 million and $127.2 million of loans in process whose terms included interest rate locks to borrowers that were paired with a non-binding, best-efforts, commitment to sell the loan to a buyer at a fixed price and within a predetermined timeframe after the sale commitment is established.

Construction loans in process and unused lines of credit were $42.3 million and $168.4 million, respectively, at September 30, 2020 compared to $17.0 million and $82.5 million, respectively, at June 30, 2020. The Company is also subject to the contingent liabilities resulting from letters of credit whose outstanding balances totaled $1.0 million and $217,000 at September 30, 2020 and June 30, 2020, respectively.

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.

Deposits increased $609.6 million to $5.04 billion at September 30, 2020 from $4.43 billion at June 30, 2020.  The increase in deposit balances reflected a $541.1 million increase in interest-bearing deposits coupled with a $68.5 million increase in non-interest-bearing deposits. Borrowings from the FHLB of New York and other sources are generally available to supplement the Bank’s liquidity position or to replace maturing deposits.  As of September 30, 2020, the Bank’s outstanding balance of FHLB advances, excluding fair value adjustments, totaled $1.08 billion.  

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, 2020, the Company and the Bank exceeded all capital requirements of federal banking regulators.

- 57 -

The following table sets forth the Bank’s capital position at September 30, 2020 and June 30, 2020, as compared to the minimum regulatory capital requirements that were in effect as of those dates:

	At September 30, 2020
	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)	$	878,250		20.23	%	$	347,385		8.00	%	$	434,232		10.00	%
Tier 1 capital (to risk-weighted assets)		835,905		19.25	%		260,539		6.00	%		347,385		8.00	%
Common equity tier 1 capital (to risk-weighted assets)		835,905		19.25	%		195,404		4.50	%		282,251		6.50	%
Tier 1 capital (to adjusted total assets)		835,905		11.78	%		283,739		4.00	%		354,674		5.00	%

	At June 30, 2020
	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)	$	816,577		21.38	%	$	305,562		8.00	%	$	381,953		10.00	%
Tier 1 capital (to risk-weighted assets)		779,250		20.40	%		229,172		6.00	%		305,562		8.00	%
Common equity tier 1 capital (to risk-weighted assets)		779,250		20.40	%		171,879		4.50	%		248,269		6.50	%
Tier 1 capital (to adjusted total assets)		779,250		11.95	%		260,893		4.00	%		326,116		5.00	%

The following table sets forth the Company’s capital position at September 30, 2020 and June 30, 2020, as compared to the minimum regulatory capital requirements that were in effect as of those dates:

	At September 30, 2020
	Actual					For Capital Adequacy Purposes
	Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	962,185		22.07	%	$	348,805		8.00	%
Tier 1 capital (to risk-weighted assets)		919,840		21.10	%		261,604		6.00	%
Common equity tier 1 capital (to risk-weighted assets)		919,840		21.10	%		196,203		4.50	%
Tier 1 capital (to adjusted total assets)		919,840		12.93	%		284,660		4.00	%

	At June 30, 2020
	Actual					For Capital Adequacy Purposes
	Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total capital (to risk-weighted assets)	$	906,058		23.61	%	$	306,958		8.00	%
Tier 1 capital (to risk-weighted assets)		868,731		22.64	%		230,219		6.00	%
Common equity tier 1 capital (to risk-weighted assets)		868,731		22.64	%		172,664		4.50	%
Tier 1 capital (to adjusted total assets)		868,731		13.27	%		261,783		4.00	%

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As a result of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have adopted a rule to establish for institutions with assets of less than $10 billion that meet other specified criteria a community bank leverage ratio (“CBLR”) that such institutions may elect to utilize in lieu of the generally applicable leverage and risk-based capital requirements noted above.   The federal banking agencies have adopted 9% as the applicable ratio, effective March 31, 2020, and as a result of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, temporarily reduced the ratio to 8% in response to COVID-19. Institutions with capital meeting the specified requirements and electing to follow the alternative framework will be considered compliant with all applicable regulatory capital and leverage requirements, including the requirement to be “well capitalized.”  The Company has elected not to utilize the CBLR framework.

In March 2020, the federal banking agencies announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company is adopting the capital transition relief over the permissible five-year period.

Off-Balance Sheet Arrangements

In the normal course of our business of investing in loans and securities we are a party to financial instruments with off-balance-sheet risk.  These financial instruments include significant purchase commitments, such as commitments related to capital expenditure plans and commitments to extend credit to meet the financing needs of our customers. We had no significant off-balance sheet commitments for capital expenditures as of September 30, 2020.

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

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 earnings or capital arising from the movement of interest rates and arises from several risk factors including re-pricing risk, basis risk, yield curve risk and option risk.

We maintain an Asset/Liability Management (“ALM”) program in order manage our interest rate risk. The program is overseen by the Board of Directors through its Interest Rate Risk Management Committee. 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, Chief Credit Officer, Chief Banking Officer, Chief Risk Officer and Treasurer/Chief Investment Officer. Additional members of our management team may be asked to participate on the ALCO, as appropriate.

The quantitative analysis that we conduct measures interest rate risk from both a capital and earnings perspective. With regard to earnings, movements in interest rates and the shape of the yield curve significantly influence the amount of net interest income (“NII”) that we recognize.  Movements in market interest rates, and the effect of such movements on the risk factors noted above, significantly influence the spread between the interest earned on our interest-earning assets and the interest paid on our interest-bearing liabilities.  Our internal interest rate risk analysis calculates the sensitivity of our projected NII over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into similar instruments. Product pricing and earning asset prepayment speeds are appropriately adjusted for each rate scenario.

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 instruments. 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.

For both earnings and capital at risk our interest rate risk analysis calculates a base case scenario that assumes no change in interest rates. The model then measures changes 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 falling rate scenarios during periods of lower market interest rates. The relatively low level of interest rates prevalent at September 30, 2020 and June 30, 2020 precluded the modeling of certain falling rate scenarios.

- 60 -

The following tables present the results of our internal EVE analysis as of September 30, 2020 and June 30, 2020, respectively:

	September 30, 2020
	Economic Value of Equity ("EVE")									EVE as a % of Present Value of Assets
Change in Interest Rates	$ Amount of EVE		$ Change in EVE			% Change in EVE				EVE Ratio			Change in EVE Ratio
	(Dollars in Thousands)
+300 bps		1,101,640		32,248			3		%		16.32	%		140		bps
+200 bps		1,123,035		53,643			5		%		16.25	%		133		bps
+100 bps		1,117,864		48,472			5		%		15.84	%		92		bps
0 bps		1,069,392	-			-					14.92	%	-
-100 bps		943,562		(125,830	)		(12	)	%		13.14	%		(178	)	bps

	June 30, 2020
	Economic Value of Equity ("EVE")									EVE as a % of Present Value of Assets
Change in Interest Rates	$ Amount of EVE		$ Change in EVE			% Change in EVE				EVE Ratio			Change in EVE Ratio
	(Dollars in Thousands)
+300 bps		961,579		11,882			1		%		15.57	%		113		bps
+200 bps		988,278		38,581			4		%		15.61	%		117		bps
+100 bps		988,410		38,713			4		%		15.28	%		84		bps
0 bps		949,697	-			-					14.44	%	-
-100 bps		829,775		(119,922	)		(13	)	%		12.60	%		(184	)	bps

There are numerous internal and external factors that may contribute to changes in our EVE ratio and its sensitivity. Changes in the composition and allocation of our balance sheet, or utilization of off-balance sheet instruments such as derivatives, can significantly alter the exposure to interest rate risk as quantified by the changes in the EVE sensitivity measures. 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 our interest-earning assets and interest-costing liabilities and the associated present values thereof.

The following tables present the results of our internal NII analysis as of September 30, 2020 and June 30, 2020, respectively:

			September 30, 2020
			Net Interest Income ("NII")
Change in Interest Rates	Balance Sheet Composition	Measurement Period	$ Amount of NII		$ Change in NII			% Change in NII
			(Dollars In Thousands)
+300 bps	Static	One Year	$	172,152	$	(5,656	)		(3.18	)	%
+200 bps	Static	One Year		175,864		(1,944	)		(1.09	)
+100 bps	Static	One Year		178,978		1,170			0.66
0 bps	Static	One Year		177,808		-			-
-100 bps	Static	One Year		180,162		2,354			1.32

			June 30, 2020
			Net Interest Income ("NII")
Change in Interest Rates	Balance Sheet Composition	Measurement Period	$ Amount of NII		$ Change in NII			% Change in NII
			(Dollars In Thousands)
+300 bps	Static	One Year	$	146,062	$	(9,010	)		(5.81	)	%
+200 bps	Static	One Year		150,502		(4,570	)		(2.95	)
+100 bps	Static	One Year		154,612		(460	)		(0.30	)
0 bps	Static	One Year		155,072		-			-
-100 bps	Static	One Year		162,070		6,998			4.51

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Notwithstanding the rate change scenarios presented in the EVE and NII-based analyses above, future interest rates and their effect on 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 maturities 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 the analyses set forth above.  Additionally, an increase in credit risk may result as the ability of borrowers to service their debt may decrease in the event of an interest rate increase.

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ITEM 4.

CONTROLS AND PROCEDURES

As of the end of the period covered by this 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 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, 2020, 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.

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PART II

ITEM 1. Legal Proceedings

At September 30, 2020, 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

There have been no material changes to the Risk Factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, previously filed with the Securities and Exchange Commission.

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

ISSUER PURCHASES OF EQUITY SECURITIES:

On March 13, 2019, the Company announced the authorization of a fourth repurchase plan for up to 9,218,324 shares or 10% of shares then outstanding.  This plan has no expiration date. On March 25, 2020 the Company temporarily suspended its stock repurchase program due to the risks and uncertainties associated with the COVID-19 pandemic.  Through September 30, 2020, the Company repurchased 8,457,294 shares, or 91.7% of the shares authorized for repurchase under the current repurchase program, at a cost of $111.1 million, or an average of $13.14 per share.  

On October 19, 2020, the Company announced the resumption of its current stock repurchase plan, which has 761,030 shares of common stock remaining to be repurchased. In addition, the Company announced the approval of a new repurchase plan totaling 4,475,523 shares, or 5% of the Company’s outstanding common stock which will be implemented upon the completion of the current stock repurchase plan.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

None.

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 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)
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
101	The following materials from the Company’s Form 10-Q for the quarter ended September 30, 2020, formatted in Inline 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	Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

- 65 -

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 6, 2020	By:	/s/ Craig L. Montanaro
		Craig L. Montanaro
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: November 6, 2020	By:	/s/ Keith Suchodolski
		Keith Suchodolski
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

- 66 -

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 6, 2020	/s/ Craig L. Montanaro
	Craig L. Montanaro
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Keith Suchodolski, 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 6, 2020	/s/ Keith Suchodolski
	Keith Suchodolski
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting 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, 2020 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 6, 2020	/s/ Craig L. Montanaro
	Craig L. Montanaro
	President and Chief Executive Officer
	(Principal 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, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Keith Suchodolski, 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 6, 2020	/s/ Keith Suchodolski
	Keith Suchodolski
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity File Number	001-37399
Entity Tax Identification Number	30-0870244
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	KRNY
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock, $0.01 par value
Entity Registrant Name	KEARNY FINANCIAL CORP.
Entity Central Index Key	0001617242
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		89,510,451
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Address, Address Line One	120 Passaic Ave.
Entity Address, City or Town	Fairfield
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07004
Entity Incorporation, State or Country Code	MD
City Area Code	973
Local Phone Number	244-4500
Document Quarterly Report	true
Document Transition Report	false

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Assets
Cash and amounts due from depository institutions	$ 18,628	$ 20,391
Interest-bearing deposits in other banks	127,190	160,576
Cash and cash equivalents	145,818	180,967
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	1,508,542	1,385,703
Investment securities held to maturity (fair value $33,136 and $34,069), respectively, net of allowance for credit losses of $0 at September 30, 2020	31,576	32,556
Loans held-for-sale	20,170	20,789
Loans receivable	4,954,750	4,498,397
Less: allowance for credit losses on loans	(64,860)	(37,327)
Net loans receivable	4,889,890	4,461,070
Premises and equipment	61,808	57,389
Federal Home Loan Bank ("FHLB") of New York stock	55,118	58,654
Accrued interest receivable	20,368	17,373
Goodwill	210,895	210,895
Core deposit intangibles	4,420	3,995
Bank owned life insurance	278,639	262,380
Deferred income tax assets, net	33,319	25,480
Other real estate owned	178	178
Other assets	49,468	40,746
Total Assets	7,310,209	6,758,175
Liabilities
Deposits: Non-interest-bearing	487,710	419,138
Deposits: Interest-bearing	4,552,202	4,011,144
Total deposits	5,039,912	4,430,282
Borrowings	1,077,540	1,173,165
Advance payments by borrowers for taxes	17,008	16,569
Other liabilities	51,689	53,982
Total Liabilities	6,186,149	5,673,998
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; 89,510,451 shares and 83,663,192 shares issued and outstanding, respectively	895	837
Paid-in capital	769,269	722,871
Retained earnings	378,134	387,911
Unearned employee stock ownership plan shares; 2,910,115 shares and 2,960,289 shares, respectively	(28,212)	(28,699)
Accumulated other comprehensive income	3,974	1,257
Total Stockholders' Equity	1,124,060	1,084,177
Total Liabilities and Stockholders' Equity	$ 7,310,209	$ 6,758,175

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Securities available for sale, estimated fair value	$ 1,484,501,000	$ 1,363,221,000
Net of allowance for credit losses	0
Securities held to maturity, estimated fair value	$ 33,136,000	$ 34,069,000
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	89,510,451	83,663,192
Common stock, shares outstanding	89,510,451	83,663,192
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares	2,910,115	2,960,289
Available-for-sale Securities [Member]
Securities available for sale, estimated fair value	$ 1,484,501,000
Net of allowance for credit losses	0
Held-to-maturity Securities [Member]
Net of allowance for credit losses	0
Securities held to maturity, estimated fair value	$ 33,136,000	$ 34,069,000

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Interest Income
Loans		$ 52,180	$ 48,600
Taxable investment securities		7,336	9,328
Tax-exempt investment securities		454	693
Other interest-earning assets		914	1,278
Total Interest Income		60,884	59,899
Interest Expense
Deposits		11,062	16,055
Borrowings		5,660	7,157
Total Interest Expense		16,722	23,212
Net Interest Income		44,162	36,687
Provision for (reversal of) credit losses		4,059	(782)
Net Interest Income after Provision for (Reversal of) Credit Losses		40,103	37,469
Non-Interest Income
Loss on sale and call of securities	[1]	(377)	(14)
Gain on sale of loans	[1]	1,890	605
Income from bank owned life insurance	[1]	1,596	1,580
Bargain purchase gain		3,053
Other income	[1]	90	5
Total Non-Interest Income		7,733	3,962
Non-Interest Expense
Salaries and employee benefits		16,977	15,777
Net occupancy expense of premises		3,122	2,969
Equipment and systems		3,570	3,089
Advertising and marketing		500	535
Federal deposit insurance premium		472
Directors' compensation		748	770
Merger-related expenses		4,349
Other expense		3,835	3,104
Total Non-Interest Expense		33,573	26,244
Income before Income Taxes		14,263	15,187
Income tax expense		2,884	3,817
Net Income		$ 11,379	$ 11,370
Net Income per Common Share (EPS)
Basic		$ 0.13	$ 0.13
Diluted		$ 0.13	$ 0.13
Weighted Average Number of Common Shares Outstanding
Basic		86,008	84,756
Diluted		86,009	84,793
Financial Service [Member]
Non-Interest Income
Fees and service charges		$ 1,076	$ 1,468
Credit and Debit Card [Member]
Non-Interest Income
Fees and service charges		$ 405	$ 318

[1] Not within the scope of ASC 606.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net Income	$ 11,379	$ 11,370
Other Comprehensive Income, net of tax:
Net unrealized gain on securities available for sale	788	7,293
Amortization of net unrealized loss on securities available for sale transferred to held to maturity		421
Net realized loss on sale and call of securities available for sale	265	9
Fair value adjustments on derivatives	1,645	(2,207)
Benefit plan adjustments	19	335
Total Other Comprehensive Income	2,717	5,851
Total Comprehensive Income	$ 14,096	$ 17,221

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	MSB Financial Corporation [Member]	Cumulative Effect Period Of Adoption Adjustment [Member]	Common Stock [Member]	Common Stock [Member] MSB Financial Corporation [Member]	Paid-in Capital [Member]	Paid-in Capital [Member] MSB Financial Corporation [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect Period Of Adoption Adjustment [Member]	Unearned ESOP Shares [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance (in value) at Jun. 30, 2019	$ 1,127,159			$ 891		$ 787,394		$ 366,679		$ (30,644)	$ 2,839
Balance (in shares) at Jun. 30, 2019				89,126,000
Net Income	11,370							11,370
Other comprehensive income, net of income tax expense	5,851										5,851
ESOP shares committed to be released	659					173				486
Stock option expense	451					451
Share repurchases (in value)	(30,582)			$ (23)		(30,559)
Stock repurchases (in shares)				(2,326,000)
Restricted stock plan shares earned (in value)	985					985
Cancellation of shares issued for restricted stock awards (in value)	(59)					(59)
Cancellation of shares issued for restricted stock awards (in shares)				(14,000)
Cash dividends declared	(5,045)							(5,045)
Balance (in value) at Sep. 30, 2019	1,110,789			$ 868		758,385		373,004		(30,158)	8,690
Balance (in shares) at Sep. 30, 2019				86,786,000
Cumulative effect of change in accounting principle for the adoption of ASU 2017-08			$ (14,239)						$ (14,239)
Balance (in value) at Jun. 30, 2020	$ 1,084,177			$ 837		722,871		387,911		(28,699)	1,257
Balance (in shares) at Jun. 30, 2020	83,663,192			83,663,000
Balance - July 1, 2020 as adjusted for change in accounting principle at Jun. 30, 2020	$ 1,069,938			$ 837		722,871		373,672		(28,699)	1,257
Net Income	11,379							11,379
Other comprehensive income, net of income tax expense	2,717										2,717
ESOP shares committed to be released	387					(100)				487
Stock option expense	456					456
Restricted stock plan shares earned (in value)	1,016					1,016
Cancellation of shares issued for restricted stock awards (in value)	(49)					(49)
Cancellation of shares issued for restricted stock awards (in shares)				(7,000)
Acquisition of MSB Financial Corp (in value)		$ 45,133			$ 58		$ 45,075
Acquisition of MSB Financial Corp (in shares)					5,854,000
Cash dividends declared	(6,917)							(6,917)
Balance (in value) at Sep. 30, 2020	$ 1,124,060			$ 895		$ 769,269		$ 378,134		$ (28,212)	$ 3,974
Balance (in shares) at Sep. 30, 2020	89,510,451			89,510,000

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement Of Stockholders Equity [Abstract]
ESOP shares committed to be released, shares	50	50
Restricted stock plan shares earned, shares	69	68
Dividends declared per common share	$ 0.08	$ 0.06

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net Income	$ 11,379	$ 11,370
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	1,425	1,126
Net accretion of premiums, discounts and loan fees and costs	(4,723)	(3,045)
Deferred income taxes and valuation allowance	855	1,365
Realized gain on bargain purchase	(3,053)
Amortization of intangible assets	265	308
Amortization of benefit plans’ unrecognized net gain	21	475
Provision for (reversal of) credit losses	4,059	(782)
Loans originated for sale	(121,596)	(56,826)
Proceeds from sale of mortgage loans held-for-sale	124,105	59,203
Gain on sale of mortgage loans held-for-sale, net	(1,890)	(605)
Realized loss on sale and call of investment securities available for sale	377	14
Realized loss on disposition of premises and equipment		106
Increase in cash surrender value of bank owned life insurance	(1,596)	(1,580)
ESOP, stock option plan and restricted stock plan expenses	1,859	2,095
Increase in interest receivable	(1,294)	(33)
Increase in other assets	(3,456)	(16,714)
Increase (decrease) in interest payable	62	(664)
(Decrease) increase in other liabilities	(663)	15,135
Net Cash Provided by Operating Activities	6,136	10,948
Purchases of:
Investment securities available for sale	(259,381)	(8,198)
Proceeds from:
Repayments/calls/maturities of investment securities available for sale	120,894	36,674
Repayments/calls/maturities of investment securities held to maturity	940
Sales of investment securities available for sale	19,600	3,646
Purchase of loans	(21,586)	(7,567)
Net decrease in loans receivable	104,354	84,804
Purchase of interest rate caps		(1,476)
Additions to premises and equipment	(1,367)	(977)
Redemption of FHLB stock	6,881	451
Net cash acquired in acquisition	4,296
Net Cash (Used in) Provided by Investing Activities	(25,369)	107,357
Cash Flows from Financing Activities:
Net increase in deposits	150,000	49,978
Repayment of term FHLB advances	(865,000)	(835,030)
Proceeds from term FHLB advances	775,000	825,000
Net decrease in other short-term borrowings	(68,635)	(31,271)
Net decrease in advance payments by borrowers for taxes	(355)	(785)
Repurchase and cancellation of common stock of Kearny Financial Corp.		(30,582)
Cancellation of shares repurchased on vesting to pay taxes	(49)	(59)
Dividends paid	(6,877)	(5,186)
Net Cash Used in Financing Activities	(15,916)	(27,935)
Net (Decrease) Increase in Cash and Cash Equivalents	(35,149)	90,370
Cash and Cash Equivalents - Beginning	180,967	38,935
Cash and Cash Equivalents - Ending	145,818	129,305
Cash paid during the period for:
Income taxes, net of refunds	5,371	2,429
Interest	16,660	23,876
Non-cash investing and financing activities:
Fair value of assets acquired, net of cash and cash equivalents acquired	567,816
Fair value of liabilities assumed	$ 523,926
ASU 2019-04 [Member]
Non-cash investing and financing activities:
Debt securities transferred from held to maturity to available for sale		537,732
ASU 2016-02 [Member]
Non-cash investing and financing activities:
Operating lease right-of-use assets		17,243
Operating lease liabilities		$ 17,758

XML

Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 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.

