10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2021

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: 001-38065

PCSB Financial Corporation

(Exact Name of Registrant as Specified in its Charter)

Maryland	81-4710738
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2651 Strang Blvd, Suite 100 Yorktown Heights, NY	10598
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (914) 248-7272

N/A

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

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 per share	PCSB	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 filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Small 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 completing with any 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  ☒

15,334,857 shares of the Registrant’s common stock, par value $0.01 per share, were outstanding as of February 2, 2022.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Shareholders’ Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	46
Signatures		47

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(amounts in thousands, except share and per share data) 

	December 31,			June 30,
	2021			2021
ASSETS
Cash and due from banks	$	113,499		$	152,070
Federal funds sold		6,840			7,235
Total cash and cash equivalents		120,339			159,305
Held to maturity debt securities, at amortized cost (fair value of $389,814 and $342,137, respectively)		390,312			337,584
Available for sale debt securities, at fair value		43,687			57,387
Total investment securities		433,999			394,971
Loans receivable, net of allowance for loan losses of $8,429 and    $7,881, respectively		1,243,646			1,229,451
Loans receivable held for sale		1,452			-
Accrued interest receivable		6,509			6,398
FHLB stock		4,167			4,507
Premises and equipment, net		19,550			21,099
Deferred tax asset, net		2,327			2,552
Bank-owned life insurance		35,951			35,568
Goodwill		6,106			6,106
Other intangible assets		119			151
Other assets		13,956			14,827
Total assets	$	1,888,121		$	1,874,935
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing deposits	$	1,307,359		$	1,272,610
Non-interest bearing deposits		215,708			219,072
Total deposits		1,523,067			1,491,682
Mortgage escrow funds		10,880			10,536
Advances from FHLB		58,390			65,957
Other liabilities		20,950			32,200
Total liabilities		1,613,287			1,600,375
Commitments and contingencies		-			-
Shareholders' equity:
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of December 31, 2021 and June 30, 2021)		-			-
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,703,577 shares issued as of both December 31, 2021 and June 30, 2021, and 15,337,979 and 15,770,645 shares outstanding as of December 31, 2021 and June 30, 2021, respectively)		187			187
Additional paid in capital		191,826			189,926
Retained earnings		157,146			150,987
Unearned compensation - ESOP		(9,688	)		(10,176	)
Accumulated other comprehensive loss, net of income taxes		(3,353	)		(3,099	)
Treasury stock, at cost (3,365,598 and 2,932,932 shares as of December 31, 2021 and June 30, 2021, respectively)		(61,284	)		(53,265	)
Total shareholders' equity		274,834			274,560
Total liabilities and shareholders' equity	$	1,888,121		$	1,874,935

See accompanying notes to the consolidated financial statements (unaudited)

3

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)

(amounts in thousands, except share and per share data)

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Interest and dividend income
Loans receivable	$	12,651	$	12,182	$	24,758	$	24,729
Investment securities		2,131		1,933		4,142		3,789
Federal funds and other		88		110		197		235
Total interest and dividend income		14,870		14,225		29,097		28,753
Interest expense
Deposits and escrow interest		1,292		2,158		2,646		4,590
FHLB advances		320		520		658		1,039
Total interest expense		1,612		2,678		3,304		5,629
Net interest income		13,258		11,547		25,793		23,124
Provision for loan losses		264		107		277		216
Net interest income after provision for loan losses		12,994		11,440		25,516		22,908
Noninterest income
Fees and service charges		407		363		808		685
Bank-owned life insurance		191		129		383		261
Gain on sale of premises		548		-		548		-
Net gains on sales of loans receivable		41		-		47		-
Swap income		-		238		-		367
Other		8		13		22		24
Total noninterest income		1,195		743		1,808		1,337
Noninterest expense
Salaries and employee benefits		5,843		5,520		11,616		11,127
Occupancy and equipment		1,348		1,374		2,701		2,692
Communication and data processing		526		446		1,053		1,022
Professional fees		420		503		813		903
Postage, printing, stationery and supplies		182		167		325		306
FDIC assessment		121		122		246		235
Advertising		100		100		200		200
Amortization of intangible assets		16		20		32		40
Other operating expenses		249		439		443		790
Total noninterest expense		8,805		8,691		17,429		17,315
Net income before income tax expense		5,384		3,492		9,895		6,930
Income tax expense		1,096		798		1,993		1,508
Net income	$	4,288	$	2,694	$	7,902	$	5,422
Earnings per common share:
Basic	$	0.30	$	0.18	$	0.55	$	0.36
Diluted	$	0.30	$	0.18	$	0.55	$	0.36
Weighted average common shares outstanding:
Basic		14,236,473		14,888,528		14,287,009		15,094,982
Diluted		14,281,232		14,889,020		14,349,272		15,094,982

See accompanying notes to the consolidated financial statements (unaudited)

4

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (unaudited)

(amounts in thousands)

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Net income	$	4,288		$	2,694		$	7,902		$	5,422
Other comprehensive income:
Unrealized (losses) gains on available for sale debt securities:
Net change in unrealized gains/losses before reclassification adjustment		(243	)		(3	)		(430	)		(19	)
Reclassification adjustment for gains realized in net income		-			-			-			-
Net change in unrealized gains/losses		(243	)		(3	)		(430	)		(19	)
Tax effect		51			1			91			4
Net of tax		(192	)		(2	)		(339	)		(15	)
Defined benefit pension plan:
Net gain (loss) arising during the period		-			-			-			-
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost		37			332			75			572
Net change in unrealized gains/losses		37			332			75			572
Tax effect		(7	)		(69	)		(16	)		(120	)
Net of tax		30			263			59			452
Supplemental retirement plans:
Net gain (loss) arising during the period		-			-			-			-
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost		16			14			32			28
Net change in unrealized gains/losses		16			14			32			28
Tax effect		(3	)		(4	)		(6	)		(7	)
Net of tax		13			10			26			21
Total other comprehensive (loss) income		(149	)		271			(254	)		458
Comprehensive income	$	4,139		$	2,965		$	7,648		$	5,880

See accompanying notes to the consolidated financial statements (unaudited)

5

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity (unaudited)

(amounts in thousands, except share and per share data)

																		Accumulated
	Number of					Additional						Unallocated			Treasury			Other			Total
	Common			Common		Paid-In			Retained			Common Stock			Stock,			Comprehensive			Shareholders'
	Shares			Stock		Capital			Earnings			of ESOP			at cost			Loss			Equity
Balance at July 1, 2021		15,770,645		$	187	$	189,926		$	150,987		$	(10,176	)	$	(53,265	)	$	(3,099	)	$	274,560
Net income		-			-		-			3,614			-			-			-			3,614
Other comprehensive loss		-			-		-			-			-			-			(105	)		(105	)
Common stock dividends declared ($0.06 per share)		-			-		-			(876	)		-			-			-			(876	)
Repurchase of common stock		(204,261	)		-		-			-			-			(3,720	)		-			(3,720	)
Restricted stock awards granted		8,000			-		(145	)		-			-			145			-			-
Shares withheld related to income tax withholding		(74	)		-		-			-			-			(1	)		-			(1	)
Stock-based compensation		-			-		810			-			-			-			-			810
ESOP shares committed to be released (24,419 shares)		-			-		202			-			244			-			-			446
Balance at September 30, 2021		15,574,310		$	187	$	190,793		$	153,725		$	(9,932	)	$	(56,841	)	$	(3,204	)	$	274,728
Net income		-			-		-			4,288			-			-			-			4,288
Other comprehensive loss		-			-		-			-			-			-			(149	)		(149	)
Common stock dividends declared ($0.06 per share)		-			-		-			(867	)		-			-			-			(867	)
Repurchase of common stock		(217,411	)		-		-			-			-			(4,084	)		-			(4,084	)
Shares withheld related to income tax withholding		(18,920	)		-		-			-			-			(359	)		-			(359	)
Stock-based compensation		-			-		820			-			-			-			-			820
ESOP shares committed to be released (24,419 shares)		-			-		213			-			244			-			-			457
Balance at December 31, 2021		15,337,979		$	187	$	191,826		$	157,146		$	(9,688	)	$	(61,284	)	$	(3,353	)	$	274,834

See accompanying notes to the consolidated financial statements (unaudited)

6

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity (unaudited)

(amounts in thousands, except share and per share data)

																		Accumulated
	Number of					Additional						Unallocated			Treasury			Other			Total
	Common			Common		Paid-In			Retained			Common Stock			Stock,			Comprehensive			Shareholders'
	Shares			Stock		Capital			Earnings			of ESOP			at cost			Loss			Equity
Balance at July 1, 2020		16,898,137		$	187	$	186,200		$	141,288		$	(11,145	)	$	(36,414	)	$	(6,403	)	$	273,713
Net income		-			-		-			2,728			-			-			-			2,728
Other comprehensive income		-			-		-			-			-			-			187			187
Common stock dividends declared ($0.04 per share)		-			-		-			(630	)		-			-			-			(630	)
Repurchase of common stock		(266,900	)		-		-			-			-			(3,449	)		-			(3,449	)
Restricted stock awards granted		3,000			-		(60	)		-			-			60			-			-
Stock-based compensation		-			-		829			-			-			-			-			829
ESOP shares committed to be released (24,419 shares)		-			-		57			-			244			-			-			301
Balance at September 30, 2020		16,634,237		$	187	$	187,026		$	143,386		$	(10,901	)	$	(39,803	)	$	(6,216	)	$	273,679
Net income		-			-		-			2,694			-			-			-			2,694
Other comprehensive income		-			-		-			-			-			-			271			271
Common stock dividends declared ($0.04 per share)		-			-		-			(608	)		-			-			-			(608	)
Repurchase of common stock		(517,270	)		-		-			-			-			(7,591	)		-			(7,591	)
Shares withheld related to income tax withholding		(19,100	)		-		-			-			-			(303	)		-			(303	)
Stock-based compensation		-			-		822			-			-			-			-			822
ESOP shares committed to be released (24,419 shares)		-			-		116			-			244			-			-			360
Balance at December 31, 2020		16,097,867		$	187	$	187,964		$	145,472		$	(10,657	)	$	(47,697	)	$	(5,945	)	$	269,324

See accompanying notes to the consolidated financial statements (unaudited)

7

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(amounts in thousands) 

	Six Months Ended December 31,
	2021			2020
OPERATING ACTIVITIES
Net income	$	7,902		$	5,422
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan loss		277			216
Depreciation and amortization		1,476			1,486
Amortization of net premiums on securities and net deferred loan origination costs		81			507
Net (increase) decrease in accrued interest receivable		(111	)		763
Net gains on sales of loans receivable		(47	)		-
Gain on sale of premises		(548	)		-
Stock-based compensation		1,630			1,651
ESOP compensation		903			661
Earnings from cash surrender value of BOLI		(383	)		(261	)
Originations of loans receivable held for sale		(4,580	)		-
Proceeds from loans receivable held for sale		3,175			-
Net accretion of purchase accounting adjustments		(64	)		(137	)
Other adjustments, principally net changes in other assets and liabilities		(6	)		(1,586	)
Net cash provided by operating activities		9,705			8,722
INVESTING ACTIVITIES
Purchases of investment securities:
Held to maturity		(102,698	)		(40,116	)
Available for sale		-			(20,377	)
Maturities, calls and amortization of investment securities:
Held to maturity		39,606			48,403
Available for sale		13,175			14,407
Loan (originations) repayments, net		(14,002	)		23,442
Net redemption of FHLB stock		340			3
Sale (purchase) of bank premises and equipment		653			(117	)
Net cash (used in) provided by investing activities		(62,926	)		25,645
FINANCING ACTIVITIES
Net increase in deposits		31,385			4,032
Repayment of long-term FHLB advances		(7,567	)		(66	)
Net decrease in mortgage escrow funds		344			487
Common stock dividends paid		(1,743	)		(1,238	)
Repurchase of shares from employees for income tax withholding purpose		(360	)		(303	)
Repurchase of common stock		(7,804	)		(11,040	)
Net cash provided by (used in) financing activities		14,255			(8,128	)
Net (decrease) increase in cash and cash equivalents		(38,966	)		26,239
Cash and cash equivalents at beginning of period		159,305			136,302
Cash and cash equivalents at end of period	$	120,339		$	162,541
Supplemental information:
Cash paid for:
Interest	$	3,323		$	5,635
Income taxes		1,507			2,715
Transfers from premises and equipment to other assets		398			-

See accompanying notes to the consolidated financial statements (unaudited) 

8

PCSB Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

Note 1. Basis of Presentation

Nature of Operations: PCSB Financial Corporation (the “Holding Company” and together with its direct and indirect subsidiaries, the “Company”) is a Maryland corporation organized by PCSB Bank (the “Bank”) for the purpose of acquiring all of the capital stock of the Bank issued in the Bank's conversion to stock ownership on April 20, 2017. At December 31, 2021, the significant assets of the Holding Company were the capital stock of the Bank, cash deposited in the Bank, and a loan to the PCSB Bank Employee Stock Ownership Plan (“ESOP”). The liabilities of the Holding Company were insignificant. The Company is subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended, and regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the New York State Department of Financial Services (the “NYSDFS”).

PCSB Bank is a community-oriented financial institution that provides financial services to individuals and businesses within its market area of Putnam, Southern Dutchess, Rockland and Westchester Counties in New York. The Bank is a state-chartered commercial bank, and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Bank’s primary regulators are the FDIC and the NYSDFS.

Basis of Presentation:  The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and include the accounts of the Holding Company, the Bank and the Bank's two subsidiaries – PCSB Funding Corp. and UpCounty Realty Corp. (formerly PCSB Realty Ltd.). PCSB Funding Corp. is a real estate investment trust that holds certain mortgage assets. UpCounty Realty Corp. is a corporation that holds certain properties foreclosed upon by the Bank. All intercompany transactions and balances have been eliminated in consolidation.

The unaudited consolidated financial statements contained herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments reflected in the consolidated financial statements contained herein. The results of operations for the current period presented are not necessarily indicative of the results of operations that may be expected for the entire current fiscal year. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended June 30, 2021, included in the Company's Annual Report on Form 10-K.

Certain prior period amounts have been reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or equity.

Loans Receivable Held For Sale: Loans receivable held for sale are those loans which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or market value. Net unrealized losses, if any, are recognized by a valuation allowance through a charge to noninterest income. Realized gains and losses on the sale of loans are recognized on the trade date and are determined by the difference between the sale proceeds and the carrying value of the loans.

Loans may be sold with servicing rights released or retained. At the time of the sale, management records a servicing asset for the value of any retained servicing rights, which represents the present value of the differential between the contractual servicing fee and adequate compensation, defined as the fee a sub-servicer would require to assume the role of servicer, after considering the estimated effects of prepayments.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets

9

before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call.

Assets Held For Sale: Assets held for sale are those assets which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or fair value, less estimated costs to sell, in the period in which the held for sale criteria are met and every subsequent period until the asset is sold. The carrying amount of the asset is adjusted for subsequent increases or decreases in its fair value, less estimated cost to sell, except that any subsequent increase cannot exceed the cumulative loss previously recognized. Such assets are not depreciated or amortized while they are classified as held for sale. Realized gains and losses on the sale of the asset is recognized when the asset is sold and is determined by the difference between the sale proceeds and the carrying value of the asset. Assets classified as held for sale totaled $1.5 million as of both December 31, 2021 and June 30, 2021 and are included in other assets on the consolidated balance sheet. During the three and six months ended December 31, 2021, the Company sold $398,000 in assets held for sale resulting in gains on sale of $548,000.

Risks and Uncertainties:

The COVID-19 pandemic has created extensive disruptions to the global and U.S. economies and to the lives of individuals throughout the world. Governments, businesses, and the public have taken unprecedented actions to contain the spread of COVID-19 and to mitigate its effects, including vaccination mandates, quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal and monetary stimulus, and legislation designed to deliver financial aid and other relief. While the scope, duration, and full effects of COVID-19 on the economy continue to evolve and are not fully known, the pandemic and the efforts to contain it have disrupted global economic activity, adversely affected the functioning of financial markets, impacted market interest rates, increased economic and market uncertainty, and disrupted trade and supply chains.

Many of the emergency actions taken to mitigate the effects of the pandemic have since been reduced or eliminated, resulting in an improved local and national economic environment, however the ultimate financial impact of the pandemic on our borrowers, and therefore on our credit quality and financial performance, is still unknown at this time. The pandemic may continue to adversely impact consumers and several industries within our geographic footprint and impair the ability of the Company’s customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include, but are not limited to, the valuation impairments of the Company’s intangible assets, investments, loans receivable, or deferred tax assets. Additionally, it is reasonably possible that the Company’s allowance for loan loss estimate as of December 31, 2021 could change in the near term and could result in a material change to the Company’s provision for loan losses, earnings and capital.

Use of Estimates:  To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.  

Note 2. Recent Accounting Pronouncements

The pronouncements discussed below are not intended to be an all-inclusive list, but rather only those pronouncements that the Company has determined could potentially have a material impact on our financial position, results of operations or disclosures.

There were no accounting standards adopted in the current period.

Future Application of Accounting Pronouncements Previously Issued

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 which affects entities holding financial assets that are not accounted for at fair value through net income, including loans, debt securities, and other financial assets. The ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for current expected credit losses. In October 2019, the FASB unanimously voted to delay the implementation of the standard for three years for certain companies, including small reporting companies (as defined by the SEC), non-SEC public companies and private companies. The Company currently qualifies as a small reporting company and is subject to the delayed implementation. Therefore, the amendments in this update

10

will be effective for the Company for the fiscal year beginning on July 1, 2023, including interim periods within that fiscal year. The Company is actively working through the provisions of the Update. Management has established a steering committee which is identifying the methodologies and the additional data requirements necessary to implement the Update and has engaged a third-party software service provider to assist in the Company's implementation. Management is currently evaluating the impact that ASU 2016-13 will have on the Company’s consolidated financial position, results of operations and disclosures.

The FASB issued ASU 2020-04 “Reference Rate Reform” and ASU 2021-01 “Reference Rate Reform Scope” which collectively address accounting considerations related to the expected discontinuation of LIBOR as a reference rate for financial contracts. These Updates provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). They include optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, Receivables), were not substantial (assets within the scope of ASC 470, Debt) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases, and other Topics) of the existing contract. They also include optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. The Updates also allow for a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The guidance in these ASUs are effective as of March 12, 2020 through December 31, 2022. The Company has not yet elected to apply the practical expedients contained in these Updates and does not expect significant impact to the consolidated financial statements upon adoption. 

Note 3. Investment Securities

The amortized cost, gross unrealized/unrecognized gains and losses and fair value of available for sale and held to maturity debt securities at December 31, 2021 and June 30, 2021 were as follows (in thousands):

	December 31, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	10,936	$	-	$	(206	)	$	10,730
Corporate		8,002		165		-			8,167
State and municipal		7,041		71		(120	)		6,992
Mortgage-backed securities – residential		15,511		84		(311	)		15,284
Mortgage-backed securities – commercial		2,453		61		-			2,514
Total available for sale	$	43,943	$	381	$	(637	)	$	43,687
Held to maturity:
U.S. Government and agency obligations	$	39,995	$	104	$	(367	)	$	39,732
Corporate		52,091		1,247		(100	)		53,238
State and municipal		87,568		342		(1,625	)		86,285
Mortgage-backed securities – residential		105,968		1,867		(523	)		107,312
Mortgage-backed securities – collateralized mortgage obligations		25,304		165		(441	)		25,028
Mortgage-backed securities – commercial		79,386		536		(1,703	)		78,219
Total held to maturity	$	390,312	$	4,261	$	(4,759	)	$	389,814

11

	June 30, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	21,931	$	6	$	(121	)	$	21,816
Corporate		8,013		176		-			8,189
State and municipal		7,041		104		(30	)		7,115
Mortgage-backed securities – residential		17,738		148		(232	)		17,654
Mortgage-backed securities – commercial		2,490		123		-			2,613
Total available for sale	$	57,213	$	557	$	(383	)	$	57,387
Held to maturity:
U.S. Government and agency obligations	$	33,994	$	202	$	(84	)	$	34,112
Corporate		43,605		1,312		(38	)		44,879
State and municipal		57,625		440		(248	)		57,817
Mortgage-backed securities – residential		96,181		2,713		(107	)		98,787
Mortgage-backed securities – collateralized mortgage obligations		33,300		376		(328	)		33,348
Mortgage-backed securities – commercial		72,879		937		(622	)		73,194
Total held to maturity	$	337,584	$	5,980	$	(1,427	)	$	342,137

No securities were sold during the three or six months ended December 31, 2021 or 2020.              

The following table presents the fair value and carrying amount of debt securities at December 31, 2021, by contractual maturity (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Held to maturity				Available for sale
	Carrying		Fair		Amortized		Fair
	Amount		Value		Cost		Value
1 year or less	$	5,121	$	5,222	$	3,002	$	3,008
1 to 5 years		45,969		45,617		5,000		4,990
5 to 10 years		43,476		44,575		10,936		10,899
over 10 years		81,203		79,771		7,041		6,992
Mortgage-backed securities and other		214,543		214,629		17,964		17,798
Total	$	390,312	$	389,814	$	43,943	$	43,687

Securities pledged had carrying amounts of $151.6 million and $180.1 million at December 31, 2021 and June 30, 2021, respectively, and were pledged principally to secure FHLB advances and public deposits.

12

The following table provides information regarding investment securities with unrealized/unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position at December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale:
U.S. Government and agency obligations	$	10,730	$	(206	)	$	-	$	-		$	10,730	$	(206	)
State and municipal		1,918		(91	)		981		(29	)		2,899		(120	)
Mortgage-backed securities – residential		5,843		(146	)		5,125		(165	)		10,968		(311	)
Total available for sale	$	18,491	$	(443	)	$	6,106	$	(194	)	$	24,597	$	(637	)
Held to maturity:
U.S. Government and agency obligations	$	31,627	$	(367	)	$	-	$	-		$	31,627	$	(367	)
Corporate		9,900		(100	)		-		-			9,900		(100	)
State and municipal		61,699		(1,625	)		-		-			61,699		(1,625	)
Mortgage-backed securities – residential		51,441		(523	)		-		-			51,441		(523	)
Mortgage-backed securities – collateralized mortgage obligations		13,543		(440	)		89		(1	)		13,632		(441	)
Mortgage-backed securities – commercial		62,956		(1,671	)		1,006		(32	)		63,962		(1,703	)
Total held to maturity	$	231,166	$	(4,726	)	$	1,095	$	(33	)	$	232,261	$	(4,759	)

	June 30, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale
U.S. Government and agency obligations	$	14,811	$	(121	)	$	-	$	-		$	14,811	$	(121	)
State and municipal		2,990		(30	)		-		-			2,990		(30	)
Mortgage-backed securities – residential		9,615		(222	)		1,339		(10	)		10,954		(232	)
Total available for sale	$	27,416	$	(373	)	$	1,339	$	(10	)	$	28,755	$	(383	)
Held to maturity
U.S. Government and agency obligations	$	19,409	$	(84	)	$	-	$	-		$	19,409	$	(84	)
Corporate		2,488		(13	)		4,975		(25	)		7,463		(38	)
State and municipal		19,980		(248	)		-		-			19,980		(248	)
Mortgage-backed securities – residential		30,335		(107	)		-		-			30,335		(107	)
Mortgage-backed securities – collateralized mortgage obligations		15,133		(328	)		-		-			15,133		(328	)
Mortgage-backed securities – commercial		47,580		(622	)		-		-			47,580		(622	)
Total held to maturity	$	134,925	$	(1,402	)	$	4,975	$	(25	)	$	139,900	$	(1,427	)

As of December 31, 2021, the Company’s securities portfolio consisted of $434.0 million in securities, of which 154 securities with a fair value of $256.9 million were in an unrealized/unrecognized loss position. Non-U.S. government and agency obligations are internally pass rated and are subject to quarterly credit monitoring.  

There were no securities for which the Company believes it is not probable that it will collect all amounts due according to the contractual terms of the security as of December 31, 2021 or June 30, 2021. Management believes the unrealized losses are primarily a result of changes in market interest rates. The Company has determined that it does not intend to sell, or it is not more likely than not that it will be required to sell, its securities that are in an unrealized loss position prior to the recovery of its amortized cost basis. Therefore, the Company did not consider any securities to be other-than-temporarily impaired as of December 31, 2021 or June 30, 2021.

13

Note 4. Loans Receivable

Loans receivable are summarized as follows (in thousands):

	December 31,			June 30,
	2021			2021
Mortgage loans:
Residential	$	212,817		$	224,305
Commercial		867,581			826,624
Construction		11,857			10,151
Net deferred loan origination (fees) costs		(18	)		196
Total mortgage loans		1,092,237			1,061,276
Commercial and consumer loans:
Commercial loans		135,055			150,658
Home equity lines of credit		24,142			25,439
Consumer and overdrafts		356			345
Net deferred loan origination costs (fees)		285			(386	)
Total commercial and consumer loans		159,838			176,056
Total loans receivable		1,252,075			1,237,332
Allowance for loan losses		(8,429	)		(7,881	)
Loans receivable, net	$	1,243,646		$	1,229,451

14

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	326	$	(9	)	$	-		$	2	$	319
Commercial mortgages		6,569		284			-			-		6,853
Construction		127		2			-			-		129
Commercial loans		1,072		(18	)		-			13		1,067
Home equity lines of credit		53		(4	)		-			2		51
Consumer and overdrafts		12		9			(11	)		-		10
Total	$	8,159	$	264		$	(11	)	$	17	$	8,429
	Three Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	342	$	(12	)	$	-		$	4	$	334
Commercial mortgages		6,966		(94	)		-			-		6,872
Construction		173		32			-			-		205
Commercial loans		1,121		179			(119	)		20		1,201
Home equity lines of credit		63		(4	)		-			2		61
Consumer and overdrafts		7		6			(9	)		-		4
Total	$	8,672	$	107		$	(128	)	$	26	$	8,677
	Six Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	337	$	(22	)	$	-		$	4	$	319
Commercial mortgages		6,435		418			-			-		6,853
Construction		102		27			-			-		129
Commercial loans		948		(161	)		(100	)		380		1,067
Home equity lines of credit		54		(7	)		-			4		51
Consumer and installment loans		5		22			(18	)		1		10
Total	$	7,881	$	277		$	(118	)	$	389	$	8,429
	Six Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	373	$	(45	)	$	-		$	6	$	334
Commercial mortgages		6,913		(41	)		-					6,872
Construction		165		40			-					205
Commercial loans		1,124		250			(224	)		51		1,201
Home equity lines of credit		60		(3	)		-			4		61
Consumer and installment loans		4		15			(17	)		2		4
Total	$	8,639	$	216		$	(241	)	$	63	$	8,677

15

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, excluding net deferred fees and accrued interest, by portfolio segment, and based on impairment method as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	1,743	$	210,653	$	421	$	212,817	$	111	$	208	$	-	$	319
Commercial mortgages		3,582		863,125		874		867,581		-		6,853		-		6,853
Construction		1,113		10,744		-		11,857		-		129		-		129
Commercial loans		654		134,401		-		135,055		-		1,067		-		1,067
Home equity lines of credit		374		23,653		115		24,142		8		43		-		51
Consumer and overdrafts		-		356		-		356		-		10		-		10
Total	$	7,466	$	1,242,932	$	1,410	$	1,251,808	$	119	$	8,310	$	-	$	8,429
	June 30, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	2,356	$	221,229	$	720	$	224,305	$	113	$	224	$	-	$	337
Commercial mortgages		3,582		822,154		888		826,624		-		6,435		-		6,435
Construction		-		10,151		-		10,151		-		102		-		102
Commercial loans		1,707		148,951		-		150,658		-		948		-		948
Home equity lines of credit		414		24,902		123		25,439		8		46		-		54
Consumer and overdrafts		-		345		-		345		-		5		-		5
Total	$	8,059	$	1,227,732	$	1,731	$	1,237,522	$	121	$	7,760	$	-	$	7,881

16

The following tables present information related to loans individually evaluated for impairment (excluding loans acquired with deteriorated credit quality) by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021						June 30, 2021
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential mortgages	$	1,370	$	1,323	$	-	$	2,044	$	1,931	$	-
Commercial mortgages		3,582		3,582		-		3,582		3,582		-
Construction		1,113		1,113		-		-		-		-
Commercial loans		666		654		-		1,878		1,707		-
Home equity lines of credit		314		339		-		358		381		-
With an allowance recorded:
Residential mortgages		358		420		111		363		425		113
Home equity lines of credit		35		35		8		33		33		8
Total	$	7,438	$	7,466	$	119	$	8,258	$	8,059	$	121

The tables below present the average recorded investment and interest income recognized on loans individually evaluated for impairment, by portfolio segment, for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three months ended				Three months ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,916	$	23	$	1,873	$	12
Commercial mortgages		3,582		-		-		-
Construction		278		18		-		-
Commercial loans		355		9		1,769		48
Home equity lines of credit		339		-		379		1
With an allowance recorded:
Residential mortgages		420		4		428		4
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		29		-
Total	$	6,924	$	54	$	4,493	$	65
	Six Months Ended				Six Months Ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,925	$	30	$	1,935	$	20
Commercial mortgages		3,582		-		-		-
Construction		159		36		-		-
Commercial loans		726		206		1,789		97
Home equity lines of credit		345		2		383		1
With an allowance recorded:
Residential mortgages		422		7		429		7
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		21		-
Total	$	7,193	$	281	$	4,572	$	125

17

The following table presents the recorded investment in nonaccrual loans and in loans past due over 90 days and still on accrual status, by portfolio segment, as of December 31, 2021 and June 30, 2021 (in thousands):

					Loans Past Due Over 90 Days
	Nonaccrual				and Still Accruing
	December 31,		June 30,		December 31,		June 30,
	2021		2021		2021		2021
Residential mortgages	$	789	$	1,391	$	-	$	-
Commercial mortgages		3,582		3,582		1,655		411
Construction		1,113		-		-		-
Commercial loans		400		-		-		-
Home equity lines of credit		339		381		-		-
Consumer and overdrafts		-		-		12		-
Total	$	6,223	$	5,354	$	1,667	$	411

Nonperforming loans include both smaller-balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The table above excludes acquired loans that are accounted for as purchased credit impaired loans totaling $356,000 and $368,000 as of December 31, 2021 and June 30, 2021, respectively. Such loans are excluded because the loans are in pools that are considered performing. The discounts arising from recording these loans at fair value upon acquisition were due in part to credit quality and the accretable yield is being recognized as interest income over the life of the loans based on expected cash flows.

