Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 31, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PB Bancorp, Inc. | ||
Entity Central Index Key | 1,652,106 | ||
Trading Symbol | pbbi | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 7,623,474 | ||
Entity Public Float | $ 67.5 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Cash and due from depository institutions | $ 4,465 | $ 4,331 |
Interest-bearing deposits with other banks | 5,637 | 5,842 |
Cash and cash equivalents | 10,102 | 10,173 |
Investments in available-for-sale securities, at fair value | 46,546 | 60,150 |
Investments in held-to-maturity securities (fair value of $81,828 as of June 30, 2018 and $110,823 as of June 30, 2017) | 82,816 | 110,022 |
Federal Home Loan Bank stock, at cost | 4,206 | 4,353 |
Loans | 355,213 | 312,572 |
Allowance for loan losses | (2,943) | (2,780) |
Net loans | 352,270 | 309,792 |
Premises and equipment | 3,253 | 3,483 |
Accrued interest receivable | 1,361 | 1,258 |
Other real estate owned | 1,381 | 1,814 |
Goodwill | 6,912 | 6,912 |
Bank-owned life insurance | 12,912 | 12,555 |
Deferred tax asset | 1,691 | 1,862 |
Other assets | 1,938 | 1,774 |
Total assets | 525,388 | 524,148 |
Deposits: | ||
Noninterest-bearing | 71,428 | 71,783 |
Interest-bearing | 300,157 | 293,978 |
Total deposits | 371,585 | 365,761 |
Mortgagors' escrow accounts | 3,123 | 2,850 |
Federal Home Loan Bank advances | 63,199 | 67,000 |
Securities sold under agreements to repurchase | 664 | 1,582 |
Other liabilities | 2,528 | 2,418 |
Total liabilities | 441,099 | 439,611 |
Commitments and Contingencies (Notes 9 and 11) | ||
Stockholders' equity: | ||
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares issued and outstanding | ||
Common stock, 100,000,000 shares authorized, $0.01 par value; 7,624,474 and 7,826,769 shares issued and outstanding at June 30, 2018 and 2017, respectively | 76 | 78 |
Additional paid-in capital | 60,329 | 62,243 |
Retained earnings | 28,822 | 27,195 |
Accumulated other comprehensive loss | (522) | (117) |
Unearned ESOP shares | (3,293) | (3,439) |
Unearned stock awards | (1,123) | (1,423) |
Total stockholders' equity | 84,289 | 84,537 |
Total liabilities and stockholders' equity | $ 525,388 | $ 524,148 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Investments in held-to-maturity securities, fair value (in dollars) | $ 81,828 | $ 110,823 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 7,624,474 | 7,826,769 |
Common stock, shares outstanding | 7,624,474 | 7,826,769 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 13,427 | $ 10,985 |
Interest on debt securities | 3,104 | 3,624 |
Dividends on marketable equity securities | 452 | 456 |
Dividends on Federal Home Loan Bank stock | 210 | 153 |
Other interest and dividend income | 127 | 104 |
Total interest and dividend income | 17,320 | 15,322 |
Interest expense: | ||
Interest on deposits | 1,896 | 1,772 |
Interest on Federal Home Loan Bank advances | 1,341 | 1,408 |
Interest on securities sold under agreements to repurchase | 2 | 4 |
Total interest expense | 3,239 | 3,184 |
Net interest and dividend income | 14,081 | 12,138 |
Provision for loan losses | 225 | 548 |
Net interest and dividend income after provision for loan losses | 13,856 | 11,590 |
Non-interest income: | ||
Total other-than-temporary impairment losses on debt securities | (2) | |
Portion of losses recognized in other comprehensive income | 1 | |
Net impairment losses recognized in earnings | (1) | |
Net commissions from brokerage services | 178 | 156 |
Bank-owned life insurance income | 357 | 356 |
Gain on sale of securities | 7 | |
Gain on sales of other real estate owned | 1 | 110 |
Legal settlement income | 155 | 637 |
Other income | 153 | 173 |
Total non-interest income | 2,773 | 3,263 |
Non-interest expense: | ||
Compensation and benefits | 7,577 | 7,021 |
Occupancy and equipment | 1,196 | 1,236 |
Data processing | 1,111 | 1,016 |
LAN/ WAN network | 110 | 142 |
Advertising and marketing | 199 | 183 |
Regulatory assessment | 25 | 24 |
Professional fees | 463 | 485 |
FDIC deposit insurance | 161 | 153 |
Other real estate owned | 173 | 192 |
Write-down of other real estate owned | 14 | 43 |
Other | 1,306 | 1,220 |
Total non-interest expense | 12,335 | 11,715 |
Income before income tax expense | 4,294 | 3,138 |
Income tax expense | 1,165 | 822 |
Net income | $ 3,129 | $ 2,316 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.43 | $ 0.31 |
Diluted (in dollars per share) | $ 0.43 | $ 0.31 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 7,312,636 | 7,424,299 |
Diluted (in shares) | 7,312,636 | 7,425,191 |
Non-interest income fees for services | ||
Non-interest income: | ||
Fees for services mortgage banking activities | $ 1,908 | $ 1,738 |
Non-interest income mortgage banking activities | ||
Non-interest income: | ||
Fees for services mortgage banking activities | $ 15 | $ 93 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Comprehensive Income (Loss), Net Of Tax, Attributable To Parent [Abstract] | |||
Net income | $ 3,129 | $ 2,316 | |
Other comprehensive income: | |||
Net unrealized holding losses on available-for-sale securities | (484) | (59) | |
Reclassification adjustment for gains realized in income on available-for-sale securities | [1] | (6) | |
Non credit portion of other-than-temporary (losses) gains on available-for-sale securities | (1) | 92 | |
Other comprehensive (loss) income before tax | (491) | 33 | |
Income tax benefit (expense) related to other comprehensive (loss) income | 133 | (7) | |
Other comprehensive (loss) income net of tax | (358) | 26 | |
Total comprehensive income | $ 2,771 | $ 2,342 | |
[1] | Amount is included in net impairment losses recognized in earnings in non-interest income on the consolidated statements of net income. There was no income tax benefit associated with this reclassification adjustment for the year ended June 30, 2018. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Unearned ESOP Shares | Unearned Stock Awards | Total |
Balance at Jun. 30, 2016 | $ 79 | $ 62,837 | $ 25,901 | $ (143) | $ (3,586) | $ 85,088 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 2,316 | 26 | 2,342 | ||||
Cash dividends declared ($0.13 and $0.20 per share for year 2017 and 2018 respectively) | (1,022) | (1,022) | |||||
ESOP shares committed to be released (18,017 and 18,017 shares for year 2017 and 2018 respectively) | 27 | 147 | 174 | ||||
Common stock repurchased (211,400 and 199,649 share for year 2017 and 2018 respectively) | (2) | (2,221) | (2,223) | ||||
Issuance of common stock in connection with stock option exercises (10,017 shares) | 63 | 63 | |||||
Issuance of common stock in connection with restricted stock awards (147,750 shares) | 1 | 1,499 | $ (1,500) | ||||
Share-based compensation expense | 38 | 77 | 115 | ||||
Balance at Jun. 30, 2017 | 78 | 62,243 | 27,195 | (117) | (3,439) | (1,423) | 84,537 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 3,129 | (358) | 2,771 | ||||
Cash dividends declared ($0.13 and $0.20 per share for year 2017 and 2018 respectively) | (1,549) | (1,549) | |||||
ESOP shares committed to be released (18,017 and 18,017 shares for year 2017 and 2018 respectively) | 43 | 146 | 189 | ||||
Common stock repurchased (211,400 and 199,649 share for year 2017 and 2018 respectively) | (2) | (2,076) | (2,078) | ||||
Cancellation of shares for tax withholding (2,646 shares) | (28) | (28) | |||||
Share-based compensation expense | 147 | 300 | 447 | ||||
Reclassification related to Tax Cuts and Jobs Act (Note 8) | 47 | (47) | |||||
Balance at Jun. 30, 2018 | $ 76 | $ 60,329 | $ 28,822 | $ (522) | $ (3,293) | $ (1,123) | $ 84,289 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.13 |
Number of ESOP shares committed to be released | 18,017 | 18,017 |
Shares of common stock repurchased | 199,649 | 211,400 |
Shares of issuance of common stock in connection with stock option exercises | 10,017 | |
Shares of issuance of common stock in connection with restricted stock awards | 147,750 | |
Number of cancellation of shares for tax withholding | 2,646 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,129 | $ 2,316 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Amortization of securities premiums, net | 515 | 801 |
Gain on sale of securities | (7) | |
Impairment losses on securities | 1 | |
Amortization of deferred loan costs, net | 235 | 185 |
Provision for loan losses | 225 | 548 |
Gain on sales of other real estate owned, net | (1) | (110) |
Write-down of other real estate owned | 14 | 43 |
Loss on sale of premises and equipment | 1 | 10 |
Depreciation and amortization - premises and equipment | 329 | 328 |
Amortization - software | 9 | 53 |
Increase in accrued interest receivable and other assets | (276) | (254) |
Income from bank-owned life insurance | (357) | (356) |
Increase (decrease) in other liabilities | 110 | (69) |
Share-based compensation expense | 447 | 115 |
Deferred tax expense | 304 | 669 |
ESOP expense | 189 | 174 |
Net cash provided by operating activities | 4,867 | 4,453 |
Cash flows from investing activities: | ||
Proceeds from the sales of available-for-sale securities | 3,625 | |
Proceeds from calls, paydowns and maturities of available-for-sale securities | 9,325 | 10,074 |
Proceeds from calls, paydowns and maturities of held-to-maturity securities | 26,860 | 33,765 |
Redemption (purchase) of Federal Home Loan Bank stock, net | 147 | (534) |
Loan principal originations, net of repayments | (21,880) | (32,508) |
Loan purchases | (21,480) | (27,420) |
Recoveries of loans previously charged off | 63 | 72 |
Purchase of bank-owned life insurance | (2,500) | |
Proceeds from sale of other real estate owned | 779 | 823 |
Capital expenditures - premises and equipment | (100) | (182) |
Capital expenditures - software | (32) | |
Net cash used in investing activities | (2,661) | (18,442) |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 5,824 | 9,695 |
Net increase in mortgagors' escrow accounts | 273 | 193 |
Proceeds from issuance of long-term Federal Home Loan Bank advances | 29,230 | 29,000 |
Repayment of long-term Federal Home Loan Bank advances | (33,031) | (14,500) |
Net decrease in short-term Federal Home Loan Bank advances | (1,400) | |
Net decrease in securities sold under agreements to repurchase | (918) | (777) |
Cash dividends paid on common stock | (1,549) | (1,022) |
Proceeds from issuance of common stock in connection with stock options exercised | 63 | |
Common stock repurchased | (2,078) | (2,223) |
Cancellation of shares for tax withholding | (28) | |
Net cash (used in) provided by financing activities | (2,277) | 19,029 |
Change in cash and cash equivalents | (71) | 5,040 |
Cash and cash equivalents at beginning of year | 10,173 | 5,133 |
Cash and cash equivalents at end of year | 10,102 | 10,173 |
Cash paid during the period for: | ||
Interest | 3,197 | 3,182 |
Income taxes paid | 1,030 | 131 |
Loans transferred to other real estate owned | $ 359 | $ 675 |
NATURE OF OPERATIONS AND REORGA
NATURE OF OPERATIONS AND REORGANIZATION | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND REORGANIZATION | 1. NATURE OF OPERATIONS AND REORGANIZATION PB Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated in 2015 to be the successor to PSB Holdings, Inc. upon completion of the second step mutual-to-stock conversion (the “Conversion”) of Putnam Bancorp, MHC, (the “MHC”), the top tier mutual holding company of PSB Holdings, Inc. PSB Holdings, Inc. was the former mid-tier holding company for Putnam Bank (the “Bank”). The Conversion was completed on January 7, 2016. The Company raised gross proceeds of $33.7 million by selling a total of 4,215,387 shares of common stock at $8.00 per share in the second step offering. Also, an additional 317,287 shares were purchased by the Bank’s Employee Stock Ownership Plan with the proceeds of a loan from the Company. Concurrent with the completion of the stock offering, each share of PSB Holdings, Inc. stock owned by public stockholders (stockholders other than the MHC) was exchanged for 1.1907 shares of Company common stock. The Bank is a Connecticut-chartered bank that is a member of the Federal Reserve System. The Bank provides a full range of banking services to individual and small business customers located primarily in Connecticut. The Bank is subject to competition from other financial institutions throughout the region. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company’s loan portfolio is comprised of loans collateralized by real estate located in the state of Connecticut. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, Windham North Properties, LLC, PSB Realty, LLC, and Putnam Bank Mortgage Servicing Company. Windham North Properties, LLC is used to acquire title to selected properties on which Putnam Bank forecloses. PSB Realty, LLC owns a parcel of real estate located immediately adjacent to Putnam Bank’s main office. This real estate is utilized as a loan center for Putnam Bank and there are no outside tenants that occupy the premises. PSB Realty, LLC also owns the 40 High Street, Norwich branch building and real estate. Putnam Bank Mortgage Servicing Company is a qualified “passive investment company” that is intended to reduce Connecticut state taxes on interest earned on real estate loans. All significant intercompany accounts and transactions have been eliminated in the consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term are the allowance for loan losses, other-than-temporary impairment of securities, the valuation of goodwill and the realizability of deferred tax assets. Reclassifications Reclassifications are made to prior year financial statements when necessary to conform to the current year presentation. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from depository institutions and interest-bearing deposits with other banks. Cash and due from banks as of June 30, 2018 and 2017 includes $300,000 and $400,000, respectively which is subject to withdrawal and usage restrictions to satisfy the reserve requirements and target balances of Atlantic Community Bankers Bank. Cash is maintained in bank accounts which, at times, may exceed insured limits. The Company has not experienced any losses in said accounts and does not believe it is exposed to any significant credit risk on this cash. Securities Purchase premiums and discounts are amortized to earnings so as to approximate the interest method. Discounts and, prior to January 1, 2017, premiums are amortized over the contractual lives of the securities. Effective January 1, 2017, premiums are amortized over the earliest call date or the estimated lives of the securities. Gains or losses on sales of investment securities are computed on a specific identification basis. All security transactions are recorded on the trade date. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale, or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities are classified as available-for-sale. Held-to-maturity securities are measured at amortized cost on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or in other comprehensive income/loss, but are disclosed in the notes to the consolidated financial statements. Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are included in other comprehensive income/loss, net of applicable taxes. Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company held no securities classified as trading at June 30, 2018 and 2017. Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”). OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income/loss, net of applicable taxes. Federal Home Loan Bank of Boston Stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB of Boston. Based on redemption provisions, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB of Boston may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the stock. As of June 30, 2018, no impairment has been recognized. Loans The Company’s loan portfolio includes residential real estate, commercial real estate, residential construction, commercial and consumer/other segments. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on all loans is discontinued at the time a loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, specific and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; loan concentrations; trends in volume and terms of loans; changes in lending practices and procedures; changes in lending management and staff; changes in the value of underlying collateral; changes in the quality of the loan review system; national and local economic trends and conditions and the effects of other external factors. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate - The Company does not originate loans with a loan-to-value ratio greater than 100% and does not originate subprime loans. Loans originated with a loan-to-value ratio greater than 80% generally require private mortgage insurance. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate - Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans. Residential construction – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Consumer/other - Loans in this segment are generally secured and repayment is dependent on the credit quality of the individual borrower. Specific component The specific component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent or foreclosure is probable. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer/other and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring (“TDR”) agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring. All TDRs are classified as impaired. Unallocated component An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general reserves in the portfolio. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in earnings. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets or term of lease if shorter. Estimated lives are 5 to 40 years for buildings, 3 to 20 years for equipment and leasehold improvements over lease terms which range from 1 to 25 years. Expenditures for replacements or major improvements are capitalized; expenditures for normal maintenance and repairs are charged to expense as incurred. Other Real Estate Owned Other real estate owned includes properties acquired through foreclosure. These properties are carried at the lower of cost or estimated fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent write-downs and gains or losses recognized upon sale are charged to earnings. Goodwill Goodwill is measured as the excess of the cost of a business acquisition over the sum of the amounts assigned to identifiable tangible and intangible assets acquired less liabilities assumed. Goodwill is not amortized but is reviewed for impairment annually or more frequently if circumstances warrant. The Company uses the following two-step approach for reviewing goodwill for impairment: The first step (“Step 1”) is used to identify potential impairment, and involves comparing the reporting unit’s (the consolidated Company) estimated fair value to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. The second step (“Step 2”) involves calculating the implied fair value of goodwill. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which are dependent on internal forecasts, estimation of the long-term rate of growth, the period over which cash flows will occur, and determination of our cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions related to goodwill impairment. For the years ended June 30, 2018 and 2017, the Company had no goodwill impairment. Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of net income and are not subject to income taxes. Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and Cash Equivalents: Investment Securities and FHLB Stock: Loans, net: The fair values of each loan segment, excluding home equity line of credit, were estimated by discounting the anticipated cash flows from the respective segment. Estimates of the timing and amount of these cash flows considered factors such as future loan prepayments. The discount rates reflected current market rates for loans with similar terms to borrowers of similar credit quality. The fair value of home equity lines of credit was based on the outstanding loan balances. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Accrued interest: Deposits and Mortgagors’ Escrow: Federal Home Loan Bank Advances: Securities Sold Under Agreements to Repurchase: Off-Balance Sheet Instruments: Earnings per Share (EPS) Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends on unvested awards are non-forfeitable, these unvested stock awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Treasury shares and unallocated ESOP shares are not deemed outstanding for earnings per share calculations. The calculation of basic and diluted earnings per share for the years ended June 30, 2018 and 2017 is presented below: Years Ended June 30, 2018 2017 Net income $ 3,129,000 $ 2,316,000 Weighted average common shares applicable to basic EPS 7,312,636 7,424,299 Effect of dilutive potential common shares - 892 Weighted average common shares applicable to diluted EPS 7,312,636 7,425,191 Earnings per share: Basic $ 0.43 $ 0.31 Diluted $ 0.43 $ 0.31 For the years ended June 30, 2018 and 2017, options for 388,330 and 392,330 shares, respectively, were not included in the computation of earnings per share as the effects were anti-dilutive. Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset 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, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. Advertising The Company directly expenses costs associated with advertising as they are incurred. Income Taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment. Accordingly, the changes resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 have been recognized in the consolidated financial statements for the year ended June 30, 2018. See Note 8 for further details. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax benefits related to stock compensation in excess of grant date fair value less any proceeds on exercise are recognized as an increase to additional paid-in capital upon vesting or exercising and delivery of the stock. Any income tax effects related to stock compensation that are less than grant date fair value less any proceeds on exercise would be recognized as a reduction of additional paid-in capital to the extent of previously recognized income tax benefits and then through income tax expense for the remaining amount. Employee Benefit Plans Unearned ESOP shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. As shares are committed to be released, compensation expense is recognized based on the average fair market value of the stock and stockholders’ equity is increased by a corresponding amount. As more fully described in Note 13, the Company has a share-based incentive plan authorizing various types of incentive awards that may be granted to directors, officers and employees. The Company records share-based compensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. Recent Accounting and Regulatory Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall, (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Topic 718 Compensation-Stock Compensation |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES The amortized cost of securities, unrealized gains and losses, and their fair values, by maturity, are as follows as of the dates indicated: Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2018: Available-for-sale: Debt securities: U.S. government and government-sponsored securities: Due in one year or less $ 1,000 $ - $ (4 ) $ 996 After ten years 3,419 - (87 ) 3,332 4,419 - (91 ) 4,328 Corporate bonds and other securities: Due from five through ten years 1,999 - (129 ) 1,870 After ten years 2,000 - (140 ) 1,860 3,999 - (269 ) 3,730 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 3,135 - (125 ) 3,010 From five through ten years 4,919 - (95 ) 4,824 After ten years 17,688 135 (406 ) 17,417 25,742 135 (626 ) 25,251 Non-agency mortgage-backed securities: Due after ten years 3,057 483 (303 ) 3,237 Total debt securities 37,217 618 (1,289 ) 36,546 Equity securities: Auction rate preferred: Due from five through ten years 8,000 - - 8,000 After ten years 2,000 - - 2,000 Total equity securities 10,000 - - 10,000 Total available-for-sale securities $ 47,217 $ 618 $ (1,289 ) $ 46,546 Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2017: Available-for-sale: Debt securities: U.S. government and government-sponsored securities: Due from one through five years $ 1,000 $ - $ (5 ) $ 995 After ten years 3,788 - (17 ) 3,771 4,788 - (22 ) 4,766 Corporate bonds and other securities: Due from five through ten years 3,000 - (193 ) 2,807 Due after ten years 2,999 - (228 ) 2,771 5,999 - (421 ) 5,578 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due in one year or less 40 1 - 41 From five through ten years 8,280 29 (73 ) 8,236 After ten years 27,574 224 (160 ) 27,638 35,894 254 (233 ) 35,915 Non-agency mortgage-backed securities: Due after ten years 3,649 473 (231 ) 3,891 Total debt securities 50,330 727 (907 ) 50,150 Equity securities: Auction rate preferred: Due from five through ten years 8,000 - - 8,000 After ten years 2,000 - - 2,000 Total equity securities 10,000 - - 10,000 Total available-for-sale securities $ 60,330 $ 727 $ (907 ) $ 60,150 Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2018: Held-to-maturity: U.S. Government and government-sponsored securities: Due in one year or less $ 2,001 $ - $ (9 ) $ 1,992 From one through five years 4,976 25 (33 ) 4,968 After ten years 4,796 - (189 ) 4,607 11,773 25 (231 ) 11,567 State agency and municipal obligations Due from one through five years 446 - (14 ) 432 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 846 5 (8 ) 843 From five through ten years 12,123 14 (384 ) 11,753 After ten years 57,628 518 (913 ) 57,233 70,597 537 (1,305 ) 69,829 Total held-to-maturity securities $ 82,816 $ 562 $ (1,550 ) $ 81,828 June 30, 2017: Held-to-maturity: U.S. Government and government-sponsored securities: Due in one year or less $ 2,250 $ - $ (2 ) $ 2,248 Due from one through five years 6,966 108 - 7,074 After ten years 5,195 - (50 ) 5,145 14,411 108 (52 ) 14,467 State agency and municipal obligations Due from five through ten years 451 - (6 ) 445 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 1,119 40 - 1,159 From five through ten years 6,709 65 - 6,774 After ten years 87,332 1,001 (355 ) 87,978 95,160 1,106 (355 ) 95,911 Total held-to-maturity securities $ 110,022 $ 1,214 $ (413 ) $ 110,823 Proceeds from the sales of securities available-for-sale during the year ended June 30, 2018 amounted to $3,625,000, with gross realized gains on those sales amounting to $7,000. There were no sales of securities available-for-sale during the year ended June 30, 2017. As of June 30, 2018 and 2017, the total carrying value of securities pledged as collateral to secure public deposits, the Federal Reserve Bank discount window, borrowings, and repurchase agreements was $75,797,000 and $99,674,000, respectively. The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more are as follows as of the dates indicated: Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) June 30, 2018: Available-for-sale: U.S. Government and government-sponsored securities $ - $ - $ 4,328 $ 91 $ 4,328 $ 91 Corporate bonds and other securities - - 3,730 269 3,730 269 U.S. Government-sponsored and guaranteed mortgage-backed securities 7,331 123 14,914 503 22,245 626 Total temporarily impaired available-for-sale securities 7,331 123 22,972 863 30,303 986 Held-to-maturity: U.S. Government and government-sponsored securities 5,956 42 4,606 189 10,562 231 State and political subdivisions 432 14 - - 432 14 U.S. Government-sponsored and guaranteed mortgage-backed securities 34,387 708 16,880 597 51,267 1,305 Total temporarily impaired held-to-maturity 40,775 764 21,486 786 62,261 1,550 Other-than-temporarily impaired debt securities: (1) Non-agency mortgage-backed securities - - 1,134 303 1,134 303 Total temporarily impaired and other-than-temporarily impaired securities $ 48,106 $ 887 $ 45,592 $ 1,952 $ 93,698 $ 2,839 June 30, 2017: Available-for-sale: U.S. Government and government-sponsored securities $ 995 $ 5 $ 3,771 $ 17 4,766 22 Corporate bonds and other securities - - 5,578 421 5,578 421 U.S. Government-sponsored and guaranteed mortgage-backed securities 17,798 192 3,539 41 21,337 233 Total temporarily impaired available-for-sale securities 18,793 197 12,888 479 31,681 676 Held-to-maturity: U.S. Government and government-sponsored securities 7,393 52 - - 7,393 52 State and political subdivisions 445 6 - - 445 6 U.S. Government-sponsored and guaranteed mortgage-backed securities 27,910 211 7,928 144 35,838 355 Total temporarily impaired held-to-maturity 35,748 269 7,928 144 43,676 413 Other-than-temporarily impaired debt securities: (1) Non-agency mortgage-backed securities - - 1,331 231 1,331 231 Total temporarily impaired and other-than-temporarily impaired securities $ 54,541 $ 466 $ 22,147 $ 854 $ 76,688 $ 1,320 (1) Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss. At June 30, 2018, 88 U.S. government-sponsored and guaranteed securities have unrealized losses with aggregate depreciation of less than 2.48% from the Company’s amortized cost basis. The unrealized losses were primarily caused by interest rate fluctuations. These investments are guaranteed or sponsored by the U.S. government or an agency thereof. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2018. At June 30, 2018, 3 corporate bonds and other securities have unrealized losses with aggregate depreciation of 6.73% from the Company’s amortized cost basis. These unrealized losses relate to investments in single issuer trust preferred securities (“TRUPS”) issued by companies within the financial services sector. The single-issuer trust preferred investments are evaluated for other-than-temporary impairment by performing a present value of cash flows each quarter. None of the issuers have deferred interest payments or announced the intention to defer interest payments. The Company believes the decline in fair value is related to the spread over three-month LIBOR, on which the quarterly interest payments are based, as the spread over LIBOR being received is significantly lower than current market spreads. Management concluded the impairment of these investments was considered temporary and asserts that the Company does not have the intent to sell these investments and that it is more likely than not it will not have to sell the investments before recovery of their cost bases which may be at maturity. At June 30, 2018, there was one state and political subdivision security that had an unrealized loss of 3.16% from the Company’s amortized cost basis. The unrealized loss was primarily caused by interest rate fluctuations. This security is guaranteed by the Crosby, Texas School District. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of their amortized cost bases, which may be at maturity, the Company does not consider this investment to be other-than-temporarily impaired at June 30, 2018. There was a $1,000 other-than-temporary impairment recognized for the year ended June 30, 2018. For the year ended June 30, 2018, securities with other-than-temporary impairment losses related to credit loss that were recognized in earnings consisted of non-agency mortgage-backed securities. For these debt securities, the Company estimated the portion of loss attributable to credit loss using a discounted cash flow model. Significant inputs included the estimated cash flows of the underlying loans based on key assumptions, such as default rate, loss severity and prepayment rate. Assumptions can vary widely from security to security, and are influenced by such factors as loan interest rate, geographical location of the borrower, borrower characteristics and collateral type. The present value of the expected cash flows was compared to the Company’s amortized cost basis to determine the credit-related impairment loss. Based on the expected cash flows derived from the model, the Company expects to recover the remaining unrealized losses on these securities. For those debt securities for which the fair value of the security is less than its amortized cost and the Company does not intend to sell such security and it is more likely than not that it will not be required to sell such security prior to the recovery of its amortized cost basis less any credit losses, the credit component of the other-than-temporary impairment losses is recognized in earnings while the non-credit component is recognized in other comprehensive income/loss, net of related taxes. Activity related to the credit component recognized in earnings on debt securities held by the Company for which a portion of other-than-temporary impairment was recognized in accumulated other comprehensive loss for the year ended June 30, 2018 is as follows: 2018 2017 (In thousands) Balance at beginning of year $ 15,982 $ 15,982 Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded 1 - Balance at end of year $ 15,983 $ 15,982 Significant assumptions used in the valuation of non-agency mortgage-backed securities were as follows as of June 30, 2018: Weighted Range Average Minimum Maximum Prepayment rates 19.7 % 0.6 % 31.6 % Default rates 5.2 % 0.0 % 14.0 % Loss severity 48.5 % 0.0 % 91.4 % |
LOANS
LOANS | 12 Months Ended |
Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS | 4. LOANS Loans consisted of the following as of June 30: 2018 2017 (In thousands) Real estate: Residential (1) $ 236,880 $ 225,745 Commercial 101,647 71,558 Residential construction 2,217 1,000 Commercial 12,215 12,123 Consumer and other 831 829 Total loans 353,790 311,255 Net deferred loan costs 1,423 1,317 Allowance for loan losses (2,943 ) (2,780 ) Loans, net $ 352,270 $ 309,792 (1) Residential real estate loans include one-to-four family mortgage loans, second mortgage loans, and home equity lines of credit. During the year ended June 30, 2018, the Company purchased residential mortgage loans aggregating $21,348,000 and commercial loans aggregating $132,000. During the year ended June 30, 2017, the Company purchased residential mortgage loans aggregating $27,420,000. The following tables set forth information regarding the allowance for loan losses and loans by portfolio segment at and for the years ended June 30, 2018 and 2017: Residential Commercial Residential Consumer Real Estate Real Estate Construction Commercial and Other Unallocated Total (In thousands) Year Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 Charge-offs (83 ) - - - (42 ) - (125 ) Recoveries 33 - - 15 15 - 63 Provision (credit) 76 30 8 (11 ) 76 46 225 Ending balance $ 1,385 $ 1,194 $ 14 $ 80 $ 135 $ 135 $ 2,943 At June 30, 2018 Ending balance of allowance for loan losses: Impaired loans $ - $ - $ - $ - $ - $ - $ - Ending balance of allowance for loan losses: Non-impaired loans $ 1,385 $ 1,194 $ 14 $ 80 $ 135 $ 135 $ 2,943 Ending balance: Non-impaired loans $ 234,148 $ 100,417 $ 2,217 $ 12,215 $ 831 $ - $ 349,828 Ending balance: Impaired loans $ 2,732 $ 1,230 $ - $ - $ - $ - $ 3,962 Loans: Ending balance $ 236,880 $ 101,647 $ 2,217 $ 12,215 $ 831 $ - $ 353,790 Year Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 1,171 $ 967 $ 6 $ 78 $ 20 $ 61 $ 2,303 Charge-offs (100 ) - - (11 ) (32 ) - (143 ) Recoveries 46 - - 10 16 - 72 Provision (credit) 242 197 - (1 ) 82 28 548 Ending balance $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 At June 30, 2017 Ending balance of allowance for loan losses: Impaired loans $ - $ - $ - $ - $ - $ - $ - Ending balance of allowance for loan losses: Non-impaired loans $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 Ending balance: Non-impaired loans $ 223,483 $ 70,229 $ 1,000 $ 12,123 $ 829 $ - $ 307,664 Ending balance: Impaired loans $ 2,262 $ 1,329 $ - $ - $ - $ - $ 3,591 Loans: Ending balance $ 225,745 $ 71,558 $ 1,000 $ 12,123 $ 829 $ - $ 311,255 Credit Quality Information The Company utilizes a nine grade internal loan rating risk system as follows: Loans rated 1 – 5 are considered “pass” rated loans with low to average risk. Loans rated 6 are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 7 are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 8 are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 9 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, residential construction, and commercial loans. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Credit quality for residential real estate and consumer/other loans is determined by monitoring loan payment history and ongoing communications with customers. The following tables present the Company’s loans by risk rating as of June 30, 2018 and 2017: Residential Commercial Residential Consumer Real Estate Real Estate Construction Commercial and Other Total (In thousands) June 30, 2018 Grade: Pass $ 232,919 $ 98,626 $ 2,217 $ 11,157 $ 830 $ 345,749 Special Mention 2 698 - 1,058 - 1,758 Substandard 3,959 2,323 - - 1 6,283 Doubtful - - - - - - Loss - - - - - - Total $ 236,880 $ 101,647 $ 2,217 $ 12,215 $ 831 $ 353,790 June 30, 2017 Grade: Pass $ 221,514 $ 68,675 $ 1,000 $ 12,123 $ 827 $ 304,139 Special Mention 394 715 - - - 1,109 Substandard 3,837 2,168 - - 2 6,007 Doubtful - - - - - - Loss - - - - - - Total $ 225,745 $ 71,558 $ 1,000 $ 12,123 $ 829 $ 311,255 The following is a summary of past due and non-accrual loans at June 30, 2018 and 2017: 90 days 30–59 Days 60–89 Days or Greater Total Total Past Due Past Due Past Due Past Due Non-accrual (In thousands) 2018 Real estate: Residential $ 50 $ 238 $ 1,119 $ 1,407 $ 3,959 Commercial - - 124 124 432 Consumer and other 4 - - 4 1 Total $ 54 $ 238 $ 1,243 $ 1,535 $ 4,392 2017 Real estate: Residential $ 230 $ 349 $ 455 $ 1,034 $ 3,837 Commercial - - - - 594 Consumer and other 3 - - 3 2 Total $ 233 $ 349 $ 455 $ 1,037 $ 4,433 At June 30, 2018, one residential real estate loan in the amount of $32,000 was greater than 90 days past due and still accruing. At June 30, 2017, there were no loans greater than 90 days past due and still accruing interest. The following is information pertaining to impaired loans: At June 30, 2018 Year Ended June 30, 2018 Interest Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized on Cash Basis (In thousands) Total impaired loans without a valuation allowance: Real estate: Residential $ 2,732 $ 2,870 $ - $ 2,301 $ 42 $ 29 Commercial 1,230 1,914 - 1,278 87 - Total $ 3,962 $ 4,784 $ - $ 3,579 $ 129 $ 29 At June 30, 2017 Year Ended June 30, 2017 Interest Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized on Cash Basis (In thousands) Impaired loans without a valuation allowance: Real estate: Residential $ 2,262 $ 2,367 $ - $ 2,199 $ 30 $ - Commercial 1,329 2,013 - 1,925 108 - Commercial - - - 11 - - Total $ 3,591 $ 4,380 $ - $ 4,135 $ 138 $ - At June 30, 2018, there are no additional funds that are available to be advanced in connection with impaired loans. There were no material troubled debt restructurings during the years ended June 30, 2018 or 2017. There were no material troubled debt restructurings that have subsequently defaulted (30 or more days past due) within one year of modification during the years ended June 30, 2018 or 2017. Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $22,236,000 and $25,880,000 at June 30, 2018 and 2017, respectively. The balances of mortgage servicing rights related to loans serviced for others were $81,000 and $88,000 at June 30, 2018 and 2017, respectively, and are not material to the consolidated financial statements. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | 5. PREMISES AND EQUIPMENT The following is a summary of premises and equipment as of June 30: 2018 2017 (In thousands) Land $ 470 $ 470 Buildings and leasehold improvements 6,215 6,244 Equipment 2,802 2,801 9,487 9,515 Accumulated depreciation and amortization (6,234 ) (6,032 ) Premises and equipment, net $ 3,253 $ 3,483 Depreciation and amortization expense on premises and equipment amounted to $329,000 and $328,000 for the years ended June 30, 2018 and 2017, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Jun. 30, 2018 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | 6. DEPOSITS The balances of deposit accounts at June 30 were as follows: 2018 2017 (In thousands) Demand deposits $ 71,428 $ 71,783 NOW accounts 81,944 86,010 Regular savings 83,320 82,046 Money market accounts 20,146 18,473 Club accounts 258 272 257,096 258,584 Certificate accounts maturing in the years ending June 30: 2018 - 39,038 2019 45,278 25,389 2020 31,904 16,489 2021 14,118 11,435 2022 14,327 14,826 2023 8,862 - 114,489 107,177 Total deposits $ 371,585 $ 365,761 The aggregate amount of time deposits of $250,000 or more as of June 30, 2018 was $25,172,000. The aggregate amount of brokered deposits as of June 30, 2018 was $9,760,000. |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | 7. BORROWED FUNDS Borrowed funds consisted of the following at June 30: 2018 2017 Amount Due Weighted Amount Due Weighted (Dollars in thousands) Short-term borrowings: Securities sold under agreements to repurchase $ 664 0.10 % $ 1,582 0.10 % Long-term FHLB of Boston advances maturing in the years ending: 2018 - 0.00 33,000 2.30 2019 1,000 1.43 - 0.00 2020 22,000 1.89 12,000 2.00 2021 22,500 2.06 11,000 1.94 2022 11,000 1.79 11,000 1.79 2023 5,000 2.32 - 0.00 Thereafter 1,699 0.50 - 0.00 Total 63,199 1.92 67,000 2.10 Total borrowed funds $ 63,863 1.90 % $ 68,582 2.06 % As of June 30, 2018 and 2017, loans with a principal balance of $76,438,000 and $65,201,000, respectively, were specifically pledged to secure available borrowings from the FHLB, as well as certain investment securities as disclosed in Note 3. Additionally, the Bank has a line of credit with the FHLB of Boston in the amount of $2,354,000 and a liquidity line of credit with Atlantic Community Bankers Bank in the amount of $4,000,000. No amounts were outstanding on these lines of credit at June 30, 2018 and 2017. Securities sold under agreements to repurchase as of June 30, 2018 and 2017 have an original maturity of one day, and have been accounted for as secured borrowings. These customer repurchase agreements are collateralized by U.S. government-sponsored and guaranteed mortgage-backed securities with fair value of $6,498,000 and $21,753,000 at June 30, 2018 and 2017, respectively. The securities collateralizing repurchase agreements are subject to fluctuations in fair value. We monitor the fair value of the collateral on a periodic basis, and would pledge additional collateral if necessary based on changes in fair value of collateral or the balances of the repurchase agreements. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES The following are components of income tax expense for the years ended June 30: 2018 2017 (In thousands) Current: Federal $ 860 $ 152 State 1 1 Total current 861 153 Deferred: Federal 304 669 State - - Total deferred 304 669 Income tax expense $ 1,165 $ 822 Deferred income taxes reflect the tax impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The Bank’s subsidiary, Putnam Bank Mortgage Servicing Company, qualifies and operates as a Connecticut passive investment company pursuant to legislation. Because the subsidiary earns sufficient income from passive investments and its dividends to the parent are exempt from Connecticut Corporation Business Tax, the Bank does not expect to incur Connecticut income tax expense or to recognize its Connecticut deferred tax asset. The Parent company is still subject to the Connecticut Corporation Business Tax. The reasons for the differences between the statutory federal income tax rates of 27.5% and 34.0% for 2018 and 2017, respectively and the effective tax rates are summarized as follows for the years ended June 30: 2018 2017 (In thousands) Federal income tax at statutory rate $ 1,181 $ 1,067 Increase (decrease) in tax resulting from: State taxes, net of federal benefit 1 1 Stock-based compensation 26 (8 ) Dividends received deduction (88 ) (110 ) Bank-owned life insurance (98 ) (121 ) Tax-exempt municipal income, net (84 ) (18 ) Effect of federal rate change 211 - Other, net 16 11 Income tax expense $ 1,165 $ 822 Effective tax rates 27.1 % 26.2 % The Company had gross deferred tax assets and gross deferred tax liabilities as follows as of June 30: 2018 2017 (In thousands) Deferred tax assets: Allowance for loan losses $ 555 $ 821 Net unrealized holding loss on available-for-sale securities 149 63 Deferred compensation 131 202 Stock-based compensation 129 77 Impairment losses on securities available-for-sale 531 859 Accrued expenses 116 163 Post retirement benefits 61 93 Interest receivable on non-accrual loans 74 91 Federal carryovers 1,208 1,348 Other 91 146 Gross deferred tax asset 3,045 3,863 Valuation allowance - - Gross deferred tax assets, net of valuation allowance 3,045 3,863 Deferred tax liabilities: Depreciation and amortization (1,164 ) (1,675 ) Deferred loan costs (173 ) (297 ) Other (17 ) (29 ) Gross deferred tax liability (1,354 ) (2,001 ) Net deferred tax asset $ 1,691 $ 1,862 At June 30, 2018 we have Alternative Minimum Tax (“AMT”) credit carryforwards of $1.2 million. Under the Tax Cuts and Jobs Act, the AMT credits will be fully realized as a reduction in current taxes by 2021. At June 30, 2017, we had AMT credit carryforwards of $1.3 million which have no expiration date and $61,000 of contribution carryovers which begin to expire on June 30, 2017. Retained earnings at June 30, 2018 includes a contingency reserve for loan losses of $2,284,000 which represents the tax reserve balance existing at December 31, 1987 and is maintained in accordance with provisions of the Internal Revenue Code applicable to thrift institutions. It is not anticipated that the Company will incur a federal income tax liability related to the reduction of this reserve and accordingly, deferred income taxes of approximately $480,000 have not been recognized as of June 30, 2018 and 2017. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of June 30, 2018 and 2017, there were no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended June 30, 2015 through June 30, 2018. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended June 30, 2018 and 2017. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Act”). The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 34% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax asset of $211,000, which was recorded as an additional tax expense in the Company’s consolidated statements for 2017. Included in the additional tax expense above is $47,000 related to net unrealized losses on securities available-for-sale. Because these unrealized losses were initially recorded as items of accumulated other comprehensive income in the Company’s capital accounts, the adjustment to deferred taxes resulted in a disproportionate tax effect of $47,000 that became stranded in accumulated other comprehensive income. In February of 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENT LIABILITIES | 9. OTHER COMMITMENTS AND CONTINGENT LIABILITIES Lease Commitments As of June 30, 2018 the Company leases space for various branch offices. The leases for the branch offices expire at various times through fiscal 2022. All leases contain renewal options at the Company’s discretion. The Company also has miscellaneous equipment leases with various terms. The total minimum rental due in future fiscal years under these existing agreements is as follows as of June 30, 2018: Rental Expense Due (In thousands) 2019 164 2020 109 2021 60 2022 10 Total $ 343 Total rental expense amounted to $180,000 and $163,000 for the years ended June 30, 2018 and 2017, respectively. Legal Contingencies Various legal claims also arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. |
FAIR VALUE MEASURMENTS
FAIR VALUE MEASURMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASURMENTS | 10. FAIR VALUE MEASURMENTS The Company groups its assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets include those whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation. An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. During the years ended June 30, 2018 and 2017, there were no transfers between levels of the fair value hierarchy. Assets Measured at Fair Value on a Recurring Basis The following summarizes assets measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In thousands) June 30, 2018 Securities available-for-sale: U. S. Government and government-sponsored securities $ 4,328 $ - $ 4,328 $ - Corporate bonds and other securities 3,730 - 3,730 - U.S. Government-sponsored and guaranteed mortgage-backed securities 25,251 - 25,251 - Non-agency mortgage-backed securities 3,237 - 3,237 - Equity securities 10,000 - - 10,000 Total $ 46,546 $ - $ 36,546 $ 10,000 June 30, 2017 Securities available-for-sale: U. S. Government and government-sponsored securities $ 4,766 $ - $ 4,766 $ - Corporate bonds and other securities 5,578 - 5,578 - U.S. Government-sponsored and guaranteed mortgage-backed securities 35,915 - 35,915 - Non-agency mortgage-backed securities 3,891 - 3,891 - Equity securities 10,000 - - 10,000 Total $ 60,150 $ - $ 50,150 $ 10,000 At June 30, 2018 and 2017, Level 3 assets consisted of available-for-sale auction-rate trust preferred securities (ARPs). Auction-rate trust preferred securities are a floating rate preferred stock, on which the dividend rate generally resets every 90 days based on an auction process to reflect the yield demand for the instruments by potential purchasers. These securities were originally purchased by the Company because they represented highly liquid, tax-preferred investments secured, in most cases, by preferred stock issued by high quality, investment grade companies (generally other financial institutions) (“collateral preferred shares”). The ARP shares, or certificates, purchased by the Company are Class A certificates, which, among other rights, entitle the holder to priority claim on dividends paid into the Trust holding the preferred shares. Beginning in February 2008, auctions for these securities began to fail when investors declined to bid on the securities. The auction failures did not result in the loss of any principal value to the certificate holders, but prevented many sellers from exiting, or redeeming, their certificates at the reset date. These unsuccessful sellers were required to continue to hold the certificates until the next scheduled reset date. To compensate these unsuccessful sellers, the failed auctions triggered a penalty-rate feature which provided that owners of the Class A certificates were entitled to a higher portion of the dividends, and thus a higher yield, on the Class A certificates. The Company had difficulty identifying market prices of comparable instruments for ARPs due to the inactive market. As a result, the Company modified as of June 30, 2009 its methodology for determining the fair value of the ARPs classified as Level 3, and used the quoted market values of the underlying collateral preferred shares, adjusted for the higher yield (dividend) earned by the Company through the Class A certificates compared with the nominal rate (dividend) available to a direct owner of the collateral preferred shares, with the resulting estimated fair value not to exceed par. All dividends are current. The Company has the ability and intent to hold these securities for the time necessary to collect the expected cash flows. For the years ended June 30, 2018 and 2017, there were no gains or losses (realized/unrealized) included in earnings or other comprehensive income on auction rate trust preferred securities. There were no liabilities measured at fair value on a recurring basis at June 30, 2018 and 2017. Assets Measured at Fair Value on a Non-Recurring Basis Under certain circumstances the Company makes adjustments to fair value for assets not measured at fair value on a recurring basis. The following table presents the assets carried on the consolidated balance sheets by caption and by level in the fair value hierarchy at June 30, 2018 and 2017, for which a nonrecurring fair value adjustment has been recorded: Total Losses for the Fair Value Measurements at Reporting Date Using: Year Ended Total Level 1 Level 2 Level 3 June 30, 2018 (In thousands) June 30, 2018 Impaired loans $ 160 $ - $ - $ 160 $ 29 Other real estate owned 110 - - 110 9 $ 270 $ - $ - $ 270 $ 38 Total Losses for the Fair Value Measurements at Reporting Date Using: Year Ended Total Level 1 Level 2 Level 3 June 30, 2017 (In thousands) June 30, 2017 Other real estate owned $ 345 $ - $ - $ 345 $ 43 $ 345 $ - $ - $ 345 $ 43 The amount of loans represents the carrying value of impaired loans net of related write-downs and valuation allowances for which adjustments are based on the estimated fair value of the underlying collateral. The other real estate owned amount represents the carrying value for which write-downs are based on the estimated fair value of the property. Fair value estimates are made at a specific point in time, based on relevant market information and information about the asset. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular asset. Because a market may not readily exist for a significant portion of the Company’s assets, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of assets, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumption could significantly affect the estimates. There were no liabilities measured at fair value on a non-recurring basis at June 30, 2018 and 2017. The estimated fair values and carrying values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows as of June 30: 2018 Carrying Level 1 Level 2 Level 3 Fair Value (In thousands) Financial assets: Cash and cash equivalents $ 10,102 $ 10,102 $ - $ - $ 10,102 Available-for-sale securities 46,546 - 36,546 10,000 46,546 Held-to-maturity securities 82,816 - 81,828 - 81,828 Federal Home Loan Bank stock 4,206 - - 4,206 4,206 Loans, net 352,270 - - 346,511 346,511 Accrued interest receivable 1,361 - - 1,361 1,361 Financial liabilities: Deposits 371,585 - - 372,563 372,563 Mortgagors' escrow accounts 3,123 - - 3,123 3,123 Federal Home Loan Bank advances 63,199 - 62,428 - 62,428 Securities sold under agreements to repurchase 664 - 664 - 664 Accrued interest payable 158 - - 158 158 2017 Carrying Level 1 Level 2 Level 3 Fair Value (In thousands) Financial assets: Cash and cash equivalents $ 10,173 $ 10,173 $ - $ - $ 10,173 Available-for-sale securities 60,150 - 50,150 10,000 60,150 Held-to-maturity securities 110,022 - 110,823 - 110,823 Federal Home Loan Bank stock 4,353 - - 4,353 4,353 Loans, net 309,792 - - 310,015 310,015 Accrued interest receivable 1,258 - - 1,258 1,258 Financial liabilities: Deposits 365,761 - - 367,233 367,233 Mortgagors' escrow accounts 2,850 - - 2,850 2,850 Federal Home Loan Bank advances 67,000 - 68,079 - 68,079 Securities sold under agreements to repurchase 1,582 - 1,582 - 1,582 Accrued interest payable 115 - - 115 115 |
OFF-BALANCE SHEET FINANCIAL INS
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | 11. OFF-BALANCE SHEET FINANCIAL INSTRUMENTS The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for loan commitments is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income-producing properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Notional amounts of commitments with off-balance-sheet credit risk are as follows as of June 30: 2018 2017 (In thousands) Commitments to originate loans $ 3,594 $ 3,859 Unadvanced portions of loans: Construction loans 8,822 9,469 Lines of credit 18,881 18,025 Letters of credit 395 710 Outstanding commitments $ 31,692 $ 32,063 |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Jun. 30, 2018 | |
Regulatory Matters [Abstract] | |
REGULATORY MATTERS | 12. REGULATORY MATTERS The Company, as a Small Bank Holding Company, is not subject to capital requirements. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), of Tier 1 capital to adjusted total assets (as defined) and Tangible capital (as defined) to Tangible assets (as defined). Management believes, as of June 30, 2018 and 2017, that the Bank meets all capital adequacy requirements to which it is subject. Additionally, 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 bonuses. The capital conservation buffer is being phased in over three years, beginning on January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented at 2.5% on January 1, 2019. Effective January 1, 2018, the capital conservation buffer was 1.875%. Also, certain deductions from and adjustments to regulatory capital are being phased in over several years. As of June 30, 2018, the most recent notification from the Federal Reserve Bank of Boston and the State of Connecticut Department of Banking categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total, Tier 1, and Common Equity Tier 1 risk based capital ratios, and Tier 1 leverage capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution’s category. The Bank’s actual capital amounts and ratios as of June 30, 2018 and 2017 are presented in the table: Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio (In thousands) As of June 30, 2018: Tier 1 Capital (to Adjusted Total Assets) $ 62,797 12.16 % $ 20,650 4.00 % $ 25,813 5.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 62,797 18.19 15,537 4.50 22,442 6.50 Tier 1 Capital (to Risk-Weighted Assets) 62,797 18.19 20,716 6.00 27,621 8.00 Total Capital (to Risk-Weighted Assets) 65,779 19.05 27,621 8.00 34,527 10.00 As of June 30, 2017: Tier 1 Capital (to Adjusted Total Assets) $ 62,813 12.56 % $ 19,997 4.00 % $ 24,997 5.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 62,813 19.33 14,621 4.50 21,120 6.50 Tier 1 Capital (to Risk-Weighted Assets) 62,813 19.33 19,495 6.00 25,993 8.00 Total Capital (to Risk-Weighted Assets) 65,632 20.20 25,993 8.00 32,492 10.00 The following table provides a reconciliation of the Company’s total consolidated equity to the capital amounts for the Bank reflected in the preceding table: June 30, 2018 2017 (In thousands) Total consolidated equity $ 84,289 $ 84,537 Adjustments: Equity capital of PB Bancorp, Inc. (15,155 ) (15,500 ) Disallowed intangible assets (5,679 ) (5,071 ) Disallowed deferred tax assets (1,088 ) (1,240 ) Unrealized losses on available-for-sale securities 430 87 Tier 1 and Common Equity Tier 1 Capital 62,797 62,813 Allowance for loan losses and off-balance sheet reserves 2,982 2,819 Total Risk-Based capital $ 65,779 $ 65,632 The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. The Bank will not be able to declare or pay a cash dividend on, or repurchase any of its common stock, if the effect thereof would be to reduce the regulatory capital of the Bank to an amount below amounts required under regulatory rules and regulations. Stock Repurchases and Dividends The Company may use capital management tools such as cash dividends and common share repurchases. The Company is subject to the Federal Reserve Board’s notice provisions for capital distributions and stock repurchases. On April 4, 2018, the Company adopted a second stock-repurchase program. Under the repurchase program, the Company may repurchase up to 193,012 shares of its common stock, or approximately 2.5% of the then-outstanding shares. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The repurchase program has no expiration date. As of June 30, 2018, the Company had repurchased 17,029 shares of its stock at an average price of $10.46 per share. For the year ended June 30, 2018, the Company’s Board of Directors declared one quarterly cash dividend of $0.04 per common share on July 5, 2017, two quarterly cash dividends of $0.05 per common share on October 4, 2017 and January 3, 2018 and one quarterly cash dividend of $0.06 per common share on April 18, 2018. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLANS | 13. BENEFIT PLANS 401(k) Plan The Company has a 401(k) plan covering each eligible employee. Employees must be 21 years of age, work at least 1,000 hours per year, and have at least one year of service with the Company to be eligible to participate. Employees may defer compensation up to certain limits defined in the Internal Revenue Code. The Company’s matching contribution is discretionary. For the years ended June 30, 2018 and 2017, the Company chose to contribute 50% of an employee’s deferral on a maximum of 5% of the employee’s salary. The Company contributed $80,000 and $76,000 in matching contributions to the plan during the years ended June 30, 2018 and 2017, respectively. The Company may also make additional discretionary contributions to the plan. During the years ended June 30, 2018 and 2017, additional discretionary contributions were made in the amounts of $233,000 and $171,000, respectively. Other Postretirement Benefit Plan The Company has recorded a liability for its future postretirement benefit obligations under certain death benefit agreements. The total liability for the arrangements included in other liabilities was $291,000 at June 30, 2018 and $274,000 at June 30, 2017. Expense under this arrangement was $17,000 and $80,000 for each of the years ended June 30, 2018 and 2017. There were no death benefits paid under these arrangements in 2018 and 2017. Employee Stock Ownership Plan The Company established an Employee Stock Ownership Plan (the “ESOP”) on October 4, 2004 in connection with its initial common stock offering to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified retirement plan for the benefit of all Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. The ESOP acquired 257,062 shares in the Company’s initial stock offering with the proceeds of a loan totaling $2.6 million from the Company. The loan had a term of 20 years at an initial rate of 4.75%. In conjunction with the Conversion described in Note 1, the ESOP purchased an additional 317,287 shares at $8.00 per share. To fund the purchase, the ESOP borrowed an additional $2.5 million which was combined with the outstanding balance of $1.4 million on the original loan. This resulted in a new ESOP loan of $3.9 million with an initial borrowing rate of 3.50% and a term of 25 years. The loan is secured by the shares purchased. The shares of stock purchased by the ESOP are held in a suspense account until they are released for allocation among participants. The shares will be released annually from the suspense account and the released shares will be allocated to the participants on the basis of each participant’s compensation for the year of allocation. As shares are released from collateral, the Company recognizes compensation expense equal to the average market price of the shares during the period and the shares will be outstanding for earnings-per-share purposes. The shares not released are reported as unearned ESOP shares in the stockholders’ equity section on the consolidated balance sheets. ESOP expense for the years ended June 30, 2018 and 2017 was $189,000 and $174,000, respectively. At June 30, 2018 and 2017 there were 217,980 and 199,963 allocated shares, respectively, and 405,388 and 423,405 unallocated shares, respectively. The fair value of unallocated ESOP shares at June 30, 2018 and 2017 was $4,601,000 and $4,467,000, respectively. Stock-based Incentive Plan At the annual meeting of stockholders on February 17, 2017, stockholders of the Company approved the PB Bancorp, Inc. 2017 Stock-Based Incentive Plan (the “Incentive Plan”). Under the Incentive Plan, the Company may grant up to 453,267 stock options and 181,306 shares of restricted stock to its employees, officers and directors for an aggregate amount of up to 634,573 shares of the Company’s common stock for issuance upon the grant or exercise of awards. Both incentive stock options and non-statutory stock options may be granted under the Incentive Plan. On March 30, 2017, the Company awarded 392,330 options to purchase the Company’s common stock and 147,750 shares of restricted stock. All of the awards granted to date vest evenly over a five year period from the date of the grant. Stock option awards were granted with an exercise price equal to the market price of the Company’s stock at the date of grant ($10.15) with a maximum term of ten years. As of June 30, 2018, there were 37,004 restricted stock awards and 64,937 stock options that remain available for future grants. Stock options are considered common stock equivalents for the purpose of computing earnings per share on a diluted basis. Restricted stock awards have non-forfeitable dividend rights, and are considered participating securities outstanding for the purpose of computing basic earnings per share. The Company has recorded share-based compensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. The fair value of each restricted stock allocation, based on the market price at the date of grant, is recorded to unearned stock awards. Compensation expenses related to unearned restricted shares are amortized to compensation and benefits expense over the vesting period of the restricted stock awards. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model which includes several assumptions such as volatility, expected dividends, expected term and risk-free rate for each stock option award. The weighted-average fair value of stock options granted on March 30, 2017 using the Black-Scholes option pricing method was $1.89 per share. Assumptions used to determine the weighted-average fair value of stock options granted were as follows: Dividend yield 1.18 % Expected volatility 17.13 % Risk-free rate 2.21 % Expected life in years 6.5 There were no options granted during the year ended June 30, 2018. The aggregate grant date fair value of options granted in 2017 was $742,000. A summary of the status of the outstanding stock options as of June 30, 2018 and changes during the year then ended is presented below: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Instrinsic Options Price Contractual Term Value (In years) (In thousands) Options outstanding at beginning of year 392,330 $ 10.15 Granted - - Exercised - - Forfeited (4,000 ) 10.15 Expired - - Outstanding at end of year 388,330 10.15 3.75 466 Options exercisable at end of year 78,466 $ 10.15 8.75 $ 94 The aggregate intrinsic value fluctuates based on changes in the fair market value of the Company’s stock. At June 30, 2018, the closing stock price was $11.35. The aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of June 2018 and the weighted- average exercise price, multiplied by the number of shares) that would have been received by the option holders had all options holders exercised their options on June 29, 2018. There were no shares that were exercised for the fiscal year ended June 30, 2018. Shares for the exercise of stock options are expected to come from the Company’s authorized and unissued shares. A summary of the status of the outstanding stock awards as of June 30, 2018 and changes during the year then ended is presented below: Number of Grant-date Shares Fair Value Non-vested stock awards at beginning of year 147,750 $ 10.15 Shares vested (29,550 ) 10.15 Non-vested stock awards at end of year 118,200 10.15 The total fair value of restricted shares vested in fiscal 2018 was $335,000. At June 30, 2018, there were $1.7 million in unrecognized compensation costs related to non-vested share-based compensation. That cost is expected to be recognized over a weighted period of 3.75 years. The Company recorded $447,000 and $115,000 share-based compensation expense for June 30, 2018 and 2017, respectively, in connection with the stock option and restricted stock awards. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS | 12 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS | 14. ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income/loss. The components of accumulated other comprehensive loss included in stockholders’ equity and related tax effects are as follows: At June 30, 2018 2017 (In thousands) Net unrealized loss on securities available-for-sale $ (671 ) $ (180 ) Tax effect 149 63 Accumulated other comprehensive loss $ (522 ) $ (117 ) The June 30, 2018 and 2017 ending balance includes $180,000 and $231,000 of pre-tax unrealized gains and (losses), respectively, on securities for which other-than-temporary impairment has been recognized. |
PARENT COMPANY ONLY FINANCIAL S
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 15. PARENT COMPANY ONLY FINANCIAL STATEMENTS The following unconsolidated financial statements are for the Company (Parent Company) and should be read in conjunction with the consolidated financial statements of the Company. Balance Sheets June 30, 2018 and 2017 (In thousands) 2018 2017 ASSETS Cash and due from depository institutions $ 3,542 $ 1,185 Investment in Putnam Bank 69,134 69,038 Investment in available-for-sale securities, at fair value 4,802 7,176 Investment in held-to-maturity securities (fair value of $2,094 as of June 30, 2018 and $2,339 as of June 30, 2017) 2,180 2,361 Loan to ESOP 3,692 3,788 Other assets 963 1,013 Total assets $ 84,313 $ 84,561 LIABILITIES AND STOCKHOLDERS' EQUITY Other liabilities $ 24 $ 24 Stockholders' equity 84,289 84,537 Total liabilities and stockholders' equity $ 84,313 $ 84,561 Statements of Net Income For the Years Ended June 30, 2018 and 2017 (In thousands) 2018 2017 Dividends from subsidiary $ 2,700 $ - Interest and dividends on investments 163 170 Interest on ESOP loan 159 136 Total interest and dividend income 3,022 306 Investment security gains 6 - Other expense 349 354 Income before income tax benefit and equity in undistributed net income of subsidiary 2,679 (48 ) Income tax benefit (49 ) (62 ) Income before equity in undistributed net income of subsidiary 2,728 14 Equity in undistributed net income of subsidiary 401 2,302 Net income $ 3,129 $ 2,316 Statements of Cash Flows June 30, 2018 and 2017 (In thousands) 2018 2017 Cash flows from operating activities: Net income $ 3,129 $ 2,316 Adjustments to reconcile net income to cash provided by operating activities: Amortization of securities premium, net 16 19 Gain on sale of available-for-sale securities (6 ) - ESOP expense 189 174 Share-based compensation expense 447 115 Decrease (increase) in other assets 79 (104 ) Increase in due from subsidiary (5 ) (59 ) Decrease in other liabilities - (18 ) Undistributed net income of subsidiary (401 ) (2,302 ) Net cash provided by operating activities 3,448 141 Cash flows from investing activities: Proceeds from the sales of available-for-sale securities 1,665 - Proceeds from paydowns and maturities of available-for-sale securities 621 718 Proceeds from paydowns and maturities of held-to-maturity securities 182 131 Principal payments received on loan to ESOP 96 103 Net cash provided by investing activities 2,564 952 Cash flows from financing activities: Cash dividends paid on common stock (1,549 ) (1,022 ) Proceeds from issuance of common stock in connection with stock options exercised - 63 Common stock repurchased (2,078 ) (2,223 ) Cancellation of shares for tax withholding (28 ) - Net cash used in financing activities (3,655 ) (3,182 ) Net increase (decrease) in cash and cash equivalents 2,357 (2,089 ) Cash and cash equivalents at beginning of year 1,185 3,274 Cash and cash equivalents at end of year $ 3,542 $ 1,185 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, Windham North Properties, LLC, PSB Realty, LLC, and Putnam Bank Mortgage Servicing Company. Windham North Properties, LLC is used to acquire title to selected properties on which Putnam Bank forecloses. PSB Realty, LLC owns a parcel of real estate located immediately adjacent to Putnam Bank’s main office. This real estate is utilized as a loan center for Putnam Bank and there are no outside tenants that occupy the premises. PSB Realty, LLC also owns the 40 High Street, Norwich branch building and real estate. Putnam Bank Mortgage Servicing Company is a qualified “passive investment company” that is intended to reduce Connecticut state taxes on interest earned on real estate loans. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term are the allowance for loan losses, other-than-temporary impairment of securities, the valuation of goodwill and the realizability of deferred tax assets. |
Reclassifications | Reclassifications Reclassifications are made to prior year financial statements when necessary to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from depository institutions and interest-bearing deposits with other banks. Cash and due from banks as of June 30, 2018 and 2017 includes $300,000 and $400,000, respectively which is subject to withdrawal and usage restrictions to satisfy the reserve requirements and target balances of Atlantic Community Bankers Bank. Cash is maintained in bank accounts which, at times, may exceed insured limits. The Company has not experienced any losses in said accounts and does not believe it is exposed to any significant credit risk on this cash. |
Securities | Securities Purchase premiums and discounts are amortized to earnings so as to approximate the interest method. Discounts and, prior to January 1, 2017, premiums are amortized over the contractual lives of the securities. Effective January 1, 2017, premiums are amortized over the earliest call date or the estimated lives of the securities. Gains or losses on sales of investment securities are computed on a specific identification basis. All security transactions are recorded on the trade date. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale, or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities are classified as available-for-sale. Held-to-maturity securities are measured at amortized cost on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings or in other comprehensive income/loss, but are disclosed in the notes to the consolidated financial statements. Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are included in other comprehensive income/loss, net of applicable taxes. Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. The Company held no securities classified as trading at June 30, 2018 and 2017. Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity, with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”). OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income/loss, net of applicable taxes. |
Federal Home Loan Bank of Boston Stock | Federal Home Loan Bank of Boston Stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB of Boston. Based on redemption provisions, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB of Boston may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the stock. As of June 30, 2018, no impairment has been recognized. |
Loans | Loans The Company’s loan portfolio includes residential real estate, commercial real estate, residential construction, commercial and consumer/other segments. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on all loans is discontinued at the time a loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, specific and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; loan concentrations; trends in volume and terms of loans; changes in lending practices and procedures; changes in lending management and staff; changes in the value of underlying collateral; changes in the quality of the loan review system; national and local economic trends and conditions and the effects of other external factors. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate - The Company does not originate loans with a loan-to-value ratio greater than 100% and does not originate subprime loans. Loans originated with a loan-to-value ratio greater than 80% generally require private mortgage insurance. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate - Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans. Residential construction – Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Consumer/other - Loans in this segment are generally secured and repayment is dependent on the credit quality of the individual borrower. Specific component The specific component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent or foreclosure is probable. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer/other and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring (“TDR”) agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring. All TDRs are classified as impaired. Unallocated component An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general reserves in the portfolio. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in earnings. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets or term of lease if shorter. Estimated lives are 5 to 40 years for buildings, 3 to 20 years for equipment and leasehold improvements over lease terms which range from 1 to 25 years. Expenditures for replacements or major improvements are capitalized; expenditures for normal maintenance and repairs are charged to expense as incurred. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned includes properties acquired through foreclosure. These properties are carried at the lower of cost or estimated fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent write-downs and gains or losses recognized upon sale are charged to earnings. |
Goodwill | Goodwill Goodwill is measured as the excess of the cost of a business acquisition over the sum of the amounts assigned to identifiable tangible and intangible assets acquired less liabilities assumed. Goodwill is not amortized but is reviewed for impairment annually or more frequently if circumstances warrant. The Company uses the following two-step approach for reviewing goodwill for impairment: The first step (“Step 1”) is used to identify potential impairment, and involves comparing the reporting unit’s (the consolidated Company) estimated fair value to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not deemed to be impaired. Should the carrying amount of the reporting unit exceed its estimated fair value, an indicator of impairment is deemed to exist and a second step is performed to measure the amount of such impairment, if any. The second step (“Step 2”) involves calculating the implied fair value of goodwill. The implied fair value of goodwill is determined in a manner similar to how the amount of goodwill is determined in a business combination (i.e. by measuring the excess of the estimated fair value, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities, and identifiable intangibles as of the impairment testing date). If the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting unit, no impairment exists. If the carrying amount of goodwill exceeds the implied fair value of the goodwill, an impairment loss is recorded in an amount equal to such excess. An impairment loss cannot exceed the carrying amount of goodwill, and the loss (write-down) establishes a new carrying amount for the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which are dependent on internal forecasts, estimation of the long-term rate of growth, the period over which cash flows will occur, and determination of our cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions related to goodwill impairment. For the years ended June 30, 2018 and 2017, the Company had no goodwill impairment. |
Bank-owned Life Insurance | Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of net income and are not subject to income taxes. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and Cash Equivalents: Investment Securities and FHLB Stock: Loans, net: The fair values of each loan segment, excluding home equity line of credit, were estimated by discounting the anticipated cash flows from the respective segment. Estimates of the timing and amount of these cash flows considered factors such as future loan prepayments. The discount rates reflected current market rates for loans with similar terms to borrowers of similar credit quality. The fair value of home equity lines of credit was based on the outstanding loan balances. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Accrued interest: Deposits and Mortgagors’ Escrow: Federal Home Loan Bank Advances: Securities Sold Under Agreements to Repurchase: Off-Balance Sheet Instruments: |