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 (loss) 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, 2020 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, 2020 was derived from the Company’s 2020 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 2020 Annual Report on Form 10-K.

Risks and Uncertainties

As previously disclosed, on March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, and may continue to adversely affect, local, national and global economic activity. The spread of the outbreak has caused significant disruptions to the U.S. economy, significant reductions in the targeted federal funds rate and has disrupted banking and other financial activity in the areas in which the Company operates. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic.

  These reductions in interest rates and other effects of the COVID-19 pandemic may continue to materially and adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company.  It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions, including estimates regarding expected credit losses on loans receivable, impairment of investment securities and impairment of goodwill. Although the Company continues to operate while taking steps to ensure the safety of employees and clients, COVID-19 could also potentially create widespread business continuity issues for the Company.

The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations in future periods will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic, as well as further actions the Company may take as may be required by government authorities or that the Company determines is in the best interests of its employees and clients. There is no certainty that such measures will be sufficient to mitigate the risks posed by the pandemic.

Adoption of New Accounting Standards

On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology.  The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after July 1, 2020 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.  At adoption, the Company increased its allowance for credit losses by $20.2 million, comprised of $19.6 million for loans receivable and $536,000 for unfunded commitments. Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax.

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.  If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include multi-family, nonresidential mortgage, commercial business, construction, one- to four-family residential, home equity and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount.

The Company estimates the allowance for credit losses on loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Furthermore, the Company considers the inherent uncertainty in quantitative models that are built upon historical data.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

Acquired Loans

Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Held to Maturity Securities

The Company’s entire portfolio of held to maturity securities consists of municipal bonds which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued Interest Receivable

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $16.2 million at September 30, 2020 and is excluded from the estimate of credit losses. Accrued interest receivable on available of sale securities and held to maturity securities, also a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $3.9 million and $241,000, respectively, at September 30, 2020 and is excluded from the estimate of credit losses.

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Net Income Per Common Share ("EPS")

3 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income Per Common Share (EPS)

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

Basic EPS is based on the weighted average number of common shares actually outstanding, including both vested and unvested 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 schedule shows the Company’s earnings per share calculations for the periods presented:

	Three Months Ended September 30,
	2020		2019
Net income	$	11,379	$	11,370
Weighted average number of common shares outstanding - basic		86,008		84,756
Effect of dilutive securities		1		37
Weighted average number of common shares outstanding- diluted		86,009		84,793
Basic earnings per share	$	0.13	$	0.13
Diluted earnings per share	$	0.13	$	0.13

Stock options for 3,910,398 and 3,245,000 shares of common stock were not considered in computing diluted earnings per share at September 30, 2020 and September 30, 2019, respectively, because they were considered anti-dilutive.

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Subsequent Events

3 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

3.     SUBSEQUENT EVENTS

The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2020, 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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Acquisition of MSB Financial Corp.

3 Months Ended

Sep. 30, 2020

MSB Financial Corporation [Member]

Acquisition of MSB Financial Corp.

4.    ACQUISITION OF MSB FINANCIAL CORP.

On July 10, 2020, the Company completed its acquisition of MSB Financial Corp. (“MSB”), and its subsidiary Millington Bank.  In accordance with the merger agreement, approximately $9.8 million in cash and 5,853,811 shares of Company common stock was distributed to former MSB shareholders in exchange for their shares of MSB common stock.

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of July 10, 2020 based on management’s best estimate using the information available as of the merger date.  The application of the acquisition method of accounting resulted in the recognition of bargain purchase gain of $3.1 million and a core deposit intangible of $690,000.  Accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which runs through July 10, 2021, in the measurement period in which the adjustment amounts are determined.  The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Items that could be subject to adjustment include credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition.

The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table:

	As Recorded by MSB			Fair Value Adjustments				As Recorded at Acquisition
	(In Thousands)
Cash paid for acquisition								$	9,830
Value of stock issued									45,133
Total purchase price								$	54,963
Cash and cash equivalents	$	14,126		$	-			$	14,126
Investment securities		4,000			(510	)	(a)		3,490
Loans receivable		537,589			(7,345	)	(b)		530,244
Allowance for loan losses		(6,037	)		6,037		(c)		-
Premises and equipment		7,698			(3,221	)	(d)		4,477
FHLB stock		3,345			-				3,345
Accrued interest receivable		1,701			-				1,701
Core deposit intangibles		-			690		(e)		690
Bank owned life insurance		14,663			-				14,663
Deferred income taxes, net		1,729			2,152		(f)		3,881
Other assets		4,830			495		(g)		5,325
Total assets acquired	$	583,644		$	(1,702	)		$	581,942
Deposits	$	458,392		$	1,786		(h)	$	460,178
FHLB borrowings		62,900			-				62,900
Advance payments by borrowers for taxes		794			-				794
Other liabilities		810			(756	)	(i)		54
Total liabilities assumed	$	522,896		$	1,030			$	523,926
Net assets acquired								$	58,016
Bargain purchase gain								$	(3,053	)

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustments on investment securities.

(b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

(c) Represents the elimination of MSB’s allowance for loan losses.

(d) Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e) Represents the intangible assets recorded to reflect the fair value of core deposits.  The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g) Represents an adjustment to other assets acquired.

(h) Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i) Represents an adjustment to other liabilities assumed.

The fair value of loans acquired from MSB was estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. There was no carryover of MSB’s allowance for loan losses associated with the loans that were acquired.  For information regarding purchased loans which have been determined to be PCD, refer to Note 8, Loans Receivable.

The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the sum-of-the-years digits method.

The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.

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Merger Related Expenses

3 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Merger Related Expenses

5.    MERGER RELATED EXPENSES

Merger-related expenses were recorded in the Consolidated Statements of Income as a component of non-interest expense and include costs relating to the Company’s acquisition of MSB, as described above.  These charges represent one-time costs associated with acquisition activities and do not represent ongoing costs of the fully integrated combined organization.  Accounting guidance requires that acquisition-related transactional and restructuring costs incurred by the Company be charged to expense as incurred. Direct acquisition and other charges incurred in connection with the MSB merger totaled $4.3 million for the three months ended September 30, 2020 and $951,000 for the fiscal year ended June 30, 2020.  Direct acquisition and other charges were recorded in merger-related expense on the consolidated statements of income.

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Recent Accounting Pronouncements

3 Months Ended

Sep. 30, 2020

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

6.     RECENT ACCOUNTING PRONOUNCEMENTS

In December 2019, the FASB issued ASU 2019-12, “Income taxes (Topic 740); Simplifying the Accounting for Income Taxes”. ASU 2019-12 provides amendments intended to reduce the cost and complexity in accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements.  ASU 2019-12 removes the following exceptions from ASC 740, Income Taxes: (i) exceptions to the incremental approach for intraperiod tax allocation; (ii) exceptions to accounting for basis differences when a foreign subsidiary becomes an equity method investment or a foreign equity method investment become a subsidiary; and (iii) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 provides the following amendments that simplify and improve guidance with Topic 740: (i) franchise taxes that are based partially on income; (ii) transactions that result in a step up in the tax basis of goodwill; (iii) separate financial statements of legal entities that are not subject to tax; (iv) enacted changes in tax laws in interim periods; and (v) employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in the ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

Adoption of New Accounting Standards

On July 1, 2020 the Company adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  This ASU replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology.  The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost including loan receivables and held to maturity debt securities.  This ASU also applies to off-balance exposures.  In addition, this ASU made certain changes to the accounting for available for sale securities debt securities. Credit losses are required to be presented as an allowance rather than as a write-down on available for sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted Topic 326 and all its related updates on July 1, 2020, using the modified retrospective approach for financial assets measured at amortized cost.  Results for reporting periods after July 1, 2020 are presented in accordance to the guidance under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.  Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax. Additional information regarding the adoption of ASU 2016-13 is presented in Note 1, Summary of Significant Accounting Policies.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform a quantitative goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. For public entities, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017. The Company is applying the amendments of ASU 2017-04 prospectively for goodwill impairment testing conducted after July 1, 2020.

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Securities

3 Months Ended

Sep. 30, 2020

Investments Debt And Equity Securities [Abstract]

Securities

7.     SECURITIES

At September 30, 2020, there was no allowance for credit losses on available for sale securities. The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated:

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	49,697	$	1,180	$	-	$	50,877
Asset-backed securities		260,174		239		1,612		258,801
Collateralized loan obligations		198,015		8		1,625		196,398
Corporate bonds		121,436		1,123		283		122,276
Trust preferred securities		2,967		-		194		2,773
Total debt securities		632,289		2,550		3,714		631,125
Mortgage-backed securities:
Collateralized mortgage obligations (1)		25,065		705		-		25,770
Residential pass-through securities (1)		611,981		13,734		-		625,715
Commercial pass-through securities (1)		215,166		10,794		28		225,932
Total mortgage-backed securities		852,212		25,233		28		877,417
Total securities available for sale	$	1,484,501	$	27,783	$	3,742	$	1,508,542

(1) Government-sponsored enterprises.

	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	52,843	$	1,211	$	-		54,054
Asset-backed securities		177,413		-		4,966		172,447
Collateralized loan obligations		198,619		-		4,831		193,788
Corporate bonds		142,942		1,267		570		143,639
Trust preferred securities		2,967		-		340		2,627
Total debt securities		574,784		2,478		10,707		566,555
Mortgage-backed securities:
Collateralized mortgage obligations (1)		30,043		860		-		30,903
Residential pass-through securities (1)		543,819		18,135		-		561,954
Commercial pass-through securities (1)		214,575		11,716		-		226,291
Total mortgage-backed securities		788,437		30,711		-		819,148
Total securities available for sale	$	1,363,221	$	33,189	$	10,707	$	1,385,703

(1) Government-sponsored enterprises.

	September 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	31,576	$	1,560	$	-	$	33,136
Total debt securities		31,576		1,560		-		33,136
Total securities held to maturity	$	31,576	$	1,560	$	-	$	33,136

	June 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	32,556	$	1,513	$	-	$	34,069
Total debt securities		32,556		1,513		-		34,069
Total securities held to maturity	$	32,556	$	1,513	$	-	$	34,069

The following tables present the amortized cost and estimated fair values of debt securities, by contractual maturity, at September 30, 2020:

	September 30, 2020
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities:
Due in one year or less	$	6,696	$	6,727
Due after one year through five years		85,068		86,141
Due after five years through ten years		289,819		291,495
Due after ten years		282,282		279,898
Total	$	663,865	$	664,261

Sales of securities available for sale were as follows for the periods presented below:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities	$	19,600		$	3,646
Gross realized gains	$	-		$	12
Gross realized losses		(385	)		(28	)
Net loss on sales of securities	$	(385	)	$	(16	)

Calls of securities available for sale during the three months ended September 30, 2020 and September 30, 2019 resulted in gross gains of $8,000 and $2,000, respectively.  During the three months ended September 30, 2020 and September 30, 2019, there were no gains or losses recorded on sales and calls of securities held to maturity.

The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below:

	September 30,		June 30,
	2020		2020
	(In Thousands)
Securities pledged:
Pledged for borrowings at the FHLB of New York	$	166,267	$	155,288
Pledged to secure public funds on deposit		107,260		19,944
Pledged for potential borrowings at the Federal Reserve Bank of New York		342,601		366,482
Pledged as collateral for depositor sweep accounts		-		7,830
Total carrying value of securities pledged	$	616,128	$	549,544

The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	81,712	$	1,006	$	54,166	$	606		13	$	135,878	$	1,612
Collateralized loan obligations		53,946		228		134,037		1,397		18		187,983		1,625
Corporate bonds		33,302		199		19,916		84		7		53,218		283
Trust preferred securities		-		-		2,773		194		2		2,773		194
Commercial pass-through securities		15,496		28		-		-		1		15,496		28
Total	$	184,456	$	1,461	$	210,892	$	2,281		41	$	395,348	$	3,742

	June 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	146,494	$	3,962	$	25,954	$	1,004		16	$	172,448	$	4,966
Collateralized loan obligations		71,282		1,245		122,506		3,586		19		193,788		4,831
Corporate bonds		24,764		236		39,651		334		8		64,415		570
Trust preferred securities		-		-		2,626		340		2		2,626		340
Total	$	242,540	$	5,443	$	190,737	$	5,264		45	$	433,277	$	10,707

At September 30, 2020 and June 30, 2020, there were no held to maturity securities with unrecognized losses.

Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the consolidated statement of income when management intends to sell, or may be required to sell, the securities before they recover in value.  The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at September 30, 2020. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. Therefore, no allowance for credit losses was recorded at September 30, 2020.

At September 30, 2020, the Company’s entire portfolio of held to maturity securities consists of municipal bonds which are highly rated by major rating agencies and have a long history of no credit losses.  None of the securities in the Company’s portfolio of held to maturity municipal bonds were in an unrealized loss position. The Company continually monitors the municipal bond sector of the market and reviews collectability including such factors as the financial condition of the issuers including credit ratings in effect as of the reporting period.  

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Loans Receivable

3 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Loans Receivable

8.     LOANS RECEIVABLE

The following table sets forth the composition of the Company’s loan portfolio at September 30, 2020 and June 30, 2020:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Commercial loans:
Multi-family mortgage	$	2,110,300		$	2,059,568
Nonresidential mortgage		1,124,330			960,853
Commercial business (1)		255,888			138,788
Construction		79,178			20,961
Total commercial loans		3,569,696			3,180,170
One- to four-family residential mortgage		1,353,197			1,273,022
Consumer loans:
Home equity loans		71,540			82,920
Other consumer		4,136			3,991
Total consumer loans		75,676			86,911
Total loans		4,998,569			4,540,103
Unaccreted yield adjustments		(43,819	)		(41,706	)
Total loans receivable, net of yield adjustments	$	4,954,750		$	4,498,397

(1) Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

Past Due Loans

Past due status is based on the contractual payment terms of the loans. The following tables present the payment status of past due loans as of September 30, 2020 and June 30, 2020, by loan segment:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,110,300	$	1,100,082	$	255,524	$	79,154	$	1,345,532	$	71,057	$	4,129	$	4,965,778
Past due:
30-59 days		-		6,171		-		24		1,558		6		2		7,761
60-89 days		-		497		60		-		1,024		6		-		1,587
90 days and over		-		17,580		304		-		5,083		471		5		23,443
Total past due		-		24,248		364		24		7,665		483		7		32,791
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,059,568	$	941,714	$	138,439	$	20,961	$	1,264,267	$	82,358	$	3,981	$	4,511,288
Past due:
30-59 days		-		-		-		-		3,211		169		-		3,380
60-89 days		-		14,478		-		-		1,038		13		5		15,534
90 days and over		-		4,661		349		-		4,506		380		5		9,901
Total past due		-		19,139		349		-		8,755		562		10		28,815
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Nonperforming Loans

Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all principal and interest payments (“P&I”) owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 days past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and we expect to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement.  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. The Company did not recognize interest income on non-accrual loans for the three months ended September 30, 2020 and September 30, 2019.

The following tables present information relating to the Company’s nonperforming loans as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,107,376	$	1,097,576	$	255,349	$	76,640	$	1,341,463	$	70,959	$	4,131	$	4,953,494
Nonperforming:
90 days and over past due accruing		-		238		-		-		-		-		-		238
Nonaccrual loans with allowance for credit losses		-		3,191		124		-		1,401		6		5		4,727
Nonaccrual loans with no allowance for credit losses		2,924		23,325		415		2,538		10,333		575		-		40,110
Total nonperforming		2,924		26,754		539		2,538		11,734		581		5		45,075
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,056,606	$	936,917	$	138,196	$	20,961	$	1,264,663	$	82,078	$	3,986	$	4,503,407
Nonperforming:
90 days and over past due accruing		-		-		-		-		-		-		5		5
Nonaccrual		2,962		23,936		592		-		8,359		842		-		36,691
Total nonperforming		2,962		23,936		592		-		8,359		842		5		36,696
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Troubled Debt Restructurings (“TDRs”)

On a case-by-case basis, the Company may agree to modify the contractual terms of a loan to assist a borrower who may be experiencing financial difficulty, as well as to preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR.  At September 30, 2020, the Company had TDRs totaling $20.1 million. The allowance for credit losses associated with the TDRs presented in the tables below totaled $210,000 and $8,000 as of September 30, 2020 and June 30, 2020, respectively. As of September 30, 2020, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured in a TDR.

The following tables present total TDR loans at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,924		1	$	2,924
Nonresidential mortgage		1		110		8		2,755		9		2,865
Commercial business		5		5,103		5		434		10		5,537
Construction		-		-		1		2,538		1		2,538
Total commercial loans		6		5,213		15		8,651		21		13,864
One- to four-family residential mortgage		14		2,067		19		3,541		33		5,608
Consumer loans:
Home equity loans		8		543		1		97		9		640
Total		28	$	7,823		35	$	12,289		63	$	20,112

	June 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,962		1	$	2,962
Nonresidential mortgage		1		112		9		5,442		10		5,554
Commercial business		5		5,179		6		446		11		5,625
Total commercial loans		6		5,291		16		8,850		22		14,141
One- to four-family residential mortgage		14		2,407		20		3,811		34		6,218
Consumer loans:
Home equity loans		12		715		2		448		14		1,163
Total		32	$	8,413		38	$	13,109		70	$	21,522

The following tables present information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2020 and September 30, 2019.

	Three Months Ended September 30, 2020
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Residential mortgage		1	$	309	$	308
Total		1	$	309	$	308

	Three Months Ended September 30, 2019
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Commercial business		3		1,775		1,829
Residential mortgage		2		1,002		938
Home equity loans		1		82		81
Total		6	$	2,859	$	2,848

During the three months ended September 30, 2019, TDRs resulted in charge-offs of $8,000 which were recognized at modification. During the three months ended September 30, 2020, there were no charge-offs related to TDRs. During the three months ended September 30, 2020 and 2019, there were no troubled debt restructuring defaults.

Loan modifications generally involve a reduction in interest rates and/or extension of maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. The residential mortgage loan which qualified as a TDR during the three months ended September 30, 2020, capitalized prior past due amounts and modified the loan’s repayment terms.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications.  The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extension of repayment terms, or other delays in payment that are insignificant. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans were not to be considered TDRs if they were performing at December 31, 2019 and other considerations set forth in the interagency statements were met. Borrowers considered current are those that are less than 30 days past due at the time a modification program is implemented or at December 31, 2019. As of September 30, 2020, the Company had 63 non-TDR modified loans totaling approximately $76.9 million.  

The following table sets forth the composition of these loans by loan segments as of September 30, 2020:

	September 30, 2020
	# of Loans (1)		Balance (1)
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		7	$	15,910
Nonresidential mortgage		11		41,660
Commercial business		4		2,684
Construction		1		2,537
Total commercial loans		23		62,791
Residential mortgage		36		13,866
Consumer loans:
Home equity loans		4		252
Total loans		63	$	76,909

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

Individually Analyzed Loans

Effective July 1, 2020, individually analyzed loans include loans which do not share similar risk characteristics with other loans. TDR’s will generally be evaluated for individual impairment, however, after a period of sustained repayment performance which permits the credit to be returned to accrual status, a TDR would generally be removed from individual impairment analysis and returned to its corresponding pool. As of September 30, 2020, the carrying value of individually analyzed loans totaled $44.8 million, of which $32.5 million were considered collateral dependent.

