Loans (Tables)

3 Months Ended

Sep. 30, 2022

Loans

Schedule of major classifications of loans

	September 30,				June 30,
	2022				2022
(Dollars in thousands)	Amount		Percent		Amount		Percent
Residential real estate:
1 - 4 family	$	144,290	30.29	%	$	147,061	30.66	%
Home equity and HELOCs		32,235	6.76			32,529	6.78
Construction -residential		11,630	2.44			14,834	3.09
Commercial real estate:
1 - 4 family investor		94,794	19.89			96,850	20.19
Multi-family (five or more)		14,922	3.13			13,069	2.72
Commercial non-residential		157,606	33.08			158,727	33.10
Construction and land		7,953	1.67			4,951	1.03
Commercial		10,932	2.29			9,409	1.96
Consumer loans		2,154	0.45			2,239	0.47
Total Loans		476,516	100.00	%		479,669	100.00	%
Unearned loan origination fees		(684)				(749)
Allowance for loan losses		(3,333)				(3,409)
Net Loans	$	472,499			$	475,511

Schedule for changes in the allowance for loan losses

The following table presents by portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2022 and 2021:

September 30, 2022	Residential real estate:						Commercial real estate:
			Home Equity		Construction-		1 - 4 family		Multi-family		Commercial		Construction
(Dollar amounts in thousands)	1 - 4 family		and HELOCs		residential		investor		(five or more)		non-residential		and Land		Commercial		Consumer		Total
Allowance for credit losses:
Beginning balance	$	506	$	113	$	386	$	527	$	110	$	1,451	$	166	$	100	$	50	$	3,409
Charge-offs		(79)		—		—		—		—		—		—		—		—		(79)
Recoveries		—		—		—		—		—		—		—		—		3		3
Provision (recovery)		66		3		(85)		(32)		2		(20)		58		11		(3)		—
Ending Balance	$	493	$	116	$	301	$	495	$	112	$	1,431	$	224	$	111	$	50	$	3,333

September 30, 2021	Residential real estate:						Commercial real estate:
			Home Equity		Construction-		1 - 4 family		Multi-family		Commercial		Construction
(Dollar amounts in thousands)	1-4 family		and HELOCs		residential		investor		(five or more)		non-residential		and Land		Commercial		Consumer		Total
Allowance for credit losses:
Beginning balance	$	709	$	133	$	487	$	843	$	159	$	854	$	362	$	51	$	15	$	3,613
Charge-offs		—		—		—		—		—		—		—		—		—		—
Recoveries		—		7		—		—		—		—		—		—		1		8
Provision (recovery)		(51)		(17)		(101)		33		(11)		114		6		(2)		(1)		(30)
Ending Balance	$	658	$	123	$	386	$	876	$	148	$	968	$	368	$	49	$	15	$	3,591

Schedule of risk category of loans by class of loans

The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at September 30, 2022 and June 30, 2022:

September 30, 2022
	Commercial Real Estate
	1 - 4 family						Construction
	investor		Multi-family		Non-residential		and land		Commercial		Total
Pass	$	93,322	$	14,631	$	156,132	$	7,953	$	10,932	$	282,970
Special Mention		1,373		—		289		—		—		1,662
Substandard		99		291		1,185		—		—		1,575
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Ending Balance	$	94,794	$	14,922	$	157,606	$	7,953	$	10,932	$	286,207

June 30, 2022
	Commercial Real Estate
	1 - 4 family						Construction
	investor		Multi-family		Non-residential		and land		Commercial		Total
Pass	$	95,271	$	12,778	$	157,514	$	4,951	$	9,409	$	279,923
Special Mention		1,473		—		300		—		—		1,773
Substandard		106		291		913		—		—		1,310
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Ending Balance	$	96,850	$	13,069	$	158,727	$	4,951	$	9,409	$	283,006

The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2022 and June 30, 2022:

Residential Real Estate and Consumer Loans
Credit Risk Internally Assigned
(Dollars in thousands)
September 30, 2022
	Residential Real Estate
			Home equity &
	1 - 4 family		HELOCs		Construction		Consumer		Total
Performing	$	141,372	$	32,046	$	11,630	$	2,038	$	187,086
Non-performing		2,918		189		—		116		3,223
	$	144,290	$	32,235	$	11,630	$	2,154	$	190,309