The following tables present the aging of the recorded investment in past due loans by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	259	$	193	$	669	$	1,121	$	211,696	$	212,817
Commercial mortgages		539		-		1,655		2,194		865,387		867,581
Construction		-		-		1,113		1,113		10,744		11,857
Commercial loans		-		47		400		447		134,608		135,055
Home equity lines of credit		-		18		339		357		23,785		24,142
Consumer and overdrafts		-		-		12		12		344		356
Total	$	798	$	258	$	4,188	$	5,244	$	1,246,564	$	1,251,808

	June 30, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	198	$	126	$	948	$	1,272	$	223,033	$	224,305
Commercial mortgages		453		-		411		864		825,760		826,624
Construction		-		-		-		-		10,151		10,151
Commercial loans		69		76		-		145		150,513		150,658
Home equity lines of credit		-		19		381		400		25,039		25,439
Consumer and overdrafts		-		-		-		-		345		345
Total	$	720	$	221	$	1,740	$	2,681	$	1,234,841	$	1,237,522

⁽¹⁾ As of December 31, 2021 and June 30, 2021, loans on a COVID-19-related payment deferral are considered current.  

18

Troubled Debt Restructurings

The terms of certain loans have been modified as troubled debt restructurings (“TDR’s”). The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. All TDRs are considered impaired loans.

As of December 31, 2021 and June 30, 2021, the Company had 8 and 12 loans, classified as TDRs totaling $1.6 million and $3.1 million, including $1.2 million and $2.7 million, respectively, of loans still accruing interest. The Company has allocated $119,000 and $121,000, respectively, of specific reserves to customers whose loan terms have been modified in TDRs as of December 31, 2021 and June 30, 2021. As of December 31, 2021, the Company has committed to lend an additional $1,000  to customers with outstanding loans that are classified as TDRs.

The Company did not modify any loans during the three or six months ended December 31, 2021 or 2020 that were classified as TDRs.       

There were no defaults of TDRs occurring in the three or six months ended December 31, 2021 or December 31, 2020 that were modified in the twelve months prior to default.       

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” provides banks the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. On December 27, 2020, the Consolidated Appropriations Act 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extends Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. This legislation expired on January 1, 2022. Additionally, on April 7, 2020, the banking agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, issued a statement, “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised)” (“Interagency Statement”), to encourage banks to work prudently with borrowers and to describe the agencies’ interpretation of how accounting rules under ASC 310-40, “Troubled Debt Restructurings by Creditors,” apply to certain COVID-19-related modifications.

During the three and six months ended December 31, 2021, the Company granted or extended loan payment deferrals for 3 and 5 residential mortgage, commercial mortgage, and commercial loans totaling $3.9 million and $5.9 million, respectively. In accordance with either the CARES Act (as amended) or Interagency Statement, these modifications are not considered TDRs. The Company had 7 and 19 loans totaling $13.7 million and $27.3 million on loan payment deferral as of December 31, 2021 and June 30, 2021, respectively.

19

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 by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company utilizes the same grading process for acquired loans as it does for originated loans. The Company uses the following definitions for risk ratings:

Special Mention – Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process and loans in groups of homogenous loans are considered to be pass rated loans. These loans are monitored based on delinquency and performance. Based on the most recent analysis performed, the risk category of loans by portfolio segment is as follows (in thousands):

	December 31, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	210,945	$	262	$	1,610	$	212,817
Commercial mortgages		847,434		3,163		16,984		867,581
Construction		10,744		1,113		-		11,857
Commercial loans		130,602		607		3,846		135,055
Home equity lines of credit		23,628		84		430		24,142
Consumer and overdrafts		356		-		-		356
Total	$	1,223,709	$	5,229	$	22,870	$	1,251,808

	June 30, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	219,901	$	2,480	$	1,924	$	224,305
Commercial mortgages		809,660		1,615		15,349		826,624
Construction		9,038		1,113		-		10,151
Commercial loans		146,275		491		3,892		150,658
Home equity lines of credit		24,400		602		437		25,439
Consumer and overdrafts		345		-		-		345
Total	$	1,209,619	$	6,301	$	21,602	$	1,237,522

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As of December 31, 2021, of the $13.7 million in loans in a COVID-19 related payment deferral, $8.3 million were pass-rated, with $185,000 and $5.3 million rated special mention and substandard, respectively. As of June 30, 2021, of the $27.3 million in loans on deferral, $9.9 million were pass-rated, with $3.2 million and $14.2 million rated special mention and substandard, respectively.

Purchased Credit Impaired Loans

The Company has acquired loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of December 31, 2021 and June 30, 2021 is as follows (in thousands):

	December 31,		June 30,
	2021		2021
Residential mortgages	$	421	$	720
Commercial mortgages		874		888
Home equity lines of credit		115		123
Carrying amount, net of allowance of $0	$	1,410	$	1,731

There was no provision for loan losses on purchased credit impaired loans during the three and six months ended December 31, 2021 or 2020.

Accretable yield, or income expected to be collected, for acquired loans is as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Beginning balance	$	120		$	151		$	130		$	156
New loans acquired		-			-			-			-
Accretion income		(19	)		(4	)		(29	)		(9	)
Reclassification from non-accretable difference		-			-			-			-
Disposals		-			-			-			-
Ending balance	$	101		$	147		$	101		$	147

Note 5. Accumulated Other Comprehensive (Loss) Income

The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax (in thousands):

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2021	$	(10	)	$	(3,026	)	$	(168	)	$	(3,204	)
Other comprehensive loss before reclassifications		(243	)		-			-			(243	)
Amounts reclassified from accumulated other comprehensive income		-			37			16			53
Less tax effect		51			(7	)		(3	)		41
Net other comprehensive (loss) income		(192	)		30			13			(149	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

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	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2020	$	415		$	(6,416	)	$	(215	)	$	(6,216	)
Other comprehensive loss before reclassifications		(3	)		-			-			(3	)
Amounts reclassified from accumulated other comprehensive income		-			332			14			346
Less tax effect		1			(69	)		(4	)		(72	)
Net other comprehensive (loss) income		(2	)		263			10			271
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2021	$	137		$	(3,055	)	$	(181	)	$	(3,099	)
Other comprehensive loss before reclassifications		(430	)		-			-			(430	)
Amounts reclassified from accumulated other comprehensive income		-			75			32			107
Tax effect		91			(16	)		(6	)		69
Net other comprehensive (loss) income		(339	)		59			26			(254	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2020	$	428		$	(6,605	)	$	(226	)	$	(6,403	)
Other comprehensive income before reclassifications		(19	)		-			-			(19	)
Amounts reclassified from accumulated other comprehensive income		-			572			28			600
Tax effect		4			(120	)		(7	)		(123	)
Net other comprehensive (loss) income		(15	)		452			21			458
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

Note 6. Post-Retirement Benefits

Employee Pension Plan

The Company maintains a non-contributory defined benefit pension plan that covers employees meeting specific requirements as to age and length of service. The Company’s contributions to this qualified plan are determined on the basis of (i) the maximum amount that can be deducted for federal income tax purposes, and (ii) the amount determined by a consulting actuary as necessary to avoid an accumulated funding deficiency as defined by the Employee Retirement Income Security Act of 1974 (“ERISA”). Contributions are intended to provide for benefits attributed to service to date but also those expected to be earned in the future. On February 15, 2017, the Board of Directors approved the freezing of the defined benefit pension plan effective May 1, 2017.

Supplemental Executive Retirement Plans

The Company also maintains unfunded and non-qualified supplemental executive retirement plans ("SERP") to provide pension benefits in addition to those provided under the qualified pension plan.

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Net periodic benefit cost and other amounts recognized in other comprehensive income for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended					Three Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plans		Defined Benefit Plan			Supplemental Retirement Plans
Service cost	$	-		$	130	$	-		$	91
Interest cost		148			18		137			23
Expected return on plan assets		(509	)		-		(455	)		-
Amortization of prior net loss		37			16		239			14
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(324	)	$	164	$	14		$	128
	Six Months Ended					Six Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plan		Defined Benefit Plan			Supplemental Retirement Plan
Service cost	$	-		$	261	$	-		$	181
Interest cost		297			35		273			47
Expected return on plan assets		(1,019	)		-		(911	)		-
Amortization of prior net loss		75			32		479			28
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(647	)	$	328	$	(66	)	$	256

The Company made no contributions to the defined benefit plan during the three and six months ended December 31, 2021.

Employee Stock Ownership Plan

On January 1, 2017, the Company established an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. On April 20, 2017, the Holding Company granted a loan to the ESOP in the amount of $14.5 million for the purchase of 1,453,209 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Holding Company to purchase the common stock is payable annually over 15 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (3.25% for 2021). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan at December 31, 2021 was $9.7 million. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 96,881 through 2032. Dividends on allocated shares increase participant accounts and are used to purchase additional shares of stock. Participants receive the shares at the end of employment.

Shares held by the ESOP include the following (dollars in thousands):

	December 31, 2021		June 30, 2021
Allocated to participants		469,127		417,902
Unearned		968,810		1,017,648
Total ESOP shares		1,437,937		1,435,550
Fair value of unearned shares	$	18,446	$	18,491

Total compensation expense recognized in connection with the ESOP for the three and six months ended December 31, 2021 was $457,000 and $903,000, respectively, and for the three and six months ended December 31, 2020 was $360,000 and $661,000, respectively.     

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Note 7. Fair Value of Financial Instruments

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: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as general classification of such instruments pursuant to the valuation hierarchy, is set forth below. While management believes the Company’s valuation methodologies are appropriate and consistent with other financial institutions, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.  

Investment Securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs), or a broker's opinion of value (Level 3 inputs).  

Impaired Loans: The fair value of collateral-dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. Appraisals are generally obtained annually and may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Management performs a review of all appraisals, including any such adjustments. The fair value of uncollateralized or non-collateral-dependent loans are generally based on discounted cash flows which utilize management’s assumption of discount rates and expected future cash flows, resulting in a Level 3 classification.

Foreclosed Real Estate: Assets acquired through or instead of loan foreclosure are initially recorded at fair value, less estimated costs to sell, when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value, less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Foreclosed properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Credit Department, as well as a third-party specialist, where deemed appropriate, reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Once appraisals are considered appropriate, management discounts the appraised value for estimated selling costs, such as legal, broker, and property maintenance and insurance costs.  The most recent analysis performed indicated discount rates ranging between 10% and 20% should be applied to properties with appraisals performed.

Derivatives: The Company’s derivative assets and liabilities consist of transactions undertaken as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained

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from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy.

Assets and liabilities measured at fair value are summarized below (in thousands):

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
December 31, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	10,730	$	-	$	10,730
Corporate		-		5,032		3,135		8,167
State and municipal		-		6,992		-		6,992
Mortgage-backed securities – residential		-		15,284		-		15,284
Mortgage-backed securities – commercial		-		2,514		-		2,514
Derivatives – interest rate contracts		-		3,824		-		3,824
Total assets at fair value	$	-	$	44,376	$	3,135	$	47,511
Derivatives – interest rate contracts	$	-	$	3,824	$	-	$	3,824
Total liabilities at fair value	$	-	$	3,824	$	-	$	3,824
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	309	$	309
Home equity lines of credit		-		-		27		27
Total assets at fair value	$	-	$	-	$	336	$	336

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
June 30, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	21,816	$	-	$	21,816
Corporate		-		5,058		3,131		8,189
State and municipal		-		7,115		-		7,115
Mortgage-backed securities – residential		-		17,654		-		17,654
Mortgage-backed securities – commercial		-		2,613		-		2,613
Derivatives – interest rate contracts		-		4,232		-		4,232
Total assets at fair value	$	-	$	58,488	$	3,131	$	61,619
Derivatives – interest rate contracts	$	-	$	4,232	$	-	$	4,232
Total liabilities at fair value	$	-	$	4,232	$	-	$	4,232
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	312	$	312
Home equity lines of credit		-		-		25		25
Total assets at fair value	$	-	$	-	$	337	$	337

There were no transfers between levels within the fair value hierarchy during the three and six months ended December 31, 2021 and 2020.

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Impaired loans in the preceding table had a carrying amount of $455,000 and a remaining valuation allowance of $119,000, at December 31, 2021, as compared to $471,000 and $125,000, respectively, as of June 30, 2021. Impaired loans measured at fair value incurred no net charge-offs and resulted in a credit for loan losses of $3,000 during the six months ended December 31, 2021. Impaired loans measured at fair value as of December 31, 2020 incurred no net charge-offs and resulted in a provision for loan losses of $2,000 during the six months ended December 31, 2020.

The following tables present quantitative information about Level 3 fair value measurements for selected financial instruments measured at fair value on a non-recurring basis at December 31, 2021 and June 30, 2021 (dollars in thousands):

			Valuation	Unobservable	Range or
	Fair Value		Technique(s)	Input(s)	Rate Used
December 31, 2021
Impaired loans - residential mortgages	$	309	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		27	Discounted cash flow	Discount rate	5.4% to 6.3%
June 30, 2021
Impaired loans - residential mortgages	$	312	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		25	Discounted cash flow	Discount rate	5.4% to 6.3%

The following is a summary of the carrying amounts and estimated fair values of the Company’s financial assets and liabilities, none of which are held for trading purposes (in thousands):

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2021
Financial assets:
Cash and cash equivalents	$	120,339	$	120,339	$	-	$	-	$	120,339
Investment securities held to maturity		390,312		-		354,962		34,852		389,814
Investment securities available for sale		43,687		-		40,552		3,135		43,687
Loans receivable, net		1,243,646		-		-		1,243,799		1,243,799
Loans receivable held for sale		1,452		-		-		1,452		1,452
Accrued interest receivable		6,509		-		1,648		4,861		6,509
FHLB stock		4,167	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		3,824		-		3,824		-		3,824
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,168,711		1,168,711		-		-		1,168,711
Time deposits		354,356		-		358,819		-		358,819
Mortgage escrow funds		10,880		10,880		-		-		10,880
Accrued interest payable		127		1		126		-		127
FHLB advances		58,390		-		59,103		-		59,103
Derivative liabilities - interest rate contracts		3,824		-		3,824		-		3,824

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	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
June 30, 2021
Financial assets:
Cash and cash equivalents	$	159,305	$	159,305	$	-	$	-	$	159,305
Investment securities held to maturity		337,584		-		305,671		36,466		342,137
Investment securities available for sale		57,387		-		54,256		3,131		57,387
Loans receivable, net		1,229,451		-		-		1,234,116		1,234,116
Accrued interest receivable		6,398		-		1,341		5,057		6,398
FHLB stock		4,507	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		4,232		-		4,232		-		4,232
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,116,667		1,116,667		-		-		1,116,667
Time deposits		375,015		-		380,948		-		380,948
Mortgage escrow funds		10,536		10,536		-		-		10,536
Accrued interest payable		146		1		145		-		146
FHLB advances		65,957		-		67,334		-		67,334
Derivative liabilities - interest rate contracts		4,232		-		4,232		-		4,232

The methods of determining the fair value of assets and liabilities presented in the table above are consistent with our methodologies disclosed in the Company's Consolidated Financial Statements included in the Annual Report on Form 10-K.

Note 8. Regulatory Matters

The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2021 and June 30, 2021, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (dollars in thousands).  

											To Be Well Capitalized
						For Capital					Under Prompt
						Adequacy					Corrective Action
	Bank Actual					Purposes					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2021
Leverage (Tier 1)	$	242,523		12.9	%	$	75,115		4.0	%	$	93,893		5.0	%
Risk-based:
Common Tier 1		242,523		17.7			61,769		4.5			89,222		6.5
Tier 1		242,523		17.7			82,359		6.0			109,812		8.0
Total		250,952		18.3			109,812		8.0			137,265		10.0
June 30, 2021
Leverage (Tier 1)	$	233,944		12.5	%	$	74,988		4.0	%	$	93,735		5.0	%
Risk-based:
Common Tier 1		233,944		17.9			58,713		4.5			84,807		6.5
Tier 1		233,944		17.9			78,283		6.0			104,378		8.0
Total		241,825		18.5			104,378		8.0			130,472		10.0

In addition to the ratios above, the Basel III Capital Rules have established that community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers.

Management believes that as of December 31, 2021 and June 30, 2021, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer of 2.5%. Further, the most recent

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FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.  

Note 9. Earnings Per Share (“EPS”)

Basic EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.

Diluted EPS is calculated in a similar matter, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. Dilutive financial instruments include stock options and unvested restricted stock. The following table provides factors used in the earnings per share computation.

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
	(dollars in thousands, except per share data)
Net income applicable to common stock	$	4,288		$	2,694		$	7,902		$	5,422
Average number of common shares outstanding		15,217,484			15,966,158			15,280,230			16,184,821
Less: Average unallocated ESOP shares		(981,011	)		(1,077,630	)		(993,221	)		(1,089,839	)
Average number of common shares outstanding used to calculate basic earnings per common share		14,236,473			14,888,528			14,287,009			15,094,982
Effect of equity-based awards		44,759			492			62,263			-
Average number of common shares outstanding used to calculate diluted earnings per common share		14,281,232			14,889,020			14,349,272			15,094,982
Earnings per common share:
Basic	$	0.30		$	0.18		$	0.55		$	0.36
Diluted	$	0.30		$	0.18		$	0.55		$	0.36

Stock options for 1,314,963 and 1,309,550 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended December 31, 2021, respectively, because they were antidilutive.  Stock options for 1,345,293 and 1,343,695 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended December 31, 2020, respectively, because they were antidilutive.

Note 10. Derivatives and Hedging

Derivatives not designated as hedges may be used to manage the Company’s exposure to interest rate movements or to provide service to customers. The Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third party in order to minimize the net risk exposure resulting from such transactions. The Company presents interest rate swap assets and liabilities in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. These interest rate swap agreements do not qualify for hedge accounting treatment, and therefore changes in fair value are reported in current period earnings.

The following table presents summary information about the interest rate swaps as of December 31, 2021 and June 30, 2021 (dollars in thousands).

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	December 31,			June 30,
	2021			2021
Notional amounts	$	180,921		$	182,700
Weighted average pay rates		2.55	%		2.55	%
Weighted average receive rates		2.55	%		2.55	%
Weighted average maturity	7.95 years			8.46 years
Fair value of combined interest rate swaps	$	-		$	-

Note 11. Revenue From Contracts With Customers

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue:

1. Identify the contract with a customer.

2. Identify the performance obligations in the contract.

3. Determine the transaction price.

4. Allocate the transaction price to performance obligations in the contract.

5. Recognize revenue when (or as) the Company satisfies a performance obligation.

The following table presents summary information about sources of revenue from contracts with customers for the periods indicated (in thousands).

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Noninterest income:
Service charges on deposits	$	199	$	196	$	382	$	358
Interchange fees		164		133		320		264
Other fees and service charges (1)		44		34		106		63
Fees and service charges		407		363		808		685
Gain on sale of premises (1)		548		-		548		-
Bank-owned life insurance (1)		191		129		383		261
Net gains on sales of loans receivable (1)		41		-		47		-
Swap income (1)		-		238		-		367
Other noninterest income (1)		8		13		22		24
Total noninterest income	$	1,195	$	743	$	1,808	$	1,337
(1)     Not within the scope of ASC 606.

Fees and Service Charges on Deposit Accounts. The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payments, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfied 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.

Interchange Income. The Company earns interchange fees from debit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

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Gain on Sales of Foreclosed Real Estate. The Company records a gain or loss from the sale of foreclosed real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of foreclosed real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the foreclosed real estate 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.

Note 12. Stock-Based Compensation

On October 24, 2018, the Company’s shareholders approved the PCSB Financial Corporation 2018 Equity Incentive Plan (the “Plan”), which permits the grant of stock options and restricted stock and/or restricted stock units. The total number of shares that may be granted under the Plan is 2,543,115, of which 1,816,511 shares may be granted as stock options and 726,604 shares may be granted as restricted stock and restricted stock units. Total compensation cost that has been charged against income for the Plan was $820,000 and $1.6 million for the three and six months ended December 31, 2021 and $822,000 and $1.7 million for the three and six months ended December 31, 2020, respectively.

Restricted Stock Awards (“RSAs”)

RSAs awarded under the Plan provide for the issuance of shares to both employees and non-employee directors. These awards generally vest over a 5-year period, with 20% vesting each year on the anniversary of the award. All awards were made at the fair value of common stock on the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at grant date. The fair value of the stock was determined to be the closing price of the stock on the NASDAQ exchange. Total shares available for grant under the Plan are 726,000, of which 549,467 shares were granted as of December 31, 2021.

The following table presents a summary of RSA activity during the period ended December 31, 2021.

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested granted shares outstanding at July 1, 2021		322,580		$	18.95
Shares granted		8,000			17.66
Shares vested		(107,130	)		18.97
Shares forfeited		-			-
Unvested granted shares at December 31, 2021		223,450		$	18.89

As of December 31, 2021, there was $3.9 million of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years.

Stock Option Awards

Stock options awarded to employees under the Plan are considered incentive stock options (ISOs), up to applicable limits. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. Those issued to non-employee directors, as well as those exceeding ISO limitations, are considered non-qualified stock options (NQSOs). Options generally vest over a 5-year period, with 20% vesting each year on the anniversary of the award, however, may not vest more rapidly than over a three-year period, and have a contractual term of 10 years. The Company has a policy of using shares held as a treasury stock to satisfy share option exercises. Currently, the Company has a sufficient number of treasury shares to satisfy the current level of exercisable share options.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatilities of a peer group of publicly traded financial institutions. The expected term of options granted is based on the simplified “mid-point” approach which utilizes the weighted average vesting period and contractual

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term. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Total options available for grant under the Plan are 1,816,511, of which 1,320,963 options were granted as of December 31, 2021. The following table presents a summary of activity related to stock options granted under the Plan, and changes during the period then ended:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Years		Aggregate Intrinsic Value
	(dollars in thousands, except  per share data)
Options outstanding at July 1, 2021		1,308,963	$	19.00		7.4	$	35
Options granted		12,000		17.66
Options expired		-		-
Options forfeited		-		-
Options exercised		-		-
Options outstanding at December 31, 2021		1,320,963	$	18.98		6.9	$	389
Exercisable at December 31, 2021		782,978	$	19.02		6.9	$	207

As of December 31, 2021, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years.

The fair value of options granted during the six months ended December 31, 2021, was determined using the following weighted-average assumptions as of grant date.

Risk-free interest rate		1.00	%
Expected term (in years)		6.25
Expected stock price volatility		35.91	%
Dividend yield		1.36	%
Weighted average fair value of options granted	$	5.50

Note 13. Leases

As of December 31, 2021, the Company leases real estate for eleven branch offices and one administrative office, including its corporate headquarters, under various operating lease agreements. The Company’s leases have maturities which range from 2022 to 2041, some of which include lessee options to extend the lease term. The weighted average remaining life of the lease terms for these leases was 9.59 years as of December 31, 2021.

The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company utilized a weighted average discount rate of 2.40% in determining the lease liability as of December 31, 2021.

The Company made a policy election to exclude the recognition requirements of ASC 842 to short-term leases, those leases with original terms of 12 months or less. Short-term lease payments are recognized in the income statement on a straight-line basis over the lease term. The Company had no short-term lease cost for the three or six months ended December 31, 2021 or 2020. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. There were no sale and leaseback

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transactions, leveraged leases or lease transactions with related parties during the three or six months ended December 31, 2021 or 2020.

Total operating lease cost was $505,000 and $1.0 million for the three and six months ended December 31, 2021 and $501,000 and $1.0 million for the three and six months ended December 31, 2020, respectively. The right-of-use asset, included in premises and equipment, net, was $8.8 million and the corresponding lease liability, included in other liabilities was $9.0 million as of December 31, 2021.

Future minimum lease payments for the fiscal years ending June 30 and a reconciliation of undiscounted lease cash flows and the lease liability recognized in the consolidated balance sheet as of December 31, 2021 is shown below:

(dollars in thousands)
2022	$	1,017
2023		1,940
2024		1,569
2025		1,276
2026		748
Thereafter		3,802
Total future minimum lease payments (undiscounted)		10,352
Discounting effect on cash flows		(1,327	)
Lease liability (discounted)	$	9,025

Note 14. Subsequent Events

Subsequent to December 31, 2021, and through February 2, 2022, the Company repurchased 3,122 shares of common stock, at an average cost of $19.02.

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

General

Management’s discussion and analysis of financial condition at December 31, 2021 and June 30, 2021, and results of operations for the three and six months ended December 31, 2021 and 2020 is intended to assist in understanding the consolidated financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited consolidated financial statements and the notes thereto appearing in Part I, Item 1, of this quarterly report on Form 10-Q and with the audited consolidated financial statements included in the annual report on Form 10-K for the fiscal year ended June 30, 2021.

Cautionary Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning.  These forward-looking statements include, but are not limited to:

• statements of our goals, intentions and expectations;

• statements regarding our business plans, prospects, growth and operating strategies;

• statements regarding the quality of our loan and investment portfolios; and

• estimates of our risks and future costs and benefits.

These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

• extent, duration and severity of the COVID-19 pandemic and government action in response to the pandemic, including their impact on our business and operations, including the impact on lost fee revenue and operating expenses, as well as their effects on our customers and issuers of securities, including their ability to make timely payments on obligations, service providers, and on economies and markets more generally;

• general economic conditions, either nationally or in our market areas, that are worse than expected;

• changes in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses;

• our ability to access cost-effective funding;

• fluctuations in real estate values and both residential and commercial real estate market conditions;

• demand for loans and deposits in our market area;

• our ability to continue to implement our business strategies;

• competition among depository and other financial institutions;

• inflation and changes in the interest rate environment that reduce our margins and yields, reduce the fair value of financial instruments or reduce the origination levels in our lending business, or increase the level of defaults, losses and prepayments on loans we have made and make whether held in portfolio or sold in the secondary markets;

• adverse changes in the securities or credit markets;

• changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;

• our ability to manage market risk, credit risk and operational risk in the current economic conditions;

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• our ability to enter new markets successfully and capitalize on growth opportunities;

• our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;

• changes in consumer spending, borrowing and savings habits;

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, or the Securities and Exchange Commission;

• our ability to retain key employees;

• our compensation expense associated with equity allocated or awarded to our employees; and

• changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Additional factors that may affect our results are discussed in the annual report on Form 10-K for the fiscal year ended June 30, 2021, under the heading “Risk Factors” and in this quarterly report on Form 10-Q under Part II, Item 1A.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

Critical Accounting Policies

Critical accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those involving significant judgments, estimates and assumptions by management that could have a material impact on the carrying value of certain assets or on income under different assumptions or conditions. For additional information regarding critical accounting policies, refer to the section captioned “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the June 30, 2021 Form 10-K. There have been no significant changes in our application of critical accounting policies for the three or six months ended December 31, 2021.