For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral, less costs to sell, and the amortized cost basis of the loan as of the measurement date. See Note 16 for additional disclosure regarding fair value of individually analyzed collateral dependent loans.

The following table presents the carrying value of collateral dependent individually analyzed loans:

	September 30, 2020
	Carrying Value		Related Allowance
	(In Thousands)
Commercial loans:
Nonresidential mortgage (1)	$	24,120	$	580
Commercial business (2)		199		-
Total commercial loans		24,319		580
Residential mortgage (3)		7,722		218
Consumer loans:
Home equity loans (3)		471		-
Total	$	32,512	$	798

(1) Secured by income-producing property.

(2) Secured by business assets.

(3) Secured by one- to four-family properties.

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment by portfolio segment as of June 30, 2020:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans		Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Non-impaired loans	$	2,056,606	$	936,805		$	132,999		$	20,961	$	1,262,256		$	81,363	$	3,991	$	4,494,981
Impaired loans:
Impaired loans with no allowance   for impairment		2,962		22,516			5,622			-		10,659			1,557		-		43,316
Impaired loans with allowance   for impairment:
Recorded investment		-		1,532			167			-		107			-		-		1,806
Allowance for impairment		-		(41	)		(47	)		-		(1	)		-		-		(89	)
Balance of impaired loans net   of allowance for impairment		-		1,491			120			-		106			-		-		1,717
Total impaired loans, excluding   allowance for impairment:		2,962		24,048			5,789			-		10,766			1,557		-		45,122
Total loans	$	2,059,568	$	960,853		$	138,788		$	20,961	$	1,273,022		$	82,920	$	3,991	$	4,540,103
Unpaid principal balance   of impaired loans:
Total impaired loans	$	3,544	$	25,898		$	8,778		$	73	$	12,908		$	1,950	$	-	$	53,151

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually to classify the loans as to credit risk.  The Company uses the following definitions for risk ratings:

Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

Special Mention – Loans 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.

Substandard – Loans which are 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 Company will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans which 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.

Loss – Loans which considered uncollectible or of so little value that their continuance as assets is not warranted.

The following table presents the risk category of loans as of September 30, 2020 by loan segment and vintage year:

	Term Loans Amortized Cost by Origination Year for Fiscal Years ended June 30,
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
	(In Thousands)
Multi-family mortgage:
Pass	$	71,975	$	261,063	$	436,822	$	413,844	$	416,703	$	486,683	$	-	$	2,087,090
Special Mention		-		-		-		-		-		10,060		-		10,060
Substandard		-		-		-		2,924		10,226		-		-		13,150
Doubtful		-		-		-		-		-		-		-		-
Total multi-family mortgage		71,975		261,063		436,822		416,768		426,929		496,743		-		2,110,300
Non-residential mortgage:
Pass		10,968		85,510		79,459		79,873		296,213		533,504		6,249		1,091,776
Special Mention		-		-		-		-		-		4,373		-		4,373
Substandard		-		-		-		-		16,028		12,153		-		28,181
Doubtful		-		-		-		-		-		-		-		-
Total non-residential mortgage		10,968		85,510		79,459		79,873		312,241		550,030		6,249		1,124,330
Commercial business:
Pass		18,802		97,441		5,086		28,363		11,684		26,666		62,032		250,074
Special Mention		-		-		11		2,370		147		15		-		2,543
Substandard		-		84		-		1,598		65		1,337		187		3,271
Doubtful		-		-		-		-		-		-		-		-
Total commercial business		18,802		97,525		5,097		32,331		11,896		28,018		62,219		255,888
Construction loans:
Pass		1,454		17,123		14,354		20,643		15,715		1,592		5,735		76,616
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		2,562		-		2,562
Doubtful		-		-		-		-		-		-		-		-
Total construction loans		1,454		17,123		14,354		20,643		15,715		4,154		5,735		79,178
Residential mortgage:
Pass		50,150		204,875		114,802		111,794		178,430		673,678		921		1,334,650
Special Mention		-		-		-		-		-		713		-		713
Substandard		-		452		589		-		573		16,220		-		17,834
Doubtful		-		-		-		-		-		-		-		-
Total residential mortgage		50,150		205,327		115,391		111,794		179,003		690,611		921		1,353,197
Home equity loans:
Pass		206		4,672		8,192		4,158		3,366		20,943		28,637		70,174
Special Mention		-		-		-		-		-		175		26		201
Substandard		-		-		-		-		68		1,097		-		1,165
Doubtful		-		-		-		-		-		-		-		-
Total home equity loans		206		4,672		8,192		4,158		3,434		22,215		28,663		71,540
Other consumer loans
Pass		280		565		818		240		137		1,899		75		4,014
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		1		1
Doubtful		-		-		-		-		-		5		116		121
Other consumer loans		280		565		818		240		137		1,904		192		4,136
Total loans	$	153,835	$	671,785	$	660,133	$	665,807	$	949,355	$	1,793,675	$	103,979	$	4,998,569

The following table presents, under previously applicable GAAP, the risk category of loans as of June 30, 2020 by loan segment:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Pass	$	2,055,520	$	932,202	$	132,818	$	20,961	$	1,258,246	$	81,120	$	3,979	$	4,484,846
Special Mention		1,086		4,373		2,585		-		981		157		5		9,187
Substandard		2,962		24,278		3,385		-		13,795		1,643		6		46,069
Doubtful		-		-		-		-		-		-		1		1
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Purchased Credit Deteriorated Loans

Loans acquired in a business combination after July 1, 2020 are recorded in accordance with ASC Topic 326, after which acquired loans are separated into two types. PCD loans are acquired loans that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD loans are acquired loans that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired loans, the Company evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. The determining criteria may involve loan specific characteristics such as payment status, debt service coverage or other changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the pandemic.

As part of the acquisition of MSB, the Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination.  The carrying amount of those loans is as follows:

	At July 10, 2020
	(In Thousands)
Purchase price of PCD loans at acquisition	$	69,415
Allowance for credit losses at acquisition		(3,901	)
Non-credit discount at acquisition		(167	)
Amortized cost of acquired PCD loans at acquisition	$	65,347

Residential Mortgage Loans in Foreclosure

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, 2020, we held one single-family property in other real estate owned with an aggregate carrying value of $178,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held nine residential mortgage loans with aggregate carrying values totaling $1.7 million which were in the process of foreclosure.

As of June 30, 2020, we held one single-family property in other real estate owned with an aggregate carrying value of $178,000 that was acquired through a foreclosure on a residential mortgage loan.  As of that same date, we held nine residential mortgage loans with aggregate carrying values totaling $1.9 million which were in the process of foreclosure.

The States of New Jersey and New York have issued executive orders and enacted legislation declaring moratoriums on removing individuals from a residential property as a result of an eviction or foreclosure proceeding. The New Jersey order will be in effect until two months after the Governor has declared an end to the COVID-19 health crisis. The New York law will be in effect until the state’s COVID-19-related executive orders are no longer in effect. As a result, since March 28, 2020, the Company has temporarily suspended residential property foreclosure sales and evictions.

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Allowance for Loan Losses

3 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Allowance for Credit Losses

9.     ALLOWANCE FOR CREDIT LOSSES

Adoption of Topic 326

On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology, referred to as the “CECL” methodology.  See Note 1, Summary of Significant Accounting Policies for additional information on the adoption of Topic 326.

Allowance for Credit Losses on Loans Receivable

The following tables present the balance of the allowance for credit losses at September 30, 2020 and June 30, 2020.  For the three months ended September 30, 2020, the balance of the allowance for credit losses is based on the CECL methodology, as noted above. For the year ended June 30, 2020, the allowance for loan losses is based upon the calculation methodology as described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. 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.

Allowance for Credit Losses
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for credit losses:
Loans acquired with deteriorated   credit quality individually   analyzed	$	-	$	527	$	-	$	-	$	218	$	-	$	-	$	745
Loans acquired with deteriorated   credit quality collectively   analyzed		211		1,126		854		136		249		22		-		2,598
Loans individually   evaluated for impairment		-		54		681		-		1		-		-		736
Loans collectively   evaluated for impairment		28,355		13,387		2,820		969		14,367		836		47		60,781
Total allowance for credit losses	$	28,566	$	15,094	$	4,355	$	1,105	$	14,835	$	858	$	47	$	64,860

Balance of Loans Receivable
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality  individually   evaluated	$	-	$	1,658	$	200	$	-	$	3,853	$	366	$	-	$	6,077
Loans acquired with deteriorated   credit quality collectively   evaluated		5,690		31,733		11,711		9,408		4,995		369		5		63,911
Loans individually   evaluated for impairment		2,924		24,858		339		2,538		7,881		215		-		38,755
Loans collectively   evaluated for impairment		2,101,686		1,066,081		243,638		67,232		1,336,468		70,590		4,131		4,889,826
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569
Unaccreted yield adjustments																(43,819	)
Loans receivable, net of yield adjustments															$	4,954,750

Allowance for Loan Losses
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans individually   evaluated for impairment		-		41		47		-		1		-		-		89
Loans collectively   evaluated for impairment		20,916		8,722		1,879		236		4,859		568		58		37,238
Total allowance for loan losses	$	20,916	$	8,763	$	1,926	$	236	$	4,860	$	568	$	58	$	37,327

Balance of Loans Receivable
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	222	$	-	$	77	$	-	$	-		299
Loans individually   evaluated for impairment		2,962		24,048		5,567		-		10,689		1,557		-		44,823
Loans collectively   evaluated for impairment		2,056,606		936,805		132,999		20,961		1,262,256		81,363		3,991		4,494,981
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103
Unaccreted yield adjustments																(41,706	)
Loans receivable, net of yield adjustments															$	4,498,397

The following table presents the activity in the ACL on loans for the three months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Multi-Family Mortgage			Non- Residential Mortgage		Commercial Business			Construction		Residential Mortgage		Home Equity Loans		Other Consumer			Total
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020 (prior to adoption of ASC 326):	$	20,916		$	8,763	$	1,926		$	236	$	4,860	$	568	$	58		$	37,327
Impact of adopting Topic 326		8,408			2,390		(421	)		80		9,106		92		(15	)		19,640
Charge offs		-			-		(63	)		-		-		-		(10	)		(73	)
Recoveries		-			-		2			-		-		-		4			6
Initial allowance on PCD loans		250			1,720		1,007			99		720		105		-			3,901
Provision for credit losses		(1,008	)		2,221		1,904			690		149		93		10			4,059
Total allowance for credit losses	$	28,566		$	15,094	$	4,355		$	1,105	$	14,835	$	858	$	47		$	64,860

For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2019:

	Three Months Ended September 30, 2019
	Multi-Family Mortgage			Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans			Other Consumer			Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2019:
At June 30, 2019:	$	16,959		$	9,672		$	2,467		$	136	$	3,377		$	491		$	172		$	33,274
Total charge offs		-			-			-			-		-			-			(64	)		(64	)
Total recoveries		-			-			-			-		-			-			4			4
Total provisions		(257	)		(301	)		(174	)		4		(70	)		(13	)		29			(782	)
Total allowance for loan losses	$	16,702		$	9,371		$	2,293		$	140	$	3,307		$	478		$	141		$	32,432

Allowance for Credit Losses on Off Balance Sheet Commitments

The following table presents the activity in the ACL on off balance sheet commitments for the three months ended September 30, 2020:

	Three Months Ended
	September 30, 2020
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020	$	-
Impact of adopting Topic 326 (1)		536
Provision recorded in other non-interest expense		468
Total allowance for credit losses on off balance sheet commitments	$	1,004

(1) Adoption of CECL accounting standard effective July 1, 2020.

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Leases

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

10.     LEASES

The Company adopted ASU 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 on July 1, 2019. Topic 842 requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. At the time of adoption, operating lease right-of-use assets of approximately $17.2 million and operating lease liabilities of approximately $17.8 million were recorded in other assets and other liabilities, respectively, on our Consolidated Statements of Financial Condition. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. The discount rate used in determining the lease liability for each individual lease was the Company’s incremental borrowing rate at the time of adoption of ASU 2016-02, on a collateralized basis, over a similar term.

As of September 30, 2020, the weighted average remaining lease term for operating leases was 7.91 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.36%.  

The Company has elected to account for lease and non-lease components separately since such amounts are readily determinable under the Company’s lease contracts.  Total operating lease costs for the three months ended September 30, 2020 and September 30, 2019 was $1.0 million and $1.1 million, respectively.

There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three months ended September 30, 2020.  At September 30, 2020, the Company had no leases that had not yet commenced.

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at September 30, 2020 is as follows:

	September 30,
	2020
	(In Thousands)
Less than one year	$	3,649
After one year but within two years		3,311
After two years but within three years		2,606
After three years but within four years		1,877
After four years but within five years		1,498
Greater than five years		7,007
Total undiscounted cash flows		19,948
Less: discount on cash flows		(2,028	)
Total lease liability	$	17,920

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Deposits

3 Months Ended

Sep. 30, 2020

Deposits [Abstract]

Deposits

11.     DEPOSITS

Deposits are summarized as follows:

	September 30,		June 30,
	2020			2020
	(In Thousands)
Non-interest-bearing demand	$	487,710	$	419,138
Interest-bearing demand		1,561,135		1,264,151
Savings		1,025,245		906,597
Certificates of deposits		1,965,822		1,840,396
Total deposits	$	5,039,912	$	4,430,282

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Borrowings

3 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Borrowings

12.     BORROWINGS

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

	September 30, 2020						June 30, 2020
	Balance			Weighted Average Interest Rate			Balance			Weighted Average Interest Rate
	(Dollars in Thousands)
By remaining period to maturity:
Less than one year	$	775,000			0.40	%	$	865,000			0.45	%
One to two years		27,000			2.85			27,000			2.85
Two to three years		145,000			3.04			145,000			3.04
Three to four years		22,500			2.63			22,500			2.63
Four to five years		103,500			2.68			103,500			2.68
Greater than five years		6,500			2.82			6,500			2.82
Total advances		1,079,500			1.10	%		1,169,500			1.08	%
Unamortized fair value adjustments		(1,960	)					(2,071	)
Total advances, net of   fair value adjustments	$	1,077,540					$	1,167,429

At September 30, 2020, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $3.13 billion and $166.3 million, respectively. At June 30, 2020, FHLB advances were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $3.21 billion and $155.3 million, respectively.

Borrowings at June 30, 2020 also included overnight borrowings in the form of depositor sweep accounts totaling $5.7 million, while there were no such borrowings at September 30, 2020.

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Derivative Instruments and Hedging Activities

3 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

13.     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to specific wholesale funding positions.

Fair Values of Derivative Instruments on the Statement of Financial Condition

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	175	Other liabilities	$	15,857
Total		$	175		$	15,857

	June 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	235	Other liabilities	$	18,177
Total		$	235		$	18,177

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using derivatives are primarily to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps and caps as part of its interest rate risk management strategy.  These interest rate products are designated as cash flow hedges.  As of September 30, 2020, the Company had a total of 14 interest rate swaps and caps with a total notional amount of $1.23 billion hedging specific wholesale funding positions.

For derivatives designated as cash flow hedges, the gain or loss on the derivative is recorded in other comprehensive income, net of tax, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate wholesale funding positions.  During the three months ended September 30, 2020, the Company had $2.4 million of reclassifications to interest expense.  During the next twelve months, the Company estimates that $7.3 million will be reclassified as an increase in interest expense.

The tables below present the pre-tax effects of the Company’s derivative instruments on the Consolidated Statements of Income for the three months ended September 30, 2020 and 2019:

	Three Months Ended September 30, 2020
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(111	)	Interest expense	$	(2,372	)
Total	$	(111	)		$	(2,372	)

	Three Months Ended September 30, 2019
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(1,759	)	Interest expense	$	1,371
Total	$	(1,759	)		$	1,371

Offsetting Derivatives

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of September 30, 2020 and June 30, 2020, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

	September 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	479	$	(304	)	$	175	$	-	$	-		$	175
Total	$	479	$	(304	)	$	175	$	-	$	-		$	175
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-
Total	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-

	June 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	592	$	(357	)	$	235	$	-	$	-		$	235
Total	$	592	$	(357	)	$	235	$	-	$	-		$	235
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-
Total	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.  The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty.  As of September 30, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to those agreements was $16.5 million.  

As required under the enforceable master netting arrangement with its derivatives counterparties, at September 30, 2020, the Company posted financial collateral of $15.9 million that was not included as offsetting amount.

In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at September 30, 2020 and June 30, 2020, included $124.5 million and $127.2 million, respectively, of in process loans whose terms included interest rate locks to borrowers, which are considered free-standing derivative instruments whose fair values are not material to our financial condition or results of operations.

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Benefit Plans

3 Months Ended

Sep. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Benefit Plans

14.     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						Affected Line Item in the Consolidated
	September 30,						Statements of Income
	2020			2019
	(In Thousands)
Service cost	$	26		$	20		Salaries and employee benefits
Interest cost		66			81		Miscellaneous non-interest  expense
Amortization of unrecognized loss		21			5		Miscellaneous non-interest  expense
Expected return on assets		(28	)		(28	)	Miscellaneous non-interest  expense
Net periodic benefit cost	$	85		$	78

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Income Taxes

3 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

15.     INCOME TAXES

The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rate of 21% to income for the three months ended September 30, 2020 and September 30, 2019:

	Three Months Ended
	September 30,
	2020			2019
	(Dollars in Thousands)
Income before income taxes	$	14,263		$	15,187
Statutory federal tax rate		21	%		21	%
Federal income tax expense at statutory rate	$	2,995		$	3,189
(Reduction) increases in income taxes resulting from:
Tax exempt interest		(94	)		(144	)
State tax, net of federal tax effect		784			1,241
Incentive stock option compensation expense		20			17
Income from bank-owned life insurance		(327	)		(333	)
Non-deductible merger-related expenses		49			-
Bargain purchase gain		(641	)
Other items, net		98			(153	)
Total income tax expense	$	2,884		$	3,817
Effective income tax rate		20.22	%		25.13	%

The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:

	September 30,			June 30,
	2020				2020
	(Unaudited)
	(In Thousands)
Deferred income tax assets:
Purchase accounting	$	12,134		$	11,668
Accumulated other comprehensive income:
Defined benefit plans		414			416
Derivatives		5,114			5,730
Allowance for credit losses		19,370			11,047
Benefit plans		2,302			2,290
Compensation		434			1,287
Stock-based compensation		2,684			2,482
Uncollected interest		1,460			1,362
Depreciation		978			268
Net operating loss carryover		6			6
Capital loss carryforward		339			329
Deferred loan fees and costs		236			10
Other items		796			1,039
		46,267			37,934
Valuation allowance		(523	)		(535	)
		45,744			37,399
Deferred income tax liabilities:
Accumulated other comprehensive income:
Unrealized gain on securities available for sale		7,047			6,541
Goodwill		4,632			4,655
Other items		746			723
		12,425			11,919
Net deferred income tax asset	$	33,319		$	25,480

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Fair Value of Financial Instruments

3 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

16.     FAIR VALUE OF FINANCIAL INSTRUMENTS

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments”. This guidance amends existing guidance to improve accounting standards for financial instruments including clarification and simplification of accounting and disclosure requirements and the requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The Company adopted the guidance effective July 1, 2018.  Upon adoption, the fair value of the Company’s loan portfolio is now presented using an exit price method.

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: 

Level 1:	Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:	Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from, or corroborated by, market data by correlation or other means.
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.

Assets Measured on a Recurring Basis:

The following methods and significant assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30 2020 and June 30, 2020:

Investment Securities Available for Sale

The Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things.  From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.

Derivatives

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 measured at fair value on a recurring basis are summarized below:

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		50,877		-		50,877
Asset-backed securities		-		258,801		-		258,801
Collateralized loan obligations		-		196,398		-		196,398
Corporate bonds		-		122,276		-		122,276
Trust preferred securities		-		2,773		-		2,773
Total debt securities		-		631,125		-		631,125
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		25,770		-		25,770
Residential pass-through securities		-		625,715		-		625,715
Commercial pass-through securities		-		225,932		-		225,932
Total mortgage-backed securities		-		877,417		-		877,417
Total securities available for sale	$	-	$	1,508,542	$	-	$	1,508,542
Interest rate contracts		-		175		-		175
Total assets	$	-	$	1,508,717	$	-	$	1,508,717
Liabilities:
Interest rate contracts	$	-	$	15,857	$	-	$	15,857
Total liabilities	$	-	$	15,857	$	-	$	15,857

	June 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		54,054		-		54,054
Asset-backed securities		-		172,447		-		172,447
Collateralized loan obligations		-		193,788		-		193,788
Corporate bonds		-		143,639		-		143,639
Trust preferred securities		-		2,627		-		2,627
Total debt securities		-		566,555		-		566,555
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		30,903		-		30,903
Residential pass-through securities		-		561,954		-		561,954
Commercial pass-through securities		-		226,291		-		226,291
Total mortgage-backed securities		-		819,148		-		819,148
Total securities available for sale		-		1,385,703		-		1,385,703
Interest rate contracts		-		235		-		235
Total assets	$	-	$	1,385,938	$	-	$	1,385,938
Liabilities:
Interest rate contracts	$	-	$	18,177	$	-	$	18,177
Total liabilities	$	-	$	18,177	$	-	$	18,177

Assets Measured on a Non-Recurring Basis:

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at September 30, 2020 and June 30, 2020:

Collateral Dependent Individually Analyzed / Impaired Loans:

The fair value of collateral dependent loans that are individually analyzed or were previously deemed impaired is determined based upon the appraised fair value of the underlying collateral, less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the collateral. Internal valuations may be utilized to determine the fair value of other business assets. For non-collateral-dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Collateral dependent individually analyzed / impaired loans are considered a Level 3 valuation by the Company.

