(1)	Commercial and industrial loans included PPP loans of $1.8 million and $51.5 million as of June 30, 2022 and 2021, respectively.

The following table presents the activity in the allowance for loan losses by portfolio segment (dollars in thousands):


	For the Year Ended June 30, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	18,300	$	3,224	$	1,295	$	440	$	23,259
Provisions charged to operations		(829)		(7)		150		136		(550)
Loans charged off		(528)		(355)		(57)		(175)		(1,115)
Recoveries on loans charged off		875		37		—		18		930
Allowance for loan losses at end of period	$	17,818	$	2,899	$	1,388	$	419	$	22,524


	For the Year Ended June 30, 2021
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses at beginning of period	$	17,570	$	3,484	$	1,303	$	494	$	22,851
Provisions charged to operations		3,774		29		114		133		4,050
Loans charged off		(3,175)		(289)		(142)		(237)		(3,843)
Recoveries on loans charged off		131		—		20		50		201
Allowance for loan losses at end of period	$	18,300	$	3,224	$	1,295	$	440	$	23,259

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands):


	June 30, 2022
			Residential
	Commercial		Mortgages		Home Equity		Consumer		Total
Allowance for loan losses:
Related to loans individually evaluated for impairment	$	200	$	—	$	—	$	—	$	200
Related to loans collectively evaluated for impairment		17,618		2,899	$	1,388	$	419		22,324
Ending balance	$	17,818	$	2,899	$	1,388	$	419	$	22,524

Loans:
Individually evaluated for impairment	$	3,855	$	—	$	—	$	—	$	3,855
Loans collectively evaluated for impairment		623,992		270,268		81,238		22,294		997,792
Ending balance	$	627,847	$	270,268	$	81,238	$	22,294	$	1,001,647


	June 30, 2021
			Residential
	Commercial		Mortgages			Home Equity	Consumer		Total
Allowance for loan losses:
Related to loans individually evaluated for impairment	$	1,035	$	—	$	—	$	—	$	1,035
Related to loans collectively evaluated for impairment		17,265		3,224	$	1,295	$	440		22,224
Ending balance	$	18,300	$	3,224	$	1,295	$	440	$	23,259

Loans:
Individually evaluated for impairment	$	14,136	$	—	$	—	$	—	$	14,136
Loans collectively evaluated for impairment		708,805		279,508		75,469		25,568		1,089,350
Ending balance	$	722,941	$	279,508	$	75,469	$	25,568	$	1,103,486

The following table presents information related to impaired loans by class (dollars in thousands):


							For the Year Ended
	June 30, 2022						June 30, 2022
	Unpaid				Allowance for		Average		Interest
	Principal		Recorded		Loan Losses		Recorded		Income
	Balance		Investment		Allocated		Investment		Recognized
With no related allowance recorded:
Commercial:
Real estate	$	3,106	$	3,096	$	—	$	3,121	$	104
Commercial and industrial		—		—		—		—		—
Construction		—		—		—		—		—
Subtotal		3,106		3,096		—		3,121		104
With an allowance recorded:
Commercial:
Real estate		721		721		182		738		37
Commercial and industrial		39		38		18		39		—
Construction		—		—		—		—		—
Subtotal		760		759		200		777		37
Total	$	3,866	$	3,855	$	200	$	3,898	$	141


							For the Year Ended
	June 30, 2021						June 30, 2021
	Unpaid				Allowance for		Average		Interest
	Principal		Recorded		Loan Losses		Recorded		Income
	Balance		Investment		Allocated		Investment		Recognized
With no related allowance recorded:
Commercial:
Real estate	$	9,351	$	9,248	$	—	$	9,219	$	99
Commercial and industrial		253		249		—		274		—
Construction		1,340		550		—		1,002		—
Subtotal		10,944		10,047		—		10,495		99

With an allowance recorded:
Commercial:
Real estate		3,671		3,479		464		3,568		—
Commercial and industrial		1,464		610		571		1,118		24
Construction		—		—		—		—		—
Subtotal		5,135		4,089		1,035		4,686		24
Total	$	16,079	$	14,136	$	1,035	$	15,181	$	123

Interest income on nonaccrual loans is recognized using the cost recovery method. Interest income on impaired loans that were on nonaccrual status and cash-basis interest income for the years ended June 30, 2022 and 2021 was nominal.

The recorded investment in loans excludes accrued interest receivable and deferred loan fees, net due to immateriality.

At various times, certain loan modifications are executed which are considered to be troubled debt restructurings. Substantially all of these modifications include one or a combination of the following: extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; temporary reduction in the interest rate; change in scheduled payment amount including interest only; or extensions of additional credit for payment of delinquent real estate taxes or other costs.