Loan Payment Deferrals

The COVID-19 pandemic has created extensive disruptions to the local economy and our customers. Through December 31, 2021, the Company has granted loan payment deferrals on 330 consumer and commercial loans whose borrowers have demonstrated financial hardship caused by COVID-19 with loan balances totaling $220.2 million. As of December 31, 2021, 7 loans totaling $13.7 million were still on deferral. Of those loans still on deferral as of December 31, 2021, $10.1 million have resumed payments in January 2022, with the remaining $3.6 million (1 loan) scheduled to resume payments in June 2022.

The table below provides additional detail for those loans on deferral as of December 31, 2021 (dollar amounts in thousands):

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Industry Sector:	Number of loans		Recorded Investment (1) (2)		% secured by real estate collateral			Loan-to-Value % (3)			Weighted average term of remaining deferral (in months)
Consumer		1	$	91		100.0	%		23.2	%		2.0
Commercial:
Retail		3		11,590		100.0			59.6			1.6
Food service		1		1,696		100.0			44.9			0.0
All other commercial		2		369		50.1			38.9			0.0
Total commercial		6		13,655		98.7			57.4			1.3
Total		7	$	13,746		98.7	%		57.2	%		1.4
(1)       Includes loans classified as pass-rated, special mention and substandard of $8.3 million, $185,000 and $5.3 million, respectively.
(2)       Includes $3.6 million of nonaccrual loans. All loans are considered current.
(3)       Generally based on collateral values upon origination.

The table below provides additional detail regarding the type of deferral granted for those loans on deferral as of December 31, 2021 (dollar amounts in thousands):

	Consumer		Commercial		Total
Principal only	$	-	$	8,378	$	8,378
Principal and interest		91		5,277		5,368
Total	$	91	$	13,655	$	13,746

Comparison of Financial Condition at December 31, 2021 and June 30, 2021

Total Assets. Total assets increased $13.2 million, or 0.7%, to $1.89 billion at December 31, 2021 from $1.87 billion at June 30, 2021. The increase is primarily the result of increases of $52.7 million in held to maturity investment securities and $14.2 million in net loans receivable, partially offset by decreases of $39.0 million in cash and cash equivalents and $13.7 million in available for sale investment securities.

Cash and Cash Equivalents. Cash and cash equivalents decreased $39.0 million, or 24.5%, to $120.3 million at December 31, 2021 from $159.3 million at June 30, 2021. The decrease is primarily due to a $39.0 million increase in total investment securities, a $14.2 million increase in net loans receivable, an $11.3 million decrease in other liabilities and a $7.6 million decrease in FHLB advances, partially offset by a $31.4 million increase in deposits.

Securities Held to Maturity. Total securities held to maturity increased $52.7 million, or 15.6%, to $390.3 million at December 31, 2021 from $337.6 million at June 30, 2021. This increase was primarily due to increases of $29.9 million in municipal securities, $8.5 million in corporate bonds, $8.3 million in mortgage-backed securities, and $6.0 million in U.S. government and agency obligations.

Securities Available for Sale. Total securities available for sale decreased $13.7 million, or 23.9%, to $43.7 million at December 31, 2021 from $57.4 million at June 30, 2021. This decrease was primarily due to decreases of $11.0 million in U.S. government and agency obligations, $2.2 million in mortgage-backed securities and a $430,000 decrease in net unrealized gains.

Net Loans Receivable. Net loans receivable increased $14.2 million, or 1.2%, to $1.24 billion at December 31, 2021 from $1.23 billion at June 30, 2021. The increase in loans receivable was the result of a $41.0 million increase in commercial mortgages and a $1.7 million increase in construction loans, partially offset by decreases of $15.6 million in commercial loans, $11.5 million in residential mortgage loans and $1.3 million in home equity credit lines. The decrease in commercial loans includes a decrease of $24.3 million in PPP loans, driven by paydowns and forgiveness.

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Deposits. Total deposits increased $31.4 million, or 2.1%, to $1.52 billion at December 31, 2021 as compared to $1.49 billion at June 30, 2021. This increase primarily reflects increases of $28.5 million in money market accounts, $21.4 million in NOW accounts and $5.5 million in savings accounts, partially offset by decreases of $20.7 million in time deposits and $3.3 million in demand deposits.

Federal Home Loan Bank Advances. FHLB advances decreased $7.6 million to $58.4 million at December 31, 2021 as compared to $66.0 million at June 30, 2021. This decrease is due to maturities and principal paydowns of $7.6 million.

Total Shareholder’s Equity. Total shareholders’ equity increased $274,000, or 0.1%, to $274.8 million at December 31, 2021 from $274.6 million at June 30, 2021.  This increase was primarily due to net income of $7.9 million and $2.5 million of stock-based compensation and reduction in unearned ESOP shares for plan shares earned during the period, partially offset by the repurchase of $8.2 million (440,666 shares) of common stock and $1.7 million of cash dividends declared and paid. On February 3, 2021, a repurchase plan was authorized to repurchase up to 801,856 shares, or 5% of the Company’s then outstanding common stock. As of December 31, 2021, the Company repurchased 679,439 shares of common stock at an average cost of $18.23 per share under this plan. At December 31, 2021, the Bank was considered “well capitalized” under applicable regulatory guidelines.

Comparison of Operating Results for the Three Months Ended December 31, 2021 and December 31, 2020

General. Net income increased $1.6 million, or 59.2%, to $4.3 million for the three months ended December 31, 2021 compared to $2.7 million for the same period last year. The increase was primarily due to a $1.7 million increase in net interest income and a $452,000 increase in noninterest income, partially offset by a $298,000 increase in income tax expense, a $157,000 increase in provision for loan losses and a $114,000 increase in non-interest expense.

Net Interest Income. Net interest income increased $1.7 million, or 14.8%, to $13.3 million for the three months ended December 31, 2021 compared to $11.6 million for the same period last year. The increase primarily reflects an $81.6 million, or 4.8%, increase in average interest-earning assets and a 27 basis point increase in the tax equivalent net interest margin to 2.97% for the three months ended December 31, 2021 compared to 2.70% for the same period last year. The increase in average interest-earning assets reflects a $114.1 million increase in average investment securities and a $9.6 million increase in average loans receivable, partially offset by a $42.0 million decrease in average other interest-earning assets.

Interest and Dividend Income. Interest and dividend income increased $645,000, or 4.5%, to $14.9 million for the three months ended December 31, 2021 compared to $14.2 million for the same period last year. The increase primarily reflects an $81.6 million increase in total average interest-earning assets and a 1 basis point increase in the yield on total interest-earning assets. The increase in the average interest earning assets is primarily due to higher average balances in investment securities and loans receivable. The increase in the average yield on interest earning assets is due to higher prepayment income and PPP loan interest income and origination fee income in the current year quarter, mostly offset by ongoing downward repricing of securities and loans.

Interest income on loans receivable increased $469,000, or 3.8%, primarily due to a 12 basis point increase in the average tax equivalent yield on loans receivable to 4.07% for the three months ended December 31, 2021 from 3.95% for the same period last year and a $9.6 million, or 0.8%, increase in the average balance of loans receivable to $1.24 billion for the three months ended December 31, 2021 from $1.23 billion for the same period last year. The increase in the average tax equivalent yield on loans receivable is primarily due to $555,000 of prepayment income and $332,000 of PPP loan interest income and origination fee income recognized by the Company in the current year quarter compared to $73,000 and $159,000, respectively, for the same period last year.

Interest income on investment securities increased $198,000, or 10.2%, primarily due to a $114.1 million increase in the average balance of investment securities to $427.9 million for the three months ended December 31, 2021 from $313.8 million for the same period last year, partially offset by a 43 basis point decrease in the average tax equivalent yield on investment securities to 2.08% for the three months ended December 31, 2021 from 2.51% for the same period last year. The increase in the average balance of investment securities is the result of the Company utilizing excess liquidity to fund securities portfolio growth and loan portfolio growth. The decrease in tax equivalent yield is a result of the investment portfolio continuing to re-price downward due to lower market interest rates and $117,000 in prepayment income recognized by the Company in the prior year.

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Interest income on other interest-earning assets, primarily consisting of cash balances at correspondent banks including the Federal Reserve, decreased $22,000, or 20.0%, primarily due to a $42.0 million decrease in the average balance of other interest-earning assets to $126.6 million for the three months ended December 31, 2021 compared to $168.6 million for the same period last year, partially offset by a 2 basis point increase in the average yield on other interest-earning assets to 0.28% for the three months ended December 31, 2021, from 0.26% for the same period last year. The decrease in average balance of other interest earning assets is due to the Company utilizing funds to purchase investment securities and originate loans.

Interest Expense. Interest expense decreased $1.1 million, or 39.8%, to $1.6 million for the three months ended December 31, 2021 compared to $2.7 million for the same period last year. The decrease primarily reflects a 34 basis point decrease in the average cost of interest-bearing liabilities to 0.47% for the three months ended December 31, 2021 from 0.81% for the same period last year, partially offset by a $59.2 million increase in the average balance of interest-bearing liabilities to $1.37 billion for the three months ended December 31, 2021 from $1.31 billion for the same period last year.

Interest expense on interest-bearing deposits decreased $866,000, or 40.1%, primarily due to a 32 basis point decrease in the average cost of interest-bearing deposits to 0.39% for the three months ended December 31, 2021 from 0.71% for the same period last year and offset by a $101.4 million increase in the average balance to $1.30 billion for the three months ended December 31, 2021 from $1.20 billion for the same period last year. The decrease in the average rate paid on interest-bearing deposits was primarily caused by a decrease in market interest rates affecting most significantly the average rates paid on time deposits and money market accounts, which decreased 52 and 14 basis points, respectively, when compared to the same period last year. Over the next 12 months, the Company has $40.0 million of wholesale funding maturing, comprised of FHLB advances and brokered time deposits, with a weighted average cost of 2.07%.

Interest expense on FHLB advances decreased $200,000, or 38.5%, primarily due to a $42.2 million decrease in the average balance to $63.8 million for the three months ended December 31, 2021 from $106.0 million for the same period last year, partially offset by a 5 basis point increase in the average cost to 1.99% for the three months ended December 31, 2021 from 1.94% for the same period last year. The increase in the cost of FHLB advances is due to the maturity of lower-costing advances.

Provision for Loan Losses. The provision for loan losses was $264,000 for the three months ended December 31, 2021, compared to $107,000 for the same period last year. The increase is primarily due to loan portfolio growth. Recoveries, net of charge-offs, were $6,000 for the three months ended December 31, 2021 compared to charge-offs, net of recoveries, of $102,000 for the same period last year. Non-performing loans as a percent of total loans receivable (excluding PPP loans) were 0.64% as of December 31, 2021, an increase from 0.48% compared to June 30, 2021. The increase in non-performing loans over the last 12 months primarily includes three commercial relationships totaling $6.3 million, including $2.7 million of loans secured by multi-family commercial real estate (including 1 relationship consisting of 2 construction loans totaling $1.5 million) with a weighted average loan-to-value ratio of 68.8% and one loan for $3.6 million secured by non-owner-occupied retail commercial real estate with a loan-to-value ratio of 53.9%. Loans on a COVID-19 related payment deferral totaled $13.7 million, or 1.10% of gross loans, as of December 31, 2021, compared to $27.3 million, or 2.21% of gross loans, as of June 30, 2021. Loans on deferral totaling $10.1 million have resumed payments in January 2022, with the remaining $3.6 million (1 loan) scheduled to resume payments in June 2022.

Noninterest Income. Noninterest income increased $452,000, or 60.8%, to $1.2 million for the three months ended December 31, 2021 compared to the same period last year. The increase was caused primarily by increases of $548,000 in gains on sale of premises, $62,000 in bank-owned life insurance income, $44,000 in fees and service charges and $41,000 in gains on sale of loans, partially offset by a $238,000 decrease in swap income and a $5,000 decrease in all other noninterest income. During the current quarter, the Company sold a parcel of unused land, resulting in the gain discussed above. The increase in fees and service charges compared to the same period last year was partially the result of the waiver in the prior year of certain overdraft fees, ATM usage fees, wire and CD early withdrawal fees in response to COVID-19, as well an increase in debit card and interchange income in the current year.

Noninterest Expense. Noninterest expense increased $114,000, or 1.3%, for the three months ended December 31, 2021 compared to the same period last year. The increase was primarily due to increases of $323,000 in salaries and benefits, $80,000 in communication and data processing, $80,000 in franchise taxes (due to reinstitution of NYS capital tax) and $55,000 in all other noninterest expense, partially offset by decreases of

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$341,000 in pension costs and $83,000 in professional fees. The increase in salaries and benefits was due to increases of $137,000 in ESOP and other post-retirement benefits and $186,000 in all other salaries and benefits.

Income Tax Expense. Income tax expense increased $298,000, or 37.3%, for the three months ended December 31, 2021 compared to the same period last year. The increase was caused by higher pre-tax income, partially offset by a lower effective tax rate. The effective income tax rate was 20.4% for the three months ended December 31, 2021 as compared to 22.9% for the same period last year, with the decrease largely driven by an increase in tax-exempt interest income on municipal investments and bank-owned life insurance income.

Comparison of Operating Results for the Six Months Ended December 31, 2021 and December 31, 2020

General. Net income increased $2.5 million, or 45.7%, to $7.9 million for the six months ended December 31, 2021 compared to $5.4 million for the same period last year. The increase was primarily due to a $2.7 million increase in net interest income and a $471,000 increase in noninterest income, partially offset by a $485,000 increase in income tax expense, a $114,000 increase in non-interest expense and a $61,000 increase in provision for loan losses.

Net Interest Income. Net interest income increased $2.7 million, or 11.5%, to $25.8 million for the six months ended December 31, 2021 compared to $23.1 million for the same period last year. The increase primarily reflects a $72.2 million, or 4.2%, increase in average interest-earning assets and a 20 basis point increase in the tax equivalent net interest margin to 2.90% for the six months ended December 31, 2021 compared to 2.70% for the same period last year. The increase in average interest-earning assets reflects a $101.7 million increase in average investment securities, partially offset by a $9.8 million decrease in average loans receivable and a $19.7 million decrease in average other interest-earning assets.

Interest and Dividend Income. Interest and dividend income increased $344,000, or 1.2%, to $29.1 million for the six months ended December 31, 2021 compared to $28.8 million for the same period last year. The increase primarily reflects a $72.2 million increase in total average interest-earning assets, partially offset by a 9 basis point decrease in the yield on total interest-earning assets. The increase in the average interest earning assets is primarily due to higher average balances in the investment securities portfolio. The decrease in the average tax equivalent yield on interest earning assets is the result of the investment securities and loan portfolios continuing to re-price downward due to lower market rates, partially offset by higher prepayment income and PPP loan interest income and origination fee income in the current year.

Interest income on loans receivable increased $29,000, or 0.1%, primarily due to a 3 basis point increase in the average tax equivalent yield on loans receivable to 4.01% for the six months ended December 31, 2021 from 3.98% for the same period last year, partially offset by a $9.8 million, or 0.8%, decrease in the average balance of loans receivable to $1.23 billion for the six months ended December 31, 2021 from $1.24 billion for the same period last year. The increase in the average tax equivalent yield on loans receivable is primarily due to $587,000 of prepayment income and $705,000 of PPP loan interest income and origination fee income recognized by the Company in the current year period compared to $132,000 and $376,000, respectively, for the same period in the prior year.

Interest income on investment securities increased $353,000, or 9.3%, primarily due to a $101.6 million increase in the average balance of investment securities to $416.2 million for the six months ended December 31, 2021 from $314.6 million for the same period last year, partially offset by a 36 basis point decrease in the average tax equivalent yield on investment securities to 2.08% for the six months ended December 31, 2021 from 2.44% for the same period last year. The increase in the average balance of investment securities is the result of the Company utilizing excess liquidity to fund investment securities portfolio growth and loan portfolio growth. The decrease in tax equivalent yield is a result of the investment portfolio continuing to re-price downward due to lower market interest rates and $117,000 in prepayment penalties recognized by the Company in the prior year period.

Interest income on other interest-earning assets, primarily consisting of cash balances at correspondent banks including the Federal Reserve, decreased $38,000, or 16.2%, primarily due to a $19.7 million decrease in the average balance of other interest-earning assets to $143.6 million for the six months ended December 31, 2021 compared to $163.3 million for the same period last year and a 2 basis point decrease in the average yield on other interest-earning assets to 0.27% for the six months ended December 31, 2021, from 0.29% compared to the same period last year. The decrease in average balance of other interest earning assets is due to the Company utilizing

38

funds to purchase investment securities and originate loans. The decrease in the yield on other interest earning assets is primarily due to changes in asset mix.

Interest Expense. Interest expense decreased $2.3 million, or 41.3%, to $3.3 million for the six months ended December 31, 2021 compared to $5.6 million for the same period last year. The decrease primarily reflects a 38 basis point decrease in the average cost of interest-bearing liabilities to 0.48% for the six months ended December 31, 2021 from 0.86% for the same period last year, partially offset by a $56.9 million increase in the average balance of interest-bearing liabilities to $1.37 billion for the six months ended December 31, 2021 from $1.31 billion for the same period last year.

Interest expense on interest-bearing deposits decreased $1.9 million, or 42.4%, primarily due to a 36 basis point decrease in the average cost of interest-bearing deposits to 0.40% for the six months ended December 31, 2021 from 0.76% for the same period last year, partially offset by a $98.1 million increase in the average balance to $1.30 billion for the six months ended December 31, 2021 from $1.20 billion for the same period last year. In response to lower market interest rates and increased liquidity levels, deposit rate reductions have been implemented throughout the last two years, the effects of which continue to be realized. The decrease in market interest rates most significantly affected the average rates paid on time deposits and money market accounts, which decreased 58 and 15 basis points, respectively, when compared to the same period last year.

Interest expense on FHLB advances decreased $381,000, or 36.7%, primarily due to a $41.2 million decrease in the average balance to $64.9 million for the six months ended December 31, 2021 from $106.1 million for the same period last year, partially offset by a 7 basis point increase in the average cost to 2.01% for the six months ended December 31, 2021 from 1.94% for the same period last year. The increase in the cost of FHLB advances is due to the maturity of lower-costing advances.

Provision for Loan Losses. The provision for loan losses was $277,000 for the six months ended December 31, 2021, compared to $216,000 for the same period last year. The increase is primarily due to loan portfolio growth. Recoveries, net of charge-offs, were $271,000 for the six months ended December 31, 2021 compared to charge-offs, net of recoveries, of $178,000 for the same period last year.

Noninterest Income. Noninterest income increased $471,000, or 35.2%, to $1.8 million for the six months ended December 31, 2021 compared to the same period last year. The increase was caused primarily by increases of $548,000 in gains on sale of premises, $123,000 in fees and service charges, $122,000 in bank-owned life insurance income and $47,000 in gains on sale of loans, partially offset by a $367,000 decrease in swap income and a $2,000 decrease in all other noninterest income. During the current year, the Company sold a parcel of unused land, resulting in the gain discussed above. The increase in fees and service charges compared to the same period last year was partially the result of the waiver in the prior year of certain overdraft fees, ATM usage fees, wire and CD early withdrawal fees in response to COVID-19, as well an increase in debit card and interchange income in the current year.

Noninterest Expense. Noninterest expense increased $114,000, or 0.7%, for the six months ended December 31, 2021 compared to the same period last year. The increase was primarily due to increases of $489,000 in salaries and benefits, $159,000 in franchise taxes and $145,000 in all other noninterest expenses, partially offset by a $589,000 decrease in pension costs and a $90,000 decrease in professional fees. The increase in salaries and benefits was due to increases of $324,000 in ESOP and other post-retirement benefits and $175,000 in all other salaries and benefits.

Income Tax Expense. Income tax expense increased $485,000, or 32.2%, for the six months ended December 31, 2021 compared to the same period last year. The increase was caused by higher pre-tax income, partially offset by a lower effective tax rate. The effective income tax rate was 20.1% for the six months ended December 31, 2021 compared to 21.8% for the same period last year, with the decrease largely driven by an increase in tax-exempt interest income on municipal investments and bank-owned life insurance income.

39

Average Balance Sheet and Interest Rates.

The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average tax equivalent yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material (dollars in thousands).

	Three Months Ended December 31,
	2021								2020
	Average Balance			Interest/ Dividends		Average Rate			Average Balance			Interest/ Dividends		Average Rate
Assets:
Loans receivable (1)	$	1,242,109		$	12,651		4.07	%	$	1,232,555		$	12,182		3.95	%
Investment securities (1)		427,918			2,131		2.08			313,812			1,933		2.51
Other interest-earning assets		126,586			88		0.28			168,608			110		0.26
Total interest-earning assets		1,796,613			14,870		3.33			1,714,975			14,225		3.32
Non-interest-earning assets		77,506								70,417
Total assets	$	1,874,119							$	1,785,392
Liabilities and equity:
NOW accounts	$	192,856			90		0.18		$	149,620			79		0.21
Money market accounts		355,708			168		0.19			255,961			211		0.33
Savings accounts and escrow		398,076			108		0.11			362,422			168		0.18
Time deposits		357,242			926		1.03			434,446			1,700		1.55
Total interest-bearing deposits		1,303,882			1,292		0.39			1,202,449			2,158		0.71
FHLB advances		63,805			320		1.99			106,034			520		1.94
Total interest-bearing liabilities		1,367,687			1,612		0.47			1,308,483			2,678		0.81
Non-interest-bearing deposits		214,558								178,538
Other non-interest-bearing liabilities		16,250								26,482
Total liabilities		1,598,495								1,513,503
Total shareholders' equity		275,624								271,889
Total liabilities and shareholders' equity	$	1,874,119							$	1,785,392
Net interest income				$	13,258							$	11,547
Interest rate spread - tax equivalent (2)							2.86								2.51
Net interest margin - tax equivalent (3)							2.97								2.70
Average interest-earning assets to interest-bearing liabilities		131.36	%							131.07	%

⁽¹⁾ Tax exempt yield is shown on a tax equivalent basis for proper comparison using statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures in the table below.

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

⁽³⁾ Net interest margin represents annualized net interest income divided by average interest-earning assets. See reconciliation of GAAP to non-GAAP measures in the table below.

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	Six Months Ended December 31,
	2021								2020
	Average Balance			Interest/ Dividends		Average Rate			Average Balance			Interest/ Dividends		Average Rate
Assets:
Loans receivable (1)	$	1,232,821		$	24,758		4.01	%	$	1,242,575		$	24,729		3.98	%
Investment securities (1)		416,241			4,142		2.08			314,552			3,789		2.44
Other interest-earning assets		143,622			197		0.27			163,323			235		0.29
Total interest-earning assets		1,792,684			29,097		3.26			1,720,450			28,753		3.35
Non-interest-earning assets		76,940								71,172
Total assets	$	1,869,624							$	1,791,622
Liabilities and equity:
NOW accounts	$	187,693			159		0.17		$	149,543			168		0.22
Money market accounts		353,141			355		0.20			253,129			449		0.35
Savings accounts and escrow		397,684			221		0.11			361,256			370		0.20
Time deposits		362,442			1,911		1.05			438,966			3,603		1.63
Total interest-bearing deposits		1,300,960			2,646		0.40			1,202,894			4,590		0.76
FHLB advances		64,870			658		2.01			106,051			1,039		1.94
Total interest-bearing liabilities		1,365,830			3,304		0.48			1,308,945			5,629		0.86
Non-interest-bearing deposits		211,182								181,312
Other non-interest-bearing liabilities		18,096								27,720
Total liabilities		1,595,108								1,517,977
Total shareholders' equity		274,516								273,645
Total liabilities and shareholders' equity	$	1,869,624							$	1,791,622
Net interest income				$	25,793							$	23,124
Interest rate spread - tax equivalent (2)							2.78								2.49
Net interest margin - tax equivalent (3)							2.90								2.70
Average interest-earning assets to interest-bearing liabilities		131.25	%							131.44	%

⁽¹⁾ Tax exempt yield is shown on a tax equivalent basis for proper comparison using statutory federal income tax rate of 21% for all periods presented. See reconciliation of GAAP to non-GAAP measures in the table below.

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

⁽³⁾ Net interest margin represents annualized net interest income divided by average interest-earning assets. See reconciliation of GAAP to non-GAAP measures in the table below.

The following table presents information regarding tax equivalent adjustment used in the calculation of certain financial metrics (in thousands).

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Total interest income	$	14,870	$	14,225	$	29,097	$	28,753
Total interest expense		1,612		2,678		3,304		5,629
Net interest income (GAAP)		13,258		11,547		25,793		23,124
Tax equivalent adjustment		99		45		188		78
Net interest income - tax equivalent (non-GAAP)	$	13,357	$	11,592		25,981		23,202

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Rate/Volume Analysis. The following table sets forth the effects of changing rates and volumes on our net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume (in thousands).

	Three Months Ended December 31,
	2021 versus 2020
	Rate			Volume			Net
Interest income:
Loans receivable	$	257		$	212		$	469
Investment securities		(408	)		606			198
Other interest-earning assets		9			(31	)		(22	)
Total interest-earning assets		(142	)		787			645
Interest expense:
NOW accounts		(10	)		21			11
Money market accounts		(108	)		65			(43	)
Savings and escrow accounts		(73	)		13			(60	)
Time deposits		(508	)		(266	)		(774	)
FHLB advances		12			(212	)		(200	)
Total interest-bearing liabilities		(687	)		(379	)		(1,066	)
Net increase in net interest income	$	545		$	1,166		$	1,711
	Six Months Ended December 31,
	2021 versus 2020
	Rate			Volume			Net
	(in thousands)
Interest income:
Loans receivable	$	34		$	(5	)	$	29
Investment securities		(751	)		1,104			353
Other interest-earning assets		(7	)		(31	)		(38	)
Total interest-earning assets		(724	)		1,068			344
Interest expense:
NOW accounts		(46	)		37			(9	)
Money market accounts		(235	)		141			(94	)
Savings and escrow accounts		(180	)		31			(149	)
Time deposits		(1,138	)		(554	)		(1,692	)
FHLB advances		35			(416	)		(381	)
Total interest-bearing liabilities		(1,564	)		(761	)		(2,325	)
Net (decrease) increase in net interest income	$	840		$	1,829		$	2,669

Management of Market Risk

General. The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage our exposure to changes in market interest rates. Accordingly, we have established a management-level Asset/Liability Management Committee, which takes initial responsibility for developing an asset/liability management process and related procedures, establishing and monitoring reporting systems and developing asset/liability strategies. On at least a quarterly basis, the Asset/Liability Management Committee reviews asset/liability management with the

42

Investment Asset/Liability Committee of the Board of Directors. This Committee also reviews any changes in strategies as well as the performance of any specific asset/liability management actions that have been implemented previously. On a quarterly basis, an outside consulting firm provides us with detailed information and analysis as to asset/liability management, including our interest rate risk profile. Ultimate responsibility for effective asset/liability management rests with our Board of Directors.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. We have implemented the following strategies to manage our interest rate risk: originating loans with adjustable interest rates; utilizing interest rate swaps, promoting core deposit products; and adjusting the interest rates and maturities of funding sources, as necessary. By following these strategies, we believe that we are better positioned to react to changes in market interest rates.  

Net Portfolio Value Simulation. We analyze our sensitivity to changes in interest rates through a net portfolio value of equity (“NPV”) model. NPV 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. The NPV ratio represents the dollar amount of our NPV divided by the present value of our total assets for a given interest rate scenario. NPV attempts to quantify our economic value using a discounted cash flow methodology while the NPV ratio reflects that value as a form of equity ratio. We estimate what our NPV would be at a specific date. We then calculate what the NPV would be at the same date throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve. We currently calculate NPV under the assumptions that interest rates increase 100 and 200 basis points from current market rates and that interest rates decrease 50 and 100 basis points from current market rates.

The following table presents the estimated changes in our NPV that would result from changes in market interest rates at December 31, 2021 and June 30, 2021. All estimated changes presented in the table are within the policy limits approved by our Board of Directors (dollars in thousands).

	NPV									NPV as Percent of Portfolio Value of Assets
Basis Point Change in Interest Rates	Dollar Amount		Dollar Change			Percent Change				NPV Ratio			Change (in bps)
December 31, 2021:
200	$	272,628	$	(38,768	)		(12.4	)	%		15.40	%		(129	)
100		298,428		(12,968	)		(4.2	)			16.39			(30	)
-		311,396	-				-				16.70			-
(50)		331,242		19,846			6.4				17.49			79
(100)		355,886		44,490			14.3				18.50			181
June 30, 2021:
200	$	270,679	$	(37,814	)		(12.3	)	%		15.21	%		(122	)
100		291,715		(16,778	)		(5.4	)			15.95			(48	)
-		308,493		-			-				16.43			-
(50)		324,999		16,506			5.4				17.06			63
(100)		346,539		38,046			12.3				17.94			151

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.  Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The above table assumes that the composition of our interest-sensitive assets and liabilities existing at the date indicated remains constant uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our NPV and will differ from actual results.

