Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 15, 2021 | Dec. 31, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2021 | ||
Entity File Number | 001-40255 | ||
Entity Registrant Name | WILLIAM PENN BANCORPORATION | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 85-3898797 | ||
Entity Address, Address Line One | 10 Canal Street | ||
Entity Address, Address Line Two | Suite 104 | ||
Entity Address, City or Town | Bristol | ||
Entity Address State Or Province | PA | ||
Entity Address, Postal Zip Code | 19007 | ||
City Area Code | 267 | ||
Local Phone Number | 540-8500 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | WMPN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 15,170,566 | ||
Entity Central Index Key | 0001828376 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
ASSETS | ||
Cash and due from banks | $ 11,102 | $ 21,385 |
Interest bearing deposits with other banks | 157,620 | 56,755 |
Federal funds sold | 4,775 | |
Total cash and cash equivalents | 168,722 | 82,915 |
Interest-bearing time deposits | 1,850 | 2,300 |
Securities available for sale | 123,335 | 89,998 |
Loans receivable, net of allowance for loan losses of $3,613 and $3,519 as of June 30, 2021 and 2020, respectively | 461,196 | 508,605 |
Premises and equipment, net | 13,439 | 16,733 |
Regulatory stock, at cost | 2,954 | 4,200 |
Deferred income taxes | 3,574 | 4,817 |
Bank-owned life insurance | 35,231 | 14,758 |
Goodwill | 4,858 | 4,858 |
Intangible assets | 937 | 1,192 |
Accrued interest receivable and other assets | 6,312 | 6,076 |
TOTAL ASSETS | 822,408 | 736,452 |
LIABILITIES | ||
Deposits | 553,103 | 559,848 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Advances from borrowers for taxes and insurance | 3,731 | 4,536 |
Accrued interest payable and other liabilities | 7,648 | 10,811 |
TOTAL LIABILITIES | 605,482 | 640,087 |
Commitments and contingencies (note 15) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued | ||
Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of June 30, 2021 and $.03 par value, 159,666,500 shares authorized; 15,208,410 shares issued and 14,628,530 shares outstanding as of June 30, 2020 | 152 | 467 |
Additional paid-in capital | 168,349 | 42,932 |
Treasury Stock, 0 and 579,879 shares at cost at June 30, 2021 and June 30, 2020, respectively | (3,710) | |
Unearned common stock held by employee stock ownership plan | (10,004) | |
Retained earnings | 58,493 | 56,600 |
Accumulated other comprehensive (loss) income | (64) | 76 |
TOTAL WILLIAM PENN BANCORPORATION STOCKHOLDERS' EQUITY | 216,926 | 96,365 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 822,408 | $ 736,452 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||
Allowance for loan losses | $ 3,613 | $ 3,519 | $ 3,209 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Preferred stock, issued (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.03 | |
Common stock, shares authorized (in shares) | 150,000,000 | 159,666,500 | |
Common stock, issued (in shares) | 15,170,566 | 15,208,410 | |
Common stock, outstanding (in shares) | 15,170,566 | 14,628,530 | |
Treasury stock, shares (in shares) | 0 | 579,879 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 23,390 | $ 17,914 |
Securities | 2,093 | 1,453 |
Other | 363 | 450 |
Total interest income | 25,846 | 19,817 |
INTEREST EXPENSE | ||
Deposits | 3,153 | 3,604 |
Borrowings | 1,153 | 1,414 |
Total interest expense | 4,306 | 5,018 |
Net interest income | 21,540 | 14,799 |
Provision for loan losses | 133 | 626 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 21,407 | 14,173 |
OTHER INCOME | ||
Service fees | 785 | 569 |
Net gain on sale of securities | 36 | 238 |
Earnings on bank-owned life insurance | 473 | 347 |
Gain on bargain purchase | 746 | |
Net gain on disposition of premises and equipment | 495 | |
Net gain on sale of other real estate owned | 206 | |
Other | 316 | 260 |
Total other income | 2,311 | 2,160 |
OTHER EXPENSES | ||
Salaries and employee benefits | 10,282 | 6,855 |
Occupancy and equipment | 2,912 | 1,784 |
Data processing | 1,795 | 1,155 |
Professional fees | 1,064 | 451 |
Merger related expenses | 3,294 | |
Amortization of intangible assets | 255 | 242 |
Loss on lease abandonment | 162 | |
Prepayment penalties | 161 | |
Other | 2,361 | 1,611 |
Total other expense | 18,992 | 15,392 |
Income before income taxes | 4,726 | 941 |
Income tax expense (benefit) | 947 | (387) |
NET INCOME | $ 3,779 | $ 1,328 |
Basic and diluted earnings per share (in dollars per share) | $ 0.26 | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 3,779 | $ 1,328 |
Other comprehensive loss: | ||
Changes in net unrealized gain (loss) on securities available for sale | (144) | 46 |
Tax effect | 32 | (10) |
Reclassification adjustment for gain recognized in net income | (36) | (238) |
Tax effect | 8 | 50 |
Other comprehensive loss, net of tax | (140) | (152) |
Comprehensive income | $ 3,639 | $ 1,176 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common StockFidelity Savings and Loan Association | Common StockWashington Savings Bank | Common Stock | Additional Paid-in capitalFidelity Savings and Loan Association | Additional Paid-in capitalWashington Savings Bank | Additional Paid-in capital | Treasury Stock | Unearned Common Stock held by ESOP | Retained Earnings | Accumulated Other Comprehensive Income | Fidelity Savings and Loan Association | Washington Savings Bank | Total |
Beginning balance at Jun. 30, 2019 | $ 416 | $ 22,441 | $ (3,710) | $ 57,255 | $ 228 | $ 76,630 | |||||||