Earnings per Share (EPS) | Earnings per Share (EPS) Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. If rights to dividends on unvested awards are non-forfeitable, these unvested stock awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Treasury shares and unallocated ESOP shares are not deemed outstanding for earnings per share calculations. The calculation of basic and diluted earnings per share for the years ended June 30, 2018 and 2017 is presented below: Years Ended June 30, 2018 2017 Net income $ 3,129,000 $ 2,316,000 Weighted average common shares applicable to basic EPS 7,312,636 7,424,299 Effect of dilutive potential common shares - 892 Weighted average common shares applicable to diluted EPS 7,312,636 7,425,191 Earnings per share: Basic $ 0.43 $ 0.31 Diluted $ 0.43 $ 0.31 For the years ended June 30, 2018 and 2017, options for 388,330 and 392,330 shares, respectively, were not included in the computation of earnings per share as the effects were anti-dilutive. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset 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, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. |
Advertising | Advertising The Company directly expenses costs associated with advertising as they are incurred. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment. Accordingly, the changes resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 have been recognized in the consolidated financial statements for the year ended June 30, 2018. See Note 8 for further details. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax benefits related to stock compensation in excess of grant date fair value less any proceeds on exercise are recognized as an increase to additional paid-in capital upon vesting or exercising and delivery of the stock. Any income tax effects related to stock compensation that are less than grant date fair value less any proceeds on exercise would be recognized as a reduction of additional paid-in capital to the extent of previously recognized income tax benefits and then through income tax expense for the remaining amount. |
Employee Benefit Plans | Employee Benefit Plans Unearned ESOP shares are not considered outstanding and are therefore not taken into account when computing earnings per share. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. As shares are committed to be released, compensation expense is recognized based on the average fair market value of the stock and stockholders’ equity is increased by a corresponding amount. As more fully described in Note 13, the Company has a share-based incentive plan authorizing various types of incentive awards that may be granted to directors, officers and employees. The Company records share-based compensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. |
Recent Accounting and Regulatory Pronouncements | Recent Accounting and Regulatory Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall, (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Topic 718 Compensation-Stock Compensation |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of computation of EPS on basic and diluted basis | Years Ended June 30, 2018 2017 Net income $ 3,129,000 $ 2,316,000 Weighted average common shares applicable to basic EPS 7,312,636 7,424,299 Effect of dilutive potential common shares - 892 Weighted average common shares applicable to diluted EPS 7,312,636 7,425,191 Earnings per share: Basic $ 0.43 $ 0.31 Diluted $ 0.43 $ 0.31 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of carrying value and estimated fair values of investment securities by maturity | Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2018: Available-for-sale: Debt securities: U.S. government and government-sponsored securities: Due in one year or less $ 1,000 $ - $ (4 ) $ 996 After ten years 3,419 - (87 ) 3,332 4,419 - (91 ) 4,328 Corporate bonds and other securities: Due from five through ten years 1,999 - (129 ) 1,870 After ten years 2,000 - (140 ) 1,860 3,999 - (269 ) 3,730 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 3,135 - (125 ) 3,010 From five through ten years 4,919 - (95 ) 4,824 After ten years 17,688 135 (406 ) 17,417 25,742 135 (626 ) 25,251 Non-agency mortgage-backed securities: Due after ten years 3,057 483 (303 ) 3,237 Total debt securities 37,217 618 (1,289 ) 36,546 Equity securities: Auction rate preferred: Due from five through ten years 8,000 - - 8,000 After ten years 2,000 - - 2,000 Total equity securities 10,000 - - 10,000 Total available-for-sale securities $ 47,217 $ 618 $ (1,289 ) $ 46,546 Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2017: Available-for-sale: Debt securities: U.S. government and government-sponsored securities: Due from one through five years $ 1,000 $ - $ (5 ) $ 995 After ten years 3,788 - (17 ) 3,771 4,788 - (22 ) 4,766 Corporate bonds and other securities: Due from five through ten years 3,000 - (193 ) 2,807 Due after ten years 2,999 - (228 ) 2,771 5,999 - (421 ) 5,578 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due in one year or less 40 1 - 41 From five through ten years 8,280 29 (73 ) 8,236 After ten years 27,574 224 (160 ) 27,638 35,894 254 (233 ) 35,915 Non-agency mortgage-backed securities: Due after ten years 3,649 473 (231 ) 3,891 Total debt securities 50,330 727 (907 ) 50,150 Equity securities: Auction rate preferred: Due from five through ten years 8,000 - - 8,000 After ten years 2,000 - - 2,000 Total equity securities 10,000 - - 10,000 Total available-for-sale securities $ 60,330 $ 727 $ (907 ) $ 60,150 Amortized Gross Unrealized Fair Cost Basis Gains (Losses) Value (In thousands) June 30, 2018: Held-to-maturity: U.S. Government and government-sponsored securities: Due in one year or less $ 2,001 $ - $ (9 ) $ 1,992 From one through five years 4,976 25 (33 ) 4,968 After ten years 4,796 - (189 ) 4,607 11,773 25 (231 ) 11,567 State agency and municipal obligations Due from one through five years 446 - (14 ) 432 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 846 5 (8 ) 843 From five through ten years 12,123 14 (384 ) 11,753 After ten years 57,628 518 (913 ) 57,233 70,597 537 (1,305 ) 69,829 Total held-to-maturity securities $ 82,816 $ 562 $ (1,550 ) $ 81,828 June 30, 2017: Held-to-maturity: U.S. Government and government-sponsored securities: Due in one year or less $ 2,250 $ - $ (2 ) $ 2,248 Due from one through five years 6,966 108 - 7,074 After ten years 5,195 - (50 ) 5,145 14,411 108 (52 ) 14,467 State agency and municipal obligations Due from five through ten years 451 - (6 ) 445 U.S. Government-sponsored and guaranteed mortgage-backed securities: Due from one through five years 1,119 40 - 1,159 From five through ten years 6,709 65 - 6,774 After ten years 87,332 1,001 (355 ) 87,978 95,160 1,106 (355 ) 95,911 Total held-to-maturity securities $ 110,022 $ 1,214 $ (413 ) $ 110,823 |
Schedule of securities in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) June 30, 2018: Available-for-sale: U.S. Government and government-sponsored securities $ - $ - $ 4,328 $ 91 $ 4,328 $ 91 Corporate bonds and other securities - - 3,730 269 3,730 269 U.S. Government-sponsored and guaranteed mortgage-backed securities 7,331 123 14,914 503 22,245 626 Total temporarily impaired available-for-sale securities 7,331 123 22,972 863 30,303 986 Held-to-maturity: U.S. Government and government-sponsored securities 5,956 42 4,606 189 10,562 231 State and political subdivisions 432 14 - - 432 14 U.S. Government-sponsored and guaranteed mortgage-backed securities 34,387 708 16,880 597 51,267 1,305 Total temporarily impaired held-to-maturity 40,775 764 21,486 786 62,261 1,550 Other-than-temporarily impaired debt securities: (1) Non-agency mortgage-backed securities - - 1,134 303 1,134 303 Total temporarily impaired and other-than-temporarily impaired securities $ 48,106 $ 887 $ 45,592 $ 1,952 $ 93,698 $ 2,839 June 30, 2017: Available-for-sale: U.S. Government and government-sponsored securities $ 995 $ 5 $ 3,771 $ 17 4,766 22 Corporate bonds and other securities - - 5,578 421 5,578 421 U.S. Government-sponsored and guaranteed mortgage-backed securities 17,798 192 3,539 41 21,337 233 Total temporarily impaired available-for-sale securities 18,793 197 12,888 479 31,681 676 Held-to-maturity: U.S. Government and government-sponsored securities 7,393 52 - - 7,393 52 State and political subdivisions 445 6 - - 445 6 U.S. Government-sponsored and guaranteed mortgage-backed securities 27,910 211 7,928 144 35,838 355 Total temporarily impaired held-to-maturity 35,748 269 7,928 144 43,676 413 Other-than-temporarily impaired debt securities: (1) Non-agency mortgage-backed securities - - 1,331 231 1,331 231 Total temporarily impaired and other-than-temporarily impaired securities $ 54,541 $ 466 $ 22,147 $ 854 $ 76,688 $ 1,320 (1) Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss. |
Schedule of amount of credit losses on debt securities | 2018 2017 (In thousands) Balance at beginning of year $ 15,982 $ 15,982 Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded 1 - Balance at end of year $ 15,983 $ 15,982 |
Schedule of valuation of non-agency mortgage-backed securities | Weighted Range Average Minimum Maximum Prepayment rates 19.7 % 0.6 % 31.6 % Default rates 5.2 % 0.0 % 14.0 % Loss severity 48.5 % 0.0 % 91.4 % |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of composition of loan portfolio | 2018 2017 (In thousands) Real estate: Residential (1) $ 236,880 $ 225,745 Commercial 101,647 71,558 Residential construction 2,217 1,000 Commercial 12,215 12,123 Consumer and other 831 829 Total loans 353,790 311,255 Net deferred loan costs 1,423 1,317 Allowance for loan losses (2,943 ) (2,780 ) Loans, net $ 352,270 $ 309,792 (1) Residential real estate loans include one-to-four family mortgage loans, second mortgage loans, and home equity lines of credit. |
Schedule of analysis of the allowance for loan losses | Residential Commercial Residential Consumer Real Estate Real Estate Construction Commercial and Other Unallocated Total (In thousands) Year Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 Charge-offs (83 ) - - - (42 ) - (125 ) Recoveries 33 - - 15 15 - 63 Provision (credit) 76 30 8 (11 ) 76 46 225 Ending balance $ 1,385 $ 1,194 $ 14 $ 80 $ 135 $ 135 $ 2,943 At June 30, 2018 Ending balance of allowance for loan losses: Impaired loans $ - $ - $ - $ - $ - $ - $ - Ending balance of allowance for loan losses: Non-impaired loans $ 1,385 $ 1,194 $ 14 $ 80 $ 135 $ 135 $ 2,943 Ending balance: Non-impaired loans $ 234,148 $ 100,417 $ 2,217 $ 12,215 $ 831 $ - $ 349,828 Ending balance: Impaired loans $ 2,732 $ 1,230 $ - $ - $ - $ - $ 3,962 Loans: Ending balance $ 236,880 $ 101,647 $ 2,217 $ 12,215 $ 831 $ - $ 353,790 Year Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 1,171 $ 967 $ 6 $ 78 $ 20 $ 61 $ 2,303 Charge-offs (100 ) - - (11 ) (32 ) - (143 ) Recoveries 46 - - 10 16 - 72 Provision (credit) 242 197 - (1 ) 82 28 548 Ending balance $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 At June 30, 2017 Ending balance of allowance for loan losses: Impaired loans $ - $ - $ - $ - $ - $ - $ - Ending balance of allowance for loan losses: Non-impaired loans $ 1,359 $ 1,164 $ 6 $ 76 $ 86 $ 89 $ 2,780 Ending balance: Non-impaired loans $ 223,483 $ 70,229 $ 1,000 $ 12,123 $ 829 $ - $ 307,664 Ending balance: Impaired loans $ 2,262 $ 1,329 $ - $ - $ - $ - $ 3,591 Loans: Ending balance $ 225,745 $ 71,558 $ 1,000 $ 12,123 $ 829 $ - $ 311,255 |
Schedule of the company's loan classes by risk rating | Residential Commercial Residential Consumer Real Estate Real Estate Construction Commercial and Other Total (In thousands) June 30, 2018 Grade: Pass $ 232,919 $ 98,626 $ 2,217 $ 11,157 $ 830 $ 345,749 Special Mention 2 698 - 1,058 - 1,758 Substandard 3,959 2,323 - - 1 6,283 Doubtful - - - - - - Loss - - - - - - Total $ 236,880 $ 101,647 $ 2,217 $ 12,215 $ 831 $ 353,790 June 30, 2017 Grade: Pass $ 221,514 $ 68,675 $ 1,000 $ 12,123 $ 827 $ 304,139 Special Mention 394 715 - - - 1,109 Substandard 3,837 2,168 - - 2 6,007 Doubtful - - - - - - Loss - - - - - - Total $ 225,745 $ 71,558 $ 1,000 $ 12,123 $ 829 $ 311,255 |
Schedule of the past due and non-accrual loans | 90 days 30–59 Days 60–89 Days or Greater Total Total Past Due Past Due Past Due Past Due Non-accrual (In thousands) 2018 Real estate: Residential $ 50 $ 238 $ 1,119 $ 1,407 $ 3,959 Commercial - - 124 124 432 Consumer and other 4 - - 4 1 Total $ 54 $ 238 $ 1,243 $ 1,535 $ 4,392 2017 Real estate: Residential $ 230 $ 349 $ 455 $ 1,034 $ 3,837 Commercial - - - - 594 Consumer and other 3 - - 3 2 Total $ 233 $ 349 $ 455 $ 1,037 $ 4,433 |
Schedule of information pertaining to impaired loans | At June 30, 2018 Year Ended June 30, 2018 Interest Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized on Cash Basis (In thousands) Total impaired loans without a valuation allowance: Real estate: Residential $ 2,732 $ 2,870 $ - $ 2,301 $ 42 $ 29 Commercial 1,230 1,914 - 1,278 87 - Total $ 3,962 $ 4,784 $ - $ 3,579 $ 129 $ 29 At June 30, 2017 Year Ended June 30, 2017 Interest Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized on Cash Basis (In thousands) Impaired loans without a valuation allowance: Real estate: Residential $ 2,262 $ 2,367 $ - $ 2,199 $ 30 $ - Commercial 1,329 2,013 - 1,925 108 - Commercial - - - 11 - - Total $ 3,591 $ 4,380 $ - $ 4,135 $ 138 $ - |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | 2018 2017 (In thousands) Land $ 470 $ 470 Buildings and leasehold improvements 6,215 6,244 Equipment 2,802 2,801 9,487 9,515 Accumulated depreciation and amortization (6,234 ) (6,032 ) Premises and equipment, net $ 3,253 $ 3,483 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
Schedule of deposits | 2018 2017 (In thousands) Demand deposits $ 71,428 $ 71,783 NOW accounts 81,944 86,010 Regular savings 83,320 82,046 Money market accounts 20,146 18,473 Club accounts 258 272 257,096 258,584 Certificate accounts maturing in the years ending June 30: 2018 - 39,038 2019 45,278 25,389 2020 31,904 16,489 2021 14,118 11,435 2022 14,327 14,826 2023 8,862 - 114,489 107,177 Total deposits $ 371,585 $ 365,761 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed funds | 2018 2017 Amount Due Weighted Amount Due Weighted (Dollars in thousands) Short-term borrowings: Securities sold under agreements to repurchase $ 664 0.10 % $ 1,582 0.10 % |
Schedule of long-term FHLB of Boston advances maturing in the years | Long-term FHLB of Boston advances maturing in the years ending: 2018 - 0.00 33,000 2.30 2019 1,000 1.43 - 0.00 2020 22,000 1.89 12,000 2.00 2021 22,500 2.06 11,000 1.94 2022 11,000 1.79 11,000 1.79 2023 5,000 2.32 - 0.00 Thereafter 1,699 0.50 - 0.00 Total 63,199 1.92 67,000 2.10 Total borrowed funds $ 63,863 1.90 % $ 68,582 2.06 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | 2018 2017 (In thousands) Current: Federal $ 860 $ 152 State 1 1 Total current 861 153 Deferred: Federal 304 669 State - - Total deferred 304 669 Income tax expense $ 1,165 $ 822 |
Schedule of summary of differences between the statutory federal income tax rate and the effective tax rates | 2018 2017 (In thousands) Federal income tax at statutory rate $ 1,181 $ 1,067 Increase (decrease) in tax resulting from: State taxes, net of federal benefit 1 1 Stock-based compensation 26 (8 ) Dividends received deduction (88 ) (110 ) Bank-owned life insurance (98 ) (121 ) Tax-exempt municipal income, net (84 ) (18 ) Effect of federal rate change 211 - Other, net 16 11 Income tax expense $ 1,165 $ 822 Effective tax rates 27.1 % 26.2 % |
Schedule of gross deferred tax assets and gross deferred tax liabilities | 2018 2017 (In thousands) Deferred tax assets: Allowance for loan losses $ 555 $ 821 Net unrealized holding loss on available-for-sale securities 149 63 Deferred compensation 131 202 Stock-based compensation 129 77 Impairment losses on securities available-for-sale 531 859 Accrued expenses 116 163 Post retirement benefits 61 93 Interest receivable on non-accrual loans 74 91 Federal carryovers 1,208 1,348 Other 91 146 Gross deferred tax asset 3,045 3,863 Valuation allowance - - Gross deferred tax assets, net of valuation allowance 3,045 3,863 Deferred tax liabilities: Depreciation and amortization (1,164 ) (1,675 ) Deferred loan costs (173 ) (297 ) Other (17 ) (29 ) Gross deferred tax liability (1,354 ) (2,001 ) Net deferred tax asset $ 1,691 $ 1,862 |
OTHER COMMITMENTS AND CONTING32
OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of total minimum rental due in future periods under existing agreements | Rental Expense Due (In thousands) 2019 164 2020 109 2021 60 2022 10 Total $ 343 |
FAIR VALUE MEASURMENTS (Tables)
FAIR VALUE MEASURMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of summary of assets measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In thousands) June 30, 2018 Securities available-for-sale: U. S. Government and government-sponsored securities $ 4,328 $ - $ 4,328 $ - Corporate bonds and other securities 3,730 - 3,730 - U.S. Government-sponsored and guaranteed mortgage-backed securities 25,251 - 25,251 - Non-agency mortgage-backed securities 3,237 - 3,237 - Equity securities 10,000 - - 10,000 Total $ 46,546 $ - $ 36,546 $ 10,000 June 30, 2017 Securities available-for-sale: U. S. Government and government-sponsored securities $ 4,766 $ - $ 4,766 $ - Corporate bonds and other securities 5,578 - 5,578 - U.S. Government-sponsored and guaranteed mortgage-backed securities 35,915 - 35,915 - Non-agency mortgage-backed securities 3,891 - 3,891 - Equity securities 10,000 - - 10,000 Total $ 60,150 $ - $ 50,150 $ 10,000 |
Schedule of assets measured at fair value on a non-recurring basis and the adjustments to the carrying value | Total Losses for the Fair Value Measurements at Reporting Date Using: Year Ended Total Level 1 Level 2 Level 3 June 30, 2018 (In thousands) June 30, 2018 Impaired loans $ 160 $ - $ - $ 160 $ 29 Other real estate owned 110 - - 110 9 $ 270 $ - $ - $ 270 $ 38 Total Losses for the Fair Value Measurements at Reporting Date Using: Year Ended Total Level 1 Level 2 Level 3 June 30, 2017 (In thousands) June 30, 2017 Other real estate owned $ 345 $ - $ - $ 345 $ 43 $ 345 $ - $ - $ 345 $ 43 |
Schedule of estimated fair value of financial instruments which are held or issued for purposes other than trading | 2018 Carrying Level 1 Level 2 Level 3 Fair Value (In thousands) Financial assets: Cash and cash equivalents $ 10,102 $ 10,102 $ - $ - $ 10,102 Available-for-sale securities 46,546 - 36,546 10,000 46,546 Held-to-maturity securities 82,816 - 81,828 - 81,828 Federal Home Loan Bank stock 4,206 - - 4,206 4,206 Loans, net 352,270 - - 346,511 346,511 Accrued interest receivable 1,361 - - 1,361 1,361 Financial liabilities: Deposits 371,585 - - 372,563 372,563 Mortgagors' escrow accounts 3,123 - - 3,123 3,123 Federal Home Loan Bank advances 63,199 - 62,428 - 62,428 Securities sold under agreements to repurchase 664 - 664 - 664 Accrued interest payable 158 - - 158 158 2017 Carrying Level 1 Level 2 Level 3 Fair Value (In thousands) Financial assets: Cash and cash equivalents $ 10,173 $ 10,173 $ - $ - $ 10,173 Available-for-sale securities 60,150 - 50,150 10,000 60,150 Held-to-maturity securities 110,022 - 110,823 - 110,823 Federal Home Loan Bank stock 4,353 - - 4,353 4,353 Loans, net 309,792 - - 310,015 310,015 Accrued interest receivable 1,258 - - 1,258 1,258 Financial liabilities: Deposits 365,761 - - 367,233 367,233 Mortgagors' escrow accounts 2,850 - - 2,850 2,850 Federal Home Loan Bank advances 67,000 - 68,079 - 68,079 Securities sold under agreements to repurchase 1,582 - 1,582 - 1,582 Accrued interest payable 115 - - 115 115 |
OFF-BALANCE SHEET FINANCIAL I34
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of notional amounts of commitments with off-balance-sheet credit risk | 2018 2017 (In thousands) Commitments to originate loans $ 3,594 $ 3,859 Unadvanced portions of loans: Construction loans 8,822 9,469 Lines of credit 18,881 18,025 Letters of credit 395 710 Outstanding commitments $ 31,692 $ 32,063 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Regulatory Matters [Abstract] | |