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Liquidity and Capital Resources

Liquidity.  Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments and maturities and sales of securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

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

Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any given period. At December 31, 2021, cash and cash equivalents totaled $120.3 million, a decrease from $159.3 million as of June 30, 2021. Unpledged securities classified as available for sale, which provide an additional source of liquidity, totaled $24.0 million at December 31, 2021, a decrease from $28.9 million as of June 30, 2021.

We had the ability to borrow up to $372.2 million from the FHLB of New York, at December 31, 2021 of which $58.4 million was outstanding as of December 31, 2021. Additionally, as of December 31, 2021, we had an available line of credit with the FRB of New York’s discount window program of $97.3 million, and $25.0 million of fed funds lines of credit, neither of which had outstanding balances as of December 31, 2021.

We have no material commitments or demands that are likely to affect our liquidity other than as set forth below. If loan demand was to increase faster than expected, or any unforeseen demand or commitment was to occur, we could access our borrowing sources detailed above.

We had $42.1 million of loan commitments outstanding as of December 31, 2021 and $163.6 million of approved, but unadvanced, funds to borrowers. We also had $3.1 million in outstanding letters of credit at December 31, 2021.  

Time deposits due within one year of December 31, 2021 totaled $212.6 million. If these deposits do not remain with us, we will be required to seek other sources of funds, including other time deposits and FHLB of New York advances. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the time deposits at December 31, 2021. We believe, however, based on past experience that a significant portion of our time deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

The Holding Company is a separate legal entity from the Bank and must provide for its own liquidity to pay any dividends to its shareholders, to repurchase shares of its common stock and for other corporate purposes. The Holding Company’s primary source of liquidity is dividend payments it may receive from the Bank. The Bank’s ability to pay dividends to the Holding Company is governed by applicable law and regulations. At December 31, 2021, the Holding Company (on an unconsolidated, stand-alone basis) had liquid assets of $19.7 million.

Capital Resources. The Bank is subject to various regulatory capital requirements administered by the NYSDFS and the FDIC. At December 31, 2021, the Bank exceeded all applicable regulatory capital requirements, and the Bank was considered “well capitalized” under applicable regulatory guidelines. See Note 8 to the accompanying unaudited consolidated financial statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The information required by this item is included in Part I, Item 2 of this report under "Management of Market Risk."

Item 4. Controls and Procedures

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) promulgated under the Securities and Exchange Act of 1934, as amended) as of December 31, 2021. 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 December 31, 2021, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not involved in any pending legal proceedings as a plaintiff or a defendant other than routine legal proceedings occurring in the ordinary course of business. At December 31, 2021, the Company was not involved in any legal proceedings the outcome of which it believes would be material to its consolidated financial condition or results of operations.

Item 1A. Risk Factors

For information regarding the Company’s risk factors, see Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021, filed with the Securities and Exchange Commission. As of December 31, 2021, the risk factors of the Company have not changed materially from those disclosed in the Annual Report on Form 10-K for the year ended June 30, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Registered Securities

(a) Not applicable

(b) Not applicable

(c) On February 3, 2021, a repurchase program was authorized by the Board of Directors to repurchase up to 801,856 shares, or 5.0% of the Company’s then outstanding common stock.

The following table presents information regarding stock repurchases by the Company during the quarter ended December 31, 2021.

	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased under the plans or programs
October 1, 2021 through October 31, 2021		42,071	$	18.33		42,071		297,757
November 1, 2021 through November 30, 2021		75,132		18.89		75,132		222,625
December 1, 2021 through December 31, 2021		100,208		18.90		100,208		122,417
Total		217,411	$	18.79		217,411

Subsequent to December 31, 2021, and through February 2, 2022, the Company repurchased 3,122 shares of common stock, at an average cost of $19.02 per share.

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Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Description
3.1	Articles of Incorporation of PCSB Financial Corporation (1)
3.2	Amended and Restated Bylaws of PCSB Financial Corporation (2)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials for the quarter ended December 31, 2021, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101.

(1) Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, as amended (Commission File No. 333-215052).

(2) Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed on June 24, 2021..

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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.

	PCSB FINANCIAL CORPORATION
Date:  February 4, 2022	/s/ Joseph D. Roberto
	Joseph D. Roberto
	Chairman, President and Chief Executive Officer
Date:  February 4, 2022	/s/ Jeffrey M. Helf
	Jeffrey M. Helf
	Senior Vice President and Chief Financial Officer

47

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph D. Roberto, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of PCSB Financial Corporation;

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

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

4. The registrant’s other certifying officer(s) 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; and

5. The registrant’s other certifying officer(s) 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 the 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: February 4, 2022	/s/ Joseph D. Roberto
	Joseph D. Roberto
	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeffrey M. Helf, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of PCSB Financial Corporation;

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

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

4. The registrant’s other certifying officer(s) 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; and

5. The registrant’s other certifying officer(s) 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 the 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: February 4, 2022	/s/ Jeffrey M. Helf
	Jeffrey M. Helf
	Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation (the “Company”), and Jeffrey M. Helf, Senior Vice President and Chief Financial Officer of the Company, each certify in his capacity as an executive officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended December 31, 2021 (the “Report”) and that to the best of his knowledge:

1. The Report fully complies with the requirements of Sections 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 results of operations of the Company.

Date: February 4, 2022	/s/ Joseph D. Roberto
	Joseph D. Roberto
	Chairman, President and Chief Executive Officer
Date: February 4, 2022	/s/ Jeffrey M. Helf
	Jeffrey M. Helf
	Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2021	Feb. 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	PCSB
Entity Registrant Name	PCSB Financial Corporation
Entity Central Index Key	0001691337
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		15,334,857
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Security Exchange Name	NASDAQ
Entity File Number	001-38065
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	81-4710738
Entity Address, Address Line One	2651 Strang Blvd
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Yorktown Heights
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10598
City Area Code	914
Local Phone Number	248-7272
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
ASSETS
Cash and due from banks	$ 113,499	$ 152,070
Federal funds sold	6,840	7,235
Total cash and cash equivalents	120,339	159,305
Held to maturity debt securities, at amortized cost (fair value of $389,814 and $342,137, respectively)	390,312	337,584
Available for sale debt securities, at fair value	43,687	57,387
Total investment securities	433,999	394,971
Loans receivable, net of allowance for loan losses of $8,429 and $7,881, respectively	1,243,646	1,229,451
Loans receivable held for sale	1,452
Accrued interest receivable	6,509	6,398
FHLB stock	4,167	4,507
Premises and equipment, net	19,550	21,099
Deferred tax asset, net	2,327	2,552
Bank-owned life insurance	35,951	35,568
Goodwill	6,106	6,106
Other intangible assets	119	151
Other assets	13,956	14,827
Total assets	1,888,121	1,874,935
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing deposits	1,307,359	1,272,610
Non-interest bearing deposits	215,708	219,072
Total deposits	1,523,067	1,491,682
Mortgage escrow funds	10,880	10,536
Advances from FHLB	58,390	65,957
Other liabilities	20,950	32,200
Total liabilities	1,613,287	1,600,375
Commitments and contingencies
Shareholders' equity:
Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of December 31, 2021 and June 30, 2021)
Common stock ($0.01 par value, 200,000,000 shares authorized, 18,703,577 shares issued as of both December 31, 2021 and June 30, 2021, and 15,337,979 and 15,770,645 shares outstanding as of December 31, 2021 and June 30, 2021, respectively)	187	187
Additional paid in capital	191,826	189,926
Retained earnings	157,146	150,987
Unearned compensation - ESOP	(9,688)	(10,176)
Accumulated other comprehensive loss, net of income taxes	(3,353)	(3,099)
Treasury stock, at cost (3,365,598 and 2,932,932 shares as of December 31, 2021 and June 30, 2021, respectively)	(61,284)	(53,265)
Total shareholders' equity	274,834	274,560
Total liabilities and shareholders' equity	$ 1,888,121	$ 1,874,935

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Statement Of Financial Position [Abstract]
Held to maturity investment securities, fair value	$ 389,814	$ 342,137
Allowance for loan losses	$ 8,429	$ 7,881
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares, issued	18,703,577	18,703,577
Common Stock, shares outstanding	15,337,979	15,770,645
Treasury Stock, Shares	3,365,598	2,932,932

XML

Consolidated Statements of Operations - USD ($)		3 Months Ended		6 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Interest and dividend income
Loans receivable		$ 12,651,000	$ 12,182,000	$ 24,758,000	$ 24,729,000
Investment securities		2,131,000	1,933,000	4,142,000	3,789,000
Federal funds and other		88,000	110,000	197,000	235,000
Total interest and dividend income		14,870,000	14,225,000	29,097,000	28,753,000
Interest expense
Deposits and escrow interest		1,292,000	2,158,000	2,646,000	4,590,000
FHLB advances		320,000	520,000	658,000	1,039,000
Total interest expense		1,612,000	2,678,000	3,304,000	5,629,000
Net interest income		13,258,000	11,547,000	25,793,000	23,124,000
Provision for loan losses		264,000	107,000	277,000	216,000
Net interest income after provision for loan losses		12,994,000	11,440,000	25,516,000	22,908,000
Noninterest income
Fees and service charges		407,000	363,000	808,000	685,000
Bank-owned life insurance	[1]	191,000	129,000	383,000	261,000
Gain on sale of premises	[1]	548,000		548,000
Net gains on sales of loans receivable	[1]	41,000		47,000
Swap income	[1]		238,000		367,000
Other	[1]	8,000	13,000	22,000	24,000
Total noninterest income		1,195,000	743,000	1,808,000	1,337,000
Noninterest expense
Salaries and employee benefits		5,843,000	5,520,000	11,616,000	11,127,000
Occupancy and equipment		1,348,000	1,374,000	2,701,000	2,692,000
Communication and data processing		526,000	446,000	1,053,000	1,022,000
Professional fees		420,000	503,000	813,000	903,000
Postage, printing, stationery and supplies		182,000	167,000	325,000	306,000
FDIC assessment		121,000	122,000	246,000	235,000
Advertising		100,000	100,000	200,000	200,000
Amortization of intangible assets		16,000	20,000	32,000	40,000
Other operating expenses		249,000	439,000	443,000	790,000
Total noninterest expense		8,805,000	8,691,000	17,429,000	17,315,000
Net income before income tax expense		5,384,000	3,492,000	9,895,000	6,930,000
Income tax expense		1,096,000	798,000	1,993,000	1,508,000
Net income		$ 4,288,000	$ 2,694,000	$ 7,902,000	$ 5,422,000
Earnings per common share:
Basic		$ 0.30	$ 0.18	$ 0.55	$ 0.36
Diluted		$ 0.30	$ 0.18	$ 0.55	$ 0.36
Weighted average common shares outstanding:
Basic		14,236,473	14,888,528	14,287,009	15,094,982
Diluted		14,281,232	14,889,020	14,349,272	15,094,982

[1] Not within the scope of ASC 606.

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Net income	$ 4,288	$ 2,694	$ 7,902	$ 5,422
Unrealized (losses) gains on available for sale debt securities:
Net change in unrealized gains/losses before reclassification adjustment	(243)	(3)	(430)	(19)
Net change in unrealized gains/losses	(243)	(3)	(430)	(19)
Tax effect	51	1	91	4
Net of tax	(192)	(2)	(339)	(15)
Defined benefit pension plan and supplemental retirement plans:
Total other comprehensive (loss) income	(149)	271	(254)	458
Comprehensive income	4,139	2,965	7,648	5,880
Pension Benefits [Member]
Defined benefit pension plan and supplemental retirement plans:
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost	37	332	75	572
Net change in unrealized gains/losses	37	332	75	572
Tax effect	(7)	(69)	(16)	(120)
Net of tax	30	263	59	452
SERP Benefits [Member]
Defined benefit pension plan and supplemental retirement plans:
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost	16	14	32	28
Net change in unrealized gains/losses	16	14	32	28
Tax effect	(3)	(4)	(6)	(7)
Net of tax	$ 13	$ 10	$ 26	$ 21

XML

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unallocated Common Stock of ESOP [Member]	Treasury Stock, at Cost [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning Balance at Jun. 30, 2020	$ 273,713	$ 187	$ 186,200	$ 141,288	$ (11,145)	$ (36,414)	$ (6,403)
Beginning Balance (in shares) at Jun. 30, 2020		16,898,137
Net income	2,728			2,728
Other comprehensive income (loss)	187						187
Common stock dividends declared	(630)			(630)
Repurchase of common stock	(3,449)					(3,449)
Repurchase of common stock (in shares)		(266,900)
Restricted stock awards granted			(60)			60
Restricted stock awards granted (in shares)		3,000
Stock-based compensation	829		829
ESOP shares committed to be released	301		57		244
Ending Balance at Sep. 30, 2020	273,679	$ 187	187,026	143,386	(10,901)	(39,803)	(6,216)
Ending Balance (in shares) at Sep. 30, 2020		16,634,237
Beginning Balance at Jun. 30, 2020	273,713	$ 187	186,200	141,288	(11,145)	(36,414)	(6,403)
Beginning Balance (in shares) at Jun. 30, 2020		16,898,137
Net income	5,422
Other comprehensive income (loss)	458						458
Ending Balance at Dec. 31, 2020	269,324	$ 187	187,964	145,472	(10,657)	(47,697)	(5,945)
Ending Balance (in shares) at Dec. 31, 2020		16,097,867
Beginning Balance at Sep. 30, 2020	273,679	$ 187	187,026	143,386	(10,901)	(39,803)	(6,216)
Beginning Balance (in shares) at Sep. 30, 2020		16,634,237
Net income	2,694			2,694
Other comprehensive income (loss)	271						271
Common stock dividends declared	(608)			(608)
Repurchase of common stock	(7,591)					(7,591)
Repurchase of common stock (in shares)		(517,270)
Shares withheld related to income tax withholding	(303)					(303)
Shares withheld related to income tax withholding (in shares)		(19,100)
Stock-based compensation	822		822
ESOP shares committed to be released	360		116		244
Ending Balance at Dec. 31, 2020	269,324	$ 187	187,964	145,472	(10,657)	(47,697)	(5,945)
Ending Balance (in shares) at Dec. 31, 2020		16,097,867
Beginning Balance at Jun. 30, 2021	274,560	$ 187	189,926	150,987	(10,176)	(53,265)	(3,099)
Beginning Balance (in shares) at Jun. 30, 2021		15,770,645
Net income	3,614			3,614
Other comprehensive income (loss)	(105)						(105)
Common stock dividends declared	(876)			(876)
Repurchase of common stock	(3,720)					(3,720)
Repurchase of common stock (in shares)		(204,261)
Restricted stock awards granted			(145)			145
Restricted stock awards granted (in shares)		8,000
Shares withheld related to income tax withholding	(1)					(1)
Shares withheld related to income tax withholding (in shares)		(74)
Stock-based compensation	810		810
ESOP shares committed to be released	446		202		244
Ending Balance at Sep. 30, 2021	274,728	$ 187	190,793	153,725	(9,932)	(56,841)	(3,204)
Ending Balance (in shares) at Sep. 30, 2021		15,574,310
Beginning Balance at Jun. 30, 2021	274,560	$ 187	189,926	150,987	(10,176)	(53,265)	(3,099)
Beginning Balance (in shares) at Jun. 30, 2021		15,770,645
Net income	7,902
Other comprehensive income (loss)	(254)						(254)
Ending Balance at Dec. 31, 2021	274,834	$ 187	191,826	157,146	(9,688)	(61,284)	(3,353)
Ending Balance (in shares) at Dec. 31, 2021		15,337,979
Beginning Balance at Sep. 30, 2021	274,728	$ 187	190,793	153,725	(9,932)	(56,841)	(3,204)
Beginning Balance (in shares) at Sep. 30, 2021		15,574,310
Net income	4,288			4,288
Other comprehensive income (loss)	(149)						(149)
Common stock dividends declared	(867)			(867)
Repurchase of common stock	(4,084)					(4,084)
Repurchase of common stock (in shares)		(217,411)
Shares withheld related to income tax withholding	(359)					(359)
Shares withheld related to income tax withholding (in shares)		(18,920)
Stock-based compensation	820		820
ESOP shares committed to be released	457		213		244
Ending Balance at Dec. 31, 2021	$ 274,834	$ 187	$ 191,826	$ 157,146	$ (9,688)	$ (61,284)	$ (3,353)
Ending Balance (in shares) at Dec. 31, 2021		15,337,979

XML

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Statement Of Stockholders Equity [Abstract]
Common stock dividends declared (per share)	$ 0.06	$ 0.06	$ 0.04	$ 0.04
ESOP shares committed to be released (in shares)	24,419	24,419	24,419	24,419

XML

Consolidated Statements of Cash Flows - USD ($)		6 Months Ended
		Dec. 31, 2021	Dec. 31, 2020
OPERATING ACTIVITIES
Net income		$ 7,902,000	$ 5,422,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		277,000	216,000
Depreciation and amortization		1,476,000	1,486,000
Amortization of net premiums on securities and net deferred loan origination costs		81,000	507,000
Net (increase) decrease in accrued interest receivable		(111,000)	763,000
Net gains on sales of loans receivable	[1]	(47,000)
Gain on sale of premises		(548,000)
Stock-based compensation		1,630,000	1,651,000
ESOP compensation		903,000	661,000
Earnings from cash surrender value of BOLI		(383,000)	(261,000)
Originations of loans receivable held for sale		(4,580,000)
Proceeds from loans receivable held for sale		3,175,000
Net accretion of purchase accounting adjustments		(64,000)	(137,000)
Other adjustments, principally net changes in other assets and liabilities		(6,000)	(1,586,000)
Net cash provided by operating activities		9,705,000	8,722,000
Purchases of investment securities:
Held to maturity		(102,698,000)	(40,116,000)
Available for sale			(20,377,000)
Maturities, calls and amortization of investment securities:
Held to maturity		39,606,000	48,403,000
Available for sale		13,175,000	14,407,000
Loan (originations) repayments, net		(14,002,000)	23,442,000
Net redemption of FHLB stock		340,000	3,000
Sale (purchase) of bank premises and equipment		653,000	(117,000)
Net cash (used in) provided by investing activities		(62,926,000)	25,645,000
FINANCING ACTIVITIES
Net increase in deposits		31,385,000	4,032,000
Repayment of long-term FHLB advances		(7,567,000)	(66,000)
Net decrease in mortgage escrow funds		344,000	487,000
Common stock dividends paid		(1,743,000)	(1,238,000)
Repurchase of shares from employees for income tax withholding purpose		(360,000)	(303,000)
Repurchase of common stock		(7,804,000)	(11,040,000)
Net cash provided by (used in) financing activities		14,255,000	(8,128,000)
Net (decrease) increase in cash and cash equivalents		(38,966,000)	26,239,000
Cash and cash equivalents at beginning of period		159,305,000	136,302,000
Cash and cash equivalents at end of period		120,339,000	162,541,000
Cash paid for:
Interest		3,323,000	5,635,000
Income taxes		1,507,000	$ 2,715,000
Transfers from premises and equipment to other assets		$ 398,000

[1] Not within the scope of ASC 606.

XML

Basis of Presentation

6 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Note 1. Basis of Presentation

Nature of Operations: PCSB Financial Corporation (the “Holding Company” and together with its direct and indirect subsidiaries, the “Company”) is a Maryland corporation organized by PCSB Bank (the “Bank”) for the purpose of acquiring all of the capital stock of the Bank issued in the Bank's conversion to stock ownership on April 20, 2017. At December 31, 2021, the significant assets of the Holding Company were the capital stock of the Bank, cash deposited in the Bank, and a loan to the PCSB Bank Employee Stock Ownership Plan (“ESOP”). The liabilities of the Holding Company were insignificant. The Company is subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended, and regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the New York State Department of Financial Services (the “NYSDFS”).

PCSB Bank is a community-oriented financial institution that provides financial services to individuals and businesses within its market area of Putnam, Southern Dutchess, Rockland and Westchester Counties in New York. The Bank is a state-chartered commercial bank, and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Bank’s primary regulators are the FDIC and the NYSDFS.

Basis of Presentation:  The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and include the accounts of the Holding Company, the Bank and the Bank's two subsidiaries – PCSB Funding Corp. and UpCounty Realty Corp. (formerly PCSB Realty Ltd.). PCSB Funding Corp. is a real estate investment trust that holds certain mortgage assets. UpCounty Realty Corp. is a corporation that holds certain properties foreclosed upon by the Bank. All intercompany transactions and balances have been eliminated in consolidation.

The unaudited consolidated financial statements contained herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments reflected in the consolidated financial statements contained herein. The results of operations for the current period presented are not necessarily indicative of the results of operations that may be expected for the entire current fiscal year. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended June 30, 2021, included in the Company's Annual Report on Form 10-K.

Certain prior period amounts have been reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or equity.

Loans Receivable Held For Sale: Loans receivable held for sale are those loans which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or market value. Net unrealized losses, if any, are recognized by a valuation allowance through a charge to noninterest income. Realized gains and losses on the sale of loans are recognized on the trade date and are determined by the difference between the sale proceeds and the carrying value of the loans.

Loans may be sold with servicing rights released or retained. At the time of the sale, management records a servicing asset for the value of any retained servicing rights, which represents the present value of the differential between the contractual servicing fee and adequate compensation, defined as the fee a sub-servicer would require to assume the role of servicer, after considering the estimated effects of prepayments.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets

before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call.

Assets Held For Sale: Assets held for sale are those assets which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or fair value, less estimated costs to sell, in the period in which the held for sale criteria are met and every subsequent period until the asset is sold. The carrying amount of the asset is adjusted for subsequent increases or decreases in its fair value, less estimated cost to sell, except that any subsequent increase cannot exceed the cumulative loss previously recognized. Such assets are not depreciated or amortized while they are classified as held for sale. Realized gains and losses on the sale of the asset is recognized when the asset is sold and is determined by the difference between the sale proceeds and the carrying value of the asset. Assets classified as held for sale totaled $1.5 million as of both December 31, 2021 and June 30, 2021 and are included in other assets on the consolidated balance sheet. During the three and six months ended December 31, 2021, the Company sold $398,000 in assets held for sale resulting in gains on sale of $548,000.

Risks and Uncertainties:

The COVID-19 pandemic has created extensive disruptions to the global and U.S. economies and to the lives of individuals throughout the world. Governments, businesses, and the public have taken unprecedented actions to contain the spread of COVID-19 and to mitigate its effects, including vaccination mandates, quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal and monetary stimulus, and legislation designed to deliver financial aid and other relief. While the scope, duration, and full effects of COVID-19 on the economy continue to evolve and are not fully known, the pandemic and the efforts to contain it have disrupted global economic activity, adversely affected the functioning of financial markets, impacted market interest rates, increased economic and market uncertainty, and disrupted trade and supply chains.

Many of the emergency actions taken to mitigate the effects of the pandemic have since been reduced or eliminated, resulting in an improved local and national economic environment, however the ultimate financial impact of the pandemic on our borrowers, and therefore on our credit quality and financial performance, is still unknown at this time. The pandemic may continue to adversely impact consumers and several industries within our geographic footprint and impair the ability of the Company’s customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include, but are not limited to, the valuation impairments of the Company’s intangible assets, investments, loans receivable, or deferred tax assets. Additionally, it is reasonably possible that the Company’s allowance for loan loss estimate as of December 31, 2021 could change in the near term and could result in a material change to the Company’s provision for loan losses, earnings and capital.

Use of Estimates:  To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.  

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Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2021

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 2. Recent Accounting Pronouncements

The pronouncements discussed below are not intended to be an all-inclusive list, but rather only those pronouncements that the Company has determined could potentially have a material impact on our financial position, results of operations or disclosures.

There were no accounting standards adopted in the current period.

Future Application of Accounting Pronouncements Previously Issued

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 which affects entities holding financial assets that are not accounted for at fair value through net income, including loans, debt securities, and other financial assets. The ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for current expected credit losses. In October 2019, the FASB unanimously voted to delay the implementation of the standard for three years for certain companies, including small reporting companies (as defined by the SEC), non-SEC public companies and private companies. The Company currently qualifies as a small reporting company and is subject to the delayed implementation. Therefore, the amendments in this update

will be effective for the Company for the fiscal year beginning on July 1, 2023, including interim periods within that fiscal year. The Company is actively working through the provisions of the Update. Management has established a steering committee which is identifying the methodologies and the additional data requirements necessary to implement the Update and has engaged a third-party software service provider to assist in the Company's implementation. Management is currently evaluating the impact that ASU 2016-13 will have on the Company’s consolidated financial position, results of operations and disclosures.

The FASB issued ASU 2020-04 “Reference Rate Reform” and ASU 2021-01 “Reference Rate Reform Scope” which collectively address accounting considerations related to the expected discontinuation of LIBOR as a reference rate for financial contracts. These Updates provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). They include optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, Receivables), were not substantial (assets within the scope of ASC 470, Debt) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases, and other Topics) of the existing contract. They also include optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. The Updates also allow for a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The guidance in these ASUs are effective as of March 12, 2020 through December 31, 2022. The Company has not yet elected to apply the practical expedients contained in these Updates and does not expect significant impact to the consolidated financial statements upon adoption. 

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Investment Securities

6 Months Ended

Dec. 31, 2021

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 3. Investment Securities

The amortized cost, gross unrealized/unrecognized gains and losses and fair value of available for sale and held to maturity debt securities at December 31, 2021 and June 30, 2021 were as follows (in thousands):

	December 31, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	10,936	$	-	$	(206	)	$	10,730
Corporate		8,002		165		-			8,167
State and municipal		7,041		71		(120	)		6,992
Mortgage-backed securities – residential		15,511		84		(311	)		15,284
Mortgage-backed securities – commercial		2,453		61		-			2,514
Total available for sale	$	43,943	$	381	$	(637	)	$	43,687
Held to maturity:
U.S. Government and agency obligations	$	39,995	$	104	$	(367	)	$	39,732
Corporate		52,091		1,247		(100	)		53,238
State and municipal		87,568		342		(1,625	)		86,285
Mortgage-backed securities – residential		105,968		1,867		(523	)		107,312
Mortgage-backed securities – collateralized mortgage obligations		25,304		165		(441	)		25,028
Mortgage-backed securities – commercial		79,386		536		(1,703	)		78,219
Total held to maturity	$	390,312	$	4,261	$	(4,759	)	$	389,814

	June 30, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	21,931	$	6	$	(121	)	$	21,816
Corporate		8,013		176		-			8,189
State and municipal		7,041		104		(30	)		7,115
Mortgage-backed securities – residential		17,738		148		(232	)		17,654
Mortgage-backed securities – commercial		2,490		123		-			2,613
Total available for sale	$	57,213	$	557	$	(383	)	$	57,387
Held to maturity:
U.S. Government and agency obligations	$	33,994	$	202	$	(84	)	$	34,112
Corporate		43,605		1,312		(38	)		44,879
State and municipal		57,625		440		(248	)		57,817
Mortgage-backed securities – residential		96,181		2,713		(107	)		98,787
Mortgage-backed securities – collateralized mortgage obligations		33,300		376		(328	)		33,348
Mortgage-backed securities – commercial		72,879		937		(622	)		73,194
Total held to maturity	$	337,584	$	5,980	$	(1,427	)	$	342,137

No securities were sold during the three or six months ended December 31, 2021 or 2020.              

The following table presents the fair value and carrying amount of debt securities at December 31, 2021, by contractual maturity (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Held to maturity				Available for sale
	Carrying		Fair		Amortized		Fair
	Amount		Value		Cost		Value
1 year or less	$	5,121	$	5,222	$	3,002	$	3,008
1 to 5 years		45,969		45,617		5,000		4,990
5 to 10 years		43,476		44,575		10,936		10,899
over 10 years		81,203		79,771		7,041		6,992
Mortgage-backed securities and other		214,543		214,629		17,964		17,798
Total	$	390,312	$	389,814	$	43,943	$	43,687

Securities pledged had carrying amounts of $151.6 million and $180.1 million at December 31, 2021 and June 30, 2021, respectively, and were pledged principally to secure FHLB advances and public deposits.