Other Real Estate Owned  

Other real estate owned is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience.  When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions.

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

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	-	$	-	$	2,731	$	2,731
Non-residential mortgage		-		-		3,401		3,401
Total	$	-	$	-	$	6,132	$	6,132
Other real estate owned, net:
Residential mortgage	$	-	$	-	$	178	$	178
Total	$	-	$	-	$	178	$	178

	June 30, 2020
	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:
Residential mortgage	$	-	$	-	$	2,339	$	2,339
Non-residential mortgage		-		-		2,282		2,282
Commercial business		-		-		129		129
Total	$	-	$	-	$	4,750	$	4,750
Other real estate owned, net:
Residential mortgage		-		-		178		178
Total	$	-	$	-	$	178	$	178

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, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	2,731	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 10%		7.90	%
Non-residential mortgage		3,401	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.02	%
Total	$	6,132
Other real estate owned, net:
Residential mortgage	$	178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

	June 30, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans:
Residential mortgage	$	2,339	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 9%		8.17	%
Non-residential mortgage		2,282	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.27	%
Commercial business		129	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	0% - 0%		0.00	%
Total	$	4,750
Other real estate owned, net:
Residential mortgage		178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

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

(2) The fair value basis of impaired loans and other real estate owned is adjusted to reflect management’s estimates of selling costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees.

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

At September 30, 2020, collateral dependent loans valued using Level 3 inputs comprised loans with principal balances totaling $6.9 million and valuation allowances of $800,000 reflecting fair values of $6.1 million. By comparison, at June 30, 2020, under previously applicable GAAP, impaired loans valued using Level 3 inputs comprised loans with principal balances totaling $4.8 million and valuation allowances of $89,000 reflecting fair values of $4.8 million.

Once a loan is foreclosed, the fair value of the other real estate owned continues to be evaluated based upon the fair value of the repossessed real estate originally securing the loan.  At September 30, 2020, the Company held other real estate owned totaling $178,000 whose carrying value was written down utilizing Level 3 inputs.  By comparison, at June 30, 2020, the Company held other real estate owned totaling $178,000 whose carrying value was written down utilizing Level 3 inputs.

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	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	$	145,818	$	145,818	$	145,818	$	-	$	-
Investment securities available for sale		1,508,542		1,508,542		-		1,508,542		-
Investment securities held to maturity		31,576		33,136		-		33,136		-
Loans held-for-sale		20,170		20,956		-		20,956		-
Net loans receivable		4,889,890		4,926,728		-		-		4,926,728
FHLB Stock		55,118		-		-		-		-
Interest receivable		20,368		20,368		2		4,131		16,235
Interest rate contracts		175		175		-		175		-
Financial liabilities:
Deposits		5,039,912		5,057,201		3,074,090		-		1,983,111
Borrowings		1,077,540		1,117,783		-		-		1,117,783
Interest payable on deposits		500		500		258		-		242
Interest payable on borrowings		1,680		1,680		-		-		1,680
Interest rate contracts		15,857		15,857		-		15,857		-

	June 30, 2020
	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	$	180,967	$	180,967	$	180,967	$	-	$	-
Investment securities available for sale		1,385,703		1,385,703		-		1,385,703		-
Investment securities held to maturity		32,556		34,069		-		34,069		-
Loans held-for-sale		20,789		21,550		-		21,550		-
Net loans receivable		4,461,070		4,462,232		-		-		4,462,232
FHLB Stock		58,654		-		-		-		-
Interest receivable		17,373		17,373		4		4,154		13,215
Interest rate contracts		235		235		-		235		-
Financial liabilities:
Deposits		4,430,282		4,449,877		2,589,886		-		1,859,991
Borrowings		1,173,165		1,215,529		-		-		1,215,529
Interest payable on deposits		395		395		295		-		100
Interest payable on borrowings		1,723		1,723		-		-		1,723
Interest rate contracts		18,177		18,177		-		18,177		-

Commitments. The fair value of commitments to fund credit lines and originate or participate in loans held in portfolio or loans held for sale 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, including those relating to loans held for sale that are considered derivative instruments for financial statement reporting purposes, the 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.

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 fair 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.

Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.

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Comprehensive (Loss) Income

3 Months Ended

Sep. 30, 2020

Equity [Abstract]

Comprehensive (Loss) Income

17.     COMPREHENSIVE INCOME

The components of accumulated other comprehensive income included in stockholders’ equity at September 30, 2020 and June 30, 2020 are as follows:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Net unrealized gain on securities available for sale	$	24,041		$	22,482
Tax effect		(7,047	)		(6,541	)
Net of tax amount		16,994			15,941
Fair value adjustments on derivatives		(17,157	)		(19,418	)
Tax effect		5,114			5,730
Net of tax amount		(12,043	)		(13,688	)
Benefit plan adjustments		(1,391	)		(1,412	)
Tax effect		414			416
Net of tax amount		(977	)		(996	)
Total accumulated other comprehensive income	$	3,974		$	1,257

Other comprehensive income and related tax effects for the three months ended September 30, 2020 and September 30, 2019 are presented in the following table:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Net unrealized holding gain on securities   available for sale	$	1,182		$	10,157
Amortization of net unrealized holding loss on   securities available for sale transferred to held   to maturity (1)		-			596
Net realized loss on sale and call of securities   available for sale (2)		377			13
Fair value adjustments on derivatives		2,261			(3,130	)
Benefit plans:
Amortization of actuarial loss		21			5
Net actuarial loss (3)		-			470
Net change in benefit plan accrued expense		21			475
Other comprehensive income before taxes		3,841			8,111
Tax effect		(1,124	)		(2,260	)
Total other comprehensive income	$	2,717		$	5,851

(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 gain on sale of securities on the consolidated statements of income.

(3) 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.

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Revenue Recognition

3 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

18.     REVENUE RECOGNITION

Effective July 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of OREO.

The Company, using a modified retrospective transition approach, determined that there was no cumulative effect adjustment to retained earnings as a result of adopting the new standard, nor did the standard have a material impact on our consolidated financial statements including the timing or amounts of revenue recognized.

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the three months ended September 30, 2020 and 2019.  Sources of revenue outside the scope of ASC 606 are noted as such.

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Non-interest income:
Deposit-related fees and charges	$	349		$	476
Loan-related fees and charges (1)		727			992
Loss on sale and call of securities (1)		(377	)		(14	)
Gain on sale of loans (1)		1,890			605
Income from bank owned life insurance (1)		1,596			1,580
Electronic banking fees and charges (interchange income)		405			318
Bargain purchase gain (1)		3,053			-
Other income (1)		90			5
Total non-interest income	$	7,733		$	3,962

(1) Not within the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 is as follows:

Service Charges on Deposit Accounts

The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Gains/Losses on Sales of OREO

The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. Gain/Losses on the sales of OREO falls within the scope of ASC 606, if the Company finances the transaction.  Under ASC 606, if the Company finances the sale of OREO to the buyer, the Company is required to assess whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Generally, the Company does not finance the sale of OREO properties.

Interchange Income

The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Principles of Consolidation

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 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.

Basis of Presentation

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 (loss) 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, 2020 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, 2020 was derived from the Company’s 2020 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 2020 Annual Report on Form 10-K.

Risk and Uncertainties

Risks and Uncertainties

As previously disclosed, on March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, and may continue to adversely affect, local, national and global economic activity. The spread of the outbreak has caused significant disruptions to the U.S. economy, significant reductions in the targeted federal funds rate and has disrupted banking and other financial activity in the areas in which the Company operates. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic.

  These reductions in interest rates and other effects of the COVID-19 pandemic may continue to materially and adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company.  It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions, including estimates regarding expected credit losses on loans receivable, impairment of investment securities and impairment of goodwill. Although the Company continues to operate while taking steps to ensure the safety of employees and clients, COVID-19 could also potentially create widespread business continuity issues for the Company.

The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations in future periods will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic, as well as further actions the Company may take as may be required by government authorities or that the Company determines is in the best interests of its employees and clients. There is no certainty that such measures will be sufficient to mitigate the risks posed by the pandemic.

Adoption of New Accounting Standards

Adoption of New Accounting Standards

On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology.  The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after July 1, 2020 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.  At adoption, the Company increased its allowance for credit losses by $20.2 million, comprised of $19.6 million for loans receivable and $536,000 for unfunded commitments. Upon adoption the Company recorded a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax.

Allowance for Credit Losses

Allowance for Credit Losses

The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense.

Allowance for Credit Losses on Loans Receivable

The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.  If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include multi-family, nonresidential mortgage, commercial business, construction, one- to four-family residential, home equity and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount.

The Company estimates the allowance for credit losses on loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Furthermore, the Company considers the inherent uncertainty in quantitative models that are built upon historical data.

Individually Evaluated Loans

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.

Acquired Loans

Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded in other non-interest expense in the consolidated statements of income.

Allowance for Credit Losses on Held to Maturity Securities

The Company’s entire portfolio of held to maturity securities consists of municipal bonds which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized.

Allowance for Credit Losses on Available for Sale Securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued Interest Receivable

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $16.2 million at September 30, 2020 and is excluded from the estimate of credit losses. Accrued interest receivable on available of sale securities and held to maturity securities, also a component of accrued interest receivable on the Consolidated Statement of Financial Condition, totaled $3.9 million and $241,000, respectively, at September 30, 2020 and is excluded from the estimate of credit losses.

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

3 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Calculations

The following schedule shows the Company’s earnings per share calculations for the periods presented:

	Three Months Ended September 30,
	2020		2019
Net income	$	11,379	$	11,370
Weighted average number of common shares outstanding - basic		86,008		84,756
Effect of dilutive securities		1		37
Weighted average number of common shares outstanding- diluted		86,009		84,793
Basic earnings per share	$	0.13	$	0.13
Diluted earnings per share	$	0.13	$	0.13

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Acquisition of MSB Financial Corp. (Tables)

3 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value

The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table:

	As Recorded by MSB			Fair Value Adjustments				As Recorded at Acquisition
	(In Thousands)
Cash paid for acquisition								$	9,830
Value of stock issued									45,133
Total purchase price								$	54,963
Cash and cash equivalents	$	14,126		$	-			$	14,126
Investment securities		4,000			(510	)	(a)		3,490
Loans receivable		537,589			(7,345	)	(b)		530,244
Allowance for loan losses		(6,037	)		6,037		(c)		-
Premises and equipment		7,698			(3,221	)	(d)		4,477
FHLB stock		3,345			-				3,345
Accrued interest receivable		1,701			-				1,701
Core deposit intangibles		-			690		(e)		690
Bank owned life insurance		14,663			-				14,663
Deferred income taxes, net		1,729			2,152		(f)		3,881
Other assets		4,830			495		(g)		5,325
Total assets acquired	$	583,644		$	(1,702	)		$	581,942
Deposits	$	458,392		$	1,786		(h)	$	460,178
FHLB borrowings		62,900			-				62,900
Advance payments by borrowers for taxes		794			-				794
Other liabilities		810			(756	)	(i)		54
Total liabilities assumed	$	522,896		$	1,030			$	523,926
Net assets acquired								$	58,016
Bargain purchase gain								$	(3,053	)

Explanation of certain fair value related adjustments:

(a) Represents the fair value adjustments on investment securities.

(b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

(c) Represents the elimination of MSB’s allowance for loan losses.

(d) Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e) Represents the intangible assets recorded to reflect the fair value of core deposits.  The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g) Represents an adjustment to other assets acquired.

(h) Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i) Represents an adjustment to other liabilities assumed.

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Securities (Tables)

3 Months Ended

Sep. 30, 2020

Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities

At September 30, 2020, there was no allowance for credit losses on available for sale securities. The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated:

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	49,697	$	1,180	$	-	$	50,877
Asset-backed securities		260,174		239		1,612		258,801
Collateralized loan obligations		198,015		8		1,625		196,398
Corporate bonds		121,436		1,123		283		122,276
Trust preferred securities		2,967		-		194		2,773
Total debt securities		632,289		2,550		3,714		631,125
Mortgage-backed securities:
Collateralized mortgage obligations (1)		25,065		705		-		25,770
Residential pass-through securities (1)		611,981		13,734		-		625,715
Commercial pass-through securities (1)		215,166		10,794		28		225,932
Total mortgage-backed securities		852,212		25,233		28		877,417
Total securities available for sale	$	1,484,501	$	27,783	$	3,742	$	1,508,542

(1) Government-sponsored enterprises.

	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions	$	52,843	$	1,211	$	-		54,054
Asset-backed securities		177,413		-		4,966		172,447
Collateralized loan obligations		198,619		-		4,831		193,788
Corporate bonds		142,942		1,267		570		143,639
Trust preferred securities		2,967		-		340		2,627
Total debt securities		574,784		2,478		10,707		566,555
Mortgage-backed securities:
Collateralized mortgage obligations (1)		30,043		860		-		30,903
Residential pass-through securities (1)		543,819		18,135		-		561,954
Commercial pass-through securities (1)		214,575		11,716		-		226,291
Total mortgage-backed securities		788,437		30,711		-		819,148
Total securities available for sale	$	1,363,221	$	33,189	$	10,707	$	1,385,703

(1) Government-sponsored enterprises.

Amortized Cost, Gross Unrecognized Gains and Losses and Fair Values of Securities

	September 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	31,576	$	1,560	$	-	$	33,136
Total debt securities		31,576		1,560		-		33,136
Total securities held to maturity	$	31,576	$	1,560	$	-	$	33,136

	June 30, 2020
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions	$	32,556	$	1,513	$	-	$	34,069
Total debt securities		32,556		1,513		-		34,069
Total securities held to maturity	$	32,556	$	1,513	$	-	$	34,069

Sales of Securities Available for Sale

Sales of securities available for sale were as follows for the periods presented below:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities	$	19,600		$	3,646
Gross realized gains	$	-		$	12
Gross realized losses		(385	)		(28	)
Net loss on sales of securities	$	(385	)	$	(16	)

Schedule Of Available For Sale Securities Pledged

The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below:

	September 30,		June 30,
	2020		2020
	(In Thousands)
Securities pledged:
Pledged for borrowings at the FHLB of New York	$	166,267	$	155,288
Pledged to secure public funds on deposit		107,260		19,944
Pledged for potential borrowings at the Federal Reserve Bank of New York		342,601		366,482
Pledged as collateral for depositor sweep accounts		-		7,830
Total carrying value of securities pledged	$	616,128	$	549,544

Securities Held to Maturity [Member]

Stratification by Contractual Maturity of Securities

The following tables present the amortized cost and estimated fair values of debt securities, by contractual maturity, at September 30, 2020:

	September 30, 2020
	Amortized Cost		Fair Value
	(In Thousands)
Debt securities:
Due in one year or less	$	6,696	$	6,727
Due after one year through five years		85,068		86,141
Due after five years through ten years		289,819		291,495
Due after ten years		282,282		279,898
Total	$	663,865	$	664,261

Securities Available for Sale [Member]

Schedule of Fair Values and Gross Unrealized and Unrecognized Losses on Investments

The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	81,712	$	1,006	$	54,166	$	606		13	$	135,878	$	1,612
Collateralized loan obligations		53,946		228		134,037		1,397		18		187,983		1,625
Corporate bonds		33,302		199		19,916		84		7		53,218		283
Trust preferred securities		-		-		2,773		194		2		2,773		194
Commercial pass-through securities		15,496		28		-		-		1		15,496		28
Total	$	184,456	$	1,461	$	210,892	$	2,281		41	$	395,348	$	3,742

	June 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities	$	146,494	$	3,962	$	25,954	$	1,004		16	$	172,448	$	4,966
Collateralized loan obligations		71,282		1,245		122,506		3,586		19		193,788		4,831
Corporate bonds		24,764		236		39,651		334		8		64,415		570
Trust preferred securities		-		-		2,626		340		2		2,626		340
Total	$	242,540	$	5,443	$	190,737	$	5,264		45	$	433,277	$	10,707

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Loans Receivable (Tables)

3 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Schedule of Loans Receivable

The following table sets forth the composition of the Company’s loan portfolio at September 30, 2020 and June 30, 2020:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Commercial loans:
Multi-family mortgage	$	2,110,300		$	2,059,568
Nonresidential mortgage		1,124,330			960,853
Commercial business (1)		255,888			138,788
Construction		79,178			20,961
Total commercial loans		3,569,696			3,180,170
One- to four-family residential mortgage		1,353,197			1,273,022
Consumer loans:
Home equity loans		71,540			82,920
Other consumer		4,136			3,991
Total consumer loans		75,676			86,911
Total loans		4,998,569			4,540,103
Unaccreted yield adjustments		(43,819	)		(41,706	)
Total loans receivable, net of yield adjustments	$	4,954,750		$	4,498,397

(1) Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

Contractual Payment Status of Past Loans Receivable

The following tables present the payment status of past due loans as of September 30, 2020 and June 30, 2020, by loan segment:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,110,300	$	1,100,082	$	255,524	$	79,154	$	1,345,532	$	71,057	$	4,129	$	4,965,778
Past due:
30-59 days		-		6,171		-		24		1,558		6		2		7,761
60-89 days		-		497		60		-		1,024		6		-		1,587
90 days and over		-		17,580		304		-		5,083		471		5		23,443
Total past due		-		24,248		364		24		7,665		483		7		32,791
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Current	$	2,059,568	$	941,714	$	138,439	$	20,961	$	1,264,267	$	82,358	$	3,981	$	4,511,288
Past due:
30-59 days		-		-		-		-		3,211		169		-		3,380
60-89 days		-		14,478		-		-		1,038		13		5		15,534
90 days and over		-		4,661		349		-		4,506		380		5		9,901
Total past due		-		19,139		349		-		8,755		562		10		28,815
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Performance Status of Loans Receivable

The following tables present information relating to the Company’s nonperforming loans as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,107,376	$	1,097,576	$	255,349	$	76,640	$	1,341,463	$	70,959	$	4,131	$	4,953,494
Nonperforming:
90 days and over past due accruing		-		238		-		-		-		-		-		238
Nonaccrual loans with allowance for credit losses		-		3,191		124		-		1,401		6		5		4,727
Nonaccrual loans with no allowance for credit losses		2,924		23,325		415		2,538		10,333		575		-		40,110
Total nonperforming		2,924		26,754		539		2,538		11,734		581		5		45,075
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Performing	$	2,056,606	$	936,917	$	138,196	$	20,961	$	1,264,663	$	82,078	$	3,986	$	4,503,407
Nonperforming:
90 days and over past due accruing		-		-		-		-		-		-		5		5
Nonaccrual		2,962		23,936		592		-		8,359		842		-		36,691
Total nonperforming		2,962		23,936		592		-		8,359		842		5		36,696
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Troubled Debt Restructurings of Loans Receivable

The following tables present total TDR loans at September 30, 2020 and June 30, 2020:

	September 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,924		1	$	2,924
Nonresidential mortgage		1		110		8		2,755		9		2,865
Commercial business		5		5,103		5		434		10		5,537
Construction		-		-		1		2,538		1		2,538
Total commercial loans		6		5,213		15		8,651		21		13,864
One- to four-family residential mortgage		14		2,067		19		3,541		33		5,608
Consumer loans:
Home equity loans		8		543		1		97		9		640
Total		28	$	7,823		35	$	12,289		63	$	20,112

	June 30, 2020
	Accrual				Non-accrual				Total
	# of Loans		Amount		# of Loans		Amount		# of Loans		Amount
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		-	$	-		1	$	2,962		1	$	2,962
Nonresidential mortgage		1		112		9		5,442		10		5,554
Commercial business		5		5,179		6		446		11		5,625
Total commercial loans		6		5,291		16		8,850		22		14,141
One- to four-family residential mortgage		14		2,407		20		3,811		34		6,218
Consumer loans:
Home equity loans		12		715		2		448		14		1,163
Total		32	$	8,413		38	$	13,109		70	$	21,522

The following tables present information regarding the restructuring of the Company’s troubled debts during the three months ended September 30, 2020 and September 30, 2019.