June 30, 2022
	Residential Real Estate
			Home equity &
	1 - 4 family		HELOCs		Construction		Consumer		Total
Performing	$	142,280	$	32,188	$	14,834	$	2,122	$	191,424
Non-performing		4,781		341		—		117		5,239
	$	147,061	$	32,529	$	14,834	$	2,239	$	196,663

Summary of outstanding principal and related carrying amount of loans acquired with deteriorated credit quality

(Dollars in thousands)	September 30, 2022		June 30, 2022
Outstanding principal balance	$	229	$	229
Carrying amount		156		156

Schedule of aging analysis of past due loans

	Aged Analysis of Past Due and Non-accrual Loans
	As of September 30, 2022
															Recorded		Recorded
									Acquired						Investment		Investment
	30 - 59 Days		60 - 89 Days		90 Days		Total Past		Credit				Total Loans		>90 Days and		Loans on
(Dollar amounts in thousands)	Past Due		Past Due		Or Greater		Due		Impaired		Current		Receivable		Accruing		Non-Accrual
Residential real estate:
1 - 4 family	$	387	$	960	$	1,564	$	2,911	$	133	$	141,246	$	144,290	$	—	$	2,918
Home equity and HELOCs		—		—		38		38		23		32,174		32,235		—		189
Construction - residential		—		—		—		—		—		11,630		11,630		—		—
Commercial real estate:
1 - 4 family investor		—		—		—		—		—		94,794		94,794		—		99
Multi-family		—		291		—		291		—		14,631		14,922		—		291
Commercial non-residential		—		—		1,185		1,185		—		156,421		157,606		—		1,185
Construction and land		—		—		—		—		—		7,953		7,953		—		—
Commercial		—		—		—		—		—		10,932		10,932		—		—
Consumer		—		10		32		42		—		2,112		2,154		—		116
Total	$	387	$	1,261	$	2,819	$	4,467	$	156	$	471,893	$	476,516	$	—	$	4,798

	Aged Analysis of Past Due and Non-accrual Loans
	As of June 30, 2022
															Recorded		Recorded
									Acquired						Investment		Investment
	30 - 59 Days		60 - 89 Days		90 Days		Total Past		Credit				Total Loans		>90 Days and		Loans on
(Dollar amounts in thousands)	Past Due		Past Due		Or Greater		Due		Impaired		Current		Receivable		Accruing		Non-Accrual
Residential real estate:
1 - 4 family	$	1,528	$	622	$	2,392	$	4,542	$	133	$	142,386	$	147,061	$	—	$	4,781
Home equity and HELOCs		19		—		183		202		23		32,304		32,529		—		341
Construction - residential		—		—		—		—		—		14,834		14,834		—		—
Commercial real estate:
1 - 4 family investor		—		—		—		—		—		96,850		96,850		—		106
Multi-family		—		—		—		—		—		13,069		13,069		—		291
Commercial non-residential		275		494		418		1,187		—		157,540		158,727		—		875
Construction and land		—		—		—		—		—		4,951		4,951		—		—
Commercial		—		—		—		—		—		9,409		9,409		—		—
Consumer		27		—		—		27		—		2,212		2,239		—		117
Total	$	1,849	$	1,116	$	2,993	$	5,958	$	156	$	473,555	$	479,669	$	—	$	6,511

Summary of recorded investment and unpaid principal balances for impaired loans

The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, at September 30, 2022 and June 30, 2022.