The following table provides information regarding investment securities with unrealized/unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position at December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale:
U.S. Government and agency obligations	$	10,730	$	(206	)	$	-	$	-		$	10,730	$	(206	)
State and municipal		1,918		(91	)		981		(29	)		2,899		(120	)
Mortgage-backed securities – residential		5,843		(146	)		5,125		(165	)		10,968		(311	)
Total available for sale	$	18,491	$	(443	)	$	6,106	$	(194	)	$	24,597	$	(637	)
Held to maturity:
U.S. Government and agency obligations	$	31,627	$	(367	)	$	-	$	-		$	31,627	$	(367	)
Corporate		9,900		(100	)		-		-			9,900		(100	)
State and municipal		61,699		(1,625	)		-		-			61,699		(1,625	)
Mortgage-backed securities – residential		51,441		(523	)		-		-			51,441		(523	)
Mortgage-backed securities – collateralized mortgage obligations		13,543		(440	)		89		(1	)		13,632		(441	)
Mortgage-backed securities – commercial		62,956		(1,671	)		1,006		(32	)		63,962		(1,703	)
Total held to maturity	$	231,166	$	(4,726	)	$	1,095	$	(33	)	$	232,261	$	(4,759	)

	June 30, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale
U.S. Government and agency obligations	$	14,811	$	(121	)	$	-	$	-		$	14,811	$	(121	)
State and municipal		2,990		(30	)		-		-			2,990		(30	)
Mortgage-backed securities – residential		9,615		(222	)		1,339		(10	)		10,954		(232	)
Total available for sale	$	27,416	$	(373	)	$	1,339	$	(10	)	$	28,755	$	(383	)
Held to maturity
U.S. Government and agency obligations	$	19,409	$	(84	)	$	-	$	-		$	19,409	$	(84	)
Corporate		2,488		(13	)		4,975		(25	)		7,463		(38	)
State and municipal		19,980		(248	)		-		-			19,980		(248	)
Mortgage-backed securities – residential		30,335		(107	)		-		-			30,335		(107	)
Mortgage-backed securities – collateralized mortgage obligations		15,133		(328	)		-		-			15,133		(328	)
Mortgage-backed securities – commercial		47,580		(622	)		-		-			47,580		(622	)
Total held to maturity	$	134,925	$	(1,402	)	$	4,975	$	(25	)	$	139,900	$	(1,427	)

As of December 31, 2021, the Company’s securities portfolio consisted of $434.0 million in securities, of which 154 securities with a fair value of $256.9 million were in an unrealized/unrecognized loss position. Non-U.S. government and agency obligations are internally pass rated and are subject to quarterly credit monitoring.  

There were no securities for which the Company believes it is not probable that it will collect all amounts due according to the contractual terms of the security as of December 31, 2021 or June 30, 2021. Management believes the unrealized losses are primarily a result of changes in market interest rates. The Company has determined that it does not intend to sell, or it is not more likely than not that it will be required to sell, its securities that are in an unrealized loss position prior to the recovery of its amortized cost basis. Therefore, the Company did not consider any securities to be other-than-temporarily impaired as of December 31, 2021 or June 30, 2021.

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Loans Receivable

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans Receivable

Note 4. Loans Receivable

Loans receivable are summarized as follows (in thousands):

	December 31,			June 30,
	2021			2021
Mortgage loans:
Residential	$	212,817		$	224,305
Commercial		867,581			826,624
Construction		11,857			10,151
Net deferred loan origination (fees) costs		(18	)		196
Total mortgage loans		1,092,237			1,061,276
Commercial and consumer loans:
Commercial loans		135,055			150,658
Home equity lines of credit		24,142			25,439
Consumer and overdrafts		356			345
Net deferred loan origination costs (fees)		285			(386	)
Total commercial and consumer loans		159,838			176,056
Total loans receivable		1,252,075			1,237,332
Allowance for loan losses		(8,429	)		(7,881	)
Loans receivable, net	$	1,243,646		$	1,229,451

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	326	$	(9	)	$	-		$	2	$	319
Commercial mortgages		6,569		284			-			-		6,853
Construction		127		2			-			-		129
Commercial loans		1,072		(18	)		-			13		1,067
Home equity lines of credit		53		(4	)		-			2		51
Consumer and overdrafts		12		9			(11	)		-		10
Total	$	8,159	$	264		$	(11	)	$	17	$	8,429
	Three Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	342	$	(12	)	$	-		$	4	$	334
Commercial mortgages		6,966		(94	)		-			-		6,872
Construction		173		32			-			-		205
Commercial loans		1,121		179			(119	)		20		1,201
Home equity lines of credit		63		(4	)		-			2		61
Consumer and overdrafts		7		6			(9	)		-		4
Total	$	8,672	$	107		$	(128	)	$	26	$	8,677
	Six Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	337	$	(22	)	$	-		$	4	$	319
Commercial mortgages		6,435		418			-			-		6,853
Construction		102		27			-			-		129
Commercial loans		948		(161	)		(100	)		380		1,067
Home equity lines of credit		54		(7	)		-			4		51
Consumer and installment loans		5		22			(18	)		1		10
Total	$	7,881	$	277		$	(118	)	$	389	$	8,429
	Six Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	373	$	(45	)	$	-		$	6	$	334
Commercial mortgages		6,913		(41	)		-					6,872
Construction		165		40			-					205
Commercial loans		1,124		250			(224	)		51		1,201
Home equity lines of credit		60		(3	)		-			4		61
Consumer and installment loans		4		15			(17	)		2		4
Total	$	8,639	$	216		$	(241	)	$	63	$	8,677

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, excluding net deferred fees and accrued interest, by portfolio segment, and based on impairment method as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	1,743	$	210,653	$	421	$	212,817	$	111	$	208	$	-	$	319
Commercial mortgages		3,582		863,125		874		867,581		-		6,853		-		6,853
Construction		1,113		10,744		-		11,857		-		129		-		129
Commercial loans		654		134,401		-		135,055		-		1,067		-		1,067
Home equity lines of credit		374		23,653		115		24,142		8		43		-		51
Consumer and overdrafts		-		356		-		356		-		10		-		10
Total	$	7,466	$	1,242,932	$	1,410	$	1,251,808	$	119	$	8,310	$	-	$	8,429
	June 30, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	2,356	$	221,229	$	720	$	224,305	$	113	$	224	$	-	$	337
Commercial mortgages		3,582		822,154		888		826,624		-		6,435		-		6,435
Construction		-		10,151		-		10,151		-		102		-		102
Commercial loans		1,707		148,951		-		150,658		-		948		-		948
Home equity lines of credit		414		24,902		123		25,439		8		46		-		54
Consumer and overdrafts		-		345		-		345		-		5		-		5
Total	$	8,059	$	1,227,732	$	1,731	$	1,237,522	$	121	$	7,760	$	-	$	7,881

The following tables present information related to loans individually evaluated for impairment (excluding loans acquired with deteriorated credit quality) by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021						June 30, 2021
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential mortgages	$	1,370	$	1,323	$	-	$	2,044	$	1,931	$	-
Commercial mortgages		3,582		3,582		-		3,582		3,582		-
Construction		1,113		1,113		-		-		-		-
Commercial loans		666		654		-		1,878		1,707		-
Home equity lines of credit		314		339		-		358		381		-
With an allowance recorded:
Residential mortgages		358		420		111		363		425		113
Home equity lines of credit		35		35		8		33		33		8
Total	$	7,438	$	7,466	$	119	$	8,258	$	8,059	$	121

The tables below present the average recorded investment and interest income recognized on loans individually evaluated for impairment, by portfolio segment, for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three months ended				Three months ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,916	$	23	$	1,873	$	12
Commercial mortgages		3,582		-		-		-
Construction		278		18		-		-
Commercial loans		355		9		1,769		48
Home equity lines of credit		339		-		379		1
With an allowance recorded:
Residential mortgages		420		4		428		4
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		29		-
Total	$	6,924	$	54	$	4,493	$	65
	Six Months Ended				Six Months Ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,925	$	30	$	1,935	$	20
Commercial mortgages		3,582		-		-		-
Construction		159		36		-		-
Commercial loans		726		206		1,789		97
Home equity lines of credit		345		2		383		1
With an allowance recorded:
Residential mortgages		422		7		429		7
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		21		-
Total	$	7,193	$	281	$	4,572	$	125

The following table presents the recorded investment in nonaccrual loans and in loans past due over 90 days and still on accrual status, by portfolio segment, as of December 31, 2021 and June 30, 2021 (in thousands):

					Loans Past Due Over 90 Days
	Nonaccrual				and Still Accruing
	December 31,		June 30,		December 31,		June 30,
	2021		2021		2021		2021
Residential mortgages	$	789	$	1,391	$	-	$	-
Commercial mortgages		3,582		3,582		1,655		411
Construction		1,113		-		-		-
Commercial loans		400		-		-		-
Home equity lines of credit		339		381		-		-
Consumer and overdrafts		-		-		12		-
Total	$	6,223	$	5,354	$	1,667	$	411

Nonperforming loans include both smaller-balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The table above excludes acquired loans that are accounted for as purchased credit impaired loans totaling $356,000 and $368,000 as of December 31, 2021 and June 30, 2021, respectively. Such loans are excluded because the loans are in pools that are considered performing. The discounts arising from recording these loans at fair value upon acquisition were due in part to credit quality and the accretable yield is being recognized as interest income over the life of the loans based on expected cash flows.

The following tables present the aging of the recorded investment in past due loans by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	259	$	193	$	669	$	1,121	$	211,696	$	212,817
Commercial mortgages		539		-		1,655		2,194		865,387		867,581
Construction		-		-		1,113		1,113		10,744		11,857
Commercial loans		-		47		400		447		134,608		135,055
Home equity lines of credit		-		18		339		357		23,785		24,142
Consumer and overdrafts		-		-		12		12		344		356
Total	$	798	$	258	$	4,188	$	5,244	$	1,246,564	$	1,251,808

	June 30, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	198	$	126	$	948	$	1,272	$	223,033	$	224,305
Commercial mortgages		453		-		411		864		825,760		826,624
Construction		-		-		-		-		10,151		10,151
Commercial loans		69		76		-		145		150,513		150,658
Home equity lines of credit		-		19		381		400		25,039		25,439
Consumer and overdrafts		-		-		-		-		345		345
Total	$	720	$	221	$	1,740	$	2,681	$	1,234,841	$	1,237,522

⁽¹⁾ As of December 31, 2021 and June 30, 2021, loans on a COVID-19-related payment deferral are considered current.  

Troubled Debt Restructurings

The terms of certain loans have been modified as troubled debt restructurings (“TDR’s”). The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. All TDRs are considered impaired loans.

As of December 31, 2021 and June 30, 2021, the Company had 8 and 12 loans, classified as TDRs totaling $1.6 million and $3.1 million, including $1.2 million and $2.7 million, respectively, of loans still accruing interest. The Company has allocated $119,000 and $121,000, respectively, of specific reserves to customers whose loan terms have been modified in TDRs as of December 31, 2021 and June 30, 2021. As of December 31, 2021, the Company has committed to lend an additional $1,000  to customers with outstanding loans that are classified as TDRs.

The Company did not modify any loans during the three or six months ended December 31, 2021 or 2020 that were classified as TDRs.       

There were no defaults of TDRs occurring in the three or six months ended December 31, 2021 or December 31, 2020 that were modified in the twelve months prior to default.       

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” provides banks the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. On December 27, 2020, the Consolidated Appropriations Act 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extends Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. This legislation expired on January 1, 2022. Additionally, on April 7, 2020, the banking agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, issued a statement, “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised)” (“Interagency Statement”), to encourage banks to work prudently with borrowers and to describe the agencies’ interpretation of how accounting rules under ASC 310-40, “Troubled Debt Restructurings by Creditors,” apply to certain COVID-19-related modifications.

During the three and six months ended December 31, 2021, the Company granted or extended loan payment deferrals for 3 and 5 residential mortgage, commercial mortgage, and commercial loans totaling $3.9 million and $5.9 million, respectively. In accordance with either the CARES Act (as amended) or Interagency Statement, these modifications are not considered TDRs. The Company had 7 and 19 loans totaling $13.7 million and $27.3 million on loan payment deferral as of December 31, 2021 and June 30, 2021, respectively.

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 by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company utilizes the same grading process for acquired loans as it does for originated loans. The Company uses the following definitions for risk ratings:

Special Mention – Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process and loans in groups of homogenous loans are considered to be pass rated loans. These loans are monitored based on delinquency and performance. Based on the most recent analysis performed, the risk category of loans by portfolio segment is as follows (in thousands):

	December 31, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	210,945	$	262	$	1,610	$	212,817
Commercial mortgages		847,434		3,163		16,984		867,581
Construction		10,744		1,113		-		11,857
Commercial loans		130,602		607		3,846		135,055
Home equity lines of credit		23,628		84		430		24,142
Consumer and overdrafts		356		-		-		356
Total	$	1,223,709	$	5,229	$	22,870	$	1,251,808

	June 30, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	219,901	$	2,480	$	1,924	$	224,305
Commercial mortgages		809,660		1,615		15,349		826,624
Construction		9,038		1,113		-		10,151
Commercial loans		146,275		491		3,892		150,658
Home equity lines of credit		24,400		602		437		25,439
Consumer and overdrafts		345		-		-		345
Total	$	1,209,619	$	6,301	$	21,602	$	1,237,522

As of December 31, 2021, of the $13.7 million in loans in a COVID-19 related payment deferral, $8.3 million were pass-rated, with $185,000 and $5.3 million rated special mention and substandard, respectively. As of June 30, 2021, of the $27.3 million in loans on deferral, $9.9 million were pass-rated, with $3.2 million and $14.2 million rated special mention and substandard, respectively.

Purchased Credit Impaired Loans

The Company has acquired loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of December 31, 2021 and June 30, 2021 is as follows (in thousands):

	December 31,		June 30,
	2021		2021
Residential mortgages	$	421	$	720
Commercial mortgages		874		888
Home equity lines of credit		115		123
Carrying amount, net of allowance of $0	$	1,410	$	1,731

There was no provision for loan losses on purchased credit impaired loans during the three and six months ended December 31, 2021 or 2020.

Accretable yield, or income expected to be collected, for acquired loans is as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Beginning balance	$	120		$	151		$	130		$	156
New loans acquired		-			-			-			-
Accretion income		(19	)		(4	)		(29	)		(9	)
Reclassification from non-accretable difference		-			-			-			-
Disposals		-			-			-			-
Ending balance	$	101		$	147		$	101		$	147

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Accumulated Other Comprehensive (Loss) Income

6 Months Ended

Dec. 31, 2021

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Note 5. Accumulated Other Comprehensive (Loss) Income

The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax (in thousands):

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2021	$	(10	)	$	(3,026	)	$	(168	)	$	(3,204	)
Other comprehensive loss before reclassifications		(243	)		-			-			(243	)
Amounts reclassified from accumulated other comprehensive income		-			37			16			53
Less tax effect		51			(7	)		(3	)		41
Net other comprehensive (loss) income		(192	)		30			13			(149	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2020	$	415		$	(6,416	)	$	(215	)	$	(6,216	)
Other comprehensive loss before reclassifications		(3	)		-			-			(3	)
Amounts reclassified from accumulated other comprehensive income		-			332			14			346
Less tax effect		1			(69	)		(4	)		(72	)
Net other comprehensive (loss) income		(2	)		263			10			271
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2021	$	137		$	(3,055	)	$	(181	)	$	(3,099	)
Other comprehensive loss before reclassifications		(430	)		-			-			(430	)
Amounts reclassified from accumulated other comprehensive income		-			75			32			107
Tax effect		91			(16	)		(6	)		69
Net other comprehensive (loss) income		(339	)		59			26			(254	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2020	$	428		$	(6,605	)	$	(226	)	$	(6,403	)
Other comprehensive income before reclassifications		(19	)		-			-			(19	)
Amounts reclassified from accumulated other comprehensive income		-			572			28			600
Tax effect		4			(120	)		(7	)		(123	)
Net other comprehensive (loss) income		(15	)		452			21			458
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

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Post-Retirement Benefits

6 Months Ended

Dec. 31, 2021

Compensation And Retirement Disclosure [Abstract]

Post-Retirement Benefits

Note 6. Post-Retirement Benefits

Employee Pension Plan

The Company maintains a non-contributory defined benefit pension plan that covers employees meeting specific requirements as to age and length of service. The Company’s contributions to this qualified plan are determined on the basis of (i) the maximum amount that can be deducted for federal income tax purposes, and (ii) the amount determined by a consulting actuary as necessary to avoid an accumulated funding deficiency as defined by the Employee Retirement Income Security Act of 1974 (“ERISA”). Contributions are intended to provide for benefits attributed to service to date but also those expected to be earned in the future. On February 15, 2017, the Board of Directors approved the freezing of the defined benefit pension plan effective May 1, 2017.

Supplemental Executive Retirement Plans

The Company also maintains unfunded and non-qualified supplemental executive retirement plans ("SERP") to provide pension benefits in addition to those provided under the qualified pension plan.

Net periodic benefit cost and other amounts recognized in other comprehensive income for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended					Three Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plans		Defined Benefit Plan			Supplemental Retirement Plans
Service cost	$	-		$	130	$	-		$	91
Interest cost		148			18		137			23
Expected return on plan assets		(509	)		-		(455	)		-
Amortization of prior net loss		37			16		239			14
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(324	)	$	164	$	14		$	128
	Six Months Ended					Six Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plan		Defined Benefit Plan			Supplemental Retirement Plan
Service cost	$	-		$	261	$	-		$	181
Interest cost		297			35		273			47
Expected return on plan assets		(1,019	)		-		(911	)		-
Amortization of prior net loss		75			32		479			28
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(647	)	$	328	$	(66	)	$	256

The Company made no contributions to the defined benefit plan during the three and six months ended December 31, 2021.

Employee Stock Ownership Plan

On January 1, 2017, the Company established an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. On April 20, 2017, the Holding Company granted a loan to the ESOP in the amount of $14.5 million for the purchase of 1,453,209 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Holding Company to purchase the common stock is payable annually over 15 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (3.25% for 2021). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan at December 31, 2021 was $9.7 million. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 96,881 through 2032. Dividends on allocated shares increase participant accounts and are used to purchase additional shares of stock. Participants receive the shares at the end of employment.

Shares held by the ESOP include the following (dollars in thousands):

	December 31, 2021		June 30, 2021
Allocated to participants		469,127		417,902
Unearned		968,810		1,017,648
Total ESOP shares		1,437,937		1,435,550
Fair value of unearned shares	$	18,446	$	18,491

Total compensation expense recognized in connection with the ESOP for the three and six months ended December 31, 2021 was $457,000 and $903,000, respectively, and for the three and six months ended December 31, 2020 was $360,000 and $661,000, respectively.     

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Fair Value of Financial Instruments

6 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 7. Fair Value of Financial Instruments

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: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as general classification of such instruments pursuant to the valuation hierarchy, is set forth below. While management believes the Company’s valuation methodologies are appropriate and consistent with other financial institutions, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.  

Investment Securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs), or a broker's opinion of value (Level 3 inputs).  

Impaired Loans: The fair value of collateral-dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. Appraisals are generally obtained annually and may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Management performs a review of all appraisals, including any such adjustments. The fair value of uncollateralized or non-collateral-dependent loans are generally based on discounted cash flows which utilize management’s assumption of discount rates and expected future cash flows, resulting in a Level 3 classification.

Foreclosed Real Estate: Assets acquired through or instead of loan foreclosure are initially recorded at fair value, less estimated costs to sell, when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value, less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Foreclosed properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Credit Department, as well as a third-party specialist, where deemed appropriate, reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Once appraisals are considered appropriate, management discounts the appraised value for estimated selling costs, such as legal, broker, and property maintenance and insurance costs.  The most recent analysis performed indicated discount rates ranging between 10% and 20% should be applied to properties with appraisals performed.

Derivatives: The Company’s derivative assets and liabilities consist of transactions undertaken as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained

from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy.

Assets and liabilities measured at fair value are summarized below (in thousands):

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
December 31, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	10,730	$	-	$	10,730
Corporate		-		5,032		3,135		8,167
State and municipal		-		6,992		-		6,992
Mortgage-backed securities – residential		-		15,284		-		15,284
Mortgage-backed securities – commercial		-		2,514		-		2,514
Derivatives – interest rate contracts		-		3,824		-		3,824
Total assets at fair value	$	-	$	44,376	$	3,135	$	47,511
Derivatives – interest rate contracts	$	-	$	3,824	$	-	$	3,824
Total liabilities at fair value	$	-	$	3,824	$	-	$	3,824
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	309	$	309
Home equity lines of credit		-		-		27		27
Total assets at fair value	$	-	$	-	$	336	$	336

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
June 30, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	21,816	$	-	$	21,816
Corporate		-		5,058		3,131		8,189
State and municipal		-		7,115		-		7,115
Mortgage-backed securities – residential		-		17,654		-		17,654
Mortgage-backed securities – commercial		-		2,613		-		2,613
Derivatives – interest rate contracts		-		4,232		-		4,232
Total assets at fair value	$	-	$	58,488	$	3,131	$	61,619
Derivatives – interest rate contracts	$	-	$	4,232	$	-	$	4,232
Total liabilities at fair value	$	-	$	4,232	$	-	$	4,232
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	312	$	312
Home equity lines of credit		-		-		25		25
Total assets at fair value	$	-	$	-	$	337	$	337

There were no transfers between levels within the fair value hierarchy during the three and six months ended December 31, 2021 and 2020.

Impaired loans in the preceding table had a carrying amount of $455,000 and a remaining valuation allowance of $119,000, at December 31, 2021, as compared to $471,000 and $125,000, respectively, as of June 30, 2021. Impaired loans measured at fair value incurred no net charge-offs and resulted in a credit for loan losses of $3,000 during the six months ended December 31, 2021. Impaired loans measured at fair value as of December 31, 2020 incurred no net charge-offs and resulted in a provision for loan losses of $2,000 during the six months ended December 31, 2020.

The following tables present quantitative information about Level 3 fair value measurements for selected financial instruments measured at fair value on a non-recurring basis at December 31, 2021 and June 30, 2021 (dollars in thousands):

			Valuation	Unobservable	Range or
	Fair Value		Technique(s)	Input(s)	Rate Used
December 31, 2021
Impaired loans - residential mortgages	$	309	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		27	Discounted cash flow	Discount rate	5.4% to 6.3%
June 30, 2021
Impaired loans - residential mortgages	$	312	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		25	Discounted cash flow	Discount rate	5.4% to 6.3%

The following is a summary of the carrying amounts and estimated fair values of the Company’s financial assets and liabilities, none of which are held for trading purposes (in thousands):

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2021
Financial assets:
Cash and cash equivalents	$	120,339	$	120,339	$	-	$	-	$	120,339
Investment securities held to maturity		390,312		-		354,962		34,852		389,814
Investment securities available for sale		43,687		-		40,552		3,135		43,687
Loans receivable, net		1,243,646		-		-		1,243,799		1,243,799
Loans receivable held for sale		1,452		-		-		1,452		1,452
Accrued interest receivable		6,509		-		1,648		4,861		6,509
FHLB stock		4,167	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		3,824		-		3,824		-		3,824
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,168,711		1,168,711		-		-		1,168,711
Time deposits		354,356		-		358,819		-		358,819
Mortgage escrow funds		10,880		10,880		-		-		10,880
Accrued interest payable		127		1		126		-		127
FHLB advances		58,390		-		59,103		-		59,103
Derivative liabilities - interest rate contracts		3,824		-		3,824		-		3,824

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
June 30, 2021
Financial assets:
Cash and cash equivalents	$	159,305	$	159,305	$	-	$	-	$	159,305
Investment securities held to maturity		337,584		-		305,671		36,466		342,137
Investment securities available for sale		57,387		-		54,256		3,131		57,387
Loans receivable, net		1,229,451		-		-		1,234,116		1,234,116
Accrued interest receivable		6,398		-		1,341		5,057		6,398
FHLB stock		4,507	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		4,232		-		4,232		-		4,232
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,116,667		1,116,667		-		-		1,116,667
Time deposits		375,015		-		380,948		-		380,948
Mortgage escrow funds		10,536		10,536		-		-		10,536
Accrued interest payable		146		1		145		-		146
FHLB advances		65,957		-		67,334		-		67,334
Derivative liabilities - interest rate contracts		4,232		-		4,232		-		4,232

The methods of determining the fair value of assets and liabilities presented in the table above are consistent with our methodologies disclosed in the Company's Consolidated Financial Statements included in the Annual Report on Form 10-K.

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Regulatory Matters

6 Months Ended

Dec. 31, 2021

Banking And Thrift Other Disclosures [Abstract]

Regulatory Matters

Note 8. Regulatory Matters

The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2021 and June 30, 2021, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (dollars in thousands).  

											To Be Well Capitalized
						For Capital					Under Prompt
						Adequacy					Corrective Action
	Bank Actual					Purposes					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2021
Leverage (Tier 1)	$	242,523		12.9	%	$	75,115		4.0	%	$	93,893		5.0	%
Risk-based:
Common Tier 1		242,523		17.7			61,769		4.5			89,222		6.5
Tier 1		242,523		17.7			82,359		6.0			109,812		8.0
Total		250,952		18.3			109,812		8.0			137,265		10.0
June 30, 2021
Leverage (Tier 1)	$	233,944		12.5	%	$	74,988		4.0	%	$	93,735		5.0	%
Risk-based:
Common Tier 1		233,944		17.9			58,713		4.5			84,807		6.5
Tier 1		233,944		17.9			78,283		6.0			104,378		8.0
Total		241,825		18.5			104,378		8.0			130,472		10.0

In addition to the ratios above, the Basel III Capital Rules have established that community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers.

Management believes that as of December 31, 2021 and June 30, 2021, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer of 2.5%. Further, the most recent

FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.  

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Earnings Per Share ("EPS")

6 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share ("EPS")

Note 9. Earnings Per Share (“EPS”)

Basic EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.

Diluted EPS is calculated in a similar matter, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. Dilutive financial instruments include stock options and unvested restricted stock. The following table provides factors used in the earnings per share computation.

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
	(dollars in thousands, except per share data)
Net income applicable to common stock	$	4,288		$	2,694		$	7,902		$	5,422
Average number of common shares outstanding		15,217,484			15,966,158			15,280,230			16,184,821
Less: Average unallocated ESOP shares		(981,011	)		(1,077,630	)		(993,221	)		(1,089,839	)
Average number of common shares outstanding used to calculate basic earnings per common share		14,236,473			14,888,528			14,287,009			15,094,982
Effect of equity-based awards		44,759			492			62,263			-
Average number of common shares outstanding used to calculate diluted earnings per common share		14,281,232			14,889,020			14,349,272			15,094,982
Earnings per common share:
Basic	$	0.30		$	0.18		$	0.55		$	0.36
Diluted	$	0.30		$	0.18		$	0.55		$	0.36

Stock options for 1,314,963 and 1,309,550 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended December 31, 2021, respectively, because they were antidilutive.  Stock options for 1,345,293 and 1,343,695 shares of common stock were not considered in computing diluted earnings per common share for the three and six months ended December 31, 2020, respectively, because they were antidilutive.

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Derivatives and Hedging

6 Months Ended

Dec. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Note 10. Derivatives and Hedging

Derivatives not designated as hedges may be used to manage the Company’s exposure to interest rate movements or to provide service to customers. The Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third party in order to minimize the net risk exposure resulting from such transactions. The Company presents interest rate swap assets and liabilities in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. These interest rate swap agreements do not qualify for hedge accounting treatment, and therefore changes in fair value are reported in current period earnings.

The following table presents summary information about the interest rate swaps as of December 31, 2021 and June 30, 2021 (dollars in thousands).

	December 31,			June 30,
	2021			2021
Notional amounts	$	180,921		$	182,700
Weighted average pay rates		2.55	%		2.55	%
Weighted average receive rates		2.55	%		2.55	%
Weighted average maturity	7.95 years			8.46 years
Fair value of combined interest rate swaps	$	-		$	-

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Revenue From Contracts With Customers

6 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue From Contracts With Customers

Note 11. Revenue From Contracts With Customers

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue:

1. Identify the contract with a customer.

2. Identify the performance obligations in the contract.

3. Determine the transaction price.

4. Allocate the transaction price to performance obligations in the contract.

5. Recognize revenue when (or as) the Company satisfies a performance obligation.

The following table presents summary information about sources of revenue from contracts with customers for the periods indicated (in thousands).

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Noninterest income:
Service charges on deposits	$	199	$	196	$	382	$	358
Interchange fees		164		133		320		264
Other fees and service charges (1)		44		34		106		63
Fees and service charges		407		363		808		685
Gain on sale of premises (1)		548		-		548		-
Bank-owned life insurance (1)		191		129		383		261
Net gains on sales of loans receivable (1)		41		-		47		-
Swap income (1)		-		238		-		367
Other noninterest income (1)		8		13		22		24
Total noninterest income	$	1,195	$	743	$	1,808	$	1,337
(1)     Not within the scope of ASC 606.