	Three Months Ended September 30, 2020
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Residential mortgage		1	$	309	$	308
Total		1	$	309	$	308

	Three Months Ended September 30, 2019
	# of Loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
	(Dollars In Thousands)
Commercial business		3		1,775		1,829
Residential mortgage		2		1,002		938
Home equity loans		1		82		81
Total		6	$	2,859	$	2,848

Schedule of Modified Non-TDR Loans by Loan Segments

The following table sets forth the composition of these loans by loan segments as of September 30, 2020:

	September 30, 2020
	# of Loans (1)		Balance (1)
	(Dollars In Thousands)
Commercial loans:
Multi-family mortgage loans		7	$	15,910
Nonresidential mortgage		11		41,660
Commercial business		4		2,684
Construction		1		2,537
Total commercial loans		23		62,791
Residential mortgage		36		13,866
Consumer loans:
Home equity loans		4		252
Total loans		63	$	76,909

(1) Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

Carrying Value of Collateral Dependent Individually Analyzed Loans

The following table presents the carrying value of collateral dependent individually analyzed loans:

	September 30, 2020
	Carrying Value		Related Allowance
	(In Thousands)
Commercial loans:
Nonresidential mortgage (1)	$	24,120	$	580
Commercial business (2)		199		-
Total commercial loans		24,319		580
Residential mortgage (3)		7,722		218
Consumer loans:
Home equity loans (3)		471		-
Total	$	32,512	$	798

(1) Secured by income-producing property.

(2) Secured by business assets.

(3) Secured by one- to four-family properties.

Impairment Status of Loans Receivable

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment by portfolio segment as of June 30, 2020:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans		Other Consumer		Total
	(In Thousands)
Carrying value of impaired loans:
Non-impaired loans	$	2,056,606	$	936,805		$	132,999		$	20,961	$	1,262,256		$	81,363	$	3,991	$	4,494,981
Impaired loans:
Impaired loans with no allowance   for impairment		2,962		22,516			5,622			-		10,659			1,557		-		43,316
Impaired loans with allowance   for impairment:
Recorded investment		-		1,532			167			-		107			-		-		1,806
Allowance for impairment		-		(41	)		(47	)		-		(1	)		-		-		(89	)
Balance of impaired loans net   of allowance for impairment		-		1,491			120			-		106			-		-		1,717
Total impaired loans, excluding   allowance for impairment:		2,962		24,048			5,789			-		10,766			1,557		-		45,122
Total loans	$	2,059,568	$	960,853		$	138,788		$	20,961	$	1,273,022		$	82,920	$	3,991	$	4,540,103
Unpaid principal balance   of impaired loans:
Total impaired loans	$	3,544	$	25,898		$	8,778		$	73	$	12,908		$	1,950	$	-	$	53,151

Credit-Rating Classification of Loans Receivable

The following table presents the risk category of loans as of September 30, 2020 by loan segment and vintage year:

	Term Loans Amortized Cost by Origination Year for Fiscal Years ended June 30,
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
	(In Thousands)
Multi-family mortgage:
Pass	$	71,975	$	261,063	$	436,822	$	413,844	$	416,703	$	486,683	$	-	$	2,087,090
Special Mention		-		-		-		-		-		10,060		-		10,060
Substandard		-		-		-		2,924		10,226		-		-		13,150
Doubtful		-		-		-		-		-		-		-		-
Total multi-family mortgage		71,975		261,063		436,822		416,768		426,929		496,743		-		2,110,300
Non-residential mortgage:
Pass		10,968		85,510		79,459		79,873		296,213		533,504		6,249		1,091,776
Special Mention		-		-		-		-		-		4,373		-		4,373
Substandard		-		-		-		-		16,028		12,153		-		28,181
Doubtful		-		-		-		-		-		-		-		-
Total non-residential mortgage		10,968		85,510		79,459		79,873		312,241		550,030		6,249		1,124,330
Commercial business:
Pass		18,802		97,441		5,086		28,363		11,684		26,666		62,032		250,074
Special Mention		-		-		11		2,370		147		15		-		2,543
Substandard		-		84		-		1,598		65		1,337		187		3,271
Doubtful		-		-		-		-		-		-		-		-
Total commercial business		18,802		97,525		5,097		32,331		11,896		28,018		62,219		255,888
Construction loans:
Pass		1,454		17,123		14,354		20,643		15,715		1,592		5,735		76,616
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		2,562		-		2,562
Doubtful		-		-		-		-		-		-		-		-
Total construction loans		1,454		17,123		14,354		20,643		15,715		4,154		5,735		79,178
Residential mortgage:
Pass		50,150		204,875		114,802		111,794		178,430		673,678		921		1,334,650
Special Mention		-		-		-		-		-		713		-		713
Substandard		-		452		589		-		573		16,220		-		17,834
Doubtful		-		-		-		-		-		-		-		-
Total residential mortgage		50,150		205,327		115,391		111,794		179,003		690,611		921		1,353,197
Home equity loans:
Pass		206		4,672		8,192		4,158		3,366		20,943		28,637		70,174
Special Mention		-		-		-		-		-		175		26		201
Substandard		-		-		-		-		68		1,097		-		1,165
Doubtful		-		-		-		-		-		-		-		-
Total home equity loans		206		4,672		8,192		4,158		3,434		22,215		28,663		71,540
Other consumer loans
Pass		280		565		818		240		137		1,899		75		4,014
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		1		1
Doubtful		-		-		-		-		-		5		116		121
Other consumer loans		280		565		818		240		137		1,904		192		4,136
Total loans	$	153,835	$	671,785	$	660,133	$	665,807	$	949,355	$	1,793,675	$	103,979	$	4,998,569

The following table presents, under previously applicable GAAP, the risk category of loans as of June 30, 2020 by loan segment:

	June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Pass	$	2,055,520	$	932,202	$	132,818	$	20,961	$	1,258,246	$	81,120	$	3,979	$	4,484,846
Special Mention		1,086		4,373		2,585		-		981		157		5		9,187
Substandard		2,962		24,278		3,385		-		13,795		1,643		6		46,069
Doubtful		-		-		-		-		-		-		1		1
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103

Acquisition Amount of MSB Purchased Loans

The carrying amount of those loans is as follows:

	At July 10, 2020
	(In Thousands)
Purchase price of PCD loans at acquisition	$	69,415
Allowance for credit losses at acquisition		(3,901	)
Non-credit discount at acquisition		(167	)
Amortized cost of acquired PCD loans at acquisition	$	65,347

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Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Allowance for Credit Losses and Balance of Loans Receivable

The following tables present the balance of the allowance for credit losses at September 30, 2020 and June 30, 2020.  For the three months ended September 30, 2020, the balance of the allowance for credit losses is based on the CECL methodology, as noted above. For the year ended June 30, 2020, the allowance for loan losses is based upon the calculation methodology as described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. 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.

Allowance for Credit Losses
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for credit losses:
Loans acquired with deteriorated   credit quality individually   analyzed	$	-	$	527	$	-	$	-	$	218	$	-	$	-	$	745
Loans acquired with deteriorated   credit quality collectively   analyzed		211		1,126		854		136		249		22		-		2,598
Loans individually   evaluated for impairment		-		54		681		-		1		-		-		736
Loans collectively   evaluated for impairment		28,355		13,387		2,820		969		14,367		836		47		60,781
Total allowance for credit losses	$	28,566	$	15,094	$	4,355	$	1,105	$	14,835	$	858	$	47	$	64,860

Balance of Loans Receivable
September 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality  individually   evaluated	$	-	$	1,658	$	200	$	-	$	3,853	$	366	$	-	$	6,077
Loans acquired with deteriorated   credit quality collectively   evaluated		5,690		31,733		11,711		9,408		4,995		369		5		63,911
Loans individually   evaluated for impairment		2,924		24,858		339		2,538		7,881		215		-		38,755
Loans collectively   evaluated for impairment		2,101,686		1,066,081		243,638		67,232		1,336,468		70,590		4,131		4,889,826
Total loans	$	2,110,300	$	1,124,330	$	255,888	$	79,178	$	1,353,197	$	71,540	$	4,136	$	4,998,569
Unaccreted yield adjustments																(43,819	)
Loans receivable, net of yield adjustments															$	4,954,750

Allowance for Loan Losses
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of allowance for loan losses:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans individually   evaluated for impairment		-		41		47		-		1		-		-		89
Loans collectively   evaluated for impairment		20,916		8,722		1,879		236		4,859		568		58		37,238
Total allowance for loan losses	$	20,916	$	8,763	$	1,926	$	236	$	4,860	$	568	$	58	$	37,327

Balance of Loans Receivable
June 30, 2020
	Multi-Family Mortgage		Non- Residential Mortgage		Commercial Business		Construction		Residential Mortgage		Home Equity Loans		Other Consumer		Total
	(In Thousands)
Balance of loans receivable:
Loans acquired with deteriorated   credit quality	$	-	$	-	$	222	$	-	$	77	$	-	$	-		299
Loans individually   evaluated for impairment		2,962		24,048		5,567		-		10,689		1,557		-		44,823
Loans collectively   evaluated for impairment		2,056,606		936,805		132,999		20,961		1,262,256		81,363		3,991		4,494,981
Total loans	$	2,059,568	$	960,853	$	138,788	$	20,961	$	1,273,022	$	82,920	$	3,991	$	4,540,103
Unaccreted yield adjustments																(41,706	)
Loans receivable, net of yield adjustments															$	4,498,397

The following table presents the activity in the ACL on loans for the three months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Multi-Family Mortgage			Non- Residential Mortgage		Commercial Business			Construction		Residential Mortgage		Home Equity Loans		Other Consumer			Total
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020 (prior to adoption of ASC 326):	$	20,916		$	8,763	$	1,926		$	236	$	4,860	$	568	$	58		$	37,327
Impact of adopting Topic 326		8,408			2,390		(421	)		80		9,106		92		(15	)		19,640
Charge offs		-			-		(63	)		-		-		-		(10	)		(73	)
Recoveries		-			-		2			-		-		-		4			6
Initial allowance on PCD loans		250			1,720		1,007			99		720		105		-			3,901
Provision for credit losses		(1,008	)		2,221		1,904			690		149		93		10			4,059
Total allowance for credit losses	$	28,566		$	15,094	$	4,355		$	1,105	$	14,835	$	858	$	47		$	64,860

For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2019:

	Three Months Ended September 30, 2019
	Multi-Family Mortgage			Non- Residential Mortgage			Commercial Business			Construction		Residential Mortgage			Home Equity Loans			Other Consumer			Total
	(In Thousands)
Changes in the allowance for loan   losses for the three months ended   September 30, 2019:
At June 30, 2019:	$	16,959		$	9,672		$	2,467		$	136	$	3,377		$	491		$	172		$	33,274
Total charge offs		-			-			-			-		-			-			(64	)		(64	)
Total recoveries		-			-			-			-		-			-			4			4
Total provisions		(257	)		(301	)		(174	)		4		(70	)		(13	)		29			(782	)
Total allowance for loan losses	$	16,702		$	9,371		$	2,293		$	140	$	3,307		$	478		$	141		$	32,432

Allowance for Credit Losses on Financing Receivables Off Balance Sheet Commitments

The following table presents the activity in the ACL on off balance sheet commitments for the three months ended September 30, 2020:

	Three Months Ended
	September 30, 2020
	(In Thousands)
Changes in the allowance for credit   losses for the three months ended   September 30, 2020:
At June 30, 2020	$	-
Impact of adopting Topic 326 (1)		536
Provision recorded in other non-interest expense		468
Total allowance for credit losses on off balance sheet commitments	$	1,004

(1) Adoption of CECL accounting standard effective July 1, 2020.

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Leases (Tables)

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Future Minimum Rental Commitments for Operating Leases

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at September 30, 2020 is as follows:

	September 30,
	2020
	(In Thousands)
Less than one year	$	3,649
After one year but within two years		3,311
After two years but within three years		2,606
After three years but within four years		1,877
After four years but within five years		1,498
Greater than five years		7,007
Total undiscounted cash flows		19,948
Less: discount on cash flows		(2,028	)
Total lease liability	$	17,920

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Deposits (Tables)

3 Months Ended

Sep. 30, 2020

Deposits [Abstract]

Schedule of Deposits

Deposits are summarized as follows:

	September 30,		June 30,
	2020			2020
	(In Thousands)
Non-interest-bearing demand	$	487,710	$	419,138
Interest-bearing demand		1,561,135		1,264,151
Savings		1,025,245		906,597
Certificates of deposits		1,965,822		1,840,396
Total deposits	$	5,039,912	$	4,430,282

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Borrowings (Tables)

3 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Fixed Rate Advances from FHLB

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

	September 30, 2020						June 30, 2020
	Balance			Weighted Average Interest Rate			Balance			Weighted Average Interest Rate
	(Dollars in Thousands)
By remaining period to maturity:
Less than one year	$	775,000			0.40	%	$	865,000			0.45	%
One to two years		27,000			2.85			27,000			2.85
Two to three years		145,000			3.04			145,000			3.04
Three to four years		22,500			2.63			22,500			2.63
Four to five years		103,500			2.68			103,500			2.68
Greater than five years		6,500			2.82			6,500			2.82
Total advances		1,079,500			1.10	%		1,169,500			1.08	%
Unamortized fair value adjustments		(1,960	)					(2,071	)
Total advances, net of   fair value adjustments	$	1,077,540					$	1,167,429

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Financial Instruments as well as Their Classification on Statement of Financial Condition

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	175	Other liabilities	$	15,857
Total		$	175		$	15,857

	June 30, 2020
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging    instruments:
Interest rate contracts	Other assets	$	235	Other liabilities	$	18,177
Total		$	235		$	18,177

Pre-tax Effects of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income

The tables below present the pre-tax effects of the Company’s derivative instruments on the Consolidated Statements of Income for the three months ended September 30, 2020 and 2019:

	Three Months Ended September 30, 2020
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(111	)	Interest expense	$	(2,372	)
Total	$	(111	)		$	(2,372	)

	Three Months Ended September 30, 2019
	Amount of Gain (Loss) Recognized in OCI on Derivatives			Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	(In Thousands)
Derivatives in cash flow    hedging relationships:
Interest rate contracts	$	(1,759	)	Interest expense	$	1,371
Total	$	(1,759	)		$	1,371

Offsetting Derivatives

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of September 30, 2020 and June 30, 2020, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

	September 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	479	$	(304	)	$	175	$	-	$	-		$	175
Total	$	479	$	(304	)	$	175	$	-	$	-		$	175
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-
Total	$	16,161	$	(304	)	$	15,857	$	-	$	(15,857	)	$	-

	June 30, 2020
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Received			Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	592	$	(357	)	$	235	$	-	$	-		$	235
Total	$	592	$	(357	)	$	235	$	-	$	-		$	235
								Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset			Net Amounts Presented		Financial Instruments		Cash Collateral Posted			Net Amount
	(In Thousands)
Liabilities:
Interest rate contracts	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-
Total	$	18,534	$	(357	)	$	18,177	$	-	$	(18,177	)	$	-

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Benefit Plans (Tables)

3 Months Ended

Sep. 30, 2020

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						Affected Line Item in the Consolidated
	September 30,						Statements of Income
	2020			2019
	(In Thousands)
Service cost	$	26		$	20		Salaries and employee benefits
Interest cost		66			81		Miscellaneous non-interest  expense
Amortization of unrecognized loss		21			5		Miscellaneous non-interest  expense
Expected return on assets		(28	)		(28	)	Miscellaneous non-interest  expense
Net periodic benefit cost	$	85		$	78

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Income Taxes (Tables)

3 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rate of 21% to income for the three months ended September 30, 2020 and September 30, 2019:

	Three Months Ended
	September 30,
	2020			2019
	(Dollars in Thousands)
Income before income taxes	$	14,263		$	15,187
Statutory federal tax rate		21	%		21	%
Federal income tax expense at statutory rate	$	2,995		$	3,189
(Reduction) increases in income taxes resulting from:
Tax exempt interest		(94	)		(144	)
State tax, net of federal tax effect		784			1,241
Incentive stock option compensation expense		20			17
Income from bank-owned life insurance		(327	)		(333	)
Non-deductible merger-related expenses		49			-
Bargain purchase gain		(641	)
Other items, net		98			(153	)
Total income tax expense	$	2,884		$	3,817
Effective income tax rate		20.22	%		25.13	%

Schedule of Deferred Income Tax Assets and Liabilities

The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:

	September 30,			June 30,
	2020				2020
	(Unaudited)
	(In Thousands)
Deferred income tax assets:
Purchase accounting	$	12,134		$	11,668
Accumulated other comprehensive income:
Defined benefit plans		414			416
Derivatives		5,114			5,730
Allowance for credit losses		19,370			11,047
Benefit plans		2,302			2,290
Compensation		434			1,287
Stock-based compensation		2,684			2,482
Uncollected interest		1,460			1,362
Depreciation		978			268
Net operating loss carryover		6			6
Capital loss carryforward		339			329
Deferred loan fees and costs		236			10
Other items		796			1,039
		46,267			37,934
Valuation allowance		(523	)		(535	)
		45,744			37,399
Deferred income tax liabilities:
Accumulated other comprehensive income:
Unrealized gain on securities available for sale		7,047			6,541
Goodwill		4,632			4,655
Other items		746			723
		12,425			11,919
Net deferred income tax asset	$	33,319		$	25,480

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Assets Measured At Fair Value on a Recurring Basis

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

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		50,877		-		50,877
Asset-backed securities		-		258,801		-		258,801
Collateralized loan obligations		-		196,398		-		196,398
Corporate bonds		-		122,276		-		122,276
Trust preferred securities		-		2,773		-		2,773
Total debt securities		-		631,125		-		631,125
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		25,770		-		25,770
Residential pass-through securities		-		625,715		-		625,715
Commercial pass-through securities		-		225,932		-		225,932
Total mortgage-backed securities		-		877,417		-		877,417
Total securities available for sale	$	-	$	1,508,542	$	-	$	1,508,542
Interest rate contracts		-		175		-		175
Total assets	$	-	$	1,508,717	$	-	$	1,508,717
Liabilities:
Interest rate contracts	$	-	$	15,857	$	-	$	15,857
Total liabilities	$	-	$	15,857	$	-	$	15,857

	June 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions		-		54,054		-		54,054
Asset-backed securities		-		172,447		-		172,447
Collateralized loan obligations		-		193,788		-		193,788
Corporate bonds		-		143,639		-		143,639
Trust preferred securities		-		2,627		-		2,627
Total debt securities		-		566,555		-		566,555
Mortgage-backed securities available for sale:
Collateralized mortgage obligations		-		30,903		-		30,903
Residential pass-through securities		-		561,954		-		561,954
Commercial pass-through securities		-		226,291		-		226,291
Total mortgage-backed securities		-		819,148		-		819,148
Total securities available for sale		-		1,385,703		-		1,385,703
Interest rate contracts		-		235		-		235
Total assets	$	-	$	1,385,938	$	-	$	1,385,938
Liabilities:
Interest rate contracts	$	-	$	18,177	$	-	$	18,177
Total liabilities	$	-	$	18,177	$	-	$	18,177

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

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

	September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	-	$	-	$	2,731	$	2,731
Non-residential mortgage		-		-		3,401		3,401
Total	$	-	$	-	$	6,132	$	6,132
Other real estate owned, net:
Residential mortgage	$	-	$	-	$	178	$	178
Total	$	-	$	-	$	178	$	178

	June 30, 2020
	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:
Residential mortgage	$	-	$	-	$	2,339	$	2,339
Non-residential mortgage		-		-		2,282		2,282
Commercial business		-		-		129		129
Total	$	-	$	-	$	4,750	$	4,750
Other real estate owned, net:
Residential mortgage		-		-		178		178
Total	$	-	$	-	$	178	$	178

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, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Collateral dependent loans:
Residential mortgage	$	2,731	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 10%		7.90	%
Non-residential mortgage		3,401	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.02	%
Total	$	6,132
Other real estate owned, net:
Residential mortgage	$	178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

	June 30, 2020
	Fair Value		Valuation Techniques		Unobservable Input		Range	Weighted Average
	(In Thousands)
Impaired loans:
Residential mortgage	$	2,339	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	7% - 9%		8.17	%
Non-residential mortgage		2,282	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	9% - 12%		10.27	%
Commercial business		129	Market valuation of underlying collateral	(1)	Adjustments to reflect current conditions/selling costs	(2)	0% - 0%		0.00	%
Total	$	4,750
Other real estate owned, net:
Residential mortgage		178	Market valuation of underlying collateral	(3)	Adjustments to reflect current conditions/selling costs	(2)	6.00%		6.00	%
Total	$	178

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

(2) The fair value basis of impaired loans and other real estate owned is adjusted to reflect management’s estimates of selling costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees.