The Company implemented customer payment deferral programs to assist both consumer and commercial borrowers that had experienced financial hardship due to COVID-19 related challenges, whereby short-term deferrals of payments (generally three to six months) were provided. Commercial, residential mortgage, home equity loans and lines, and consumer loans that were in deferment status continued to accrue interest on the deferred principal during the deferment period unless otherwise classified as nonaccrual. Consistent with the CARES Act and industry regulatory guidance, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals continued to be reported as current loans throughout the agreed upon deferral period and therefore, not classified as troubled-debt restructured loans. Borrowers that were delinquent in their payments prior to requesting a COVID-19 related financial hardship payment deferral were reviewed on a case by case basis for troubled debt restructure classification and non-performing loan status. At June 30, 2022, the Company had no COVID-19 related financial hardship payment deferrals for consumer or commercial borrowers. At June 30, 2021, the Company granted payment deferral requests for consumer borrowers related to nine loans representing $1.4 million of the Company’s residential mortgage, home equity loans and lines of credit, and consumer loan balances, and for commercial borrowers related to four loans representing $16.3 million of the Company’s commercial loan balances. As of June 30, 2021, consumer loan deferrals included three loans totaling $757,000 on non-accrual status and classified as substandard and six loans totaling $700,000 accruing interest and not classified assets.

There were no loans modified as troubled debt restructurings during the years ended June 30, 2022 and June 30, 2021.

Loans subject to a troubled debt restructuring are evaluated as impaired loans for the purpose of determining the specific component of allowance for loan losses.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans (dollars in thousands):


	June 30,				June 30,
	2022				2021
			Past Due				Past Due
			90 Days				90 Days
			Still on				Still on
	Nonaccrual		Accrual		Nonaccrual		Accrual
Commercial:
Real estate	$	756	$	200	$	10,527	$	1,476
Commercial and industrial		38		378		465		1,525
Construction		—		—		550		145
Residential mortgages		3,975		—		4,993		—
Home equity loans and lines		1,672		—		2,043		—
Consumer		—		1		187		15
	$	6,441	$	579	$	18,765	$	3,161

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans.

The following table presents the aging of the recorded investment in loans by class of loans (dollars in thousands):


	June 30, 2022
	30 - 59		60 - 89		90 or more
	Days		Days		Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Commercial:
Real estate	$	5	$	273	$	818	$	1,096	$	452,453	$	453,549
Commercial and industrial		—		97		402		499		102,698		103,197
Construction		—		—		—		—		71,101		71,101
Residential mortgages		398		563		1,046		2,007		268,261		270,268
Home equity loans and lines		477		412		633		1,522		79,716		81,238
Consumer		9		132		1		142		22,152		22,294
Total	$	889	$	1,477	$	2,900	$	5,266	$	996,381	$	1,001,647


	June 30, 2021
	30 - 59		60 - 89		90 or more
	Days		Days		Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Commercial:
Real estate	$	5	$	5,002	$	5,738	$	10,745	$	479,370	$	490,115
Commercial and industrial		—		318		1,970		2,288		165,624		167,912
Construction		—		—		695		695		64,219		64,914
Residential mortgages		673		1,345		2,049		4,067		275,441		279,508
Home equity loans and lines		193		97		1,233		1,523		73,946		75,469
Consumer		2		—		202		204		25,364		25,568
Total	$	873	$	6,762	$	11,887	$	19,522	$	1,083,964	$	1,103,486

The Company categorizes commercial 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 commercial loans individually by classifying the loans as to credit risk. 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.

Commercial loans not meeting the criteria above are considered to be pass rated loans.

The following table presents commercial loans summarized by class of loans and the risk category (dollars in thousands):


	June 30, 2022
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial
Real estate	$	403,419	$	5,767	$	44,363	$	—	$	453,549
Commercial and industrial		96,511		3,540		3,108		38		103,197
Construction		71,101		—		—		—		71,101
	$	571,031	$	9,307	$	47,471	$	38	$	627,847


	June 30, 2021
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial
Real estate	$	440,209	$	25,588	$	21,698	$	2,620	$	490,115
Commercial and industrial		149,909		9,272		8,308		423		167,912
Construction		63,747		—		1,167		—		64,914
	$	653,865	$	34,860	$	31,173	$	3,043	$	722,941

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

At June 30, 2022 and 2021, the Company had residential real estate loans in process of foreclosure of $1.5 million and $2.0 million, respectively.

As of June 30, 2022 and 2021, the Company had pledged $377.1 million and $429.7 million respectively, of residential mortgage, home equity and commercial loans as collateral for FHLBNY borrowings and stand-by letters of credit.

At June 30, 2022 and 2021, loans to executive officers, directors, or to associates of such persons, as well as activity in such loans for the years then ended were immaterial as a percentage of total loans receivable.

The Company retains the servicing rights on certain mortgage loans sold, and may release the servicing rights on others. Total residential mortgage loans serviced by the Company for unrelated third parties were approximately $17.3 million and $20.1 million at June 30, 2022 and 2021, respectively. At June 30, 2022 and 2021, the unamortized balance of mortgage servicing rights on loans sold with servicing retained was approximately $148,000 and $170,000, respectively. The estimated fair value of these mortgage servicing rights was in excess of their carrying value at June 30, 2022 and 2021, and therefore no valuation reserve was necessary. At June 30, 2022 and 2021, the Company held escrow funds in trust on loans serviced for others of $437,000 and $493,000, respectively.