Beginning balance (in shares) at Jun. 30, 2019 | 12,969,332 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 1,328 | 1,328 | |||||||||||
Other comprehensive loss | (152) | (152) | |||||||||||
Dividend paid | (1,983) | (1,983) | |||||||||||
Merger Association | $ 26 | $ 25 | $ 11,351 | $ 9,140 | $ 11,377 | $ 9,165 | |||||||
Merger Association (in shares) | 831,976 | 827,222 | |||||||||||
Ending balance at Jun. 30, 2020 | $ 467 | 42,932 | (3,710) | 56,600 | 76 | $ 96,365 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 14,628,530 | 14,628,530 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 3,779 | $ 3,779 | |||||||||||
Other comprehensive loss | (140) | (140) | |||||||||||
Dividend paid | (1,886) | (1,886) | |||||||||||
ESOP shares committed to be released | $ 108 | 108 | |||||||||||
Purchase of treasury stock | (49) | (49) | |||||||||||
William Penn, MHC shares sold in public offering, net of offering costs | $ (315) | 129,176 | 128,861 | ||||||||||
William Penn, MHC shares sold in public offering, net of offering costs (in shares) | 12,640,035 | ||||||||||||
Retirement of MHC shares (in shares) | (12,092,669) | ||||||||||||
Fractional shares and other adjustments resulting from conversion of existing shares at 3.2585 exchange ratio (in shares) | (174) | ||||||||||||
Treasury stock retired | (3,759) | $ 3,759 | |||||||||||
Treasury stock retired (in shares) | (5,156) | ||||||||||||
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | (10,112) | |||||||||||
Ending balance at Jun. 30, 2021 | $ 152 | $ 168,349 | $ (10,004) | $ 58,493 | $ (64) | $ 216,926 | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 15,170,566 | 15,170,566 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) | 12 Months Ended | |
Jun. 30, 2021$ / shares | Jun. 30, 2020$ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.42 | $ 0.50 |
Conversion of existing shares at 3.2585 exchange ratio | 3.2585 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 3,779 | $ 1,328 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 133 | 626 |
Depreciation expense | 985 | 582 |
Other accretion, net | (2,149) | (545) |
Deferred income taxes | 1,283 | 51 |
Impact of tax law change | (408) | |
Other real estate impairment | 25 | |
Gain on bargain purchase | (746) | |
Net gain on disposition of premises and equipment | (495) | |
Net gain on sale of other real estate owned | (206) | |
Amortization of core deposit intangibles | 255 | 242 |
Amortization of ESOP | 108 | |
Net gain on sale of securities | (36) | (238) |
Earnings on bank-owned life insurance | (473) | (347) |
(Decrease) increase in pension liabilities | (2,735) | 2,735 |
Other, net | (733) | (3,130) |
Net cash (used in) provided by operating activities | (259) | 150 |
Securities available for sale: | ||
Purchases | (96,187) | (98,928) |
Maturities, calls and principal paydowns | 25,702 | 19,439 |
Proceeds from sale of securities | 35,743 | 13,575 |
Securities held to maturity: | ||
Maturities, calls and principal paydowns | 268 | |
Net decrease (increase) in loans receivable | 49,140 | (4,960) |
Interest bearing time deposits: | ||
Purchases | (600) | (1,500) |
Maturities and principal paydowns | 1,050 | 7,986 |
Purchase of bank-owned life insurance | (20,000) | |
Regulatory stock purchases | (11) | |
Regulatory stock redemptions | 1,257 | 133 |
Proceeds from sale of other real estate owned | 376 | |
Purchases of premises and equipment, net | (890) | (1,814) |
Proceeds from the sale of premises and equipment | 3,734 | 8 |
Acquisitions, net of cash acquired | 48,848 | |
Net cash used in investing activities | (686) | (16,945) |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (6,033) | 77,117 |
Increase in borrowed funds | 2,501 | 12,000 |
Repayment of borrowed funds | (25,725) | (14,031) |
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | |
Issuance of common stock funded by stock subscriptions | 128,861 | |
Purchase of treasury stock | (49) | |
(Decrease) increase in advances from borrowers for taxes and insurance | (805) | 439 |
Cash dividends | (1,886) | (1,983) |
Net cash provided by financing activities | 86,752 | 73,542 |
Net increase in cash and cash equivalents | 85,807 | 56,747 |
Cash and cash equivalents - beginning | 82,915 | 26,168 |
Cash and cash equivalents - ending | 168,722 | 82,915 |
Supplementary cash flows information | ||
Interest paid | 5,127 | 5,157 |
Income tax (refunds) payments | (301) | 12 |
Transfers of securities from held to maturity to available for sale | 1,637 | |
Operating lease right-of-use asset recorded | 1,157 | 1,789 |
Operating lease liabilities recorded | 1,157 | 1,771 |
Premises transferred to held for sale | 3,199 | |
Transfer of loans to other real estate owned | $ 161 | |
Acquisition of noncash assets and liabilities: | ||
Assets acquired | 244,854 | |
Liabilities assumed | $ 223,566 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jun. 30, 2021 | |
Nature of Operations | |