Schedule of Bank's actual capital amounts and ratios | Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio (In thousands) As of June 30, 2018: Tier 1 Capital (to Adjusted Total Assets) $ 62,797 12.16 % $ 20,650 4.00 % $ 25,813 5.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 62,797 18.19 15,537 4.50 22,442 6.50 Tier 1 Capital (to Risk-Weighted Assets) 62,797 18.19 20,716 6.00 27,621 8.00 Total Capital (to Risk-Weighted Assets) 65,779 19.05 27,621 8.00 34,527 10.00 As of June 30, 2017: Tier 1 Capital (to Adjusted Total Assets) $ 62,813 12.56 % $ 19,997 4.00 % $ 24,997 5.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 62,813 19.33 14,621 4.50 21,120 6.50 Tier 1 Capital (to Risk-Weighted Assets) 62,813 19.33 19,495 6.00 25,993 8.00 Total Capital (to Risk-Weighted Assets) 65,632 20.20 25,993 8.00 32,492 10.00 |
Schedule of reconciliation of total consolidated equity to capital amounts for Bank reflected | June 30, 2018 2017 (In thousands) Total consolidated equity $ 84,289 $ 84,537 Adjustments: Equity capital of PB Bancorp, Inc. (15,155 ) (15,500 ) Disallowed intangible assets (5,679 ) (5,071 ) Disallowed deferred tax assets (1,088 ) (1,240 ) Unrealized losses on available-for-sale securities 430 87 Tier 1 and Common Equity Tier 1 Capital 62,797 62,813 Allowance for loan losses and off-balance sheet reserves 2,982 2,819 Total Risk-Based capital $ 65,779 $ 65,632 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of determine the weighted-average fair value of stock options granted | Dividend yield 1.18 % Expected volatility 17.13 % Risk-free rate 2.21 % Expected life in years 6.5 |
Schedule of summary of status of Incentive Plan | Weighted Weighted Average Average Aggregate Number of Exercise Remaining Instrinsic Options Price Contractual Term Value (In years) (In thousands) Options outstanding at beginning of year 392,330 $ 10.15 Granted - - Exercised - - Forfeited (4,000 ) 10.15 Expired - - Outstanding at end of year 388,330 10.15 3.75 466 Options exercisable at end of year 78,466 $ 10.15 8.75 $ 94 |
Schedule of changes in outstanding nonvested stock awards | Number of Grant-date Shares Fair Value Non-vested stock awards at beginning of year 147,750 $ 10.15 Shares vested (29,550 ) 10.15 Non-vested stock awards at end of year 118,200 10.15 |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | At June 30, 2018 2017 (In thousands) Net unrealized loss on securities available-for-sale $ (671 ) $ (180 ) Tax effect 149 63 Accumulated other comprehensive loss $ (522 ) $ (117 ) |
PARENT COMPANY ONLY FINANCIAL38
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of balance sheets | Balance Sheets June 30, 2018 and 2017 (In thousands) 2018 2017 ASSETS Cash and due from depository institutions $ 3,542 $ 1,185 Investment in Putnam Bank 69,134 69,038 Investment in available-for-sale securities, at fair value 4,802 7,176 Investment in held-to-maturity securities (fair value of $2,094 as of June 30, 2018 and $2,339 as of June 30, 2017) 2,180 2,361 Loan to ESOP 3,692 3,788 Other assets 963 1,013 Total assets $ 84,313 $ 84,561 LIABILITIES AND STOCKHOLDERS' EQUITY Other liabilities $ 24 $ 24 Stockholders' equity 84,289 84,537 Total liabilities and stockholders' equity $ 84,313 $ 84,561 |
Schedule of statements of net income | Statements of Net Income For the Years Ended June 30, 2018 and 2017 (In thousands) 2018 2017 Dividends from subsidiary $ 2,700 $ - Interest and dividends on investments 163 170 Interest on ESOP loan 159 136 Total interest and dividend income 3,022 306 Investment security gains 6 - Other expense 349 354 Income before income tax benefit and equity in undistributed net income of subsidiary 2,679 (48 ) Income tax benefit (49 ) (62 ) Income before equity in undistributed net income of subsidiary 2,728 14 Equity in undistributed net income of subsidiary 401 2,302 Net income $ 3,129 $ 2,316 |
Schedule of statements of cash flows | Statements of Cash Flows June 30, 2018 and 2017 (In thousands) 2018 2017 Cash flows from operating activities: Net income $ 3,129 $ 2,316 Adjustments to reconcile net income to cash provided by operating activities: Amortization of securities premium, net 16 19 Gain on sale of available-for-sale securities (6 ) - ESOP expense 189 174 Share-based compensation expense 447 115 Decrease (increase) in other assets 79 (104 ) Increase in due from subsidiary (5 ) (59 ) Decrease in other liabilities - (18 ) Undistributed net income of subsidiary (401 ) (2,302 ) Net cash provided by operating activities 3,448 141 Cash flows from investing activities: Proceeds from the sales of available-for-sale securities 1,665 - Proceeds from paydowns and maturities of available-for-sale securities 621 718 Proceeds from paydowns and maturities of held-to-maturity securities 182 131 Principal payments received on loan to ESOP 96 103 Net cash provided by investing activities 2,564 952 Cash flows from financing activities: Cash dividends paid on common stock (1,549 ) (1,022 ) Proceeds from issuance of common stock in connection with stock options exercised - 63 Common stock repurchased (2,078 ) (2,223 ) Cancellation of shares for tax withholding (28 ) - Net cash used in financing activities (3,655 ) (3,182 ) Net increase (decrease) in cash and cash equivalents 2,357 (2,089 ) Cash and cash equivalents at beginning of year 1,185 3,274 Cash and cash equivalents at end of year $ 3,542 $ 1,185 |
NATURE OF OPERATIONS AND REOR39
NATURE OF OPERATIONS AND REORGANIZATION (Detail Textuals) $ / shares in Units, $ in Millions | Jan. 07, 2016USD ($)$ / sharesshares |
Organization [Line Items] | |
Net proceeds from common stock offering | $ | $ 33.7 |
Stock issued during period | 4,215,387 |
Common stock, issue price (in dollars per share) | $ / shares | $ 8 |
ESOP shares issued | 317,287 |
Share exchange conversion rate | 1.1907 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||
Net income | $ 3,129 | $ 2,316 |
Weighted average common shares applicable to basic EPS (in shares) | 7,312,636 | 7,424,299 |
Effect of dilutive potential common shares (in shares) | 0 | 892 |
Weighted average common shares applicable to diluted EPS (in shares) | 7,312,636 | 7,425,191 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.43 | $ 0.31 |
Diluted (in dollars per share) | $ 0.43 | $ 0.31 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies Line Items | ||
Cash and due from banks subject to withdrawals and usage restrictions | $ 300,000 | $ 400,000 |
Depreciation method | straight-line method | |
Number of options excluded from computation of earnings per share | 388,330 | 392,330 |
Buildings | Minimum | ||
Accounting Policies Line Items | ||
Estimated lives | 5 years | |
Buildings | Maximum | ||
Accounting Policies Line Items | ||
Estimated lives | 40 years | |
Equipment | Minimum | ||
Accounting Policies Line Items | ||
Estimated lives | 3 years | |
Equipment | Maximum | ||
Accounting Policies Line Items | ||
Estimated lives | 20 years | |
Leasehold improvements | Minimum | ||
Accounting Policies Line Items | ||
Estimated lives | 1 year | |
Leasehold improvements | Maximum | ||
Accounting Policies Line Items | ||
Estimated lives | 25 years |
INVESTMENT SECURITIES - The amo
INVESTMENT SECURITIES - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Available-for-sale debt securities | ||
Available-for-sale securities, amortized cost basis | $ 37,217 | $ 50,330 |
Available-for-sale securities, Gross Unrealized Gains | 618 | 727 |
Available-for-sale securities, Gross Unrealized (Losses) | (1,289) | (907) |
Available-for-sale securities, Fair Value | 36,546 | 50,150 |
U.S. Government and government-sponsored securities | ||
Available-for-sale debt securities | ||
Due in one year or less, Amortized Cost | 1,000 | |
Due in one year or less, Gross Unrealized Gains | 0 | |
Due in one year or less, Gross Unrealized (Losses) | (4) | |
Due in one year or less, Fair Value | 996 | |
Due from one through five years, Amortized Cost | 1,000 | |
Due from one through five years, Gross Unrealized Gains | 0 | |
Due from one through five years, Gross Unrealized (Losses) | (5) | |
Due from one through five years, Fair Value | 995 | |
After ten years, Amortized Cost | 3,419 | 3,788 |
After ten years, Gross Unrealized Gains | 0 | 0 |
After ten years, Gross Unrealized (Losses) | (87) | (17) |
After ten years, Fair Value | 3,332 | 3,771 |
Available-for-sale securities, amortized cost basis | 4,419 | 4,788 |
Available-for-sale securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale securities, Gross Unrealized (Losses) | (91) | (22) |
Available-for-sale securities, Fair Value | 4,328 | 4,766 |
Corporate bonds and other securities | ||
Available-for-sale debt securities | ||
Due from five through ten years, Amortised Cost | 1,999 | 3,000 |
Due from five through ten years, Gross Unrealized Gains | 0 | 0 |
Due from five through ten years, Gross Unrealized (Losses) | (129) | (193) |
Due from five through ten years, Fair Value | 1,870 | 2,807 |
After ten years, Amortized Cost | 2,000 | 2,999 |
After ten years, Gross Unrealized Gains | 0 | 0 |
After ten years, Gross Unrealized (Losses) | (140) | (228) |
After ten years, Fair Value | 1,860 | 2,771 |
Available-for-sale securities, amortized cost basis | 3,999 | 5,999 |
Available-for-sale securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale securities, Gross Unrealized (Losses) | (269) | (421) |
Available-for-sale securities, Fair Value | 3,730 | 5,578 |
U.S. Government sponsored and guaranteed mortgage-backed securities | ||
Available-for-sale debt securities | ||
Due in one year or less, Amortized Cost | 40 | |
Due in one year or less, Gross Unrealized Gains | 1 | |
Due in one year or less, Gross Unrealized (Losses) | 0 | |
Due in one year or less, Fair Value | 41 | |
Due from one through five years, Amortized Cost | 3,135 | |
Due from one through five years, Gross Unrealized Gains | 0 | |
Due from one through five years, Gross Unrealized (Losses) | (125) | |
Due from one through five years, Fair Value | 3,010 | |
Due from five through ten years, Amortised Cost | 4,919 | 8,280 |
Due from five through ten years, Gross Unrealized Gains | 0 | 29 |
Due from five through ten years, Gross Unrealized (Losses) | (95) | (73) |
Due from five through ten years, Fair Value | 4,824 | 8,236 |
After ten years, Amortized Cost | 17,688 | 27,574 |
After ten years, Gross Unrealized Gains | 135 | 224 |
After ten years, Gross Unrealized (Losses) | (406) | (160) |
After ten years, Fair Value | 17,417 | 27,638 |
Available-for-sale securities, amortized cost basis | 25,742 | 35,894 |
Available-for-sale securities, Gross Unrealized Gains | 135 | 254 |
Available-for-sale securities, Gross Unrealized (Losses) | (626) | (233) |
Available-for-sale securities, Fair Value | 25,251 | 35,915 |
Non-agency mortgage-backed securities | ||
Available-for-sale debt securities | ||
After ten years, Amortized Cost | 3,057 | 3,649 |
After ten years, Gross Unrealized Gains | 483 | 473 |
After ten years, Gross Unrealized (Losses) | (303) | (231) |
After ten years, Fair Value | $ 3,237 | $ 3,891 |
INVESTMENT SECURITIES - The a43
INVESTMENT SECURITIES - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 1) - Auction rate preferred - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Due from five through ten years, Amortized Cost | $ 8,000 | $ 8,000 |
Due from five through ten years, Gross Unrealized Gains | 0 | 0 |
Due from five through ten years, Gross Unrealized (Losses) | 0 | 0 |
Due from five through ten years, Fair Value | 8,000 | 8,000 |
After ten years, Amortized Cost | 2,000 | 2,000 |
After ten years, Gross Unrealized Gains | 0 | 0 |
After ten years, Gross Unrealized (Losses) | 0 | 0 |
After ten years, Fair Value | 2,000 | 2,000 |
Amortized Cost Basis | 10,000 | 10,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | 0 | 0 |
Fair Value | $ 10,000 | $ 10,000 |
INVESTMENT SECURITIES - The a44
INVESTMENT SECURITIES - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost Basis | $ 47,217 | $ 60,330 |
Gross Unrealized Gains | 618 | 727 |
Gross Unrealized (Losses) | (1,289) | (907) |
Fair Value | $ 46,546 | $ 60,150 |
INVESTMENT SECURITIES - The a45
INVESTMENT SECURITIES - The amortized cost of securities unrealized gains and losses and their fair values by maturity (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity securities, amortized cost basis | $ 82,816 | $ 110,022 |
Held-to-maturity securities, Gross Unrealized Gains | 562 | 1,214 |
Held-to-maturity securities, Gross Unrealized (Losses) | (1,550) | (413) |
Held-to-maturity securities, Fair Value | 81,828 | 110,823 |
U.S. Government and government-sponsored securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Due in one year or less, amortized cost basis | 2,001 | 2,250 |
Due in one year or less, Gross Unrealized Gains | 0 | 0 |
Due in one year or less, Gross Unrealized (Losses) | (9) | (2) |
Due in one year or less, Fair Value | 1,992 | 2,248 |
From one through five years, Amortized Cost Basis | 4,976 | 6,966 |
From one through five years, Gross Unrealized Gains | 25 | 108 |
From one through five years, Gross Unrealized (Losses) | (33) | 0 |
From one through five years, fair value | 4,968 | 7,074 |
After ten years, Amortized Cost Basis | 4,796 | 5,195 |
After ten years, Gross Unrealized Gains | 0 | 0 |
After ten years, Gross Unrealized (Losses) | (189) | (50) |
After ten years gross, fair value | 4,607 | 5,145 |
Held-to-maturity securities, amortized cost basis | 11,773 | 14,411 |
Held-to-maturity securities, Gross Unrealized Gains | 25 | 108 |
Held-to-maturity securities, Gross Unrealized (Losses) | (231) | (52) |
Held-to-maturity securities, Fair Value | 11,567 | 14,467 |
State agency and municipal obligations | ||
Debt Securities, Held-to-maturity [Abstract] | ||
From one through five years, Amortized Cost Basis | 446 | |
From one through five years, Gross Unrealized Gains | 0 | |
From one through five years, Gross Unrealized (Losses) | (14) | |
From one through five years, fair value | 432 | |
From five through ten years, Amortized Cost Basis | 451 | |
From five through ten years, Gross Unrealized Gains | 0 | |
From five through ten years, Gross Unrealized (Losses) | (6) | |
From five through ten years, fair value | 445 | |
U.S. Government sponsored and guaranteed mortgage-backed securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
From one through five years, Amortized Cost Basis | 846 | 1,119 |
From one through five years, Gross Unrealized Gains | 5 | 40 |
From one through five years, Gross Unrealized (Losses) | (8) | 0 |
From one through five years, fair value | 843 | 1,159 |
From five through ten years, Amortized Cost Basis | 12,123 | 6,709 |
From five through ten years, Gross Unrealized Gains | 14 | 65 |
From five through ten years, Gross Unrealized (Losses) | (384) | 0 |
From five through ten years, fair value | 11,753 | 6,774 |
After ten years, Amortized Cost Basis | 57,628 | 87,332 |
After ten years, Gross Unrealized Gains | 518 | 1,001 |
After ten years, Gross Unrealized (Losses) | (913) | (355) |
After ten years gross, fair value | 57,233 | 87,978 |
Held-to-maturity securities, amortized cost basis | 70,597 | 95,160 |
Held-to-maturity securities, Gross Unrealized Gains | 537 | 1,106 |
Held-to-maturity securities, Gross Unrealized (Losses) | (1,305) | (355) |
Held-to-maturity securities, Fair Value | $ 69,829 | $ 95,911 |
INVESTMENT SECURITIES - The agg
INVESTMENT SECURITIES - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 7,331 | $ 18,793 |
Less than 12 Months, Unrealized Loss | 123 | 197 |
12 Months or More, Fair Value | 22,972 | 12,888 |
12 Months or More, Unrealized Loss | 863 | 479 |
Total, Fair Value | 30,303 | 31,681 |
Total, Unrealized Loss | 986 | 676 |
U.S. Government and government-sponsored securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 995 |
Less than 12 Months, Unrealized Loss | 0 | 5 |
12 Months or More, Fair Value | 4,328 | 3,771 |
12 Months or More, Unrealized Loss | 91 | 17 |
Total, Fair Value | 4,328 | 4,766 |
Total, Unrealized Loss | 91 | 22 |
Corporate bonds and other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 Months or More, Fair Value | 3,730 | 5,578 |
12 Months or More, Unrealized Loss | 269 | 421 |
Total, Fair Value | 3,730 | 5,578 |
Total, Unrealized Loss | 269 | 421 |
U.S. Government-sponsored and guaranteed mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 7,331 | 17,798 |
Less than 12 Months, Unrealized Loss | 123 | 192 |
12 Months or More, Fair Value | 14,914 | 3,539 |
12 Months or More, Unrealized Loss | 503 | 41 |
Total, Fair Value | 22,245 | 21,337 |
Total, Unrealized Loss | $ 626 | $ 233 |
INVESTMENT SECURITIES - The a47
INVESTMENT SECURITIES - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 5) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 40,775 | $ 35,748 |
Less than 12 Months, Unrealized Loss | 764 | 269 |
12 Months or More, Fair Value | 21,486 | 7,928 |
12 Months or More, Unrealized Loss | 786 | 144 |
Total, Fair Value | 62,261 | 43,676 |
Total, Unrealized Loss | 1,550 | 413 |
U.S. Government and government-sponsored securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 5,956 | 7,393 |
Less than 12 Months, Unrealized Loss | 42 | 52 |
12 Months or More, Fair Value | 4,606 | 0 |
12 Months or More, Unrealized Loss | 189 | 0 |
Total, Fair Value | 10,562 | 7,393 |
Total, Unrealized Loss | 231 | 52 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 432 | 445 |
Less than 12 Months, Unrealized Loss | 14 | 6 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Loss | 0 | 0 |
Total, Fair Value | 432 | 445 |
Total, Unrealized Loss | 14 | 6 |
U.S. Government sponsored and guaranteed mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 34,387 | 27,910 |
Less than 12 Months, Unrealized Loss | 708 | 211 |
12 Months or More, Fair Value | 16,880 | 7,928 |
12 Months or More, Unrealized Loss | 597 | 144 |
Total, Fair Value | 51,267 | 35,838 |
Total, Unrealized Loss | $ 1,305 | $ 355 |
INVESTMENT SECURITIES - The a48
INVESTMENT SECURITIES - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 6) - Non-agency mortgage-backed securities - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule Of Debt Securities [Line Items] | |||
Less than 12 Months, Fair Value | [1] | $ 0 | $ 0 |
Less than 12 Months, Unrealized Loss | [1] | 0 | 0 |
12 Months or More, Fair Value | [1] | 1,134 | 1,331 |
12 Months or More, Unrealized Loss | [1] | 303 | 231 |
Total, Fair Value | [1] | 1,134 | 1,331 |
Total, Unrealized Loss | [1] | $ 303 | $ 231 |
[1] | Includes other-than-temporary impaired available-for-sale debt securities in which a portion of the other-than-temporary impairment loss remains in accumulated other comprehensive loss. |
INVESTMENT SECURITIES - The a49
INVESTMENT SECURITIES - The aggregate fair value and unrealized losses on securities that have been in a continuous unrealized loss position (Details 7) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 12 Months, Fair Value | $ 48,106 | $ 54,541 |
Less than 12 Months, Unrealized Loss | 887 | 466 |
12 Months or More, Fair value | 45,592 | 22,147 |
12 Months or More, Unrealized Loss | 1,952 | 854 |
Total, Fair Value | 93,698 | 76,688 |
Total, Unrealized Loss | $ 2,839 | $ 1,320 |
INVESTMENT SECURITIES - Activit
INVESTMENT SECURITIES - Activity related to the credit component recognized in earnings on debt securities(Details 8) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning of year | $ 15,982 | $ 15,982 |
Additional credit losses on securities for which an other-than-temporary impairment charge was previously recorded | 1 | 0 |
Balance at end of year | $ 15,983 | $ 15,982 |
INVESTMENT SECURITIES - Signifi
INVESTMENT SECURITIES - Significant assumptions used in the valuation of non-agency mortgage-backed securities (Details 9) | Jun. 30, 2018 |
Maximum | Prepayment rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 31.6 |
Maximum | Default rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 14 |
Maximum | Loss severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 91.4 |
Minimum | Prepayment rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 0.6 |
Minimum | Default rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 0 |
Minimum | Loss severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 0 |
Weighted Average | Prepayment rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 19.7 |
Weighted Average | Default rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 5.2 |