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

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2020 and June 30, 2020:

	September 30, 2020
	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	$	145,818	$	145,818	$	145,818	$	-	$	-
Investment securities available for sale		1,508,542		1,508,542		-		1,508,542		-
Investment securities held to maturity		31,576		33,136		-		33,136		-
Loans held-for-sale		20,170		20,956		-		20,956		-
Net loans receivable		4,889,890		4,926,728		-		-		4,926,728
FHLB Stock		55,118		-		-		-		-
Interest receivable		20,368		20,368		2		4,131		16,235
Interest rate contracts		175		175		-		175		-
Financial liabilities:
Deposits		5,039,912		5,057,201		3,074,090		-		1,983,111
Borrowings		1,077,540		1,117,783		-		-		1,117,783
Interest payable on deposits		500		500		258		-		242
Interest payable on borrowings		1,680		1,680		-		-		1,680
Interest rate contracts		15,857		15,857		-		15,857		-

	June 30, 2020
	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	$	180,967	$	180,967	$	180,967	$	-	$	-
Investment securities available for sale		1,385,703		1,385,703		-		1,385,703		-
Investment securities held to maturity		32,556		34,069		-		34,069		-
Loans held-for-sale		20,789		21,550		-		21,550		-
Net loans receivable		4,461,070		4,462,232		-		-		4,462,232
FHLB Stock		58,654		-		-		-		-
Interest receivable		17,373		17,373		4		4,154		13,215
Interest rate contracts		235		235		-		235		-
Financial liabilities:
Deposits		4,430,282		4,449,877		2,589,886		-		1,859,991
Borrowings		1,173,165		1,215,529		-		-		1,215,529
Interest payable on deposits		395		395		295		-		100
Interest payable on borrowings		1,723		1,723		-		-		1,723
Interest rate contracts		18,177		18,177		-		18,177		-

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Comprehensive (Loss) Income (Tables)

3 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive (Loss) Income

The components of accumulated other comprehensive income included in stockholders’ equity at September 30, 2020 and June 30, 2020 are as follows:

	September 30,			June 30,
	2020			2020
	(In Thousands)
Net unrealized gain on securities available for sale	$	24,041		$	22,482
Tax effect		(7,047	)		(6,541	)
Net of tax amount		16,994			15,941
Fair value adjustments on derivatives		(17,157	)		(19,418	)
Tax effect		5,114			5,730
Net of tax amount		(12,043	)		(13,688	)
Benefit plan adjustments		(1,391	)		(1,412	)
Tax effect		414			416
Net of tax amount		(977	)		(996	)
Total accumulated other comprehensive income	$	3,974		$	1,257

Schedule of Comprehensive (Loss) Income

Other comprehensive income and related tax effects for the three months ended September 30, 2020 and September 30, 2019 are presented in the following table:

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Net unrealized holding gain on securities   available for sale	$	1,182		$	10,157
Amortization of net unrealized holding loss on   securities available for sale transferred to held   to maturity (1)		-			596
Net realized loss on sale and call of securities   available for sale (2)		377			13
Fair value adjustments on derivatives		2,261			(3,130	)
Benefit plans:
Amortization of actuarial loss		21			5
Net actuarial loss (3)		-			470
Net change in benefit plan accrued expense		21			475
Other comprehensive income before taxes		3,841			8,111
Tax effect		(1,124	)		(2,260	)
Total other comprehensive income	$	2,717		$	5,851

(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 gain on sale of securities on the consolidated statements of income.

(3) 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.

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Revenue Recognition (Tables)

3 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Non Interest Income

The following table presents the Company’s sources of non-interest income for the three months ended September 30, 2020 and 2019.

	Three Months Ended
	September 30,
	2020			2019
	(In Thousands)
Non-interest income:
Deposit-related fees and charges	$	349		$	476
Loan-related fees and charges (1)		727			992
Loss on sale and call of securities (1)		(377	)		(14	)
Gain on sale of loans (1)		1,890			605
Income from bank owned life insurance (1)		1,596			1,580
Electronic banking fees and charges (interchange income)		405			318
Bargain purchase gain (1)		3,053			-
Other income (1)		90			5
Total non-interest income	$	7,733		$	3,962

(1) Not within the scope of ASC 606.

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)		3 Months Ended
	Jul. 01, 2020	Sep. 30, 2020	Jun. 30, 2020
Summary Of Significant Accounting Policies [Line Items]
Loans receivable allowance for credit loss		$ 64,860,000
Accrued interest receivable, writeoff		16,200,000
Available-for-sale securities accrued interest writeoff		3,900,000
Held-to-maturity securities accrued Interest writeoff		$ 241,000
ASU 2016-13 [Member]
Summary Of Significant Accounting Policies [Line Items]
Increase in allowance for credit loss	$ 20,200,000
Loans receivable allowance for credit loss	19,600,000
Unfunded commitments allowance for credit loss	536,000
Cumulative Effect Period Of Adoption Adjustment [Member]
Summary Of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle for the adoption of ASU 2017-08			$ (14,239,000)
Cumulative Effect Period Of Adoption Adjustment [Member] | ASU 2016-13 [Member]
Summary Of Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle for the adoption of ASU 2017-08	$ (14,200,000)

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Net Income Per Common Share (EPS) - Schedule of Earnings Per Share Calculations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income	$ 11,379	$ 11,370
Weighted average number of common shares outstanding - basic	86,008	84,756
Effect of dilutive securities	1	37
Weighted average number of common shares outstanding- diluted	86,009	84,793
Basic earnings per share	$ 0.13	$ 0.13
Diluted earnings per share	$ 0.13	$ 0.13

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Net Income Per Common Share (EPS) - Additional Information (Detail) - shares	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Number of stock options anti-dilutive	3,910,398	3,245,000

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Acquisition of MSB Financial Corp. - Additional Information (Detail) - USD ($)		3 Months Ended
	Jul. 10, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Bargain purchase gain		$ 3,053,000
MSB Financial Corporation [Member]
Business Acquisition [Line Items]
Closing date	Jul. 10, 2020
Cash paid for acquisition	$ 9,830,000
Issuance of shares of common stock to MSB stockholders in conjunction with merger	5,853,811
Bargain purchase gain	$ 3,053,000
Core deposit intangible	$ 690,000
MSB Financial Corporation [Member] | Core Deposit [Member]
Business Acquisition [Line Items]
Intangible asset, estimated useful life		10 years

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Acquisition of MSB Financial Corp. - Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value (Detail) - USD ($) $ in Thousands			3 Months Ended
		Jul. 10, 2020	Sep. 30, 2020	Jun. 30, 2020
Business Acquisition [Line Items]
Deferred income taxes, net			$ 12,134	$ 11,668
Bargain purchase gain			$ (3,053)
MSB Financial Corporation [Member]
Business Acquisition [Line Items]
Cash paid for acquisition		$ 9,830
Value of stock issued		45,133
Total purchase price		54,963
Cash and cash equivalents		14,126
Investment securities		3,490
Loans receivable		530,244
Premises and equipment		4,477
FHLB stock		3,345
Accrued interest receivable		1,701
Core deposit intangibles		690
Bank owned life insurance		14,663
Deferred income taxes, net		3,881
Other assets		5,325
Total assets acquired		581,942
Deposits		460,178
FHLB borrowings		62,900
Advance payments by borrowers for taxes		794
Other liabilities		54
Total liabilities assumed		523,926
Net assets acquired		58,016
Bargain purchase gain		(3,053)
MSB Financial Corporation [Member] | As Recorded by MSB [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		14,126
Investment securities		4,000
Loans receivable		537,589
Allowance for loan losses		(6,037)
Premises and equipment		7,698
FHLB stock		3,345
Accrued interest receivable		1,701
Bank owned life insurance		14,663
Deferred income taxes, net		1,729
Other assets		4,830
Total assets acquired		583,644
Deposits		458,392
FHLB borrowings		62,900
Advance payments by borrowers for taxes		794
Other liabilities		810
Total liabilities assumed		522,896
MSB Financial Corporation [Member] | Fair Value Adjustments [Member]
Business Acquisition [Line Items]
Investment securities	[1]	(510)
Loans receivable	[2]	(7,345)
Allowance for loan losses	[3]	6,037
Premises and equipment	[4]	(3,221)
Core deposit intangibles	[5]	690
Deferred income taxes, net	[6]	2,152
Other assets	[7]	495
Total assets acquired		(1,702)
Deposits	[8]	1,786
Other liabilities	[9]	(756)
Total liabilities assumed		$ 1,030

[1] Represents the fair value adjustments on investment securities.

[2] Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

[3] Represents the elimination of MSB’s allowance for loan losses.

[4] Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

[5] Represents the intangible assets recorded to reflect the fair value of core deposits.  The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

[6] Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

[7] Represents an adjustment to other assets acquired.

[8] Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

[9] Represents an adjustment to other liabilities assumed.

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Merger Related Expenses - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020
Business Acquisition [Line Items]
Merger-related expenses	$ 4,349,000
MSB Financial Corporation [Member]
Business Acquisition [Line Items]
Merger-related expenses	$ 4,300,000	$ 951,000

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Recent Accounting Pronouncements - Additional Information (Details) - Cumulative Effect Period Of Adoption Adjustment [Member] - USD ($) $ in Thousands	Jul. 01, 2020	Jun. 30, 2020
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cumulative effect of change in accounting principle for the adoption of ASU 2017-08		$ (14,239)
ASU 2016-13 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cumulative effect of change in accounting principle for the adoption of ASU 2017-08	$ (14,200)

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Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities (Detail) - USD ($) $ in Thousands		Sep. 30, 2020	Jun. 30, 2020
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		$ 663,865
Securities available for sale, Fair value		664,261
Securities available for sale, Amortized Cost		1,484,501	$ 1,363,221
Mortgage-backed securities, Gross Unrealized Gains		27,783	33,189
Mortgage-backed securities, Gross Unrealized Losses		3,742	10,707
Investment securities available for sale, at fair value		1,508,542	1,385,703
Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		632,289	574,784
Securities available for sale, Gross Unrealized Gains		2,550	2,478
Securities available for sale, Gross Unrealized Losses		3,714	10,707
Securities available for sale, Fair value		631,125	566,555
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		49,697	52,843
Securities available for sale, Gross Unrealized Gains		1,180	1,211
Securities available for sale, Fair value		50,877	54,054
Debt Securities [Member] | Asset-backed Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		260,174	177,413
Securities available for sale, Gross Unrealized Gains		239
Securities available for sale, Gross Unrealized Losses		1,612	4,966
Securities available for sale, Fair value		258,801	172,447
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		198,015	198,619
Securities available for sale, Gross Unrealized Gains		8
Securities available for sale, Gross Unrealized Losses		1,625	4,831
Securities available for sale, Fair value		196,398	193,788
Debt Securities [Member] | Corporate Bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		121,436	142,942
Securities available for sale, Gross Unrealized Gains		1,123	1,267
Securities available for sale, Gross Unrealized Losses		283	570
Securities available for sale, Fair value		122,276	143,639
Debt Securities [Member] | Trust Preferred Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		2,967	2,967
Securities available for sale, Gross Unrealized Losses		194	340
Securities available for sale, Fair value		2,773	2,627
Mortgage-Backed Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost		852,212	788,437
Mortgage-backed securities, Gross Unrealized Gains		25,233	30,711
Mortgage-backed securities, Gross Unrealized Losses		28
Investment securities available for sale, at fair value		877,417	819,148
Mortgage-Backed Securities [Member] | Collateralized Mortgage Obligations Excluding Pass Through Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost	[1]	25,065	30,043
Mortgage-backed securities, Gross Unrealized Gains	[1]	705	860
Investment securities available for sale, at fair value	[1]	25,770	30,903
Mortgage-Backed Securities [Member] | Residential Pass-Through Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost	[1]	611,981	543,819
Mortgage-backed securities, Gross Unrealized Gains	[1]	13,734	18,135
Investment securities available for sale, at fair value	[1]	625,715	561,954
Mortgage-Backed Securities [Member] | Commercial Pass-Through Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Securities available for sale, Amortized Cost	[1]	215,166	214,575
Mortgage-backed securities, Gross Unrealized Gains	[1]	10,794	11,716
Mortgage-backed securities, Gross Unrealized Losses	[1]	28
Investment securities available for sale, at fair value	[1]	$ 225,932	$ 226,291

[1] Government-sponsored enterprises.

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Securities - Amortized Cost, Gross Unrecognized Gains and Losses and Fair Values of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Schedule Of Held To Maturity Securities [Line Items]
Gross Unrecognized Gains	$ 1,560	$ 1,513
Amortized Cost	31,576	32,556
Securities held to maturity, estimated fair value	33,136	34,069
Debt Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Amortized Cost	31,576	32,556
Gross Unrecognized Gains	1,560	1,513
Fair Value	33,136	34,069
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Schedule Of Held To Maturity Securities [Line Items]
Amortized Cost	31,576	32,556
Gross Unrecognized Gains	1,560	1,513
Fair Value	$ 33,136	$ 34,069

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Securities - Stratification by Contractual Maturity of Securities (Detail) $ in Thousands	Sep. 30, 2020 USD ($)
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 6,696
Due after one year through five years, Amortized Cost	85,068
Due after five years through ten years, Amortized Cost	289,819
Due after ten years, Amortized Cost	282,282
Securities available for sale, Amortized Cost	663,865
Due in one year or less, Fair Value	6,727
Due after one year through five years, Fair Value	86,141
Due after five years through ten years, Fair Value	291,495
Due after ten years, Fair Value	279,898
Securities available for sale, Fair Value Total	$ 664,261

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Securities - Sales of Securities Available for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Investments Debt And Equity Securities [Abstract]
Proceeds from sales of securities	$ 19,600	$ 3,646
Gross realized gains		12
Gross realized losses	(385)	(28)
Net loss on sales of securities	$ (385)	$ (16)

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Securities - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2020 Security
Investments Debt And Equity Securities [Abstract]
Gross gains recognized on calls of securities available for sale	$ 8,000,000	$ 2,000,000
Held to maturity gains (losses) recognized on calls of securities	0	$ 0
Held-to-maturity, securities with unrealized losses, Number of positions | Security			0
Allowance for credit losses related to available for sale debt securities	$ 0

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Securities - Schedule of Available for Sale Securities Pledged (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Schedule Of Available For Sale Securities [Line Items]
Carrying value of securities pledged	$ 616,128	$ 549,544
FHLB of New York [Member]
Schedule Of Available For Sale Securities [Line Items]
Carrying value of securities pledged	166,267	155,288
Secure Public Funds On Deposit [Member]
Schedule Of Available For Sale Securities [Line Items]
Carrying value of securities pledged	107,260	19,944
Federal Reserve ("FRB") [Member]
Schedule Of Available For Sale Securities [Line Items]
Carrying value of securities pledged	$ 342,601	366,482
Depositor Sweep Accounts [Member]
Schedule Of Available For Sale Securities [Line Items]
Carrying value of securities pledged		$ 7,830

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Securities - Schedule of Fair Values and Gross Unrealized and Unrecognized Losses on Investments (Detail) $ in Thousands	Sep. 30, 2020 USD ($) Security	Jun. 30, 2020 USD ($) Security
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months: Fair Value	$ 184,456	$ 242,540
Less than 12 Months: Unrealized Losses	1,461	5,443
12 Months or More: Fair Value	210,892	190,737
12 Months or More: Unrealized Losses	$ 2,281	$ 5,264
Number of Securities | Security	41	45
Total: Fair Value	$ 395,348	$ 433,277
Total: Unrealized Losses	3,742	10,707
Debt Securities [Member] | Trust Preferred Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
12 Months or More: Fair Value	2,773	2,626
12 Months or More: Unrealized Losses	$ 194	$ 340
Number of Securities | Security	2	2
Total: Fair Value	$ 2,773	$ 2,626
Total: Unrealized Losses	194	340
Debt Securities [Member] | Asset-backed Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months: Fair Value	81,712	146,494
Less than 12 Months: Unrealized Losses	1,006	3,962
12 Months or More: Fair Value	54,166	25,954
12 Months or More: Unrealized Losses	$ 606	$ 1,004
Number of Securities | Security	13	16
Total: Fair Value	$ 135,878	$ 172,448
Total: Unrealized Losses	1,612	4,966
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months: Fair Value	53,946	71,282
Less than 12 Months: Unrealized Losses	228	1,245
12 Months or More: Fair Value	134,037	122,506
12 Months or More: Unrealized Losses	$ 1,397	$ 3,586
Number of Securities | Security	18	19
Total: Fair Value	$ 187,983	$ 193,788
Total: Unrealized Losses	1,625	4,831
Debt Securities [Member] | Corporate Bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months: Fair Value	33,302	24,764
Less than 12 Months: Unrealized Losses	199	236
12 Months or More: Fair Value	19,916	39,651
12 Months or More: Unrealized Losses	$ 84	$ 334
Number of Securities | Security	7	8
Total: Fair Value	$ 53,218	$ 64,415
Total: Unrealized Losses	283	$ 570
Debt Securities [Member] | Commercial Pass-Through Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months: Fair Value	15,496
Less than 12 Months: Unrealized Losses	$ 28
Number of Securities | Security	1
Total: Fair Value	$ 15,496
Total: Unrealized Losses	$ 28

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Loans Receivable - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands		Sep. 30, 2020	Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		$ 4,998,569	$ 4,540,103
Unaccreted yield adjustments		(43,819)	(41,706)
Total loans receivable, net of yield adjustments		4,954,750	4,498,397
Nonresidential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		1,124,330	960,853
One-to Four-Family Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Home Equity Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		71,540	82,920
Other Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		4,136	3,991
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		75,676	86,911
Multi-Family Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		2,110,300	2,059,568
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		3,569,696	3,180,170
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		79,178	20,961
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	[1]	$ 255,888	$ 138,788

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Loans Receivable - Schedule of Loans Receivable (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 4,998,569	$ 4,540,103
Paycheck Protection Program (PPP) Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 83,400	$ 69,000

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Loans Receivable - Contractual Payment Status of Loans Receivable (Detail) - USD ($) $ in Thousands		Sep. 30, 2020	Jun. 30, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		$ 4,998,569	$ 4,540,103
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		71,540	82,920
Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,124,330	960,853
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	[1]	255,888	138,788
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		79,178	20,961
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,136	3,991
Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		2,110,300	2,059,568
Past Due Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		4,965,778	4,511,288
Total past due		32,791	28,815
Loans and Leases Receivable, Gross		4,998,569	4,540,103
Past Due Loans [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		71,057	82,358
Total past due		483	562
Loans and Leases Receivable, Gross		71,540	82,920
Past Due Loans [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		1,100,082	941,714
Total past due		24,248	19,139
Loans and Leases Receivable, Gross		1,124,330	960,853
Past Due Loans [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		255,524	138,439
Total past due		364	349
Loans and Leases Receivable, Gross		255,888	138,788
Past Due Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		79,154	20,961
Total past due		24
Loans and Leases Receivable, Gross		79,178	20,961
Past Due Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		1,345,532	1,264,267
Total past due		7,665	8,755
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Past Due Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		4,129	3,981
Total past due		7	10
Loans and Leases Receivable, Gross		4,136	3,991
Past Due Loans [Member] | Past due: 30-59 days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		7,761	3,380
Past Due Loans [Member] | Past due: 30-59 days [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		6	169
Past Due Loans [Member] | Past due: 30-59 days [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		6,171
Past Due Loans [Member] | Past due: 30-59 days [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		24
Past Due Loans [Member] | Past due: 30-59 days [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,558	3,211
Past Due Loans [Member] | Past due: 30-59 days [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		2
Past Due Loans [Member] | Past due: 60-89 days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,587	15,534
Past Due Loans [Member] | Past due: 60-89 days [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		6	13
Past Due Loans [Member] | Past due: 60-89 days [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		497	14,478
Past Due Loans [Member] | Past due: 60-89 days [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		60
Past Due Loans [Member] | Past due: 60-89 days [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,024	1,038
Past Due Loans [Member] | Past due: 60-89 days [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due			5
Past Due Loans [Member] | Past due: 90 days and over [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		23,443	9,901
Past Due Loans [Member] | Past due: 90 days and over [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		471	380
Past Due Loans [Member] | Past due: 90 days and over [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		17,580	4,661
Past Due Loans [Member] | Past due: 90 days and over [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		304	349
Past Due Loans [Member] | Past due: 90 days and over [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		5,083	4,506
Past Due Loans [Member] | Past due: 90 days and over [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		5	5
Past Due Loans [Member] | Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		2,110,300	2,059,568
Loans and Leases Receivable, Gross		$ 2,110,300	$ 2,059,568