Fees and Service Charges on Deposit Accounts. The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payments, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of the month, representing the period over which the Company satisfied 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.

Interchange Income. The Company earns interchange fees from debit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gain on Sales of Foreclosed Real Estate. The Company records a gain or loss from the sale of foreclosed real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of foreclosed real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the foreclosed real estate 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.

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Share-Based Compensation

6 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note 12. Stock-Based Compensation

On October 24, 2018, the Company’s shareholders approved the PCSB Financial Corporation 2018 Equity Incentive Plan (the “Plan”), which permits the grant of stock options and restricted stock and/or restricted stock units. The total number of shares that may be granted under the Plan is 2,543,115, of which 1,816,511 shares may be granted as stock options and 726,604 shares may be granted as restricted stock and restricted stock units. Total compensation cost that has been charged against income for the Plan was $820,000 and $1.6 million for the three and six months ended December 31, 2021 and $822,000 and $1.7 million for the three and six months ended December 31, 2020, respectively.

Restricted Stock Awards (“RSAs”)

RSAs awarded under the Plan provide for the issuance of shares to both employees and non-employee directors. These awards generally vest over a 5-year period, with 20% vesting each year on the anniversary of the award. All awards were made at the fair value of common stock on the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at grant date. The fair value of the stock was determined to be the closing price of the stock on the NASDAQ exchange. Total shares available for grant under the Plan are 726,000, of which 549,467 shares were granted as of December 31, 2021.

The following table presents a summary of RSA activity during the period ended December 31, 2021.

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested granted shares outstanding at July 1, 2021		322,580		$	18.95
Shares granted		8,000			17.66
Shares vested		(107,130	)		18.97
Shares forfeited		-			-
Unvested granted shares at December 31, 2021		223,450		$	18.89

As of December 31, 2021, there was $3.9 million of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years.

Stock Option Awards

Stock options awarded to employees under the Plan are considered incentive stock options (ISOs), up to applicable limits. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. Those issued to non-employee directors, as well as those exceeding ISO limitations, are considered non-qualified stock options (NQSOs). Options generally vest over a 5-year period, with 20% vesting each year on the anniversary of the award, however, may not vest more rapidly than over a three-year period, and have a contractual term of 10 years. The Company has a policy of using shares held as a treasury stock to satisfy share option exercises. Currently, the Company has a sufficient number of treasury shares to satisfy the current level of exercisable share options.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatilities of a peer group of publicly traded financial institutions. The expected term of options granted is based on the simplified “mid-point” approach which utilizes the weighted average vesting period and contractual

term. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Total options available for grant under the Plan are 1,816,511, of which 1,320,963 options were granted as of December 31, 2021. The following table presents a summary of activity related to stock options granted under the Plan, and changes during the period then ended:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Years		Aggregate Intrinsic Value
	(dollars in thousands, except  per share data)
Options outstanding at July 1, 2021		1,308,963	$	19.00		7.4	$	35
Options granted		12,000		17.66
Options expired		-		-
Options forfeited		-		-
Options exercised		-		-
Options outstanding at December 31, 2021		1,320,963	$	18.98		6.9	$	389
Exercisable at December 31, 2021		782,978	$	19.02		6.9	$	207

As of December 31, 2021, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years.

The fair value of options granted during the six months ended December 31, 2021, was determined using the following weighted-average assumptions as of grant date.

Risk-free interest rate		1.00	%
Expected term (in years)		6.25
Expected stock price volatility		35.91	%
Dividend yield		1.36	%
Weighted average fair value of options granted	$	5.50

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Leases

6 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Note 13. Leases

As of December 31, 2021, the Company leases real estate for eleven branch offices and one administrative office, including its corporate headquarters, under various operating lease agreements. The Company’s leases have maturities which range from 2022 to 2041, some of which include lessee options to extend the lease term. The weighted average remaining life of the lease terms for these leases was 9.59 years as of December 31, 2021.

The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company utilized a weighted average discount rate of 2.40% in determining the lease liability as of December 31, 2021.

The Company made a policy election to exclude the recognition requirements of ASC 842 to short-term leases, those leases with original terms of 12 months or less. Short-term lease payments are recognized in the income statement on a straight-line basis over the lease term. The Company had no short-term lease cost for the three or six months ended December 31, 2021 or 2020. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. There were no sale and leaseback

transactions, leveraged leases or lease transactions with related parties during the three or six months ended December 31, 2021 or 2020.

Total operating lease cost was $505,000 and $1.0 million for the three and six months ended December 31, 2021 and $501,000 and $1.0 million for the three and six months ended December 31, 2020, respectively. The right-of-use asset, included in premises and equipment, net, was $8.8 million and the corresponding lease liability, included in other liabilities was $9.0 million as of December 31, 2021.

Future minimum lease payments for the fiscal years ending June 30 and a reconciliation of undiscounted lease cash flows and the lease liability recognized in the consolidated balance sheet as of December 31, 2021 is shown below:

(dollars in thousands)
2022	$	1,017
2023		1,940
2024		1,569
2025		1,276
2026		748
Thereafter		3,802
Total future minimum lease payments (undiscounted)		10,352
Discounting effect on cash flows		(1,327	)
Lease liability (discounted)	$	9,025

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Subsequent Events

6 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 14. Subsequent Events

Subsequent to December 31, 2021, and through February 2, 2022, the Company repurchased 3,122 shares of common stock, at an average cost of $19.02.

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Basis of Presentation (Policies)

6 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations: PCSB Financial Corporation (the “Holding Company” and together with its direct and indirect subsidiaries, the “Company”) is a Maryland corporation organized by PCSB Bank (the “Bank”) for the purpose of acquiring all of the capital stock of the Bank issued in the Bank's conversion to stock ownership on April 20, 2017. At December 31, 2021, the significant assets of the Holding Company were the capital stock of the Bank, cash deposited in the Bank, and a loan to the PCSB Bank Employee Stock Ownership Plan (“ESOP”). The liabilities of the Holding Company were insignificant. The Company is subject to the financial reporting requirements of the Securities Exchange Act of 1934, as amended, and regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the New York State Department of Financial Services (the “NYSDFS”).

PCSB Bank is a community-oriented financial institution that provides financial services to individuals and businesses within its market area of Putnam, Southern Dutchess, Rockland and Westchester Counties in New York. The Bank is a state-chartered commercial bank, and its deposits are insured up to applicable limits by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). The Bank’s primary regulators are the FDIC and the NYSDFS.

Basis of Presentation

Basis of Presentation:  The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and include the accounts of the Holding Company, the Bank and the Bank's two subsidiaries – PCSB Funding Corp. and UpCounty Realty Corp. (formerly PCSB Realty Ltd.). PCSB Funding Corp. is a real estate investment trust that holds certain mortgage assets. UpCounty Realty Corp. is a corporation that holds certain properties foreclosed upon by the Bank. All intercompany transactions and balances have been eliminated in consolidation.

The unaudited consolidated financial statements contained herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments reflected in the consolidated financial statements contained herein. The results of operations for the current period presented are not necessarily indicative of the results of operations that may be expected for the entire current fiscal year. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended June 30, 2021, included in the Company's Annual Report on Form 10-K.

Certain prior period amounts have been reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or equity.

Loans Held For Sale

Loans Receivable Held For Sale: Loans receivable held for sale are those loans which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or market value. Net unrealized losses, if any, are recognized by a valuation allowance through a charge to noninterest income. Realized gains and losses on the sale of loans are recognized on the trade date and are determined by the difference between the sale proceeds and the carrying value of the loans.

Loans may be sold with servicing rights released or retained. At the time of the sale, management records a servicing asset for the value of any retained servicing rights, which represents the present value of the differential between the contractual servicing fee and adequate compensation, defined as the fee a sub-servicer would require to assume the role of servicer, after considering the estimated effects of prepayments.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets

before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call.

Assets Held For Sale

Assets Held For Sale: Assets held for sale are those assets which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or fair value, less estimated costs to sell, in the period in which the held for sale criteria are met and every subsequent period until the asset is sold. The carrying amount of the asset is adjusted for subsequent increases or decreases in its fair value, less estimated cost to sell, except that any subsequent increase cannot exceed the cumulative loss previously recognized. Such assets are not depreciated or amortized while they are classified as held for sale. Realized gains and losses on the sale of the asset is recognized when the asset is sold and is determined by the difference between the sale proceeds and the carrying value of the asset. Assets classified as held for sale totaled $1.5 million as of both December 31, 2021 and June 30, 2021 and are included in other assets on the consolidated balance sheet. During the three and six months ended December 31, 2021, the Company sold $398,000 in assets held for sale resulting in gains on sale of $548,000.

Risks and Uncertainties

Risks and Uncertainties:

The COVID-19 pandemic has created extensive disruptions to the global and U.S. economies and to the lives of individuals throughout the world. Governments, businesses, and the public have taken unprecedented actions to contain the spread of COVID-19 and to mitigate its effects, including vaccination mandates, quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal and monetary stimulus, and legislation designed to deliver financial aid and other relief. While the scope, duration, and full effects of COVID-19 on the economy continue to evolve and are not fully known, the pandemic and the efforts to contain it have disrupted global economic activity, adversely affected the functioning of financial markets, impacted market interest rates, increased economic and market uncertainty, and disrupted trade and supply chains.

Many of the emergency actions taken to mitigate the effects of the pandemic have since been reduced or eliminated, resulting in an improved local and national economic environment, however the ultimate financial impact of the pandemic on our borrowers, and therefore on our credit quality and financial performance, is still unknown at this time. The pandemic may continue to adversely impact consumers and several industries within our geographic footprint and impair the ability of the Company’s customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include, but are not limited to, the valuation impairments of the Company’s intangible assets, investments, loans receivable, or deferred tax assets. Additionally, it is reasonably possible that the Company’s allowance for loan loss estimate as of December 31, 2021 could change in the near term and could result in a material change to the Company’s provision for loan losses, earnings and capital.

Use of Estimates

Use of Estimates:  To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.  

Recent Accounting Pronouncements

The pronouncements discussed below are not intended to be an all-inclusive list, but rather only those pronouncements that the Company has determined could potentially have a material impact on our financial position, results of operations or disclosures.

There were no accounting standards adopted in the current period.

Future Application of Accounting Pronouncements Previously Issued

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 which affects entities holding financial assets that are not accounted for at fair value through net income, including loans, debt securities, and other financial assets. The ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected by recording an allowance for current expected credit losses. In October 2019, the FASB unanimously voted to delay the implementation of the standard for three years for certain companies, including small reporting companies (as defined by the SEC), non-SEC public companies and private companies. The Company currently qualifies as a small reporting company and is subject to the delayed implementation. Therefore, the amendments in this update

will be effective for the Company for the fiscal year beginning on July 1, 2023, including interim periods within that fiscal year. The Company is actively working through the provisions of the Update. Management has established a steering committee which is identifying the methodologies and the additional data requirements necessary to implement the Update and has engaged a third-party software service provider to assist in the Company's implementation. Management is currently evaluating the impact that ASU 2016-13 will have on the Company’s consolidated financial position, results of operations and disclosures.

The FASB issued ASU 2020-04 “Reference Rate Reform” and ASU 2021-01 “Reference Rate Reform Scope” which collectively address accounting considerations related to the expected discontinuation of LIBOR as a reference rate for financial contracts. These Updates provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform (codified in ASC 848). They include optional expedients related to contract modifications that allow an entity to account for modifications (if certain criteria are met) as if the modifications were only minor (assets within the scope of ASC 310, Receivables), were not substantial (assets within the scope of ASC 470, Debt) and/or did not result in remeasurements or reclassifications (assets within the scope of ASC 842, Leases, and other Topics) of the existing contract. They also include optional expedients and exceptions for contract modifications and hedge accounting that apply to derivative instruments impacted by the market-wide discounting transition. The Updates also allow for a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The guidance in these ASUs are effective as of March 12, 2020 through December 31, 2022. The Company has not yet elected to apply the practical expedients contained in these Updates and does not expect significant impact to the consolidated financial statements upon adoption. 

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Investment Securities (Tables)

6 Months Ended

Dec. 31, 2021

Investments Debt And Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized/Unrecognized Gains and Losses and Fair Value of Available for Sale and Held to Maturity Debt Securities

The amortized cost, gross unrealized/unrecognized gains and losses and fair value of available for sale and held to maturity debt securities at December 31, 2021 and June 30, 2021 were as follows (in thousands):

	December 31, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	10,936	$	-	$	(206	)	$	10,730
Corporate		8,002		165		-			8,167
State and municipal		7,041		71		(120	)		6,992
Mortgage-backed securities – residential		15,511		84		(311	)		15,284
Mortgage-backed securities – commercial		2,453		61		-			2,514
Total available for sale	$	43,943	$	381	$	(637	)	$	43,687
Held to maturity:
U.S. Government and agency obligations	$	39,995	$	104	$	(367	)	$	39,732
Corporate		52,091		1,247		(100	)		53,238
State and municipal		87,568		342		(1,625	)		86,285
Mortgage-backed securities – residential		105,968		1,867		(523	)		107,312
Mortgage-backed securities – collateralized mortgage obligations		25,304		165		(441	)		25,028
Mortgage-backed securities – commercial		79,386		536		(1,703	)		78,219
Total held to maturity	$	390,312	$	4,261	$	(4,759	)	$	389,814

	June 30, 2021
	Amortized		Gross Unrealized/Unrecognized					Fair
	Cost		Gains		Losses			Value
Available for sale:
U.S. Government and agency obligations	$	21,931	$	6	$	(121	)	$	21,816
Corporate		8,013		176		-			8,189
State and municipal		7,041		104		(30	)		7,115
Mortgage-backed securities – residential		17,738		148		(232	)		17,654
Mortgage-backed securities – commercial		2,490		123		-			2,613
Total available for sale	$	57,213	$	557	$	(383	)	$	57,387
Held to maturity:
U.S. Government and agency obligations	$	33,994	$	202	$	(84	)	$	34,112
Corporate		43,605		1,312		(38	)		44,879
State and municipal		57,625		440		(248	)		57,817
Mortgage-backed securities – residential		96,181		2,713		(107	)		98,787
Mortgage-backed securities – collateralized mortgage obligations		33,300		376		(328	)		33,348
Mortgage-backed securities – commercial		72,879		937		(622	)		73,194
Total held to maturity	$	337,584	$	5,980	$	(1,427	)	$	342,137

Fair Value and Carrying Amount of Debt Securities by Contractual Maturity

The following table presents the fair value and carrying amount of debt securities at December 31, 2021, by contractual maturity (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Held to maturity				Available for sale
	Carrying		Fair		Amortized		Fair
	Amount		Value		Cost		Value
1 year or less	$	5,121	$	5,222	$	3,002	$	3,008
1 to 5 years		45,969		45,617		5,000		4,990
5 to 10 years		43,476		44,575		10,936		10,899
over 10 years		81,203		79,771		7,041		6,992
Mortgage-backed securities and other		214,543		214,629		17,964		17,798
Total	$	390,312	$	389,814	$	43,943	$	43,687

Investment Securities with Fair Value and Unrealized Losses

The following table provides information regarding investment securities with unrealized/unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position at December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale:
U.S. Government and agency obligations	$	10,730	$	(206	)	$	-	$	-		$	10,730	$	(206	)
State and municipal		1,918		(91	)		981		(29	)		2,899		(120	)
Mortgage-backed securities – residential		5,843		(146	)		5,125		(165	)		10,968		(311	)
Total available for sale	$	18,491	$	(443	)	$	6,106	$	(194	)	$	24,597	$	(637	)
Held to maturity:
U.S. Government and agency obligations	$	31,627	$	(367	)	$	-	$	-		$	31,627	$	(367	)
Corporate		9,900		(100	)		-		-			9,900		(100	)
State and municipal		61,699		(1,625	)		-		-			61,699		(1,625	)
Mortgage-backed securities – residential		51,441		(523	)		-		-			51,441		(523	)
Mortgage-backed securities – collateralized mortgage obligations		13,543		(440	)		89		(1	)		13,632		(441	)
Mortgage-backed securities – commercial		62,956		(1,671	)		1,006		(32	)		63,962		(1,703	)
Total held to maturity	$	231,166	$	(4,726	)	$	1,095	$	(33	)	$	232,261	$	(4,759	)

	June 30, 2021
	Less than 12 months					12 months or greater					Total
			Unrealized/					Unrealized/					Unrealized/
	Fair		Unrecognized			Fair		Unrecognized			Fair		Unrecognized
	Value		Loss			Value		Loss			Value		Loss
Available for sale
U.S. Government and agency obligations	$	14,811	$	(121	)	$	-	$	-		$	14,811	$	(121	)
State and municipal		2,990		(30	)		-		-			2,990		(30	)
Mortgage-backed securities – residential		9,615		(222	)		1,339		(10	)		10,954		(232	)
Total available for sale	$	27,416	$	(373	)	$	1,339	$	(10	)	$	28,755	$	(383	)
Held to maturity
U.S. Government and agency obligations	$	19,409	$	(84	)	$	-	$	-		$	19,409	$	(84	)
Corporate		2,488		(13	)		4,975		(25	)		7,463		(38	)
State and municipal		19,980		(248	)		-		-			19,980		(248	)
Mortgage-backed securities – residential		30,335		(107	)		-		-			30,335		(107	)
Mortgage-backed securities – collateralized mortgage obligations		15,133		(328	)		-		-			15,133		(328	)
Mortgage-backed securities – commercial		47,580		(622	)		-		-			47,580		(622	)
Total held to maturity	$	134,925	$	(1,402	)	$	4,975	$	(25	)	$	139,900	$	(1,427	)

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Loans Receivable (Tables)

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Summary of Loans Receivable

Loans receivable are summarized as follows (in thousands):

	December 31,			June 30,
	2021			2021
Mortgage loans:
Residential	$	212,817		$	224,305
Commercial		867,581			826,624
Construction		11,857			10,151
Net deferred loan origination (fees) costs		(18	)		196
Total mortgage loans		1,092,237			1,061,276
Commercial and consumer loans:
Commercial loans		135,055			150,658
Home equity lines of credit		24,142			25,439
Consumer and overdrafts		356			345
Net deferred loan origination costs (fees)		285			(386	)
Total commercial and consumer loans		159,838			176,056
Total loans receivable		1,252,075			1,237,332
Allowance for loan losses		(8,429	)		(7,881	)
Loans receivable, net	$	1,243,646		$	1,229,451

Summary of Activity in Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	326	$	(9	)	$	-		$	2	$	319
Commercial mortgages		6,569		284			-			-		6,853
Construction		127		2			-			-		129
Commercial loans		1,072		(18	)		-			13		1,067
Home equity lines of credit		53		(4	)		-			2		51
Consumer and overdrafts		12		9			(11	)		-		10
Total	$	8,159	$	264		$	(11	)	$	17	$	8,429
	Three Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	342	$	(12	)	$	-		$	4	$	334
Commercial mortgages		6,966		(94	)		-			-		6,872
Construction		173		32			-			-		205
Commercial loans		1,121		179			(119	)		20		1,201
Home equity lines of credit		63		(4	)		-			2		61
Consumer and overdrafts		7		6			(9	)		-		4
Total	$	8,672	$	107		$	(128	)	$	26	$	8,677
	Six Months Ended December 31, 2021
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	337	$	(22	)	$	-		$	4	$	319
Commercial mortgages		6,435		418			-			-		6,853
Construction		102		27			-			-		129
Commercial loans		948		(161	)		(100	)		380		1,067
Home equity lines of credit		54		(7	)		-			4		51
Consumer and installment loans		5		22			(18	)		1		10
Total	$	7,881	$	277		$	(118	)	$	389	$	8,429
	Six Months Ended December 31, 2020
	Beginning Allowance		Provision (benefit)			Charge-offs			Recoveries		Ending Allowance
Residential mortgages	$	373	$	(45	)	$	-		$	6	$	334
Commercial mortgages		6,913		(41	)		-					6,872
Construction		165		40			-					205
Commercial loans		1,124		250			(224	)		51		1,201
Home equity lines of credit		60		(3	)		-			4		61
Consumer and installment loans		4		15			(17	)		2		4
Total	$	8,639	$	216		$	(241	)	$	63	$	8,677

Summary of Balance in Allowance for Loan Losses and Recorded investment in Loans by Portfolio Segment, and Based on Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, excluding net deferred fees and accrued interest, by portfolio segment, and based on impairment method as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	1,743	$	210,653	$	421	$	212,817	$	111	$	208	$	-	$	319
Commercial mortgages		3,582		863,125		874		867,581		-		6,853		-		6,853
Construction		1,113		10,744		-		11,857		-		129		-		129
Commercial loans		654		134,401		-		135,055		-		1,067		-		1,067
Home equity lines of credit		374		23,653		115		24,142		8		43		-		51
Consumer and overdrafts		-		356		-		356		-		10		-		10
Total	$	7,466	$	1,242,932	$	1,410	$	1,251,808	$	119	$	8,310	$	-	$	8,429
	June 30, 2021
	Loans								Allowance for Loan Losses
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired With Deteriorated Credit Quality		Total
Residential mortgages	$	2,356	$	221,229	$	720	$	224,305	$	113	$	224	$	-	$	337
Commercial mortgages		3,582		822,154		888		826,624		-		6,435		-		6,435
Construction		-		10,151		-		10,151		-		102		-		102
Commercial loans		1,707		148,951		-		150,658		-		948		-		948
Home equity lines of credit		414		24,902		123		25,439		8		46		-		54
Consumer and overdrafts		-		345		-		345		-		5		-		5
Total	$	8,059	$	1,227,732	$	1,731	$	1,237,522	$	121	$	7,760	$	-	$	7,881

Summary of Loans Individually Evaluated for Impairment (Excluding Loans Acquired with Deteriorated Credit Quality) by Portfolio Segment

The following tables present information related to loans individually evaluated for impairment (excluding loans acquired with deteriorated credit quality) by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021						June 30, 2021
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses
With no related allowance recorded:
Residential mortgages	$	1,370	$	1,323	$	-	$	2,044	$	1,931	$	-
Commercial mortgages		3,582		3,582		-		3,582		3,582		-
Construction		1,113		1,113		-		-		-		-
Commercial loans		666		654		-		1,878		1,707		-
Home equity lines of credit		314		339		-		358		381		-
With an allowance recorded:
Residential mortgages		358		420		111		363		425		113
Home equity lines of credit		35		35		8		33		33		8
Total	$	7,438	$	7,466	$	119	$	8,258	$	8,059	$	121

Summary of Average Recorded Investment and Interest Income Recognized on Loans Individually Evaluated for Impairment, by Portfolio Segment

The tables below present the average recorded investment and interest income recognized on loans individually evaluated for impairment, by portfolio segment, for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three months ended				Three months ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,916	$	23	$	1,873	$	12
Commercial mortgages		3,582		-		-		-
Construction		278		18		-		-
Commercial loans		355		9		1,769		48
Home equity lines of credit		339		-		379		1
With an allowance recorded:
Residential mortgages		420		4		428		4
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		29		-
Total	$	6,924	$	54	$	4,493	$	65
	Six Months Ended				Six Months Ended
	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgages	$	1,925	$	30	$	1,935	$	20
Commercial mortgages		3,582		-		-		-
Construction		159		36		-		-
Commercial loans		726		206		1,789		97
Home equity lines of credit		345		2		383		1
With an allowance recorded:
Residential mortgages		422		7		429		7
Commercial loans		-		-		15		-
Home equity lines of credit		34		-		21		-
Total	$	7,193	$	281	$	4,572	$	125

Nonaccrual Loans and in Loans Past Due over 90 Days Still on Accrual Status by Portfolio Segment

The following table presents the recorded investment in nonaccrual loans and in loans past due over 90 days and still on accrual status, by portfolio segment, as of December 31, 2021 and June 30, 2021 (in thousands):

					Loans Past Due Over 90 Days
	Nonaccrual				and Still Accruing
	December 31,		June 30,		December 31,		June 30,
	2021		2021		2021		2021
Residential mortgages	$	789	$	1,391	$	-	$	-
Commercial mortgages		3,582		3,582		1,655		411
Construction		1,113		-		-		-
Commercial loans		400		-		-		-
Home equity lines of credit		339		381		-		-
Consumer and overdrafts		-		-		12		-
Total	$	6,223	$	5,354	$	1,667	$	411

Aging of Recorded Investment in Past Due Loans by Portfolio Segment

The following tables present the aging of the recorded investment in past due loans by portfolio segment as of December 31, 2021 and June 30, 2021 (in thousands):

	December 31, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	259	$	193	$	669	$	1,121	$	211,696	$	212,817
Commercial mortgages		539		-		1,655		2,194		865,387		867,581
Construction		-		-		1,113		1,113		10,744		11,857
Commercial loans		-		47		400		447		134,608		135,055
Home equity lines of credit		-		18		339		357		23,785		24,142
Consumer and overdrafts		-		-		12		12		344		356
Total	$	798	$	258	$	4,188	$	5,244	$	1,246,564	$	1,251,808

	June 30, 2021
	30-59		60-89		90 Days or
	Days Past		Days Past		More Past		Total Past
	Due		Due		Due		Due		Current (1)		Total
Residential mortgages	$	198	$	126	$	948	$	1,272	$	223,033	$	224,305
Commercial mortgages		453		-		411		864		825,760		826,624
Construction		-		-		-		-		10,151		10,151
Commercial loans		69		76		-		145		150,513		150,658
Home equity lines of credit		-		19		381		400		25,039		25,439
Consumer and overdrafts		-		-		-		-		345		345
Total	$	720	$	221	$	1,740	$	2,681	$	1,234,841	$	1,237,522

⁽¹⁾ As of December 31, 2021 and June 30, 2021, loans on a COVID-19-related payment deferral are considered current.  