Weighted Average | Loss severity | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage-backed securities measurement input | 48.5 |
INVESTMENT SECURITIES (Detail T
INVESTMENT SECURITIES (Detail Textuals) | 12 Months Ended | |
Jun. 30, 2018USD ($)Security | Jun. 30, 2017USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Proceeds from the sales of securities | $ 3,625,000 | |
Gross realized gains | 7,000 | |
Carrying value of securities pledged as collateral | 75,797,000 | $ 99,674,000 |
Other-than-temporary impairment charges on available-for-sale securities | $ 1,000 | |
Corporate bonds and other securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of available for sale securities with unrealized losses | Security | 3 | |
Percentage of amortized cost basis as aggregate depreciation of investment securities | 6.73% | |
U.S. Government and government-sponsored securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of available for sale securities with unrealized losses | Security | 88 | |
Percentage of amortized cost basis as aggregate depreciation of investment securities | 2.48% | |
State and political subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of available for sale securities with unrealized losses | Security | 1 | |
Percentage of amortized cost basis as aggregate depreciation of investment securities | 3.16% |
Loans - Summary of loans (Detai
Loans - Summary of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 353,790 | $ 311,255 | |
Net deferred loan costs | 1,423 | 1,317 | |
Allowance for loan losses | (2,943) | (2,780) | |
Loans, net | 352,270 | 309,792 | |
Real Estate | Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | [1] | 236,880 | 225,745 |
Real Estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 101,647 | 71,558 | |
Real Estate | Residential construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 2,217 | 1,000 | |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 12,215 | 12,123 | |
Consumer and Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 831 | $ 829 | |
[1] | Residential real estate loans include one-to-four family mortgage loans, second mortgage loans, and home equity lines of credit. |
Loans - Summary of allowance fo
Loans - Summary of allowance for loan losses and loans by portfolio segment (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for loan losses: | ||
Beginning balance | $ 2,780 | $ 2,303 |
Charge-offs | (125) | (143) |
Recoveries | 63 | 72 |
Provision (credit) | 225 | 548 |
Ending Balance | 2,943 | 2,780 |
Real Estate | Residential | ||
Allowance for loan losses: | ||
Beginning balance | 1,359 | 1,171 |
Charge-offs | (83) | (100) |
Recoveries | 33 | 46 |
Provision (credit) | 76 | 242 |
Ending Balance | 1,385 | 1,359 |
Real Estate | Commercial | ||
Allowance for loan losses: | ||
Beginning balance | 1,164 | 967 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) | 30 | 197 |
Ending Balance | 1,194 | 1,164 |
Real Estate | Residential Construction | ||
Allowance for loan losses: | ||
Beginning balance | 6 | 6 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) | 8 | 0 |
Ending Balance | 14 | 6 |
Commercial | ||
Allowance for loan losses: | ||
Beginning balance | 76 | 78 |
Charge-offs | 0 | (11) |
Recoveries | 15 | 10 |
Provision (credit) | (11) | (1) |
Ending Balance | 80 | 76 |
Consumer and Other | ||
Allowance for loan losses: | ||
Beginning balance | 86 | 20 |
Charge-offs | (42) | (32) |
Recoveries | 15 | 16 |
Provision (credit) | 76 | 82 |
Ending Balance | 135 | 86 |
Unallocated | ||
Allowance for loan losses: | ||
Beginning balance | 89 | 61 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (credit) | 46 | 28 |
Ending Balance | $ 135 | $ 89 |
Loans - Summary of impaired and
Loans - Summary of impaired and non-impaired loans and allowance for loan losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | $ 2,943 | $ 2,780 | $ 2,303 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 353,790 | 311,255 | ||
Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 3,962 | 3,591 | ||
Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 2,943 | 2,780 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 349,828 | 307,664 | ||
Real Estate | Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 1,385 | 1,359 | 1,171 | |
Loans: Ending balance Impaired loans/Non-impaired loans | [1] | 236,880 | 225,745 | |
Real Estate | Residential | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 2,732 | 2,262 | ||
Real Estate | Residential | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 1,385 | 1,359 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 234,148 | 223,483 | ||
Real Estate | Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 1,194 | 1,164 | 967 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 101,647 | 71,558 | ||
Real Estate | Commercial | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 1,230 | 1,329 | ||
Real Estate | Commercial | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 1,194 | 1,164 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 100,417 | 70,229 | ||
Real Estate | Residential Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 14 | 6 | 6 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 2,217 | 1,000 | ||
Real Estate | Residential Construction | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 0 | 0 | ||
Real Estate | Residential Construction | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 14 | 6 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 2,217 | 1,000 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 80 | 76 | 78 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 12,215 | 12,123 | ||
Commercial | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 0 | 0 | ||
Commercial | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 80 | 76 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 12,215 | 12,123 | ||
Consumer and Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 135 | 86 | 20 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 831 | 829 | ||
Consumer and Other | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 0 | 0 | ||
Consumer and Other | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 135 | 86 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 831 | 829 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 135 | 89 | $ 61 | |
Loans: Ending balance Impaired loans/Non-impaired loans | 0 | 0 | ||
Unallocated | Impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 0 | 0 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | 0 | 0 | ||
Unallocated | Non-impaired loan receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending balance : Amount of allowance for loan losses for Impaired/ Non-impaired loans | 135 | 89 | ||
Loans: Ending balance Impaired loans/Non-impaired loans | $ 0 | $ 0 | ||
[1] | Residential real estate loans include one-to-four family mortgage loans, second mortgage loans, and home equity lines of credit. |
Loans - Loans by risk rating (D
Loans - Loans by risk rating (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 353,790 | $ 311,255 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 345,749 | 304,139 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,758 | 1,109 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,283 | 6,007 | |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | [1] | 236,880 | 225,745 |
Real Estate | Residential | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 232,919 | 221,514 | |
Real Estate | Residential | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2 | 394 | |
Real Estate | Residential | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,959 | 3,837 | |
Real Estate | Residential | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential | Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 101,647 | 71,558 | |
Real Estate | Commercial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 98,626 | 68,675 | |
Real Estate | Commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 698 | 715 | |
Real Estate | Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,323 | 2,168 | |
Real Estate | Commercial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Commercial | Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,217 | 1,000 | |
Real Estate | Residential construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,217 | 1,000 | |
Real Estate | Residential construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential construction | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Real Estate | Residential construction | Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,215 | 12,123 | |
Commercial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 11,157 | 12,123 | |
Commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,058 | 0 | |
Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Commercial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Commercial | Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Consumer and Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 831 | 829 | |
Consumer and Other | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 830 | 827 | |
Consumer and Other | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Consumer and Other | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1 | 2 | |
Consumer and Other | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Consumer and Other | Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 | |
[1] | Residential real estate loans include one-to-four family mortgage loans, second mortgage loans, and home equity lines of credit. |
Loans - Summary of past due and
Loans - Summary of past due and non-accrual loans (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,535 | $ 1,037 |
Total non-accrual loans | 4,392 | 4,433 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 54 | 233 |
60-89 DaysPast Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 238 | 349 |
90 days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,243 | 455 |
Real Estate | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,407 | 1,034 |
Total non-accrual loans | 3,959 | 3,837 |
Real Estate | Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 50 | 230 |
Real Estate | Residential | 60-89 DaysPast Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 238 | 349 |
Real Estate | Residential | 90 days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,119 | 455 |
Real Estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 124 | 0 |
Total non-accrual loans | 432 | 594 |
Real Estate | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real Estate | Commercial | 60-89 DaysPast Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real Estate | Commercial | 90 days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 124 | 0 |
Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 3 |
Total non-accrual loans | 1 | 2 |
Consumer and Other | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 3 |
Consumer and Other | 60-89 DaysPast Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer and Other | 90 days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans - Summary of impaired loa
Loans - Summary of impaired loans (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without valuation allowance, Recorded investment | $ 3,962 | $ 3,591 |
Impaired loans without valuation allowance, Unpaid principal balance | 4,784 | 4,380 |
Impaired loans without valuation allowance, Average Recorded investment | 3,579 | 4,135 |
Impaired loans without valuation allowance, Interest Income Recognized | 129 | 138 |
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis | 29 | 0 |
Real Estate | Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without valuation allowance, Recorded investment | 2,732 | 2,262 |
Impaired loans without valuation allowance, Unpaid principal balance | 2,870 | 2,367 |
Impaired loans without valuation allowance, Average Recorded investment | 2,301 | 2,199 |
Impaired loans without valuation allowance, Interest Income Recognized | 42 | 30 |
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis | 29 | 0 |
Real Estate | Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without valuation allowance, Recorded investment | 1,230 | 1,329 |
Impaired loans without valuation allowance, Unpaid principal balance | 1,914 | 2,013 |
Impaired loans without valuation allowance, Average Recorded investment | 1,278 | 1,925 |
Impaired loans without valuation allowance, Interest Income Recognized | 87 | 108 |
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis | $ 0 | 0 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without valuation allowance, Recorded investment | 0 | |
Impaired loans without valuation allowance, Unpaid principal balance | 0 | |
Impaired loans without valuation allowance, Average Recorded investment | 11 | |
Impaired loans without valuation allowance, Interest Income Recognized | 0 | |
Impaired loans without valuation allowance, Interest Income Recognized on Cash Basis | $ 0 |
Loans (Detail Textuals)
Loans (Detail Textuals) | 12 Months Ended | |
Jun. 30, 2018USD ($)Loan | Jun. 30, 2017USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan purchases | $ 21,480,000 | $ 27,420,000 |
Additional funds available to be advanced in connection with TDR loan | 0 | |
Unpaid principal balances of mortgage and other loans serviced for others | 22,236,000 | 25,880,000 |
Mortgage servicing rights, balance | 81,000 | 88,000 |
Real Estate | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan purchases | $ 21,348,000 | $ 27,420,000 |
Real Estate | Residential | 90 days or Greater Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | Loan | 1 | |
Loan amount | $ 32,000 | |
Real Estate | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan purchases | $ 132,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 9,487 | $ 9,515 |
Accumulated depreciation and amortization | (6,234) | (6,032) |
Premises and equipment, net | 3,253 | 3,483 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 470 | 470 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,215 | 6,244 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 2,802 | $ 2,801 |
PREMISES AND EQUIPMENT (Detail
PREMISES AND EQUIPMENT (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense on premises and equipment | $ 329 | $ 328 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deposit Liabilities [Abstract] | ||
Demand deposits | $ 71,428 | $ 71,783 |
NOW accounts | 81,944 | 86,010 |
Regular savings | 83,320 | 82,046 |
Money market accounts | 20,146 | 18,473 |
Club accounts | 258 | 272 |
Deposit accounts | 257,096 | 258,584 |
Certificate accounts maturing in the years ending June 30: | ||
2,018 | 0 | 39,038 |
2,019 | 45,278 | 25,389 |
2,020 | 31,904 | 16,489 |
2,021 | 14,118 | 11,435 |
2,022 | 14,327 | 14,826 |
2,023 | 8,862 | 0 |
Certificate accounts, total | 114,489 | 107,177 |
Total deposits | $ 371,585 | $ 365,761 |
DEPOSITS (Detail Textuals)
DEPOSITS (Detail Textuals) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Deposit Liabilities [Abstract] | |
Aggregate amount of time deposits of $250,000 or more | $ 25,172,000 |
Brokered deposits | $ 9,760,000 |
BORROWED FUNDS - Summary of bor
BORROWED FUNDS - Summary of borrowed funds (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Short-term borrowings: | ||
Securities sold under agreements to repurchase, Amount due | $ 664 | $ 1,582 |
Securities sold under agreements to repurchase, Weighted average rate | 0.10% | 0.10% |
Long-term FHLB of Boston advances maturing in the years ending: | ||
Amount due in 2018 | $ 0 | $ 33,000 |
Amount due in 2019 | 1,000 | 0 |
Amount due in 2020 | 22,000 | 12,000 |
Amount due in 2021 | 22,500 | 11,000 |
Amount due in 2022 | 11,000 | 11,000 |
Amount due in 2023 | 5,000 | 0 |
Thereafter | 1,699 | 0 |
Total long-term FHLB advances, Amount due | 63,199 | 67,000 |
Total borrowed funds, amount due | $ 63,863 | $ 68,582 |
Weighted Average Rate, 2018 | 0.00% | 2.30% |
Weighted Average Rate, 2019 | 1.43% | 0.00% |
Weighted Average Rate, 2020 | 1.89% | 2.00% |
Weighted Average Rate, 2021 | 2.06% | 1.94% |
Weighted Average Rate, 2022 | 1.79% | 1.79% |
Weighted Average Rate, 2023 | 2.32% | 0.00% |
Thereafter | 0.50% | 0.00% |
Total long-term FHLB advances, Weighted average rate | 1.92% | 2.10% |
Total borrowed funds, Weighted average rate | 1.90% | 2.06% |
BORROWED FUNDS (Detail Textuals
BORROWED FUNDS (Detail Textuals) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Repurchase agreements | U.S. Government and government-sponsored securities | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral amount | $ 6,498,000 | $ 21,753,000 |
Federal Home Loan Bank of Boston | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Loans with a principal balance, pledged to secure available borrowings from the FHLB | 76,438,000 | $ 65,201,000 |
Line of credit with Federal Home Loan Bank of Boston | 2,354,000 | |
Liquidity line of credit with Bankers Bank Northeast | $ 4,000,000 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income tax expense (benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | ||
Federal | $ 860 | $ 152 |
State | 1 | 1 |
Total current | 861 | 153 |
Deferred: | ||
Federal | 304 | 669 |
State | 0 | 0 |
Total deferred | 304 | 669 |
Income tax expense | $ 1,165 | $ 822 |
INCOME TAXES - Summary of reaso
INCOME TAXES - Summary of reasons for the differences between the statutory federal income tax rate and the effective tax rates (Detail 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | $ 1,181 | $ 1,067 |
Increase (decrease) in tax resulting from: | ||
State taxes, net of federal benefit | 1 | 1 |
Stock-based compensation | 26 | (8) |
Dividends received deduction | (88) | (110) |
Bank-owned life insurance | (98) | (121) |
Tax-exempt municipal income, net | (84) | (18) |
Effect of federal rate change | 211 | 0 |
Other, net | 16 | 11 |
Income tax expense | $ 1,165 | $ 822 |
Effective tax rates | 27.10% | 26.20% |
INCOME TAXES - Gross deferred t
INCOME TAXES - Gross deferred tax assets and gross deferred tax liabilities (Detail 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 555 | $ 821 |
Net unrealized holding loss on available-for-sale securities | 149 | 63 |
Deferred compensation | 131 | 202 |
Stock-based compensation | 129 | 77 |
Impairment losses on securities available-for-sale | 531 | 859 |
Accrued expenses | 116 | 163 |
Post retirement benefits | 61 | 93 |
Interest receivable on non-accrual loans | 74 | 91 |
Federal carryovers | 1,208 | 1,348 |
Other | 91 | 146 |
Gross deferred tax asset | 3,045 | 3,863 |
Valuation allowance | 0 | 0 |
Gross deferred tax assets, net of valuation allowance | 3,045 | 3,863 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,164) | (1,675) |
Deferred loan costs | (173) | (297) |
Other | (17) | (29) |
Gross deferred tax liability | (1,354) | (2,001) |
Net deferred tax asset | $ 1,691 | $ 1,862 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Alternative Minimum Tax credit carryovers | $ 1,200,000 | $ 1,300,000 |
Contribution carryovers | 61,000 | |
Tax reserve for loan losses | 2,284,000 | |
Valuation allowance | 0 | 0 |
Unrecognized Tax | 480,000 | 480,000 |
Effect of federal rate change | $ 211,000 | $ 0 |
Statutory federal income tax rate | 27.50% | 34.00% |
Additional tax expense of net unrealized losses on securities available-for-sale due to reclassification to TCJA | $ 47,000 | |
Additional tax expense of accumulated other comprehensive loss to retained earnings | $ 47,000 | |
Year - 2017 | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory federal income tax rate | 34.00% | |
Year - 2018 | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory federal income tax rate | 21.00% |
OTHER COMMITMENTS AND CONTING70
OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 164 |
2,020 | 109 |
2,021 | 60 |
2,022 | 10 |
Total | $ 343 |
OTHER COMMITMENTS AND CONTING71
OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Total rental expense | $ 180,000 | $ 163,000 |
FAIR VALUE MEASURMENTS - Assets
FAIR VALUE MEASURMENTS - Assets measured at fair value on a recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Available-for-sale: | ||
Assets measured at fair value | $ 46,546 | $ 60,150 |
U.S. government and government-sponsored securities | ||