Nature of Operations | Note 1 - Nature of Operations William Penn Bancorporation (“the Company”) is a Maryland corporation that was incorporated in July 2020 to be the successor to William Penn Bancorp, Inc. (“William Penn Bancorp”) upon completion of the second-step conversion of William Penn Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. William Penn, MHC was the former mutual holding company for William Penn Bancorp prior to completion of the second-step conversion. In conjunction with the second-step conversion, each of William Penn, MHC and William Penn Bancorp ceased to exist. The second-step conversion was completed on March 24, 2021, at which time the Company sold, for gross proceeds of $126.4 million, a total of 12,640,035 shares of common stock at $10.00 per share. As part of the second-step conversion, each of the existing 776,647 outstanding shares of William Penn Bancorp common stock owned by persons other than William Penn, MHC was converted into 3.2585 shares of Company common stock. In addition, $5.4 million of cash held by William Penn, MHC was transferred to the Company and recorded as an increase to additional paid-in capital following the completion of the second-step conversion. As a result of the second-step conversion, all share information has been subsequently revised to reflect the 3.2585 exchange ratio, unless otherwise noted. In connection with the second-step conversion offering, and as previously disclosed, the William Penn Bank Employee Stock Ownership Plan (“ESOP”) trustees subscribed for, and intended to purchase, on behalf of the ESOP, 8% of the shares of the Company common stock sold in the offering and to fund its stock purchase through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. As previously disclosed, as a result of the second-step conversion offering being oversubscribed in the first tier of subscription priorities, the ESOP trustees were unable to purchase shares of the Company’s common stock in the second-step conversion offering. Subsequent to the completion of the second-step conversion on March 24, 2021, the ESOP trustees purchased 881,130 shares, or $10.1 million, of the Company’s common stock in the open market. The ESOP does not intend to purchase any additional shares of Company common stock in connection with the second-step conversion and offering. The Company owns 100% of the outstanding common stock of the Bank, a Pennsylvania chartered stock savings bank. The Bank offers consumer and commercial banking services to individuals, businesses, and nonprofit organizations throughout the Delaware Valley area through twelve full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington and Camden Counties in New Jersey. William Penn Bancorporation is subject to regulation and supervision by the Board of Governors of the Federal Reserve System. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA. WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At June 30, 2021, WPSLA held $112.7 million of the Bank’s $123.3 million investment securities portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are aggregated into one reportable operating segment: community banking as under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting. Use of Estimates in the Preparation of Financial Statements These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP 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 financial statements and the reported amounts of income and expenses during the reporting period. The significant estimates include the allowance for loan losses, goodwill, intangible assets, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions. Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing demand deposits. Revenue Recognition Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment security and loan gains (losses), and earnings on bank owned life insurances are not within the scope of ASC 606. The main types of noninterest income within the scope of the standard include service charges on deposit accounts. The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees, as well as bargain purchase gain. These fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. Investment Securities The Company classifies and accounts for debt securities as follows: Held-to-Maturity — Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and are recorded at amortized cost. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Available-for-Sale — Debt securities that will be held for indefinite periods of time that may be sold in response to changes to market interest or prepayment rates, needs for liquidity, and changes in the availability of and the yield of alternative investments, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported net of tax in other comprehensive income. Realized gains and losses on the sale of investment securities are recorded as of trade date and reported in the Consolidated Statements of Income and determined using the adjusted cost of the specific security sold. The Company determines whether any unrealized losses are temporary in accordance with guidance under FASB ASC Topic 320 for Investments — Debt Securities Accounting guidance for debt securities requires the Company to assess whether the loss existed by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery, or (3) it does not expect to recover the entire amortized cost basis of the security. The guidance requires the Company to bifurcate the impact on securities where impairment in value was deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The difference between the fair market value and the credit loss is recognized in other comprehensive income. Regulatory Stock, at Cost Common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) represents ownership in institutions which are wholly owned by other financial institutions. This restricted equity security is accounted for at cost. The Company invests in Federal Home Loan Bank of Pittsburgh (“FHLB”) stock as required to support borrowing activities, as detailed in Note 12 to these consolidated financial statements. Although FHLB stock is an equity interest in a FHLB, it does not have a readily determinable fair value because its ownership is restricted and it lacks a