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

XML

Loans Receivable - Performance Status of Loans Receivable (Detail) - USD ($) $ in Thousands		Sep. 30, 2020	Jun. 30, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		$ 4,998,569	$ 4,540,103
Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,124,330	960,853
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	[1]	255,888	138,788
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		79,178	20,961
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,136	3,991
Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		2,110,300	2,059,568
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		71,540	82,920
Nonperforming Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,998,569	4,540,103
Nonperforming Loans [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,124,330	960,853
Nonperforming Loans [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		255,888	138,788
Nonperforming Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		79,178	20,961
Nonperforming Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Nonperforming Loans [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,136	3,991
Nonperforming Loans [Member] | Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		2,110,300	2,059,568
Nonperforming Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,953,494	4,503,407
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,097,576	936,917
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		255,349	138,196
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		76,640	20,961
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		1,341,463	1,264,663
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		4,131	3,986
Nonperforming Loans [Member] | Performing Financing Receivable [Member] | Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		2,107,376	2,056,606
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
90 days and over past due accruing		238	5
Nonaccrual		4,727	36,691
Nonaccrual loans with no allowance for credit losses		40,110
Total nonperforming		45,075	36,696
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
90 days and over past due accruing		238
Nonaccrual		3,191	23,936
Nonaccrual loans with no allowance for credit losses		23,325
Total nonperforming		26,754	23,936
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		124	592
Nonaccrual loans with no allowance for credit losses		415
Total nonperforming		539	592
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans with no allowance for credit losses		2,538
Total nonperforming		2,538
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		1,401	8,359
Nonaccrual loans with no allowance for credit losses		10,333
Total nonperforming		11,734	8,359
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
90 days and over past due accruing			5
Nonaccrual		5
Total nonperforming		5	5
Nonperforming Loans [Member] | Nonperforming Financing Receivable [Member] | Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual			2,962
Nonaccrual loans with no allowance for credit losses		2,924
Total nonperforming		2,924	2,962
Nonperforming Loans [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		71,540	82,920
Nonperforming Loans [Member] | Home Equity Loans [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross		70,959	82,078
Nonperforming Loans [Member] | Home Equity Loans [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		6	842
Nonaccrual loans with no allowance for credit losses		575
Total nonperforming		$ 581	$ 842

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

XML

Loans Receivable - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2020 USD ($) Loan Property	Sep. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) Loan Property
Financing Receivable Recorded Investment [Line Items]
Financing receivable TDR modified principal balance	$ 20,100,000
Loans receivable allowance for credit loss	64,860,000
TDR charge-offs	0	$ 8,000
TDR defaults	$ 0	$ 0
Number of deferred non-TDR loans | Loan	63
Aggregate principal balance of deferred loans non-TDR loans	$ 76,900,000
Financing receivables individually analyzed loans carrying value	44,800,000
Financing receivables individually analyzed loans collateral dependent	32,500,000
Residential Mortgage [Member]
Financing Receivable Recorded Investment [Line Items]
Loans receivable allowance for credit loss	$ 14,835,000
Number of loans in process of foreclosure | Loan	9		9
Mortgage loans in process of foreclosure, carrying value	$ 1,700,000		$ 1,900,000
Residential Mortgage [Member] | Single-family Property [Member]
Financing Receivable Recorded Investment [Line Items]
Aggregate carrying value of real estate owned	$ 178,000		$ 178,000
Residential Mortgage [Member] | Real Estate Acquired in Satisfaction of Debt [Member] | Single-family Property [Member]
Financing Receivable Recorded Investment [Line Items]
Number of properties held | Property	1		1
Troubled Debt Restructurings [Member]
Financing Receivable Recorded Investment [Line Items]
Loans receivable allowance for credit loss	$ 210,000		$ 8,000

XML

Loans Receivable - Troubled Debt Restructurings of Loans Receivable (Details) - Troubled Debt Restructurings [Member] $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($) Loan	Sep. 30, 2019 USD ($) Loan	Jun. 30, 2020 USD ($)
Financing Receivable Modifications [Line Items]
Number of Loans	1	6	70
Amount	$ 20,112		$ 21,522
Pre-modification outstanding recorded investment	309	$ 2,859
Post-modification outstanding recorded investment	$ 308	$ 2,848
One-to Four-Family Residential Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	33		34
Amount	$ 5,608		$ 6,218
Home Equity Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	9	1	14
Amount	$ 640		$ 1,163
Pre-modification outstanding recorded investment		$ 82
Post-modification outstanding recorded investment		$ 81
Commercial Loan [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	21		22
Amount	$ 13,864		$ 14,141
Accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	28		32
Amount	$ 7,823		$ 8,413
Accrual [Member] | One-to Four-Family Residential Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	14		14
Amount	$ 2,067		$ 2,407
Accrual [Member] | Home Equity Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	8		12
Amount	$ 543		$ 715
Accrual [Member] | Commercial Loan [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	6		6
Amount	$ 5,213		$ 5,291
Non-accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	35		38
Amount	$ 12,289		$ 13,109
Non-accrual [Member] | One-to Four-Family Residential Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	19		20
Amount	$ 3,541		$ 3,811
Non-accrual [Member] | Home Equity Loans [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1		2
Amount	$ 97		$ 448
Non-accrual [Member] | Commercial Loan [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	15		16
Amount	$ 8,651		$ 8,850
Non-Residential Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	9		10
Amount	$ 2,865		$ 5,554
Non-Residential Mortgage [Member] | Accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1		1
Amount	$ 110		$ 112
Non-Residential Mortgage [Member] | Non-accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	8		9
Amount	$ 2,755		$ 5,442
Commercial Business [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	10	3	11
Amount	$ 5,537		$ 5,625
Pre-modification outstanding recorded investment		$ 1,775
Post-modification outstanding recorded investment		$ 1,829
Commercial Business [Member] | Accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	5		5
Amount	$ 5,103		$ 5,179
Commercial Business [Member] | Non-accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	5		6
Amount	$ 434		$ 446
Construction [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1
Amount	$ 2,538
Construction [Member] | Non-accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1
Amount	$ 2,538
Residential Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	2
Pre-modification outstanding recorded investment	$ 309	$ 1,002
Post-modification outstanding recorded investment	$ 308	$ 938
Multi-Family Mortgage [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1		1
Amount	$ 2,924		$ 2,962
Multi-Family Mortgage [Member] | Non-accrual [Member]
Financing Receivable Modifications [Line Items]
Number of Loans	1		1
Amount	$ 2,924		$ 2,962

XML

Loans Receivable - Schedule of Modified Non-TDR Loans by Loan Segments (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2020 USD ($) Loan	[1]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	63
Balance | $	$ 76,909
Home Equity Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	4
Balance | $	$ 252
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	23
Balance | $	$ 62,791
Non-Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	11
Balance | $	$ 41,660
Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	4
Balance | $	$ 2,684
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	1
Balance | $	$ 2,537
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	36
Balance | $	$ 13,866
Multi-Family Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	7
Balance | $	$ 15,910

[1] Includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

XML

Loans Receivable - Schedule Of Carrying Value Of Collateral Dependent Individually Analyzed Loans (Detail) - USD ($) $ in Thousands			3 Months Ended
		Jul. 10, 2020	Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance		$ (3,901)
Individually Analyzed Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans			$ 32,512
Balance			798
Individually Analyzed Loans [Member] | Home Equity Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans	[1]		471
Individually Analyzed Loans [Member] | Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans	[1]		7,722
Balance	[1]		218
Individually Analyzed Loans [Member] | Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans			24,319
Balance			580
Individually Analyzed Loans [Member] | Commercial Loan [Member] | Non-Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans	[2]		24,120
Balance	[2]		580
Individually Analyzed Loans [Member] | Commercial Loan [Member] | Commercial Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans	[3]		$ 199

[1] Secured by one- to four-family properties.

[2] Secured by income-producing property.

[3] Secured by business assets.

XML

Loans Receivable - Impairment Status of Loans Receivable (Detail) - USD ($) $ in Thousands		Sep. 30, 2020	Jun. 30, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		$ 4,889,826	$ 4,494,981
Impaired loans with no allowance for impairment			43,316
Recorded investment			1,806
Allowance for impairment			(89)
Balance of impaired loans net of allowance for impairment			1,717
Total impaired loans, excluding allowance for impairment:			45,122
Unpaid principal balance of impaired loans			53,151
Loans and Leases Receivable, Gross		4,998,569	4,540,103
Unpaid principal balance of impaired loans:			45,122
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		70,590	81,363
Impaired loans with no allowance for impairment			1,557
Total impaired loans, excluding allowance for impairment:			1,557
Unpaid principal balance of impaired loans			1,950
Loans and Leases Receivable, Gross		71,540	82,920
Unpaid principal balance of impaired loans:			1,557
Multi-Family Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		2,101,686	2,056,606
Impaired loans with no allowance for impairment			2,962
Total impaired loans, excluding allowance for impairment:			2,962
Unpaid principal balance of impaired loans			3,544
Loans and Leases Receivable, Gross		2,110,300	2,059,568
Unpaid principal balance of impaired loans:			2,962
Non-Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		1,066,081	936,805
Impaired loans with no allowance for impairment			22,516
Recorded investment			1,532
Allowance for impairment			(41)
Balance of impaired loans net of allowance for impairment			1,491
Total impaired loans, excluding allowance for impairment:			24,048
Unpaid principal balance of impaired loans			25,898
Loans and Leases Receivable, Gross		1,124,330	960,853
Unpaid principal balance of impaired loans:			24,048
Commercial Business [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		243,638	132,999
Impaired loans with no allowance for impairment			5,622
Recorded investment			167
Allowance for impairment			(47)
Balance of impaired loans net of allowance for impairment			120
Total impaired loans, excluding allowance for impairment:			5,789
Unpaid principal balance of impaired loans			8,778
Loans and Leases Receivable, Gross	[1]	255,888	138,788
Unpaid principal balance of impaired loans:			5,789
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		67,232	20,961
Unpaid principal balance of impaired loans			73
Loans and Leases Receivable, Gross		79,178	20,961
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		1,336,468	1,262,256
Impaired loans with no allowance for impairment			10,659
Recorded investment			107
Allowance for impairment			(1)
Balance of impaired loans net of allowance for impairment			106
Total impaired loans, excluding allowance for impairment:			10,766
Unpaid principal balance of impaired loans			12,908
Loans and Leases Receivable, Gross		1,353,197	1,273,022
Unpaid principal balance of impaired loans:			10,766
Other Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-impaired loans		4,131	3,991
Loans and Leases Receivable, Gross		$ 4,136	$ 3,991

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

XML

Loans Receivable - Credit-Rating Classification of Loans Receivable (Detail) - USD ($) $ in Thousands		Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Multi-family mortgage:
Loans and Leases Receivable, Gross			$ 4,998,569	$ 4,540,103
Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			71,540	82,920
Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,124,330	960,853
Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross	[1]		255,888	138,788
Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			79,178	20,961
Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,353,197	1,273,022
Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			4,136	3,991
Pass [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				4,484,846
Pass [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				81,120
Pass [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				932,202
Pass [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				132,818
Pass [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				20,961
Pass [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				1,258,246
Pass [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				3,979
Special Mention
Multi-family mortgage:
Loans and Leases Receivable, Gross				9,187
Special Mention | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				157
Special Mention | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				4,373
Special Mention | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				2,585
Special Mention | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				981
Special Mention | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				5
Substandard
Multi-family mortgage:
Loans and Leases Receivable, Gross				46,069
Substandard | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				1,643
Substandard | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				24,278
Substandard | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				3,385
Substandard | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				13,795
Substandard | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				6
Doubtful
Multi-family mortgage:
Loans and Leases Receivable, Gross				1
Doubtful | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				1
Multi-Family Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			2,110,300	2,059,568
Multi-Family Mortgage [Member] | Pass [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross				2,055,520
Multi-Family Mortgage [Member] | Special Mention
Multi-family mortgage:
Loans and Leases Receivable, Gross				1,086
Multi-Family Mortgage [Member] | Substandard
Multi-family mortgage:
Loans and Leases Receivable, Gross				2,962
Term Loan Amortized Cost [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			4,998,569	671,785	$ 660,133	$ 665,807	$ 949,355	$ 1,793,675
Term Loan Amortized Cost [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			71,540	4,672	8,192	4,158	3,434	22,215
Term Loan Amortized Cost [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,124,330	85,510	79,459	79,873	312,241	550,030
Term Loan Amortized Cost [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			255,888	97,525	5,097	32,331	11,896	28,018
Term Loan Amortized Cost [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			79,178	17,123	14,354	20,643	15,715	4,154
Term Loan Amortized Cost [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,353,197	205,327	115,391	111,794	179,003	690,611
Term Loan Amortized Cost [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			4,136	565	818	240	137	1,904
Term Loan Amortized Cost [Member] | Scenario Forecast [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		$ 153,835
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		206
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		10,968
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		18,802
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		1,454
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		50,150
Term Loan Amortized Cost [Member] | Scenario Forecast [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		280
Term Loan Amortized Cost [Member] | Pass [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			70,174	4,672	8,192	4,158	3,366	20,943
Term Loan Amortized Cost [Member] | Pass [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,091,776	85,510	79,459	79,873	296,213	533,504
Term Loan Amortized Cost [Member] | Pass [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			250,074	97,441	5,086	28,363	11,684	26,666
Term Loan Amortized Cost [Member] | Pass [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			76,616	17,123	14,354	20,643	15,715	1,592
Term Loan Amortized Cost [Member] | Pass [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,334,650	204,875	114,802	111,794	178,430	673,678
Term Loan Amortized Cost [Member] | Pass [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			4,014	565	818	240	137	1,899
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		206
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		10,968
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		18,802
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		1,454
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		50,150
Term Loan Amortized Cost [Member] | Pass [Member] | Scenario Forecast [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		280
Term Loan Amortized Cost [Member] | Special Mention | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			201					175
Term Loan Amortized Cost [Member] | Special Mention | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			4,373					4,373
Term Loan Amortized Cost [Member] | Special Mention | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			2,543		11	2,370	147	15
Term Loan Amortized Cost [Member] | Special Mention | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			713					713
Term Loan Amortized Cost [Member] | Substandard | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1,165				68	1,097
Term Loan Amortized Cost [Member] | Substandard | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			28,181				16,028	12,153
Term Loan Amortized Cost [Member] | Substandard | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			3,271	84		1,598	65	1,337
Term Loan Amortized Cost [Member] | Substandard | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			2,562					2,562
Term Loan Amortized Cost [Member] | Substandard | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			17,834	452	589		573	16,220
Term Loan Amortized Cost [Member] | Substandard | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1
Term Loan Amortized Cost [Member] | Doubtful | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			121					5
Term Loan Amortized Cost [Member] | Revolving Credit Facility
Multi-family mortgage:
Loans and Leases Receivable, Gross			103,979
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			28,663
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			6,249
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			62,219
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			5,735
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			921
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			192
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			28,637
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Non-Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			6,249
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			62,032
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Construction [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			5,735
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Residential Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			921
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Pass [Member] | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			75
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Special Mention | Home Equity Loans [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			26
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Substandard | Commercial Business [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			187
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Substandard | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			1
Term Loan Amortized Cost [Member] | Revolving Credit Facility | Doubtful | Other Consumer [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			116
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			2,110,300	261,063	436,822	416,768	426,929	496,743
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member] | Scenario Forecast [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		71,975
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member] | Pass [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross			2,087,090	$ 261,063	$ 436,822	413,844	416,703	486,683
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member] | Pass [Member] | Scenario Forecast [Member]
Multi-family mortgage:
Loans and Leases Receivable, Gross		$ 71,975
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member] | Special Mention
Multi-family mortgage:
Loans and Leases Receivable, Gross			10,060					$ 10,060
Term Loan Amortized Cost [Member] | Multi-Family Mortgage [Member] | Substandard
Multi-family mortgage:
Loans and Leases Receivable, Gross			$ 13,150			$ 2,924	$ 10,226

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Loans Receivable - Acquisition Amount of MSB Purchased Loans (Detail) $ in Thousands	Jul. 10, 2020 USD ($)
Receivables [Abstract]
Purchase price of PCD loans at acquisition	$ 69,415
Allowance for credit losses at acquisition	(3,901)
Non-credit discount at acquisition	(167)
Amortized cost of acquired PCD loans at acquisition	$ 65,347

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Allowance for Credit Losses - Allowance for Credit Losses and Balance of Loans Receivable (Detail) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Jun. 30, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		$ 64,860		$ 64,860
Allowance		37,327	$ 33,274
Allowance, Loans individually evaluated for impairment				736	$ 89
Allowance, Loans collectively evaluated for impairment				60,781	37,238
Total allowance for credit losses		64,860
Loans individually evaluated for impairment				38,755	44,823
Loans collectively evaluated for impairment				4,889,826	4,494,981
Loans and Leases Receivable, Gross				4,998,569	4,540,103
Loans receivable, Unaccreted yield adjustments				(43,819)	(41,706)
Loans receivable				4,954,750	4,498,397
Allowance		64,860	32,432
Impact of adopting Topic 326		19,640
Total charge offs		(73)	(64)
Total recoveries		6	4
Initial allowance on PCD loans		3,901
Total provisions		4,059	(782)
Non-Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		15,094		15,094
Allowance		8,763	9,672
Allowance, Loans individually evaluated for impairment				54	41
Allowance, Loans collectively evaluated for impairment				13,387	8,722
Total allowance for credit losses		15,094
Loans individually evaluated for impairment				24,858	24,048
Loans collectively evaluated for impairment				1,066,081	936,805
Loans and Leases Receivable, Gross				1,124,330	960,853
Allowance		15,094	9,371
Impact of adopting Topic 326		2,390
Initial allowance on PCD loans		1,720
Total provisions		2,221	(301)
Commercial Business [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		4,355		4,355
Allowance		1,926	2,467
Allowance, Loans individually evaluated for impairment				681	47
Allowance, Loans collectively evaluated for impairment				2,820	1,879
Total allowance for credit losses		4,355
Loans individually evaluated for impairment				339	5,567
Loans collectively evaluated for impairment				243,638	132,999
Loans and Leases Receivable, Gross	[1]			255,888	138,788
Allowance		4,355	2,293
Impact of adopting Topic 326		(421)
Total charge offs		(63)
Total recoveries		2
Initial allowance on PCD loans		1,007
Total provisions		1,904	(174)
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		1,105		1,105
Allowance		236	136
Allowance, Loans collectively evaluated for impairment				969	236
Total allowance for credit losses		1,105
Loans individually evaluated for impairment				2,538
Loans collectively evaluated for impairment				67,232	20,961
Loans and Leases Receivable, Gross				79,178	20,961
Allowance		1,105	140
Impact of adopting Topic 326		80
Initial allowance on PCD loans		99
Total provisions		690	4
Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		14,835		14,835
Allowance		4,860	3,377
Allowance, Loans individually evaluated for impairment				1	1
Allowance, Loans collectively evaluated for impairment				14,367	4,859
Total allowance for credit losses		14,835
Loans individually evaluated for impairment				7,881	10,689
Loans collectively evaluated for impairment				1,336,468	1,262,256
Loans and Leases Receivable, Gross				1,353,197	1,273,022
Allowance		14,835	3,307
Impact of adopting Topic 326		9,106
Initial allowance on PCD loans		720
Total provisions		149	(70)
Other Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		47		47
Allowance		58	172
Allowance, Loans collectively evaluated for impairment				47	58
Total allowance for credit losses		47
Loans collectively evaluated for impairment				4,131	3,991
Loans and Leases Receivable, Gross				4,136	3,991
Allowance		47	141
Impact of adopting Topic 326		(15)
Total charge offs		(10)	(64)
Total recoveries		4	4
Total provisions		10	29
Multi-Family Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		28,566		28,566
Allowance		20,916	16,959
Allowance, Loans collectively evaluated for impairment				28,355	20,916
Total allowance for credit losses		28,566
Loans individually evaluated for impairment				2,924	2,962
Loans collectively evaluated for impairment				2,101,686	2,056,606
Loans and Leases Receivable, Gross				2,110,300	2,059,568
Allowance		28,566	16,702
Impact of adopting Topic 326		8,408
Initial allowance on PCD loans		250
Total provisions		(1,008)	(257)
Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		858		858
Allowance		568	491
Allowance, Loans collectively evaluated for impairment				836	568
Total allowance for credit losses		858
Loans individually evaluated for impairment				215	1,557
Loans collectively evaluated for impairment				70,590	81,363
Loans and Leases Receivable, Gross				71,540	82,920
Allowance		858	478
Impact of adopting Topic 326		92
Initial allowance on PCD loans		105
Total provisions		93	$ (13)
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		745		745
Loans acquired with deteriorated credit quality collectively analyzed				2,598
Total allowance for credit losses		745
Loans acquired with deteriorated credit quality individually evaluated				6,077	299
Loans acquired with deteriorated credit quality collectively evaluated				63,911
Receivables Acquired with Deteriorated Credit Quality [Member] | Non-Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		527		527
Loans acquired with deteriorated credit quality collectively analyzed				1,126
Total allowance for credit losses		527
Loans acquired with deteriorated credit quality individually evaluated				1,658
Loans acquired with deteriorated credit quality collectively evaluated				31,733
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Business [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality collectively analyzed				854
Loans acquired with deteriorated credit quality individually evaluated				200	222
Loans acquired with deteriorated credit quality collectively evaluated				11,711
Receivables Acquired with Deteriorated Credit Quality [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality collectively analyzed				136
Loans acquired with deteriorated credit quality collectively evaluated				9,408
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable allowance for credit loss		218		218
Loans acquired with deteriorated credit quality collectively analyzed				249
Total allowance for credit losses		$ 218
Loans acquired with deteriorated credit quality individually evaluated				3,853	$ 77
Loans acquired with deteriorated credit quality collectively evaluated				4,995
Receivables Acquired with Deteriorated Credit Quality [Member] | Other Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality collectively evaluated				5
Receivables Acquired with Deteriorated Credit Quality [Member] | Multi-Family Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality collectively analyzed				211
Loans acquired with deteriorated credit quality collectively evaluated				5,690
Receivables Acquired with Deteriorated Credit Quality [Member] | Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality collectively analyzed				22
Loans acquired with deteriorated credit quality individually evaluated				366
Loans acquired with deteriorated credit quality collectively evaluated				$ 369

[1] Includes Paycheck Protection Program (“PPP”) loans of $83.4 million and $69.0 million as of September 30, 2020 and June 30, 2020, respectively. The balance of PPP loans at September 30, 2020 includes loans acquired in conjunction with the Company’s acquisition of MSB Financial Corp. on July 10, 2020.