Available-for-sale: | ||
Assets measured at fair value | 4,328 | 4,766 |
Corporate bonds and other securities | ||
Available-for-sale: | ||
Assets measured at fair value | 3,730 | 5,578 |
U.S. Government-sponsored and guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 25,251 | 35,915 |
Non-agency mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 3,237 | 3,891 |
Equity securities | ||
Available-for-sale: | ||
Assets measured at fair value | 10,000 | 10,000 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. government and government-sponsored securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Corporate bonds and other securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. Government-sponsored and guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Non-agency mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Equity securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Available-for-sale: | ||
Assets measured at fair value | 36,546 | 50,150 |
Significant Other Observable Inputs Level 2 | U.S. government and government-sponsored securities | ||
Available-for-sale: | ||
Assets measured at fair value | 4,328 | 4,766 |
Significant Other Observable Inputs Level 2 | Corporate bonds and other securities | ||
Available-for-sale: | ||
Assets measured at fair value | 3,730 | 5,578 |
Significant Other Observable Inputs Level 2 | U.S. Government-sponsored and guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 25,251 | 35,915 |
Significant Other Observable Inputs Level 2 | Non-agency mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 3,237 | 3,891 |
Significant Other Observable Inputs Level 2 | Equity securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Available-for-sale: | ||
Assets measured at fair value | 10,000 | 10,000 |
Significant Unobservable Inputs Level 3 | U.S. government and government-sponsored securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | Corporate bonds and other securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | U.S. Government-sponsored and guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | Non-agency mortgage-backed securities | ||
Available-for-sale: | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | Equity securities | ||
Available-for-sale: | ||
Assets measured at fair value | $ 10,000 | $ 10,000 |
FAIR VALUE MEASURMENTS - Asse73
FAIR VALUE MEASURMENTS - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details 1) - Fair value measurements non recurring basis - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 270 | $ 345 |
Total Losses | 38 | 43 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 160 | |
Total Losses | 29 | |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 110 | 345 |
Total Losses | 9 | 43 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | |
Significant Other Observable Inputs Level 2 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 270 | 345 |
Significant Unobservable Inputs Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 160 | |
Significant Unobservable Inputs Level 3 | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 110 | $ 345 |
FAIR VALUE MEASURMENTS - Compan
FAIR VALUE MEASURMENTS - Company's financial instruments, all of which are held or issued for purposes other than trading (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financial assets: | ||
Available-for-sale securities | $ 46,546 | $ 60,150 |
Held-to-maturity securities | 81,828 | 110,823 |
Accrued interest receivable | 1,361 | 1,258 |
Financial liabilities: | ||
Mortgagors' escrow accounts | 3,123 | 2,850 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 10,102 | 10,173 |
Available-for-sale securities | 46,546 | 60,150 |
Held-to-maturity securities | 82,816 | 110,022 |
Federal Home Loan Bank Stock | 4,206 | 4,353 |
Loans, net | 352,270 | 309,792 |
Accrued interest receivable | 1,361 | 1,258 |
Financial liabilities: | ||
Deposits | 371,585 | 365,761 |
Mortgagors' escrow accounts | 3,123 | 2,850 |
Federal Home Loan Bank advances | 63,199 | 67,000 |
Securities sold under agreements to repurchase | 664 | 1,582 |
Accrued interest payable | 158 | 115 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 10,102 | 10,173 |
Available-for-sale securities | 46,546 | 60,150 |
Held-to-maturity securities | 81,828 | 110,823 |
Federal Home Loan Bank Stock | 4,206 | 4,353 |
Loans, net | 346,511 | 310,015 |
Accrued interest receivable | 1,361 | 1,258 |
Financial liabilities: | ||
Deposits | 372,563 | 367,233 |
Mortgagors' escrow accounts | 3,123 | 2,850 |
Federal Home Loan Bank advances | 62,428 | 68,079 |
Securities sold under agreements to repurchase | 664 | 1,582 |
Accrued interest payable | 158 | 115 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 10,102 | 10,173 |
Available-for-sale securities | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
Federal Home Loan Bank Stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors' escrow accounts | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 36,546 | 50,150 |
Held-to-maturity securities | 81,828 | 110,823 |
Federal Home Loan Bank Stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors' escrow accounts | 0 | 0 |
Federal Home Loan Bank advances | 62,428 | 68,079 |
Securities sold under agreements to repurchase | 664 | 1,582 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 10,000 | 10,000 |
Held-to-maturity securities | 0 | 0 |
Federal Home Loan Bank Stock | 4,206 | 4,353 |
Loans, net | 346,511 | 310,015 |
Accrued interest receivable | 1,361 | 1,258 |
Financial liabilities: | ||
Deposits | 372,563 | 367,233 |
Mortgagors' escrow accounts | 3,123 | 2,850 |
Federal Home Loan Bank advances | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Accrued interest payable | $ 158 | $ 115 |
OFF-BALANCE SHEET FINANCIAL I75
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS - Summary of Notional amounts of commitments with off-balance-sheet credit risk (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||
Outstanding commitments | $ 31,692 | $ 32,063 |
Commitments to originate loans | ||
Line of Credit Facility [Line Items] | ||
Outstanding commitments | 3,594 | 3,859 |
Unadvanced construction loans | ||
Line of Credit Facility [Line Items] | ||
Outstanding commitments | 8,822 | 9,469 |
Unadvanced lines of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding commitments | 18,881 | 18,025 |
Unadvanced letters of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding commitments | $ 395 | $ 710 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Regulatory Matters [Abstract] | ||
Tier 1 Capital (to Adjusted Total Assets), Actual Amount | $ 62,797 | $ 62,813 |
Tier 1 Capital (to Adjusted Total Assets), Actual Ratio | 12.16% | 12.56% |
Tier 1 Capital (to Adjusted Total Assets), For Capital Adequacy Purposes Amount | $ 20,650 | $ 19,997 |
Tier 1 Capital (to Adjusted Total Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Adjusted Total Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 25,813 | $ 24,997 |
Tier 1 Capital (to Adjusted Total Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | $ 62,797 | $ 62,813 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio | 18.19% | 19.33% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Amount | $ 15,537 | $ 14,621 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 22,442 | $ 21,120 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | $ 62,797 | $ 62,813 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio | 18.19% | 19.33% |
Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Amount | $ 20,716 | $ 19,495 |
Tier 1 Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 27,621 | $ 25,993 |
Tier 1 Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 65,779 | $ 65,632 |
Total Capital (to Risk-Weighted Assets), Actual Ratio | 19.05% | 20.20% |
Total Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Amount | $ 27,621 | $ 25,993 |
Total Capital (to Risk-Weighted Assets), For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 34,527 | $ 32,492 |
Total Capital (to Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
REGULATORY MATTERS (Details 1)
REGULATORY MATTERS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total consolidated equity | $ 84,289 | $ 84,537 | $ 85,088 |
Adjustments: | |||
Tier 1 and Common Equity Tier 1 Capital | 62,797 | 62,813 | |
Allowance for loan losses and off-balance sheet reserves | 2,943 | 2,780 | |
Total Risk-Based capital | 65,779 | 65,632 | |
PB Bancorp, Inc | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Total consolidated equity | 84,289 | 84,537 | |
Adjustments: | |||
Equity capital of PB Bancorp, Inc. | (15,155) | (15,500) | |
Disallowed intangible assets | (5,679) | (5,071) | |
Disallowed deferred tax assets | (1,088) | (1,240) | |
Unrealized losses on available-for-sale securities | 430 | 87 | |
Tier 1 and Common Equity Tier 1 Capital | 62,797 | 62,813 | |
Allowance for loan losses and off-balance sheet reserves | 2,982 | 2,819 | |
Total Risk-Based capital | $ 65,779 | $ 65,632 |
REGULATORY MATTERS (Detail Text
REGULATORY MATTERS (Detail Textuals) - $ / shares | Apr. 04, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares of common stock repurchased | 199,649 | 211,400 | ||||||
Closing stock price | $ 11.35 | $ 11.35 | $ 11.35 | |||||
Dividends declared per share | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.04 | ||||
Dividends payable declared date | Apr. 18, 2018 | Jan. 3, 2018 | Oct. 4, 2017 | Jul. 5, 2017 | ||||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | 0.20 | $ 0.13 | ||||
Second stock repurchase program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of common shares authorized to repurchased | 193,012 | |||||||
Shares of common stock repurchased | 17,029 | |||||||
Stock repurchase percent | 2.50% | |||||||
Closing stock price | $ 10.46 | $ 10.46 | $ 10.46 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Dividend yield | 1.18% |
Expected volatility | 17.13% |
Risk-free rate | 2.21% |
Expected life in years | 6 years 6 months |
BENEFIT PLANS - Summary of stat
BENEFIT PLANS - Summary of status of incentive plan (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Shares | |||
Exercised | (10,017) | ||
Stock-based Incentive Plan | |||
Weighted Average Exercise Price | |||
Granted | $ 10.15 | ||
Stock Options | Stock-based Incentive Plan | |||
Number of Shares | |||
Options outstanding at beginning of year | 392,330 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited | (4,000) | ||
Expired | 0 | ||
Outstanding at end of year | 388,330 | 392,330 | |
Options exercisable at end of year | 78,466 | ||
Weighted Average Exercise Price | |||
Options outstanding at beginning of year | $ 10.15 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited | 10.15 | ||
Expired | 0 | ||
Outstanding at end of year | 10.15 | $ 10.15 | |
Options exercisable at end of year | $ 10.15 | ||
Weighted-Average Remaining Contractual Term (In Years), Outstanding | 3 years 9 months | ||
Weighted-Average Remaining Contractual Term (In Years), Exercisable | 8 years 9 months | ||
Aggregate Intrinsic Value, Outstanding | $ 466 | ||
Aggregate Intrinsic Value, Exercisable | $ 94 |
BENEFIT PLANS - Summary of the
BENEFIT PLANS - Summary of the status of the outstanding stock awards (Details 2) - Stock-based Incentive Plan | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Shares | |
Non-vested stock awards at beginning of year | shares | 147,750 |
Shares vested | shares | (29,550) |
Non-vested stock awards at end of year | shares | 118,200 |
Grant-date Fair Value | |
Non-vested stock awards at beginning of year | $ / shares | $ 10.15 |
Shares vested | $ / shares | 10.15 |
Non-vested stock awards at end of year | $ / shares | $ 10.15 |
BENEFIT PLANS (Detail Textuals)
BENEFIT PLANS (Detail Textuals) - USD ($) | Jan. 07, 2016 | Oct. 04, 2004 | Jun. 30, 2018 | Jun. 30, 2017 |
Compensation and Retirement Disclosure [Abstract] | ||||
Description of 401(k) Plan | The Company has a 401(k) plan covering each eligible employee. Employees must be 21 years of age, work at least 1,000 hours per year, and have at least one year of service with the Company to be eligible to participate. | |||
Percentage of contribution an employee's deferral | 50.00% | |||
Percentage of employee's salary | 5.00% | |||
Contribution from employer | $ 80,000 | $ 76,000 | ||
Additional discretionary contributions amount | 233,000 | 171,000 | ||
Total liability for the arrangements included in other liabilities | 291,000 | 274,000 | ||
Expenses under other postretirement benefit plan | 17,000 | 80,000 | ||
Number of share purchased | 257,062 | |||
Amount borrowed by ESOP for purchase of shares | $ 3,900,000 | $ 2,600,000 | ||
ESOP shares issued | 317,287 | |||
Value of ESOP shares issued | $ 2,500,000 | |||
ESOP purchased, price per share | $ 8 | |||
Outstanding balance of ESOP original loan | $ 1,400,000 | |||
Employee Stock Ownership Plan, borrowings, initial variable interest rate | 3.50% | 4.75% | ||
Term of employee stock ownership plan | 25 years | 20 years | ||
ESOP expense | $ 189,000 | $ 174,000 | ||
Number of shares allocated | 217,980 | 199,963 | ||
Number of shares unallocated | 405,388 | 423,405 | ||
Fair value of unallocated ESOP shares | $ 4,601,000 | $ 4,467,000 |
BENEFIT PLANS (Detail Textuals
BENEFIT PLANS (Detail Textuals 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Feb. 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price of stock option awards granted | $ 11.35 | |||
Unrecognized compensation costs related to nonvested share-based compensation | $ 1,700,000 | |||
Period of Unrecognized compensation costs to recognized | 3 years 9 months | |||
Share-based compensation expense | $ 447,000 | $ 115,000 | ||
Amount of fair value of vested restricted shares | 335,000 | |||
Aggregate grant date fair value of options granted | 742,000 | |||
2017 Stock-Based Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares granted | 634,573 | |||
Maximum term of stock option award | 10 years | |||
Exercise price of stock option awards granted | $ 10.15 | |||
Vesting period for stock awards | 5 years | |||
Unrecognized compensation costs related to nonvested share-based compensation | $ 10,150 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 1.89 | |||
2017 Stock-Based Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares granted | 392,330 | 453,267 | ||
Exercise price of stock option awards granted | $ 0 | |||
Number of awards and options granted | 37,004 | |||
2017 Stock-Based Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares granted | 147,750 | 181,306 | ||
Number of awards and options granted | 64,937 |
ACCUMULATED OTHER COMPREHENSI84
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS - Components of accumulated other comprehensive loss and related tax effects (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | ||
Net unrealized loss on securities available-for-sale | $ (671) | $ (180) |
Tax effect | 149 | 63 |
Accumulated other comprehensive loss | $ (522) | $ (117) |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (Detail Textuals) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | ||
Pre-tax unrealized losses on securities which other-than-temporary impairment recognized | $ 180,000 | $ 231,000 |
PARENT COMPANY ONLY FINANCIAL86
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
ASSETS | |||
Cash and due from depository institutions | $ 4,465 | $ 4,331 | |
Investments in available-for-sale securities, at fair value | 46,546 | 60,150 | |
Investment in held-to-maturity securities (fair value of $2,094 as of June 30, 2018 and $2,339 as of June 30, 2017) | 82,816 | 110,022 | |
Loan to ESOP | 352,270 | 309,792 | |
Other assets | 1,938 | 1,774 | |
Total assets | 525,388 | 524,148 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Other liabilities | 2,528 | 2,418 | |
Total stockholders' equity | 84,289 | 84,537 | $ 85,088 |
Total liabilities and stockholders' equity | 525,388 | 524,148 | |
PB Bancorp, Inc | |||
ASSETS | |||
Cash and due from depository institutions | 3,542 | 1,185 | |
Investment in Putnam Bank | 69,134 | 69,038 | |
Investments in available-for-sale securities, at fair value | 4,802 | 7,176 | |
Investment in held-to-maturity securities (fair value of $2,094 as of June 30, 2018 and $2,339 as of June 30, 2017) | 2,180 | 2,361 | |
Loan to ESOP | 3,692 | 3,788 | |
Other assets | 963 | 1,013 | |
Total assets | 84,313 | 84,561 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Other liabilities | 24 | 24 | |
Total stockholders' equity | 84,289 | 84,537 | |
Total liabilities and stockholders' equity | $ 84,313 | $ 84,561 |
PARENT COMPANY ONLY FINANCIAL87
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest on ESOP loan | $ 13,427 | $ 10,985 |
Total interest and dividend income | 17,320 | 15,322 |
Other expense | 1,306 | 1,220 |
Income tax benefit | 1,165 | 822 |
Net income | 3,129 | 2,316 |
PB Bancorp, Inc | ||
Condensed Income Statements, Captions [Line Items] | ||
Dividends from subsidiary | 2,700 | 0 |
Interest and dividends on investments | 163 | 170 |
Interest on ESOP loan | 159 | 136 |
Total interest and dividend income | 3,022 | 306 |
Investment security gains | 6 | 0 |
Other expense | 349 | 354 |
Income before income tax benefit and equity in undistributed net income of subsidiary | 2,679 | (48) |
Income tax benefit | (49) | (62) |
Income before equity in undistributed net income of subsidiary | 2,728 | 14 |
Equity in undistributed net income of subsidiary | 401 | 2,302 |
Net income | $ 3,129 | $ 2,316 |
PARENT COMPANY ONLY FINANCIAL88
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,129 | $ 2,316 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Amortization of securities premium, net | 515 | 801 |
Share-based compensation expense | 447 | 115 |
Decrease in other liabilities | 110 | (69) |
Net cash provided by operating activities | 4,867 | 4,453 |
Cash flows from investing activities: | ||
Proceeds from the sales of available-for-sale securities | 3,625 | |
Proceeds from paydowns and maturities of available-for-sale securities | 9,325 | 10,074 |
Net cash provided by investing activities | (2,661) | (18,442) |
Cash flows from financing activities: | ||
Cash dividends paid on common stock | (1,549) | (1,022) |
Proceeds from issuance of common stock in connection with stock options exercised | 63 | |
Common stock repurchased | (2,078) | (2,223) |
Net cash used in financing activities | (2,277) | 19,029 |
Net increase (decrease) in cash and cash equivalents | (71) | 5,040 |
Cash and cash equivalents at beginning of year | 10,173 | 5,133 |
Cash and cash equivalents at end of year | 10,102 | 10,173 |
PB Bancorp, Inc | ||
Cash flows from operating activities: | ||
Net income | 3,129 | 2,316 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Amortization of securities premium, net | 16 | 19 |
Gain on sale of available-for-sale securities | (6) | 0 |
ESOP expense | 189 | 174 |
Share-based compensation expense | 447 | 115 |
Decrease (increase) in other assets | 79 | (104) |
Increase in due from subsidiary | (5) | (59) |
Decrease in other liabilities | 0 | (18) |
Undistributed net income of subsidiary | (401) | (2,302) |
Net cash provided by operating activities | 3,448 | 141 |
Cash flows from investing activities: | ||
Proceeds from the sales of available-for-sale securities | 1,665 | 0 |
Proceeds from paydowns and maturities of available-for-sale securities | 621 | 718 |
Proceeds from paydowns and maturities of held-to-maturity securities | 182 | 131 |
Principal payments received on loan to ESOP | 96 | 103 |
Net cash provided by investing activities | 2,564 | 952 |
Cash flows from financing activities: | ||
Cash dividends paid on common stock | (1,549) | (1,022) |
Proceeds from issuance of common stock in connection with stock options exercised | 0 | 63 |
Common stock repurchased | (2,078) | (2,223) |
Cancellation of shares for tax withholding | (28) | 0 |
Net cash used in financing activities | (3,655) | (3,182) |
Net increase (decrease) in cash and cash equivalents | 2,357 | (2,089) |
Cash and cash equivalents at beginning of year | 1,185 | 3,274 |
Cash and cash equivalents at end of year | $ 3,542 | $ 1,185 |