September 30, 2022
			Unpaid
	Recorded		Principal		Related
(Dollars in thousands)	Investment		Balance		Allowance
With no related allowance recorded:
1 - 4 family residential real estate	$	1,605	$	1,719	$	—
Home equity and HELOCs		343		344		—
Construction residential		—		—		—
1 - 4 family investor commercial real estate		99		112		—
Multi-family		291		308		—
Commercial non-residential		1,474		1,527		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—
With an allowance recorded:
1 - 4 family residential real estate	$	—	$	—	$	—
Home equity and HELOCs		—		—		—
Construction residential		—		—		—
1 - 4 family investor commercial real estate		—		—		—
Multi-family		—		—		—
Commercial non-residential		—		—		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—
Total:
1 - 4 family residential real estate	$	1,605	$	1,719	$	—
Home equity and HELOCs		343		344		—
Construction residential		—		—		—
1 - 4 family investor commercial real estate		99		112		—
Multi-family		291		308		—
Commercial non-residential		1,474		1,527		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—

The impaired loans table above includes accruing troubled debt restructurings (“TDRs”) in the amount of $586 thousand that are performing in accordance with their modified terms. The Company recognized $10 thousand of interest income on accruing TDRs during the three months ended September 30, 2022. The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition.

June 30, 2022
			Unpaid
	Recorded		Principal		Related
(Dollars in thousands)	Investment		Balance		Allowance
With no related allowance recorded:
1-4 Family residential real estate	$	3,336	$	3,582	$	—
Home equity and HELOCs		275		277		—
Construction Residential		—		—		—
1 - 4 Family investor commercial real estate		173		185		—
Multi-family		291		308		—
Commercial non-residential		1,213		1,265		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—
With an allowance recorded:
1-4 Family residential real estate	$	—	$	—	$	—
Home equity and HELOCs		—		—		—
Construction Residential		—		—		—
1 - 4 Family investor commercial real estate		—		—		—
Multi-family		—		—		—
Commercial non-residential		—		—		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—
Total:
1-4 Family residential real estate	$	3,336	$	3,582	$	—
Home equity and HELOCs		275		277		—
Construction Residential		—		—		—
1 - 4 Family investor commercial real estate		173		185		—
Multi-family		291		308		—
Commercial non-residential		1,213		1,265		—
Construction and land		—		—		—
Commercial		—		—		—
Consumer		—		—		—

The impaired loans table above includes accruing TDRs in the amount of $593 thousand that are performing in accordance with their modified terms. The Company recognized $12 thousand of interest income on accruing TDRs during the three months ended September 30, 2021.  The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition.

The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2022 and 2021.

September 30, 2022	Three Months Ended
	Average		Interest
	Recorded		Income
(Dollars in thousands)	Investment		Recognized
With no related allowance recorded:
1-4 family residential real estate	$	2,476	$	—
Home equity and HELOCs		385		4
Construction residential		—		—
1-4 family investor commercial real estate		121		1
Multi-family		291		—
Commercial non-residential		1,348		5
Construction and land		—		—
Commercial		—		—
Consumer		—		—
With an allowance recorded:
1-4 family residential real estate	$	—	$	—
Home equity and HELOCs		—		—
Construction residential		—		—
1-4 family investor commercial real estate
Multi-family		—		—
Commercial non-residential		—		—
Construction and land		—		—
Commercial		—		—
Consumer		—		—
Total:
1-4 family residential real estate	$	2,476	$	—
Home equity and HELOCs		385		4
Construction residential		—		—
1-4 family investor commercial real estate		121		1
Multi-family		291		—
Commercial non-residential		1,348		5
Construction and land		—		—
Commercial		—		—
Consumer		—		—

September 30, 2021	Three Months Ended
	Average		Interest
	Recorded		Income
(Dollars in thousands)	Investment		Recognized
With no related allowance recorded:
1-4 family residential real estate	$	1,802	$	—
Home equity and HELOCs		558		5
Construction residential		—		—
1-4 family investor commercial real estate		461		1
Multi-family		258		—
Commercial non-residential		870		6
Construction and land		—		—
Commercial		—		—
Consumer		—		—
With an allowance recorded:
1-4 family residential real estate	$	—	$	—
Home equity and HELOCs		—		—
Construction residential		—		—
1-4 family investor commercial real estate
Multi-family		—		—
Commercial non-residential		—		—
Construction and land		—		—
Commercial		—		—
Consumer		—		—
Total:
1-4 family residential real estate	$	1,802	$	—
Home equity and HELOCs		558		5
Construction residential		—		—
1-4 family investor commercial real estate		461		1
Multi-family		258		—
Commercial non-residential		870		6
Construction and land		—		—
Commercial		—		—
Consumer		—		—