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Allowance for Credit Losses - Allowance for Credit Losses on Financing Receivables Off Balance Sheet Commitments (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2020 USD ($)
Receivables [Abstract]
Impact of adopting Topic 326	$ 536	[1]
Provision recorded in other non-interest expense	468
Total allowance for credit losses on off balance sheet commitments	$ 1,004

[1] Adoption of CECL accounting standard effective July 1, 2020.

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Leases - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jul. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease, liability	$ 17,920,000
Weighted average remaining lease term for operating leases	7 years 10 months 28 days
Operating lease, weighted average discount rate	2.36%
Operating Lease, Cost	$ 1,000,000.0	$ 1,100,000
Sale and leaseback transactions, leveraged leases or lease transactions with related parties	0	$ 0
Leases not yet commenced	$ 0
ASU 2016-02 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease, right-of-use asset			$ 17,200,000
Operating lease, liability			$ 17,800,000

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Leases - Schedule of Future Minimum Rental Commitments for Operating Leases (Detail) $ in Thousands	Sep. 30, 2020 USD ($)
Leases [Abstract]
Less than one year	$ 3,649
After one year but within two years	3,311
After two years but within three years	2,606
After three years but within four years	1,877
After four years but within five years	1,498
Greater than five years	7,007
Total undiscounted cash flows	19,948
Less: discount on cash flows	(2,028)
Total lease liability	$ 17,920

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Deposits - Schedule of Deposits (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Deposits [Abstract]
Non-interest-bearing demand	$ 487,710	$ 419,138
Interest-bearing demand	1,561,135	1,264,151
Savings	1,025,245	906,597
Certificates of deposits	1,965,822	1,840,396
Total deposits	$ 5,039,912	$ 4,430,282

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Borrowings - Schedule of Fixed Rate Advances from FHLB (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Balance, Less than one year	$ 775,000	$ 865,000
Federal Home Loan Bank, Advances, Balance Due in One to two years	27,000	27,000
Federal Home Loan Bank, Advances, Balance Due in two to three years	145,000	145,000
Federal Home Loan Bank, Advances, Balance Due in three to four years	22,500	22,500
Federal Home Loan Bank, Advances, Balance Due in four to five years	103,500	103,500
Federal Home Loan Bank, Advances, Balance greater than five years	6,500	6,500
Federal Home Loan Bank, Advances, Total	1,079,500	1,169,500
Federal Home Loan Bank, Advances, Unamortized Fair Value Adjustments	(1,960)	(2,071)
Total Federal Home Loan Bank, Advances, After Fair Value Adjustments	$ 1,077,540	$ 1,167,429
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in less than one year	0.40%	0.45%
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in one to two years	2.85%	2.85%
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in two to three years	3.04%	3.04%
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in three to four years	2.63%	2.63%
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in four to five years	2.68%	2.68%
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Due in greater than five years	2.82%	2.82%
Weighted Average [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Weighted Average Interest Rate	1.10%	1.08%

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Borrowings - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Other borrowings, sweep accounts	$ 0.0	$ 5.7
Mortgage-Backed Securities [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged	166.3	155.3
Investment in Federal Home Loan Bank Stock [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged	$ 3,130.0	$ 3,210.0

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Derivative Instruments and Hedging Activities - Fair Values of Derivative Financial Instruments as well as Their Classification on Statement of Financial Condition (Detail) - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Other Assets [Member]
Derivative [Line Items]
Fair Value	$ 175	$ 235
Other Liabilities [Member]
Derivative [Line Items]
Fair Value	15,857	18,177
Interest Rate Contract [Member] | Other Assets [Member]
Derivative [Line Items]
Fair Value	175	235
Interest Rate Contract [Member] | Other Liabilities [Member]
Derivative [Line Items]
Fair Value	$ 15,857	$ 18,177

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Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($) Instrument	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) Instrument	Jun. 30, 2020 USD ($)
Loan Origination Commitments [Member]
Derivative [Line Items]
Pipeline of loans held-for-sale	$ 124,500		$ 124,500	$ 127,200
Counter Party [Member]
Derivative [Line Items]
Termination value of derivatives	16,500		16,500
Financial collateral not included as offsetting amounts	15,900		15,900
Interest Expense [Member]
Derivative [Line Items]
Estimated cash flow hedge gain (loss) to be reclassified in next twelve months			$ 7,300
Cash Flow Hedges [Member]
Derivative [Line Items]
Reclassifications to interest expense	$ 2,372	$ (1,371)
Cash Flow Hedges [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of interest rate derivative instruments held | Instrument	14		14
Derivative, notional amount	$ 1,230,000		$ 1,230,000

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Derivative Instruments and Hedging Activities - Pre-tax Effects of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income (Detail) - Derivatives in Cash Flow Hedging Relationships [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives	$ (111)	$ (1,759)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	(2,372)	1,371
Interest Rate Contract [Member]
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives	(111)	(1,759)
Interest Rate Contract [Member] | Interest Expense [Member]
Derivative [Line Items]
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	$ (2,372)	$ 1,371

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Derivative Instruments and Hedging Activities - Offsetting Derivatives (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Derivative [Line Items]
Gross Amount Recognized, Assets	$ 479	$ 592
Gross Amounts Offset, Assets	(304)	(357)
Net Amounts Presented, Assets	175	235
Net Amount, Assets	175	235
Gross Amount Recognized, Liabilities	16,161	18,534
Gross Amounts Offset, Liabilities	(304)	(357)
Net Amounts Presented, Liabilities	15,857	18,177
Gross Amounts Not Offset, Cash Collateral Posted, Liabilities	(15,857)	(18,177)
Interest Rate Contract [Member]
Derivative [Line Items]
Gross Amount Recognized, Assets	479	592
Gross Amounts Offset, Assets	(304)	(357)
Net Amounts Presented, Assets	175	235
Net Amount, Assets	175	235
Gross Amount Recognized, Liabilities	16,161	18,534
Gross Amounts Offset, Liabilities	(304)	(357)
Net Amounts Presented, Liabilities	15,857	18,177
Gross Amounts Not Offset, Cash Collateral Posted, Liabilities	$ (15,857)	$ (18,177)

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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, 2020	Sep. 30, 2019
Salaries and Employee Benefits [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 26	$ 20
Miscellaneous Non Interest Expense [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	66	81
Amortization of unrecognized loss	21	5
Expected return on assets	(28)	(28)
Net periodic benefit cost	$ 85	$ 78

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Income Taxes - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	21.00%

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Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income before income taxes	$ 14,263	$ 15,187
Federal income tax rate	21.00%	21.00%
Federal income tax expense at statutory rate	$ 2,995	$ 3,189
(Reduction) increases in income taxes resulting from: Tax exempt interest	(94)	(144)
(Reduction) increases in income taxes resulting from: State tax, net of federal tax effect	784	1,241
(Reduction) increases in income taxes resulting from: Incentive stock option compensation expense	20	17
(Reduction) increases in income taxes resulting from: Income from bank-owned life insurance	(327)	(333)
(Reduction) increases in income taxes resulting from: Non-deductible merger-related expenses	49
(Reductions) increases in income taxes resulting from: Bargain purchase gain	(641)
(Reductions) increases in income taxes resulting from: Other items, net	98	(153)
Total income tax expense	$ 2,884	$ 3,817
Effective income tax rate	20.22%	25.13%

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Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Deferred income taxes, net	$ 12,134	$ 11,668
Deferred income tax assets: Accumulated other comprehensive income - Defined benefit plans	414	416
Deferred income tax assets: Derivatives	5,114	5,730
Allowance for credit losses	19,370	11,047
Deferred income tax assets: Benefit plans	2,302	2,290
Deferred income tax assets: Compensation	434	1,287
Deferred income tax assets: Stock based compensation	2,684	2,482
Deferred income tax assets: Uncollected interest	1,460	1,362
Deferred income tax assets: Depreciation	978	268
Deferred income tax assets: Net operating loss carryover	6	6
Deferred income tax assets: Capital loss carryforward	339	329
Deferred income tax assets: Loan fees and costs	236	10
Deferred income tax assets: Other items	796	1,039
Deferred Tax Assets, Gross, Total	46,267	37,934
Deferred income tax assets: Valuation allowance	(523)	(535)
Deferred Tax Assets, Net of valuation allowance, Total	45,744	37,399
Deferred income tax liabilities: Unrealized gain on securities available for sale	7,047	6,541
Deferred income tax liabilities: Goodwill	4,632	4,655
Deferred income tax liabilities: Other items	746	723
Deferred Tax Liabilities, Gross, Total	12,425	11,919
Net deferred income tax asset	$ 33,319	$ 25,480

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Fair Value of Financial Instruments - Schedule of Assets Measured At Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Assets:
Securities available for sale, Fair value	$ 664,261
Mortgage-backed securities available for sale	877,417	$ 819,148
Securities available for sale	1,508,542	1,385,703
Interest rate contracts	175	235
Total assets	1,508,717	1,385,938
Liabilities:
Interest rate contracts	15,857	18,177
Total liabilities	15,857	18,177
Interest Rate Contract [Member]
Assets:
Interest rate contracts	175	235
Liabilities:
Interest rate contracts	15,857	18,177
Debt Securities [Member]
Assets:
Securities available for sale, Fair value	631,125	566,555
Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Assets:
Securities available for sale, Fair value	50,877	54,054
Debt Securities [Member] | Asset-backed Securities [Member]
Assets:
Securities available for sale, Fair value	258,801	172,447
Debt Securities [Member] | Collateralized Loan Obligations [Member]
Assets:
Securities available for sale, Fair value	196,398	193,788
Debt Securities [Member] | Corporate Bonds [Member]
Assets:
Securities available for sale, Fair value	122,276	143,639
Debt Securities [Member] | Trust Preferred Securities [Member]
Assets:
Securities available for sale, Fair value	2,773	2,627
Collateralized Mortgage Obligations Excluding Pass Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	25,770	30,903
Residential Pass-Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	625,715	561,954
Commercial Pass-Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	225,932	226,291
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Mortgage-backed securities available for sale	877,417	819,148
Securities available for sale	1,508,542	1,385,703
Total assets	1,508,717	1,385,938
Liabilities:
Total liabilities	15,857	18,177
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member]
Assets:
Interest rate contracts	175	235
Liabilities:
Interest rate contracts	15,857	18,177
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member]
Assets:
Securities available for sale, Fair value	631,125	566,555
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member] | Obligations of State and Political Subdivisions [Member]
Assets:
Securities available for sale, Fair value	50,877	54,054
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member] | Asset-backed Securities [Member]
Assets:
Securities available for sale, Fair value	258,801	172,447
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member] | Collateralized Loan Obligations [Member]
Assets:
Securities available for sale, Fair value	196,398	193,788
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member] | Corporate Bonds [Member]
Assets:
Securities available for sale, Fair value	122,276	143,639
Significant Other Observable Inputs (Level 2) [Member] | Debt Securities [Member] | Trust Preferred Securities [Member]
Assets:
Securities available for sale, Fair value	2,773	2,627
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Mortgage Obligations Excluding Pass Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	25,770	30,903
Significant Other Observable Inputs (Level 2) [Member] | Residential Pass-Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	625,715	561,954
Significant Other Observable Inputs (Level 2) [Member] | Commercial Pass-Through Securities [Member]
Assets:
Mortgage-backed securities available for sale	$ 225,932	$ 226,291

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Fair Value of Financial Instruments - Schedule of Assets Measured At Fair Value on a Non-recurring Basis (Detail) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	$ 1,508,717,000	$ 1,385,938,000
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	6,132,000
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	2,731,000
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	3,401,000
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	178,000	178,000
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	178,000	178,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		4,750,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		2,339,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		2,282,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		129,000
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	1,508,717,000	1,385,938,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	6,132,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	2,731,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	3,401,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	178,000	178,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	$ 178,000	178,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		4,750,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		2,339,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		2,282,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		$ 129,000

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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, 2020	Jun. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		$ 1,508,717	$ 1,385,938
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		6,132
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		2,731
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		3,401
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		$ 2,731
Valuation Techniques	[1]	Market valuation of underlying collateral
Unobservable Input	[2]	Adjustments to reflect current conditions/selling costs
Weighted Average		7.90%
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		$ 3,401
Valuation Techniques	[1]	Market valuation of underlying collateral
Unobservable Input	[2]	Adjustments to reflect current conditions/selling costs
Weighted Average		10.02%
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range		7.00%
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range		9.00%
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Maximum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range		10.00%
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member] | Market Valuation of Underlying Collateral [Member] | Maximum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range		12.00%
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		$ 178	178
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		178	178
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Market Valuation of Underlying Collateral [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		178	178
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value		$ 178	$ 178
Valuation Techniques	[3]	Market valuation of underlying collateral	Market valuation of underlying collateral	[1]
Unobservable Input	[2]	Adjustments to reflect current conditions/selling costs	Adjustments to reflect current conditions/selling costs
Range		6.00%
Weighted Average		6.00%	6.00%
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			6.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			$ 4,750
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			2,339
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			2,282
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			129
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			4,750
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			$ 2,339
Valuation Techniques	[1]		Market valuation of underlying collateral
Unobservable Input	[2]		Adjustments to reflect current conditions/selling costs
Weighted Average			8.17%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			$ 2,282
Valuation Techniques	[1]		Market valuation of underlying collateral
Unobservable Input	[2]		Adjustments to reflect current conditions/selling costs
Weighted Average			10.27%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value			$ 129
Valuation Techniques	[1]		Market valuation of underlying collateral
Unobservable Input	[2]		Adjustments to reflect current conditions/selling costs
Weighted Average			0.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			7.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			9.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Minimum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			0.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Maximum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			9.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Maximum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Non-Residential Mortgage [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			12.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Market Valuation of Underlying Collateral [Member] | Maximum [Member] | Adjustments to Reflect Current Conditions or Selling Costs [Member] | Commercial Business [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Range			0.00%

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

[2] The fair value basis of impaired loans and other real estate owned is adjusted to reflect management’s estimates of selling costs including, but not necessarily limited to, real estate brokerage commissions and title transfer fees

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

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Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	$ 1,508,717,000	$ 1,385,938,000
Financing receivable, allowance for credit losses, individually evaluated for impairment	736,000	89,000
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	6,132,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		4,750,000
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	178,000	178,000
Significant Unobservable Inputs (Level 3) [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financing receivable, allowance for credit losses, individually evaluated for impairment	800,000
Loans and Leases Receivable, Gross	6,900,000
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financing receivable, allowance for credit losses, individually evaluated for impairment		89,000
Loans and Leases Receivable, Gross		4,800,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	6,132,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value		4,750,000
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets, Fair Value	$ 178,000	$ 178,000

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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, 2020	Jun. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	$ 1,508,542	$ 1,385,703
Investment securities held to maturity, amortized cost	31,576	32,556
Investment securities held to maturity	33,136	34,069
Interest rate contracts,assets	175	235
Interest rate contracts,liabilities	15,857	18,177
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	1,508,542	1,385,703
Carrying Amount [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	145,818	180,967
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	1,508,542	1,385,703
Investment securities held to maturity, amortized cost	31,576	32,556
Loans held-for-sale	20,170	20,789
Net loans receivable	4,889,890	4,461,070
FHLB Stock	55,118	58,654
Interest receivable	20,368	17,373
Interest rate contracts,assets	175	235
Deposits	5,039,912	4,430,282
Borrowings	1,077,540	1,173,165
Interest payable on deposits	500	395
Interest payable on borrowings	1,680	1,723
Interest rate contracts,liabilities	15,857	18,177
Fair Value [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	145,818	180,967
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	1,508,542	1,385,703
Investment securities held to maturity	33,136	34,069
Loans held-for-sale	20,956	21,550
Net loans receivable	4,926,728	4,462,232
Interest receivable	20,368	17,373
Interest rate contracts,assets	175	235
Deposits	5,057,201	4,449,877
Borrowings	1,117,783	1,215,529
Interest payable on deposits	500	395
Interest payable on borrowings	1,680	1,723
Interest rate contracts,liabilities	15,857	18,177
Fair Value [Member] | 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	145,818	180,967
Interest receivable	2	4
Deposits	3,074,090	2,589,886
Interest payable on deposits	258	295
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available for sale, at fair value (amortized cost $1,484,501), net of allowance for credit losses of $0 at September 30, 2020	1,508,542	1,385,703
Investment securities held to maturity	33,136	34,069
Loans held-for-sale	20,956	21,550
Interest receivable	4,131	4,154
Interest rate contracts,assets	175	235
Interest rate contracts,liabilities	15,857	18,177
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Net loans receivable	4,926,728	4,462,232
Interest receivable	16,235	13,215
Deposits	1,983,111	1,859,991
Borrowings	1,117,783	1,215,529
Interest payable on deposits	242	100
Interest payable on borrowings	$ 1,680	$ 1,723

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Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019
Accumulated Other Comprehensive Income Loss [Line Items]
Total Stockholders' Equity	$ 1,124,060	$ 1,084,177	$ 1,110,789	$ 1,127,159
Net Unrealized Gain on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Net unrealized gain on securities available for sale	24,041	22,482
Tax effect	(7,047)	(6,541)
Total Stockholders' Equity	16,994	15,941
Fair Value Adjustments on Derivatives [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Net unrealized gain on securities available for sale	(17,157)	(19,418)
Tax effect	5,114	5,730
Total Stockholders' Equity	(12,043)	(13,688)
Benefit Plan Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Net unrealized gain on securities available for sale	(1,391)	(1,412)
Tax effect	414	416
Total Stockholders' Equity	(977)	(996)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Total Stockholders' Equity	$ 3,974	$ 1,257	$ 8,690	$ 2,839

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Comprehensive (Loss) Income - Schedule of Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Comprehensive Income Net Of Tax [Abstract]
Net unrealized holding gain on securities available for sale		$ 1,182	$ 10,157
Amortization of net unrealized holding loss on securities available for sale transferred to held to maturity	[1]		596
Net realized loss on sale and call of securities available for sale	[2]	377	13
Fair value adjustments on derivatives		2,261	(3,130)
Amortization of actuarial loss		21	5
Net actuarial loss	[3]		470
Net change in benefit plan accrued expense		21	475
Other comprehensive income before taxes		3,841	8,111
Tax effect		(1,124)	(2,260)
Total Other Comprehensive Income		$ 2,717	$ 5,851

[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 gain on sale of securities on the consolidated statements of income.

[3] 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.

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Revenue Recognition - Non Interest Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Non-Interest Income
Loan-related fees and charges	[1]	$ 727	$ 992
Loss on sale and call of securities	[1]	(377)	(14)
Gain on sale of loans	[1]	1,890	605
Income from bank owned life insurance	[1]	1,596	1,580
Bargain purchase gain	[1]	3,053
Other income	[1]	90	5
Total Non-Interest Income		7,733	3,962
Deposit Related Fees and Charges
Non-Interest Income
Fees and service charges		349	476
Electronic Banking Fees and Charges (Interchange Income)
Non-Interest Income
Fees and service charges		$ 405	$ 318

[1] Not within the scope of ASC 606.