Summary of Risk Category of Loans by Portfolio Segment

Based on the most recent analysis performed, the risk category of loans by portfolio segment is as follows (in thousands):

	December 31, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	210,945	$	262	$	1,610	$	212,817
Commercial mortgages		847,434		3,163		16,984		867,581
Construction		10,744		1,113		-		11,857
Commercial loans		130,602		607		3,846		135,055
Home equity lines of credit		23,628		84		430		24,142
Consumer and overdrafts		356		-		-		356
Total	$	1,223,709	$	5,229	$	22,870	$	1,251,808

	June 30, 2021
	Pass		Special Mention		Substandard		Total
Residential mortgages	$	219,901	$	2,480	$	1,924	$	224,305
Commercial mortgages		809,660		1,615		15,349		826,624
Construction		9,038		1,113		-		10,151
Commercial loans		146,275		491		3,892		150,658
Home equity lines of credit		24,400		602		437		25,439
Consumer and overdrafts		345		-		-		345
Total	$	1,209,619	$	6,301	$	21,602	$	1,237,522

Schedule of Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans as of December 31, 2021 and June 30, 2021 is as follows (in thousands):

	December 31,		June 30,
	2021		2021
Residential mortgages	$	421	$	720
Commercial mortgages		874		888
Home equity lines of credit		115		123
Carrying amount, net of allowance of $0	$	1,410	$	1,731

Summary of Accretable Yield, or Income Expected to be Collected for Acquired Loans

Accretable yield, or income expected to be collected, for acquired loans is as follows (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Beginning balance	$	120		$	151		$	130		$	156
New loans acquired		-			-			-			-
Accretion income		(19	)		(4	)		(29	)		(9	)
Reclassification from non-accretable difference		-			-			-			-
Disposals		-			-			-			-
Ending balance	$	101		$	147		$	101		$	147

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Accumulated Other Comprehensive (Loss) Income (Tables)

6 Months Ended

Dec. 31, 2021

Equity [Abstract]

Summary of Accumulated Other Comprehensive Income (Loss)

The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax (in thousands):

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2021	$	(10	)	$	(3,026	)	$	(168	)	$	(3,204	)
Other comprehensive loss before reclassifications		(243	)		-			-			(243	)
Amounts reclassified from accumulated other comprehensive income		-			37			16			53
Less tax effect		51			(7	)		(3	)		41
Net other comprehensive (loss) income		(192	)		30			13			(149	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at October 1, 2020	$	415		$	(6,416	)	$	(215	)	$	(6,216	)
Other comprehensive loss before reclassifications		(3	)		-			-			(3	)
Amounts reclassified from accumulated other comprehensive income		-			332			14			346
Less tax effect		1			(69	)		(4	)		(72	)
Net other comprehensive (loss) income		(2	)		263			10			271
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2021	$	137		$	(3,055	)	$	(181	)	$	(3,099	)
Other comprehensive loss before reclassifications		(430	)		-			-			(430	)
Amounts reclassified from accumulated other comprehensive income		-			75			32			107
Tax effect		91			(16	)		(6	)		69
Net other comprehensive (loss) income		(339	)		59			26			(254	)
Balance at December 31, 2021	$	(202	)	$	(2,996	)	$	(155	)	$	(3,353	)

	Net unrealized gain (loss) on available for sale securities			Unrealized loss on pension benefits			Unrealized loss on SERP benefits			Total
Balance at July 1, 2020	$	428		$	(6,605	)	$	(226	)	$	(6,403	)
Other comprehensive income before reclassifications		(19	)		-			-			(19	)
Amounts reclassified from accumulated other comprehensive income		-			572			28			600
Tax effect		4			(120	)		(7	)		(123	)
Net other comprehensive (loss) income		(15	)		452			21			458
Balance at December 31, 2020	$	413		$	(6,153	)	$	(205	)	$	(5,945	)

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Post-Retirement Benefits (Tables)

6 Months Ended

Dec. 31, 2021

Compensation And Retirement Disclosure [Abstract]

Schedule of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

Net periodic benefit cost and other amounts recognized in other comprehensive income for the three and six months ended December 31, 2021 and 2020 (in thousands):

	Three Months Ended					Three Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plans		Defined Benefit Plan			Supplemental Retirement Plans
Service cost	$	-		$	130	$	-		$	91
Interest cost		148			18		137			23
Expected return on plan assets		(509	)		-		(455	)		-
Amortization of prior net loss		37			16		239			14
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(324	)	$	164	$	14		$	128
	Six Months Ended					Six Months Ended
	December 31, 2021					December 31, 2020
	Defined Benefit Plan			Supplemental Retirement Plan		Defined Benefit Plan			Supplemental Retirement Plan
Service cost	$	-		$	261	$	-		$	181
Interest cost		297			35		273			47
Expected return on plan assets		(1,019	)		-		(911	)		-
Amortization of prior net loss		75			32		479			28
Settlement charges		-			-		93			-
Net periodic (benefit) cost	$	(647	)	$	328	$	(66	)	$	256

Shares Held by ESOP

Shares held by the ESOP include the following (dollars in thousands):

	December 31, 2021		June 30, 2021
Allocated to participants		469,127		417,902
Unearned		968,810		1,017,648
Total ESOP shares		1,437,937		1,435,550
Fair value of unearned shares	$	18,446	$	18,491

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value are summarized below (in thousands):

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
December 31, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	10,730	$	-	$	10,730
Corporate		-		5,032		3,135		8,167
State and municipal		-		6,992		-		6,992
Mortgage-backed securities – residential		-		15,284		-		15,284
Mortgage-backed securities – commercial		-		2,514		-		2,514
Derivatives – interest rate contracts		-		3,824		-		3,824
Total assets at fair value	$	-	$	44,376	$	3,135	$	47,511
Derivatives – interest rate contracts	$	-	$	3,824	$	-	$	3,824
Total liabilities at fair value	$	-	$	3,824	$	-	$	3,824
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	309	$	309
Home equity lines of credit		-		-		27		27
Total assets at fair value	$	-	$	-	$	336	$	336

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
June 30, 2021
Measured on a recurring basis:
Available for sale securities:
U.S. Government and agency obligations	$	-	$	21,816	$	-	$	21,816
Corporate		-		5,058		3,131		8,189
State and municipal		-		7,115		-		7,115
Mortgage-backed securities – residential		-		17,654		-		17,654
Mortgage-backed securities – commercial		-		2,613		-		2,613
Derivatives – interest rate contracts		-		4,232		-		4,232
Total assets at fair value	$	-	$	58,488	$	3,131	$	61,619
Derivatives – interest rate contracts	$	-	$	4,232	$	-	$	4,232
Total liabilities at fair value	$	-	$	4,232	$	-	$	4,232
Measured on a non-recurring basis:
Impaired loans:
Residential mortgages	$	-	$	-	$	312	$	312
Home equity lines of credit		-		-		25		25
Total assets at fair value	$	-	$	-	$	337	$	337

Summary of Quantitative Information about Level 3 Fair Value Measurements for Selected Financial Instruments Measured at Fair Value on Non-recurring Basis

The following tables present quantitative information about Level 3 fair value measurements for selected financial instruments measured at fair value on a non-recurring basis at December 31, 2021 and June 30, 2021 (dollars in thousands):

			Valuation	Unobservable	Range or
	Fair Value		Technique(s)	Input(s)	Rate Used
December 31, 2021
Impaired loans - residential mortgages	$	309	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		27	Discounted cash flow	Discount rate	5.4% to 6.3%
June 30, 2021
Impaired loans - residential mortgages	$	312	Discounted cash flow	Discount rate	5.4% to 6.3%
Impaired loans - home equity lines of credit		25	Discounted cash flow	Discount rate	5.4% to 6.3%

Summary of Carrying Amounts and Estimated Fair Values of Bank's Financial Assets and Liabilities

The following is a summary of the carrying amounts and estimated fair values of the Company’s financial assets and liabilities, none of which are held for trading purposes (in thousands):

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2021
Financial assets:
Cash and cash equivalents	$	120,339	$	120,339	$	-	$	-	$	120,339
Investment securities held to maturity		390,312		-		354,962		34,852		389,814
Investment securities available for sale		43,687		-		40,552		3,135		43,687
Loans receivable, net		1,243,646		-		-		1,243,799		1,243,799
Loans receivable held for sale		1,452		-		-		1,452		1,452
Accrued interest receivable		6,509		-		1,648		4,861		6,509
FHLB stock		4,167	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		3,824		-		3,824		-		3,824
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,168,711		1,168,711		-		-		1,168,711
Time deposits		354,356		-		358,819		-		358,819
Mortgage escrow funds		10,880		10,880		-		-		10,880
Accrued interest payable		127		1		126		-		127
FHLB advances		58,390		-		59,103		-		59,103
Derivative liabilities - interest rate contracts		3,824		-		3,824		-		3,824

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
June 30, 2021
Financial assets:
Cash and cash equivalents	$	159,305	$	159,305	$	-	$	-	$	159,305
Investment securities held to maturity		337,584		-		305,671		36,466		342,137
Investment securities available for sale		57,387		-		54,256		3,131		57,387
Loans receivable, net		1,229,451		-		-		1,234,116		1,234,116
Accrued interest receivable		6,398		-		1,341		5,057		6,398
FHLB stock		4,507	N/A		N/A		N/A		N/A
Derivative assets - interest rate contracts		4,232		-		4,232		-		4,232
Financial liabilities:
Demand, NOW, money market deposits and savings accounts		1,116,667		1,116,667		-		-		1,116,667
Time deposits		375,015		-		380,948		-		380,948
Mortgage escrow funds		10,536		10,536		-		-		10,536
Accrued interest payable		146		1		145		-		146
FHLB advances		65,957		-		67,334		-		67,334
Derivative liabilities - interest rate contracts		4,232		-		4,232		-		4,232

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Regulatory Matters (Tables)

6 Months Ended

Dec. 31, 2021

Banking And Thrift Other Disclosures [Abstract]

Summary of Bank's Actual Capital Amounts and Ratios Compared to Required Ratios for Minimum Capital Adequacy and for Classification as Well Capitalized

The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2021 and June 30, 2021, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (dollars in thousands).  

											To Be Well Capitalized
						For Capital					Under Prompt
						Adequacy					Corrective Action
	Bank Actual					Purposes					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2021
Leverage (Tier 1)	$	242,523		12.9	%	$	75,115		4.0	%	$	93,893		5.0	%
Risk-based:
Common Tier 1		242,523		17.7			61,769		4.5			89,222		6.5
Tier 1		242,523		17.7			82,359		6.0			109,812		8.0
Total		250,952		18.3			109,812		8.0			137,265		10.0
June 30, 2021
Leverage (Tier 1)	$	233,944		12.5	%	$	74,988		4.0	%	$	93,735		5.0	%
Risk-based:
Common Tier 1		233,944		17.9			58,713		4.5			84,807		6.5
Tier 1		233,944		17.9			78,283		6.0			104,378		8.0
Total		241,825		18.5			104,378		8.0			130,472		10.0

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Earnings Per Share ("EPS") (Tables)

6 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

	Three Months Ended December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
	(dollars in thousands, except per share data)
Net income applicable to common stock	$	4,288		$	2,694		$	7,902		$	5,422
Average number of common shares outstanding		15,217,484			15,966,158			15,280,230			16,184,821
Less: Average unallocated ESOP shares		(981,011	)		(1,077,630	)		(993,221	)		(1,089,839	)
Average number of common shares outstanding used to calculate basic earnings per common share		14,236,473			14,888,528			14,287,009			15,094,982
Effect of equity-based awards		44,759			492			62,263			-
Average number of common shares outstanding used to calculate diluted earnings per common share		14,281,232			14,889,020			14,349,272			15,094,982
Earnings per common share:
Basic	$	0.30		$	0.18		$	0.55		$	0.36
Diluted	$	0.30		$	0.18		$	0.55		$	0.36

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Derivatives and Hedging (Tables)

6 Months Ended

Dec. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary Information About Interest Rate Swaps

The following table presents summary information about the interest rate swaps as of December 31, 2021 and June 30, 2021 (dollars in thousands).

	December 31,			June 30,
	2021			2021
Notional amounts	$	180,921		$	182,700
Weighted average pay rates		2.55	%		2.55	%
Weighted average receive rates		2.55	%		2.55	%
Weighted average maturity	7.95 years			8.46 years
Fair value of combined interest rate swaps	$	-		$	-

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Revenue From Contracts With Customers (Tables)

6 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Summary of Sources of Revenue from Contracts with Customers

The following table presents summary information about sources of revenue from contracts with customers for the periods indicated (in thousands).

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Noninterest income:
Service charges on deposits	$	199	$	196	$	382	$	358
Interchange fees		164		133		320		264
Other fees and service charges (1)		44		34		106		63
Fees and service charges		407		363		808		685
Gain on sale of premises (1)		548		-		548		-
Bank-owned life insurance (1)		191		129		383		261
Net gains on sales of loans receivable (1)		41		-		47		-
Swap income (1)		-		238		-		367
Other noninterest income (1)		8		13		22		24
Total noninterest income	$	1,195	$	743	$	1,808	$	1,337
(1)     Not within the scope of ASC 606.

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Share-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of RSA Activity

The following table presents a summary of RSA activity during the period ended December 31, 2021.

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested granted shares outstanding at July 1, 2021		322,580		$	18.95
Shares granted		8,000			17.66
Shares vested		(107,130	)		18.97
Shares forfeited		-			-
Unvested granted shares at December 31, 2021		223,450		$	18.89

Summary of Activity Related to Stock Options Granted under Plan

The following table presents a summary of activity related to stock options granted under the Plan, and changes during the period then ended:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Years		Aggregate Intrinsic Value
	(dollars in thousands, except  per share data)
Options outstanding at July 1, 2021		1,308,963	$	19.00		7.4	$	35
Options granted		12,000		17.66
Options expired		-		-
Options forfeited		-		-
Options exercised		-		-
Options outstanding at December 31, 2021		1,320,963	$	18.98		6.9	$	389
Exercisable at December 31, 2021		782,978	$	19.02		6.9	$	207

Summary of Fair Value of Options Granted Using Weighted-Average Assumptions as of Grant Date

The fair value of options granted during the six months ended December 31, 2021, was determined using the following weighted-average assumptions as of grant date.

Risk-free interest rate		1.00	%
Expected term (in years)		6.25
Expected stock price volatility		35.91	%
Dividend yield		1.36	%
Weighted average fair value of options granted	$	5.50

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Leases (Tables)

6 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Future Minimum Lease Payments

Future minimum lease payments for the fiscal years ending June 30 and a reconciliation of undiscounted lease cash flows and the lease liability recognized in the consolidated balance sheet as of December 31, 2021 is shown below:

(dollars in thousands)
2022	$	1,017
2023		1,940
2024		1,569
2025		1,276
2026		748
Thereafter		3,802
Total future minimum lease payments (undiscounted)		10,352
Discounting effect on cash flows		(1,327	)
Lease liability (discounted)	$	9,025

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Basis of Presentation - Additional Information (Detail)		3 Months Ended	6 Months Ended
		Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) Subsidiary	Jun. 30, 2021 USD ($)
Basis Of Presentation [Line Items]
Number of subsidiaries | Subsidiary			2
Assets held for sale sold		$ 398,000	$ 398,000
Gain on sale of premises	[1]	548,000	548,000
Other Assets [Member]
Basis Of Presentation [Line Items]
Assets held-for-sale		$ 1,500,000	$ 1,500,000	$ 1,500,000

[1] Not within the scope of ASC 606.

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Investment Securities - Schedule of Amortized Cost, Gross Unrealized/Unrecognized Gains and Losses and Fair Value of Available for Sale and Held to Maturity Debt Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	$ 43,943	$ 57,213
Available for sale, Gross Unrealized/Unrecognized Gains	381	557
Available for sale, Gross Unrealized/Unrecognized Losses	(637)	(383)
Available for sale, Fair Value	43,687	57,387
Held to maturity, Amortized Cost	390,312	337,584
Held to maturity, Gross Unrealized/Unrecognized Gains	4,261	5,980
Held to maturity, Gross Unrealized/Unrecognized Losses	(4,759)	(1,427)
Held to maturity, Fair Value	389,814	342,137
U.S. Government and Agency Obligations [Member]
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	10,936	21,931
Available for sale, Gross Unrealized/Unrecognized Gains		6
Available for sale, Gross Unrealized/Unrecognized Losses	(206)	(121)
Available for sale, Fair Value	10,730	21,816
Held to maturity, Amortized Cost	39,995	33,994
Held to maturity, Gross Unrealized/Unrecognized Gains	104	202
Held to maturity, Gross Unrealized/Unrecognized Losses	(367)	(84)
Held to maturity, Fair Value	39,732	34,112
Corporate [Member]
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	8,002	8,013
Available for sale, Gross Unrealized/Unrecognized Gains	165	176
Available for sale, Fair Value	8,167	8,189
Held to maturity, Amortized Cost	52,091	43,605
Held to maturity, Gross Unrealized/Unrecognized Gains	1,247	1,312
Held to maturity, Gross Unrealized/Unrecognized Losses	(100)	(38)
Held to maturity, Fair Value	53,238	44,879
State and Municipal [Member]
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	7,041	7,041
Available for sale, Gross Unrealized/Unrecognized Gains	71	104
Available for sale, Gross Unrealized/Unrecognized Losses	(120)	(30)
Available for sale, Fair Value	6,992	7,115
Held to maturity, Amortized Cost	87,568	57,625
Held to maturity, Gross Unrealized/Unrecognized Gains	342	440
Held to maturity, Gross Unrealized/Unrecognized Losses	(1,625)	(248)
Held to maturity, Fair Value	86,285	57,817
Mortgage-backed Securities - Residential [Member]
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	15,511	17,738
Available for sale, Gross Unrealized/Unrecognized Gains	84	148
Available for sale, Gross Unrealized/Unrecognized Losses	(311)	(232)
Available for sale, Fair Value	15,284	17,654
Held to maturity, Amortized Cost	105,968	96,181
Held to maturity, Gross Unrealized/Unrecognized Gains	1,867	2,713
Held to maturity, Gross Unrealized/Unrecognized Losses	(523)	(107)
Held to maturity, Fair Value	107,312	98,787
Mortgage-backed Securities - Commercial [Member]
Schedule of Investments [Line Items]
Available for sale, Amortized Cost	2,453	2,490
Available for sale, Gross Unrealized/Unrecognized Gains	61	123
Available for sale, Fair Value	2,514	2,613
Held to maturity, Amortized Cost	79,386	72,879
Held to maturity, Gross Unrealized/Unrecognized Gains	536	937
Held to maturity, Gross Unrealized/Unrecognized Losses	(1,703)	(622)
Held to maturity, Fair Value	78,219	73,194
Mortgage-backed Securities - Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Held to maturity, Amortized Cost	25,304	33,300
Held to maturity, Gross Unrealized/Unrecognized Gains	165	376
Held to maturity, Gross Unrealized/Unrecognized Losses	(441)	(328)
Held to maturity, Fair Value	$ 25,028	$ 33,348

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Investment Securities - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021 USD ($) Security	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) Security	Dec. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) Security
Investments Debt And Equity Securities [Abstract]
Sale of investment securities	$ 0	$ 0	$ 0	$ 0
Carrying amounts of securities pledged	151,600		151,600		$ 180,100
Total investment securities	$ 433,999		$ 433,999		$ 394,971
Number of securities in unrealized loss position | Security	154		154
Fair value of securities in unrealized/unrecognized loss position	$ 256,900		$ 256,900
Other-than-temporarily impaired securities | Security	0		0		0

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Investment Securities - Fair Value and Carrying Amount of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Investments Debt And Equity Securities [Abstract]
Held to maturity, carrying amount, 1 year or less	$ 5,121
Held to maturity, carrying amount, 1 to 5 years	45,969
Held to maturity, carrying amount, 5 to 10 years	43,476
Held to maturity, carrying amount, over 10 years	81,203
Held to maturity, carrying amount, Mortgage-backed securities and other	214,543
Held to maturity, Amortized Cost	390,312	$ 337,584
Held to maturity, fair value, 1 year or less	5,222
Held to maturity, fair value, 1 to 5 years	45,617
Held to maturity, fair value, 5 to 10 years	44,575
Held to maturity, fair value, over 10 years	79,771
Held to maturity, fair value, Mortgage-backed securities and other	214,629
Held to maturity, fair value, Total	389,814	342,137
Available for sale, amortized cost, 1 year or less	3,002
Available for sale, amortized cost, 1 to 5 years	5,000
Available for sale, amortized cost, 5 to 10 years	10,936
Available for sale, amortized cost, over 10 years	7,041
Available for sale, amortized cost, Mortgage-backed securities and other	17,964
Available for sale, Amortized Cost	43,943	57,213
Available for sale, fair value, 1 year or less	3,008
Available for sale, fair value, 1 to 5 years	4,990
Available for sale, fair value, 5 to 10 years	10,899
Available for sale, fair value, over 10 years	6,992
Available for sale, fair value, Mortgage-backed securities and other	17,798
Available for sale, fair value, Total	$ 43,687	$ 57,387

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Investment Securities - Investment Securities with Fair Value and Unrealized Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Schedule of Investments [Line Items]
Available for sale, Less than 12 months, Fair Value	$ 18,491	$ 27,416
Available for sale, Less than 12 months, Unrealized/Unrecognized Loss	(443)	(373)
Available for sale, 12 months or greater, Fair Value	6,106	1,339
Available for sale, 12 months or greater, Unrealized/Unrecognized Loss	(194)	(10)
Available for sale, Total, Fair Value	24,597	28,755
Available for sale, Total, Unrealized/Unrecognized Loss	(637)	(383)
Held to maturity, Less than 12 months, Fair Value	231,166	134,925
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(4,726)	(1,402)
Held to maturity, 12 months or greater, Fair Value	1,095	4,975
Held to maturity, 12 months or greater, Unrealized/ Unrecognized Loss	(33)	(25)
Held to maturity, Total, Fair Value	232,261	139,900
Held to maturity, Total, Unrealized/ Unrecognized Loss	(4,759)	(1,427)
U.S. Government and Agency Obligations [Member]
Schedule of Investments [Line Items]
Available for sale, Less than 12 months, Fair Value	10,730	14,811
Available for sale, Less than 12 months, Unrealized/Unrecognized Loss	(206)	(121)
Available for sale, Total, Fair Value	10,730	14,811
Available for sale, Total, Unrealized/Unrecognized Loss	(206)	(121)
Held to maturity, Less than 12 months, Fair Value	31,627	19,409
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(367)	(84)
Held to maturity, Total, Fair Value	31,627	19,409
Held to maturity, Total, Unrealized/ Unrecognized Loss	(367)	(84)
State and Municipal [Member]
Schedule of Investments [Line Items]
Available for sale, Less than 12 months, Fair Value	1,918	2,990
Available for sale, Less than 12 months, Unrealized/Unrecognized Loss	(91)	(30)
Available for sale, 12 months or greater, Fair Value	981
Available for sale, 12 months or greater, Unrealized/Unrecognized Loss	(29)
Available for sale, Total, Fair Value	2,899	2,990
Available for sale, Total, Unrealized/Unrecognized Loss	(120)	(30)
Held to maturity, Less than 12 months, Fair Value	61,699	19,980
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(1,625)	(248)
Held to maturity, Total, Fair Value	61,699	19,980
Held to maturity, Total, Unrealized/ Unrecognized Loss	(1,625)	(248)
Mortgage-backed Securities - Residential [Member]
Schedule of Investments [Line Items]
Available for sale, Less than 12 months, Fair Value	5,843	9,615
Available for sale, Less than 12 months, Unrealized/Unrecognized Loss	(146)	(222)
Available for sale, 12 months or greater, Fair Value	5,125	1,339
Available for sale, 12 months or greater, Unrealized/Unrecognized Loss	(165)	(10)
Available for sale, Total, Fair Value	10,968	10,954
Available for sale, Total, Unrealized/Unrecognized Loss	(311)	(232)
Held to maturity, Less than 12 months, Fair Value	51,441	30,335
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(523)	(107)
Held to maturity, Total, Fair Value	51,441	30,335
Held to maturity, Total, Unrealized/ Unrecognized Loss	(523)	(107)
Corporate [Member]
Schedule of Investments [Line Items]
Held to maturity, Less than 12 months, Fair Value	9,900	2,488
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(100)	(13)
Held to maturity, 12 months or greater, Fair Value		4,975
Held to maturity, 12 months or greater, Unrealized/ Unrecognized Loss		(25)
Held to maturity, Total, Fair Value	9,900	7,463
Held to maturity, Total, Unrealized/ Unrecognized Loss	(100)	(38)
Mortgage-backed Securities - Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Held to maturity, Less than 12 months, Fair Value	13,543	15,133
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(440)	(328)
Held to maturity, 12 months or greater, Fair Value	89
Held to maturity, 12 months or greater, Unrealized/ Unrecognized Loss	(1)
Held to maturity, Total, Fair Value	13,632	15,133
Held to maturity, Total, Unrealized/ Unrecognized Loss	(441)	(328)
Mortgage-backed Securities - Commercial [Member]
Schedule of Investments [Line Items]
Held to maturity, Less than 12 months, Fair Value	62,956	47,580
Held to maturity, Less than 12 months, Unrealized/ Unrecognized Loss	(1,671)	(622)
Held to maturity, 12 months or greater, Fair Value	1,006
Held to maturity, 12 months or greater, Unrealized/ Unrecognized Loss	(32)
Held to maturity, Total, Fair Value	63,962	47,580
Held to maturity, Total, Unrealized/ Unrecognized Loss	$ (1,703)	$ (622)

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Loans Receivable - Summary of Loans Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	$ 1,251,808		$ 1,237,522
Loans receivable	1,252,075		1,237,332
Allowance for loan losses	(8,429)	$ (8,159)	(7,881)	$ (8,677)	$ (8,672)	$ (8,639)
Loans receivable, net	1,243,646		1,229,451
Residential [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	212,817		224,305
Commercial [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	867,581		826,624
Construction [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	11,857		10,151
Allowance for loan losses	(129)	(127)	(102)	(205)	(173)	(165)
Commercial Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	135,055		150,658
Allowance for loan losses	(1,067)	(1,072)	(948)	(1,201)	(1,121)	(1,124)
Home Equity Lines Of Credit [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	24,142		25,439
Allowance for loan losses	(51)	(53)	(54)	(61)	(63)	$ (60)
Consumer and Overdrafts [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans receivable, before fees	356		345
Allowance for loan losses	(10)	$ (12)	(5)	$ (4)	$ (7)
Mortgage Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Net deferred loan origination (fees) costs	(18)		196
Loans receivable	1,092,237		1,061,276
Commercial and Consumer Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Net deferred loan origination (fees) costs	285		(386)
Loans receivable	$ 159,838		$ 176,056

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Loans Receivable - Summary of Activity in Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	$ 8,159	$ 8,672	$ 7,881	$ 8,639
Allowance for Loan Losses, Provision (benefit)	264	107	277	216
Allowance for Loan Losses, Charge-offs	(11)	(128)	(118)	(241)
Allowance for Loan Losses, Recoveries	17	26	389	63
Allowance for Loan Losses, Ending Allowance	8,429	8,677	8,429	8,677
Residential Mortgages [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	326	342	337	373
Allowance for Loan Losses, Provision (benefit)	(9)	(12)	(22)	(45)
Allowance for Loan Losses, Recoveries	2	4	4	6
Allowance for Loan Losses, Ending Allowance	319	334	319	334
Commercial Mortgages [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	6,569	6,966	6,435	6,913
Allowance for Loan Losses, Provision (benefit)	284	(94)	418	(41)
Allowance for Loan Losses, Ending Allowance	6,853	6,872	6,853	6,872
Construction [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	127	173	102	165
Allowance for Loan Losses, Provision (benefit)	2	32	27	40
Allowance for Loan Losses, Ending Allowance	129	205	129	205
Commercial Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	1,072	1,121	948	1,124
Allowance for Loan Losses, Provision (benefit)	(18)	179	(161)	250
Allowance for Loan Losses, Charge-offs		(119)	(100)	(224)
Allowance for Loan Losses, Recoveries	13	20	380	51
Allowance for Loan Losses, Ending Allowance	1,067	1,201	1,067	1,201
Home Equity Lines Of Credit [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	53	63	54	60
Allowance for Loan Losses, Provision (benefit)	(4)	(4)	(7)	(3)
Allowance for Loan Losses, Recoveries	2	2	4	4
Allowance for Loan Losses, Ending Allowance	51	61	51	61
Consumer and Overdrafts [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance	12	7	5
Allowance for Loan Losses, Provision (benefit)	9	6
Allowance for Loan Losses, Charge-offs	(11)	(9)
Allowance for Loan Losses, Ending Allowance	10	4	10	4
Consumer and Installment Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Allowance for Loan Losses, Beginning Allowance			5	4
Allowance for Loan Losses, Provision (benefit)			22	15
Allowance for Loan Losses, Charge-offs			(18)	(17)
Allowance for Loan Losses, Recoveries			1	2
Allowance for Loan Losses, Ending Allowance	$ 10	$ 4	$ 10	$ 4

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Loans Receivable - Summary of Balance in Allowance for Loan Losses and Recorded investment in Loans by Portfolio Segment, and Based on Impairment Method (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	$ 7,466		$ 8,059
Loans, Collectively Evaluated for Impairment	1,242,932		1,227,732
Total	1,251,808		1,237,522
Allowance for loan losses, Individually Evaluated for Impairment	119		121
Allowance for loan losses, Collectively Evaluated for Impairment	8,310		7,760
Allowance for loan losses, Total	8,429	$ 8,159	7,881	$ 8,677	$ 8,672	$ 8,639
Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Acquired With Deteriorated Credit Quality	1,410		1,731
Allowance for loan losses, Acquired With Deteriorated Credit Quality	0		0
Residential Mortgages [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	1,743		2,356
Loans, Collectively Evaluated for Impairment	210,653		221,229
Total	212,817		224,305
Allowance for loan losses, Individually Evaluated for Impairment	111		113
Allowance for loan losses, Collectively Evaluated for Impairment	208		224
Allowance for loan losses, Total	319	326	337	334	342	373
Residential Mortgages [Member] | Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Acquired With Deteriorated Credit Quality	421		720
Commercial Mortgages [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	3,582		3,582
Loans, Collectively Evaluated for Impairment	863,125		822,154
Total	867,581		826,624
Allowance for loan losses, Collectively Evaluated for Impairment	6,853		6,435
Allowance for loan losses, Total	6,853	6,569	6,435	6,872	6,966	6,913
Commercial Mortgages [Member] | Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Acquired With Deteriorated Credit Quality	874		888
Construction [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	1,113
Loans, Collectively Evaluated for Impairment	10,744		10,151
Total	11,857		10,151
Allowance for loan losses, Collectively Evaluated for Impairment	129		102
Allowance for loan losses, Total	129	127	102	205	173	165
Construction [Member] | Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, Acquired With Deteriorated Credit Quality	0		0
Commercial Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	654		1,707
Loans, Collectively Evaluated for Impairment	134,401		148,951
Total	135,055		150,658
Allowance for loan losses, Collectively Evaluated for Impairment	1,067		948
Allowance for loan losses, Total	1,067	1,072	948	1,201	1,121	1,124
Commercial Loans [Member] | Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, Acquired With Deteriorated Credit Quality	0		0
Home Equity Lines Of Credit [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Individually Evaluated for Impairment	374		414
Loans, Collectively Evaluated for Impairment	23,653		24,902
Total	24,142		25,439
Allowance for loan losses, Individually Evaluated for Impairment	8		8
Allowance for loan losses, Collectively Evaluated for Impairment	43		46
Allowance for loan losses, Total	51	53	54	61	63	$ 60
Home Equity Lines Of Credit [Member] | Acquired with Deteriorated Credit Quality [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Acquired With Deteriorated Credit Quality	115		123
Allowance for loan losses, Acquired With Deteriorated Credit Quality	0		0
Consumer and Overdrafts [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, Collectively Evaluated for Impairment	356		345
Total	356		345
Allowance for loan losses, Collectively Evaluated for Impairment	10		5
Allowance for loan losses, Total	$ 10	$ 12	$ 5	$ 4	$ 7

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Loans Receivable - Summary of Loans Individually Evaluated for Impairment (Excluding Loans Acquired with Deteriorated Credit Quality) by Portfolio Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financing Receivable Impaired [Line Items]
Allowance for loan losses	$ 119	$ 121
Impaired loans, unpaid principal balance	7,438	8,258
Impaired loans, recorded investment	7,466	8,059
Residential Mortgages [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, unpaid principal balance	1,370	2,044
Impaired loans with no related allowance recorded, recorded investment	1,323	1,931
Impaired loans with an allowance recorded, unpaid principal balance	358	363
Impaired loans with an allowance recorded, recorded investment	420	425
Allowance for loan losses	111	113
Impaired loans, recorded investment	1,743	2,356
Commercial Mortgages [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, unpaid principal balance	3,582	3,582
Impaired loans with no related allowance recorded, recorded investment	3,582	3,582
Impaired loans, recorded investment	3,582	3,582
Construction [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, unpaid principal balance	1,113
Impaired loans with no related allowance recorded, recorded investment	1,113
Impaired loans, recorded investment	1,113
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, unpaid principal balance	666	1,878
Impaired loans with no related allowance recorded, recorded investment	654	1,707
Impaired loans, recorded investment	654	1,707
Home Equity Lines Of Credit [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, unpaid principal balance	314	358
Impaired loans with no related allowance recorded, recorded investment	339	381
Impaired loans with an allowance recorded, unpaid principal balance	35	33
Impaired loans with an allowance recorded, recorded investment	35	33
Allowance for loan losses	8	8
Impaired loans, recorded investment	$ 374	$ 414

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Loans Receivable - Summary of Average Recorded Investment and Interest Income Recognized on Loans Individually Evaluated for Impairment, by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable Impaired [Line Items]
Impaired loans average recorded investment	$ 6,924	$ 4,493	$ 7,193	$ 4,572
Impaired loans interest income recognized	54	65	281	125
Residential Mortgages [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, average recorded investment	1,916	1,873	1,925	1,935
Impaired loans with no related allowance recorded, interest income recognized	23	12	30	20
Impaired loans with an allowance recorded, average recorded investment	420	428	422	429
Impaired loans with an allowance recorded, interest income recognized	4	4	7	7
Commercial Mortgages [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, average recorded investment	3,582		3,582
Construction [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, average recorded investment	278		159
Impaired loans with no related allowance recorded, interest income recognized	18		36
Commercial Loans [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, average recorded investment	355	1,769	726	1,789
Impaired loans with no related allowance recorded, interest income recognized	9	48	206	97
Impaired loans with an allowance recorded, average recorded investment		15		15
Home Equity Lines Of Credit [Member]
Financing Receivable Impaired [Line Items]
Impaired loans with no related allowance recorded, average recorded investment	339	379	345	383
Impaired loans with no related allowance recorded, interest income recognized		1	2	1
Impaired loans with an allowance recorded, average recorded investment	$ 34	$ 29	$ 34	$ 21

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Loans Receivable - Nonaccrual Loans and in Loans Past Due over 90 Days Still on Accrual Status by Portfolio Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 6,223	$ 5,354
Loans Past Due Over 90 Days and Still Accruing	1,667	411
Residential Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	789	1,391
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,582	3,582
Loans Past Due Over 90 Days and Still Accruing	1,655	411
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,113
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	400
Consumer and Overdrafts [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Past Due Over 90 Days and Still Accruing	12
Home Equity Lines Of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 339	$ 381

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Loans Receivable - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2021 USD ($) Loan	Dec. 31, 2020 USD ($) Loan	Dec. 31, 2021 USD ($) Loan	Dec. 31, 2020 USD ($) Loan	Jun. 30, 2021 USD ($) Loan
Loans and Leases Receivable Disclosure [Line Items]
Number of loans classified as troubled debt restructurings | Loan	8		8		12
Value of loans classified as troubled debt restructurings	$ 1,600,000		$ 1,600,000		$ 3,100,000
Troubled debt restructuring with carrying amount			1,200,000		2,700,000
Specific reserves	119,000		119,000		121,000
Commitment to lend to customers in addition to outstanding loans classified as troubled debt restructurings	$ 1,000		$ 1,000
Troubled debt restructurings, number of modified loans | Loan	0	0	0	0
Troubled debt restructurings for which there was a payment default | Loan	0	0	0	0
Loans receivable	$ 1,252,075,000		$ 1,252,075,000		1,237,332,000
Loans granted	5,244,000		5,244,000		2,681,000
Provision for loan losses	264,000	$ 107,000	277,000	$ 216,000
COVID-19 Pandemic [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans granted	13,700,000		13,700,000		27,300,000
COVID-19 Pandemic [Member] | Pass [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans granted	8,300,000		8,300,000		9,900,000
COVID-19 Pandemic [Member] | Special Mention [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans granted	185,000		185,000		3,200,000
COVID-19 Pandemic [Member] | Substandard [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans granted	5,300,000		5,300,000		$ 14,200,000
Purchased Credit Impaired Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Provision for loan losses	0	$ 0	$ 0	$ 0
Loan Payment Deferrals [Member] | COVID-19 Pandemic [Member]
Loans and Leases Receivable Disclosure [Line Items]
Number of loans | Loan			7		19
Loans receivable	$ 13,700,000		$ 13,700,000		$ 27,300,000
Loan Payment Deferrals [Member] | Residential Mortgage, Commercial Mortgage, and Commercial Loans [Member] | COVID-19 Pandemic [Member]
Loans and Leases Receivable Disclosure [Line Items]
Number of loans | Loan	3		5
Loans receivable	$ 3,900,000		$ 5,900,000
90 Days or More Past Due [Member]
Loans and Leases Receivable Disclosure [Line Items]
Acquired loans accounted for as purchased credit impaired loans	356,000		356,000		368,000
Loans granted	$ 4,188,000		$ 4,188,000		$ 1,740,000

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Loans Receivable - Aging of Recorded Investment in Past Due Loans (Detail) - USD ($) $ in Thousands		Dec. 31, 2021	Jun. 30, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 5,244	$ 2,681
Total		1,251,808	1,237,522
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		798	720
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		258	221
90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4,188	1,740
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	1,246,564	1,234,841
Residential Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1,121	1,272
Total		212,817	224,305
Residential Mortgages [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		259	198
Residential Mortgages [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		193	126
Residential Mortgages [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		669	948
Residential Mortgages [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	211,696	223,033
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		2,194	864
Total		867,581	826,624
Commercial Mortgages [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		539	453
Commercial Mortgages [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1,655	411
Commercial Mortgages [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	865,387	825,760
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1,113
Total		11,857	10,151
Construction [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1,113
Construction [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	10,744	10,151
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		447	145
Total		135,055	150,658
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due			69
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		47	76
Commercial Loans [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		400
Commercial Loans [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	134,608	150,513
Home Equity Lines Of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		357	400
Total		24,142	25,439
Home Equity Lines Of Credit [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		18	19
Home Equity Lines Of Credit [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		339	381
Home Equity Lines Of Credit [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	23,785	25,039
Consumer and Overdrafts [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		12
Total		356	345
Consumer and Overdrafts [Member] | 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		12
Consumer and Overdrafts [Member] | Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	[1]	$ 344	$ 345

[1] As of December 31, 2021 and June 30, 2021, loans on a COVID-19-related payment deferral are considered current.

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Loans Receivable - Summary of Risk Category of Loans by Portfolio Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,251,808	$ 1,237,522
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,223,709	1,209,619
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,229	6,301
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	22,870	21,602
Residential Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	212,817	224,305
Residential Mortgages [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	210,945	219,901
Residential Mortgages [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	262	2,480
Residential Mortgages [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,610	1,924
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	867,581	826,624
Commercial Mortgages [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	847,434	809,660
Commercial Mortgages [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,163	1,615
Commercial Mortgages [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,984	15,349
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,857	10,151
Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,744	9,038
Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,113	1,113
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	135,055	150,658
Commercial Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	130,602	146,275
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	607	491
Commercial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,846	3,892
Home Equity Lines Of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	24,142	25,439
Home Equity Lines Of Credit [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	23,628	24,400
Home Equity Lines Of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	84	602
Home Equity Lines Of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	430	437
Consumer and Overdrafts [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	356	345
Consumer and Overdrafts [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 356	$ 345

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Loans Receivable - Schedule of Carrying Amount of Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans	$ 1,243,646	$ 1,229,451
Residential Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans	421	720
Commercial Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans	874	888
Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans	1,410	1,731
Acquired with Deteriorated Credit Quality [Member] | Home Equity Lines Of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans	$ 115	$ 123

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Loans Receivable - Schedule of Carrying Amount of Purchased Credit Impaired Loans (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying amount of loans, allowance	$ 0	$ 0

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Loans Receivable - Summary of Accretable Yield, or Income Expected to be Collected for Acquired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Certain Loans Acquired in Transfer Accounted for as Debt Securities [Abstract]
Beginning balance	$ 120	$ 151	$ 130	$ 156
Accretion income	(19)	(4)	(29)	(9)
Ending balance	$ 101	$ 147	$ 101	$ 147

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Accumulated Other Comprehensive (Loss) Income - Summary of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 274,728	$ 274,560	$ 273,679	$ 273,713	$ 274,560	$ 273,713
Total other comprehensive (loss) income	(149)	(105)	271	187	(254)	458
Ending Balance	274,834	274,728	269,324	273,679	274,834	269,324
Net Unrealized Gain (Loss) on Available for Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(10)	137	415	428	137	428
Other comprehensive income (loss) before reclassifications	(243)		(3)		(430)	(19)
Less tax effect	51		1		91	4
Total other comprehensive (loss) income	(192)		(2)		(339)	(15)
Ending Balance	(202)	(10)	413	415	(202)	413
Unrealized Losses on Retirement Plans [Member] | Pension Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3,026)	(3,055)	(6,416)	(6,605)	(3,055)	(6,605)
Amounts reclassified from accumulated other comprehensive income	37		332		75	572
Less tax effect	(7)		(69)		(16)	(120)
Total other comprehensive (loss) income	30		263		59	452
Ending Balance	(2,996)	(3,026)	(6,153)	(6,416)	(2,996)	(6,153)
Unrealized Losses on Retirement Plans [Member] | SERP Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(168)	(181)	(215)	(226)	(181)	(226)
Amounts reclassified from accumulated other comprehensive income	16		14		32	28
Less tax effect	(3)		(4)		(6)	(7)
Total other comprehensive (loss) income	13		10		26	21
Ending Balance	(155)	(168)	(205)	(215)	(155)	(205)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3,204)	(3,099)	(6,216)	(6,403)	(3,099)	(6,403)
Other comprehensive income (loss) before reclassifications	(243)		(3)		(430)	(19)
Amounts reclassified from accumulated other comprehensive income	53		346		107	600
Less tax effect	41		(72)		69	(123)
Total other comprehensive (loss) income	(149)	(105)	271	187	(254)	458
Ending Balance	$ (3,353)	$ (3,204)	$ (5,945)	$ (6,216)	$ (3,353)	$ (5,945)

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Post-Retirement Benefits - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Apr. 20, 2017	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Compensation And Retirement Disclosure [Abstract]
Effective date of freezing of the defined benefit pension plan				May 01, 2017
Defined benefit plan, contributions by employer		$ 0		$ 0
ESOP shares	1,453,209	1,437,937		1,437,937		1,435,550
ESOP borrowing	$ 14,500,000	$ 9,700,000		$ 9,700,000
Stock price	$ 10.00
ESOP payable term	15 years
ESOP prime rate percentage				3.25%
Number of shares committed to be released per year through 2032		96,881		96,881
ESOP compensation		$ 457,000	$ 360,000	$ 903,000	$ 661,000

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Post-Retirement Benefits - Schedule of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Employee Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 148	$ 137	$ 297	$ 273
Expected return on plan assets	(509)	(455)	(1,019)	(911)
Amortization of prior net loss	37	239	75	479
Settlement charges		93		93
Net periodic (benefit) cost	(324)	14	(647)	(66)
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	130	91	261	181
Interest cost	18	23	35	47
Amortization of prior net loss	16	14	32	28
Net periodic (benefit) cost	$ 164	$ 128	$ 328	$ 256

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Post-Retirement Benefits - Shares Held by ESOP (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Apr. 20, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Allocated to participants	469,127	417,902
Unearned	968,810	1,017,648
Total ESOP shares	1,437,937	1,435,550	1,453,209
Fair value of unearned shares	$ 18,446	$ 18,491

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Fair Value of Financial Instruments - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value transfers between levels	$ 0	$ 0	$ 0	$ 0
Carrying amount of loans	1,243,646,000		1,243,646,000			$ 1,229,451,000
Remaining valuation allowance	8,429,000	8,677,000	8,429,000	8,677,000	$ 8,159,000	7,881,000	$ 8,672,000	$ 8,639,000
Net charge-offs	11,000	128,000	118,000	241,000
Provision for loan losses	264,000	$ 107,000	277,000	216,000
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount of loans	455,000		455,000			471,000
Remaining valuation allowance	$ 119,000		119,000			$ 125,000
Net charge-offs			0	0
Provision for loan losses			$ 3,000	$ 2,000
Minimum [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rates	0.10		0.10
Maximum [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rates	0.20		0.20

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Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 47,511	$ 61,619
Total liabilities at fair value	3,824	4,232
Measured on a Recurring Basis [Member] | U.S. Government and Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	10,730	21,816
Measured on a Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	8,167	8,189
Measured on a Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	6,992	7,115
Measured on a Recurring Basis [Member] | Mortgage-backed Securities - Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	15,284	17,654
Measured on a Recurring Basis [Member] | Mortgage-backed Securities - Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	2,514	2,613
Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	336	337
Impaired Loans [Member] | Residential Mortgages [Member] | Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	309	312
Impaired Loans [Member] | Home Equity Lines Of Credit [Member] | Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	27	25
Derivatives - Interest Rate Contracts [Member] | Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3,824	4,232
Total liabilities at fair value	3,824	4,232
Level 2 [Member] | Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	44,376	58,488
Total liabilities at fair value	3,824	4,232
Level 2 [Member] | Measured on a Recurring Basis [Member] | U.S. Government and Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	10,730	21,816
Level 2 [Member] | Measured on a Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	5,032	5,058
Level 2 [Member] | Measured on a Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	6,992	7,115
Level 2 [Member] | Measured on a Recurring Basis [Member] | Mortgage-backed Securities - Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	15,284	17,654
Level 2 [Member] | Measured on a Recurring Basis [Member] | Mortgage-backed Securities - Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	2,514	2,613
Level 2 [Member] | Derivatives - Interest Rate Contracts [Member] | Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3,824	4,232
Total liabilities at fair value	3,824	4,232
Level 3 [Member] | Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3,135	3,131
Level 3 [Member] | Measured on a Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3,135	3,131
Level 3 [Member] | Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	336	337
Level 3 [Member] | Impaired Loans [Member] | Residential Mortgages [Member] | Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	309	312
Level 3 [Member] | Impaired Loans [Member] | Home Equity Lines Of Credit [Member] | Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 27	$ 25

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Fair Value of Financial Instruments - Summary of Quantitative Information about Level 3 Fair Value Measurements for Selected Financial Instruments Measured at Fair Value on Non-recurring Basis (Detail) $ in Thousands	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)
Minimum [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.10
Maximum [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.20
Measured on a Non-Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 336	$ 337
Measured on a Non-Recurring Basis [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	336	337
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	309	312
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Residential [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	309	312
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Residential [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	309	312
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Home Equity Lines Of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	27	25
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Home Equity Lines Of Credit [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	27	25
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Home Equity Lines Of Credit [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 27	$ 25
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Minimum [Member] | Residential [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.054	0.054
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Minimum [Member] | Home Equity Lines Of Credit [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.054	0.054
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Maximum [Member] | Residential [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.063	0.063
Measured on a Non-Recurring Basis [Member] | Impaired Loans [Member] | Maximum [Member] | Home Equity Lines Of Credit [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range or Rate Used	0.063	0.063

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Fair Value of Financial Instruments - Summary of Carrying Amounts and Estimated Fair Values of Bank's Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financial assets:
Investment securities held to maturity	$ 389,814	$ 342,137
Investment securities available for sale	43,687	57,387
Loans receivable held for sale	1,452
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	120,339	159,305
Investment securities held to maturity	390,312	337,584
Investment securities available for sale	43,687	57,387
Loans receivable, net	1,243,646	1,229,451
Loans receivable held for sale	1,452
Accrued interest receivable	6,509	6,398
FHLB stock	4,167	4,507
Financial liabilities:
Mortgage escrow funds	10,880	10,536
Accrued interest payable	127	146
FHLB advances	58,390	65,957
Carrying Amount [Member] | Derivatives - Interest Rate Contracts [Member]
Financial assets:
Derivative assets - interest rate contracts	3,824	4,232
Financial liabilities:
Derivative liabilities - interest rate contracts	3,824	4,232
Carrying Amount [Member] | Demand, NOW, Money Market Deposits and Savings Accounts [Member]
Financial liabilities:
Time deposits	1,168,711	1,116,667
Carrying Amount [Member] | Time Deposits [Member]
Financial liabilities:
Time deposits	354,356	375,015
Total [Member]
Financial assets:
Cash and cash equivalents	120,339	159,305
Investment securities held to maturity	389,814	342,137
Investment securities available for sale	43,687	57,387
Loans receivable, net	1,243,799	1,234,116
Loans receivable held for sale	1,452
Accrued interest receivable	6,509	6,398
Financial liabilities:
Mortgage escrow funds	10,880	10,536
Accrued interest payable	127	146
FHLB advances	59,103	67,334
Total [Member] | Derivatives - Interest Rate Contracts [Member]
Financial assets:
Derivative assets - interest rate contracts	3,824	4,232
Financial liabilities:
Derivative liabilities - interest rate contracts	3,824	4,232
Total [Member] | Demand, NOW, Money Market Deposits and Savings Accounts [Member]
Financial liabilities:
Time deposits	1,168,711	1,116,667
Total [Member] | Time Deposits [Member]
Financial liabilities:
Time deposits	358,819	380,948
Level 1 [Member]
Financial assets:
Cash and cash equivalents	120,339	159,305
Financial liabilities:
Mortgage escrow funds	10,880	10,536
Accrued interest payable	1	1
Level 1 [Member] | Demand, NOW, Money Market Deposits and Savings Accounts [Member]
Financial liabilities:
Time deposits	1,168,711	1,116,667
Level 2 [Member]
Financial assets:
Investment securities held to maturity	354,962	305,671
Investment securities available for sale	40,552	54,256
Accrued interest receivable	1,648	1,341
Financial liabilities:
Accrued interest payable	126	145
FHLB advances	59,103	67,334
Level 2 [Member] | Derivatives - Interest Rate Contracts [Member]
Financial assets:
Derivative assets - interest rate contracts	3,824	4,232
Financial liabilities:
Derivative liabilities - interest rate contracts	3,824	4,232
Level 2 [Member] | Time Deposits [Member]
Financial liabilities:
Time deposits	358,819	380,948
Level 3 [Member]
Financial assets:
Investment securities held to maturity	34,852	36,466
Investment securities available for sale	3,135	3,131
Loans receivable, net	1,243,799	1,234,116
Loans receivable held for sale	1,452
Accrued interest receivable	$ 4,861	$ 5,057

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Regulatory Matters - Summary of Bank's Actual Capital Amounts and Ratios Compared to Required Ratios for Minimum Capital Adequacy and for Classification as Well Capitalized (Detail) - PCSB Bank [Member] $ in Thousands	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Leverage (Tier 1), Bank Actual Amount	$ 242,523	$ 233,944
Common Tier 1, Bank Actual Amount	242,523	233,944
Tier 1, Bank Actual Amount	242,523	233,944
Total, Bank Actual Amount	$ 250,952	$ 241,825
Leverage (Tier 1), Bank Actual Ratio	12.9	12.5
Common Tier 1, Bank Actual Ratio	17.7	17.9
Tier 1, Bank Actual Ratio	17.7	17.9
Total, Bank Actual Ratio	18.3	18.5
Leverage (Tier 1), For Capital Adequacy Purposes Amount	$ 75,115	$ 74,988
Common Tier 1, For Capital Adequacy Purposes Amount	61,769	58,713
Tier 1, For Capital Adequacy Purposes Amount	82,359	78,283
Total, For Capital Adequacy Purposes Amount	$ 109,812	$ 104,378
Leverage (Tier 1), For Capital Adequacy Purposes Ratio	4.0	4.0
Common Tier 1, For Capital Adequacy Purposes Ratio	4.50%	4.50%
Tier 1, For Capital Adequacy Purposes Ratio	6.0	6.0
Total, For Capital Adequacy Purposes Ratio	8.0	8.0
Leverage (Tier 1), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 93,893	$ 93,735
Common Tier 1, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	89,222	84,807
Tier 1, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	109,812	104,378
Total, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 137,265	$ 130,472
Leverage (Tier 1), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.0	5.0
Common Tier 1, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.50%	6.50%
Tier 1, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	8.0	8.0
Total, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.0	10.0

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Regulatory Matters - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital conservation buffer percentage at beginning period	2.50%	2.50%
Minimum [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital conservation buffer percentage required under regulatory	2.50%

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Earnings Per Share ("EPS") - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income applicable to common stock	$ 4,288	$ 3,614	$ 2,694	$ 2,728	$ 7,902	$ 5,422
Average number of common shares outstanding	15,217,484		15,966,158		15,280,230	16,184,821
Less: Average unallocated ESOP shares	(981,011)		(1,077,630)		(993,221)	(1,089,839)
Average number of common shares outstanding used to calculate basic earnings per common share	14,236,473		14,888,528		14,287,009	15,094,982
Effect of equity-based awards	44,759		492		62,263
Average number of common shares outstanding used to calculate diluted earnings per common share	14,281,232		14,889,020		14,349,272	15,094,982
Earnings per common share:
Basic	$ 0.30		$ 0.18		$ 0.55	$ 0.36
Diluted	$ 0.30		$ 0.18		$ 0.55	$ 0.36

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Earnings Per Share ("EPS") - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,314,963	1,345,293	1,309,550	1,343,695

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Derivatives and Hedging - Summary Information About Interest Rate Swaps (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Notional amounts	$ 180,921,000	$ 182,700,000
Weighted average pay rates	2.55%	2.55%
Weighted average receive rates	2.55%	2.55%
Weighted average maturity	7 years 11 months 12 days	8 years 5 months 15 days

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Revenue From Contracts With Customers - Summary of Sources of Revenue from Contracts with Customers (Detail) - USD ($)		3 Months Ended		6 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Noninterest income
Service charges on deposits		$ 199,000	$ 196,000	$ 382,000	$ 358,000
Interchange fees		164,000	133,000	320,000	264,000
Other fees and service charges	[1]	44,000	34,000	106,000	63,000
Fees and service charges		407,000	363,000	808,000	685,000
Gain on sale of premises	[1]	548,000		548,000
Bank-owned life insurance	[1]	191,000	129,000	383,000	261,000
Net gains on sales of loans receivable	[1]	41,000		47,000
Swap income	[1]		238,000		367,000
Other	[1]	8,000	13,000	22,000	24,000
Total noninterest income		$ 1,195,000	$ 743,000	$ 1,808,000	$ 1,337,000

[1] Not within the scope of ASC 606.

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Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Oct. 24, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation			$ 1,630,000	$ 1,651,000
Number of other than stock options granted			8,000
Number of shares granted			12,000
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 2,300,000		$ 2,300,000
Expected weighted-average period for cost recognition			2 years 2 months 12 days
Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	3,900,000		$ 3,900,000
Expected weighted-average period for cost recognition			2 years 2 months 12 days
2018 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance					2,543,115
Stock-based compensation	$ 820,000	$ 822,000	$ 1,600,000	$ 1,700,000
2018 Equity Incentive Plan [Member] | Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance	1,816,511		1,816,511		1,816,511
Contractual term			10 years
Number of shares granted			1,320,963
2018 Equity Incentive Plan [Member] | Stock Options [Member] | Annual Vesting on Each Anniversary [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting percentage for year			20.00%
2018 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			5 years
2018 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
2018 Equity Incentive Plan [Member] | Restricted Stock and Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance					726,604
2018 Equity Incentive Plan [Member] | Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of other than stock options granted			549,467
Number of shares available for grant	726,000		726,000
2018 Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | Annual Vesting on Each Anniversary [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting percentage for year			20.00%
2018 Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			5 years

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Stock-Based Compensation - Summary of RSA activity (Detail)	6 Months Ended
	Dec. 31, 2021 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Unvested granted shares outstanding beginning balance | shares	322,580
Number of Shares, granted | shares	8,000
Number of Shares, vested | shares	(107,130)
Number of Shares, Unvested granted shares outstanding ending balance | shares	223,450
Weighted-Average Grant Date Fair Value, Unvested granted shares outstanding beginning balance | $ / shares	$ 18.95
Weighted-Average Grant Date Fair Value, Shares granted | $ / shares	17.66
Weighted-Average Grant Date Fair Value, Shares vested | $ / shares	18.97
Weighted-Average Grant Date Fair Value, Unvested granted shares outstanding ending balance | $ / shares	$ 18.89

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Share-Based Compensation - Summary of Activity Related to Stock Options Granted under Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options, outstanding beginning balance	1,308,963
Number of Options, granted	12,000
Number of Options, outstanding ending balance	1,320,963	1,308,963
Number of Option, Exercisable at December 31, 2020	782,978
Weighted-Average Exercise Price, Option outstanding beginning balance	$ 19.00
Weighted-Average Exercise Price, Option granted	17.66
Weighted-Average Exercise Price, Option outstanding ending balance	18.98	$ 19.00
Weighted-Average Exercise Price, Exercisable at December 31, 2021	$ 19.02
Weighted-Average Remaining Contractual Years, Option outstanding	6 years 10 months 24 days	7 years 4 months 24 days
Weighted-Average Remaining Contractual Years, Option Exercisable	6 years 10 months 24 days
Aggregate Intrinsic Value, Option outstanding	$ 389	$ 35
Aggregate Intrinsic Value, Exercisable	$ 207

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Share-Based Compensation - Summary of Fair Value of Options Granted Using Weighted-Average Assumptions as of Grant Date (Detail) - Stock Options [Member]	6 Months Ended
	Dec. 31, 2021 $ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	1.00%
Expected term (in years)	6 years 3 months
Expected stock price volatility	35.91%
Dividend yield	1.36%
Weighted average fair value of options granted	$ 5.50

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Leases - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Dec. 31, 2021 USD ($) BranchOffice AdministrativeOffice	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) BranchOffice AdministrativeOffice	Dec. 31, 2020 USD ($)
Lessee Lease Description [Line Items]
Number of branch offices in real estate lease | BranchOffice	11		11
Number of administrative office in real estate lease | AdministrativeOffice	1		1
Lease maturity start year			2022
Lease maturity end year			2041
Lease option to extend			some of which include lessee options to extend the lease term.
Operating lease, weighted average remaining lease terms	9 years 7 months 2 days		9 years 7 months 2 days
Lessee, operating lease, description			The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments.
Operating lease, weighted average discount rate, percent	2.40%		2.40%
Short-term lease cost	$ 0	$ 0	$ 0	$ 0
Sale and leaseback transactions with related parties	0	0	0	0
Operating lease, cost	505,000	$ 501,000	1,000,000.0	$ 1,000,000.0
Operating lease, right-of-use asset	$ 8,800,000		$ 8,800,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets		Other assets
Operating lease, liability	$ 9,025,000		$ 9,025,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities		Other liabilities
Maximum [Member]
Lessee Lease Description [Line Items]
Lessee, operating lease, original term	12 months		12 months

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Leases - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 1,017
2023	1,940
2024	1,569
2025	1,276
2026	748
Thereafter	3,802
Total future minimum lease payments (undiscounted)	10,352
Discounting effect on cash flows	(1,327)
Lease liability (discounted)	$ 9,025
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities

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Subsequent Events - Additional Information (Detail) - Common Stock [Member] - $ / shares	1 Months Ended	3 Months Ended
	Feb. 02, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Subsequent Event [Line Items]
Number of shares repurchased		217,411	204,261	517,270	266,900
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of shares repurchased	3,122
Average cost per share	$ 19.02