market. FHLB stock can be sold back only at its par value of $100 per share and only to the FHLBs or to another member institution. The Company evaluates this investment for impairment on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company reviews this stock for impairment based on guidance from FASB ASC Topic 320 for Investments — Debt Securities FASB ASC Topic 942 for Financial Services — Depository and Lending Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans. Generally, the Company amortizes loan origination fees and costs over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for at least six months and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Loans Acquired with Deteriorated Credit Quality The Company accounts for loans acquired with deteriorated credit quality in accordance with the provisions included in FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality These loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, the excess is recognized as part of future interest income. Allowance for Loan Losses The allowance for loan losses is determined by management based upon portfolio segment, past experience, evaluation of estimated loss and impairment in the loan portfolio, current economic conditions, and other pertinent factors. Management also considers risk characteristics by portfolio segments including, but not limited to, renewals and real estate valuations. The allowance for loan losses is maintained at a level that management considers appropriate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. Loan impairment is evaluated based on the fair value of collateral or estimated net realizable value. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. The allowance for loan losses is established through a provision for loan losses charged to expense which is based upon past loan and loss experience and an evaluation of estimated losses in the current loan portfolio, including the evaluation of impaired loans. Under the accounting guidance FASB ASC Topic 310 for Receivables Loan Charge-off Policies Generally, loans are charged down to the net realizable value when the loan is 90 days past due. However, student loans are fully charged down when the loan is 180 days past due. Troubled Debt Restructurings (“TDRs”) The Company considers a loan a TDR when the borrower is experiencing financial difficulty and the Company has granted a concession that it would not otherwise consider but for the borrower’s financial difficulties. A TDR includes a modification of debt terms or assets received in satisfaction of the debt (which may include foreclosure or deed in lieu of foreclosure) or a combination of types. The Company evaluates selective criteria to determine if a borrower is experiencing financial difficulty including the ability of the borrower to obtain funds from sources other than the Bank at market rates. The Company evaluates all TDR loans for impairment on an individual basis in accordance with ASC 310. Management does not consider a loan a TDR if the loan modification was a result of a customer retention program. Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, 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 (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives of the related assets: Years Office buildings and improvements 5 – 33 Furniture, fixtures, and equipment 5 – 10 Automobiles 4 Other Real Estate Owned Real estate owned acquired in settlement of foreclosed loans is carried as a component of other assets at fair value minus estimated cost to sell. Prior to foreclosure, the estimated collectible value of the collateral is evaluated to determine whether a partial charge-off of the loan balance is necessary. After transfer to real estate owned, any subsequent write-downs are charged against other operating expenses. Direct costs incurred in the foreclosure process and subsequent holding costs incurred on such properties are recorded as expenses of current operations. Income Taxes Deferred taxes are provided on the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. In certain circumstances, the Company will record a gain on bargain purchase when the fair value of the net assets of the acquired company exceeds the fair value of the equity of the acquired company. When calculating goodwill or a gain on bargain purchase in accordance with FASB ASC 805-30-55-3, the Company evaluates whether the fair value of equity of the acquired company is a more reliable measure than the fair value of the equity interests transferred. The Company considers the assumptions required to calculate the fair value of equity of an acquired company using discounted cash flow models (income approach) and/or change of control premium models (market approach) which are generally based on a higher level of market participant inputs and therefore a lower level of subjectivity when compared to the assumptions required to calculate the fair value of equity interests transferred under a fair value pricing model. As a result, the Company considers the calculation of the fair value of the equity of an acquired company to be more reliable than the calculation of the fair value of the equity interests transferred. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified. Intangible assets consist of core deposit intangibles arising from whole bank acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives of ten years. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the Consolidated Statements of Financial Condition when they are funded. Bank-owned Life Insurance The Company funds the purchase of insurance policies on the lives of certain former officers and employees of the Company. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The Company has recognized any change in cash surrender value of life insurance in other income in the Company’s Consolidated Statements of Income. Comprehensive Income The Company presents a separate financial statement of comprehensive income that includes amounts from transactions and other events excluded from the Company’s Consolidated Statements of Income and recorded directly to retained earnings. Business Combinations At the date of acquisition, the Company records the assets and liabilities of the acquired companies at fair value. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Income beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Income during the period incurred. Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business, and government customers. Through its branch network, the Bank offers a full array of commercial and retail financial services, including; the taking of time, savings and demand deposits; the making of commercial and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Bank. As such, discrete financial information is not available and segment reporting would not be meaningful. Reclassifications Certain amounts in the previous year financial statements have been reclassified to conform to the current year presentation. These reclassifications have no impact on prior year net income or stockholders’ equity. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments those fiscal years. We expect to recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 3 - Earnings Per Share The following table presents a calculation of basic and diluted earnings per share for the years ended June 30, 2021 and 2020. Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding. There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, the net income of $3.8 million and $1.3 million for the years ended June 30, 2021 and 2020, respectively, was used as the numerator. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and diluted earnings per share computation. Year ended June 30, (Dollars in thousands, except share and per share amounts) 2021 2020 Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share 14,541,136 13,245,864 Net income $ 3,779 $ 1,328 Basic and diluted earnings per share $ 0.26 $ 0.10 |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2021 | |
Business Combinations | |
Business Combinations | Note 4 — Business Combinations Acquisition of Fidelity Savings and Loan Association of Bucks County On May 1, 2020, The Bank completed its acquisition of Fidelity pursuant to the terms of the Agreement and Plan of Merger, dated as of December 5, 2019, by and between William Penn, MHC, the Company, the Bank and Fidelity (the “Fidelity Merger Agreement”). At the effective time of the merger, Fidelity was merged with and into the Bank, with the Bank as the surviving institution, and the depositors of Fidelity became depositors of the Bank, with the same rights and privileges in William Penn, MHC as if their accounts had been established at the Bank on the date established at Fidelity. As part of the transaction, pursuant to the terms of the Fidelity Merger Agreement, the Company issued 831,976 shares of its common stock to William Penn, MHC. The acquisition of Fidelity increased the Company’s market share in southeastern Pennsylvania and provided the Company with one new branch location. The results of Fidelity’s operations are included in the Company’s Consolidated Statements of Income for the period beginning on May 1, 2020, the date of the acquisition, through June 30, 2021. The acquisition of Fidelity was accounted for using the acquisition method of accounting for a mutual-to-mutual merger and, accordingly, assets acquired, liabilities assumed, and equity were recorded at their estimated fair values as of the acquisition date. The excess of the fair value of net assets acquired over the fair value of the equity acquired was recorded as a gain on bargain purchase in the amount of $613 thousand, which was recognized immediately as income in the Company’s consolidated statements of income. The gain on bargain purchase was primarily due to lower estimated discounted future cash flows used to calculate the estimated fair value of equity due to the uncertainty of the COVID-19 pandemic, as well as a decline in public peer bank stocks pricing used to estimate change of control premium fair values when estimating the fair value of equity due to the COVID-19 pandemic. The assets purchased and liabilities assumed in the merger were recorded at their estimated fair values at the time of closing, subject to refinement for up to one year after the closing date. There were no adjustments to the fair value measurements of assets or liabilities in fiscal 2021. In connection with the acquisition of Fidelity, the fair value of equity, and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: (Dollars in thousands) Fair value of equity $ 11,377 Assets acquired: Cash and due from financial institutions $ 26,867 Interest-bearing time deposits 462 Loans receivable, net 55,949 Premises and equipment 747 Regulatory stock 334 Deferred income taxes 564 Other real estate owned 100 Core deposit intangible 65 Accrued interest receivable 209 Other assets 272 Total assets $ 85,569 Liabilities assumed: Deposits $ (66,409) Advances from Federal Home Loan Bank (5,688) Accrued interest payable (5) Other liabilities (1,477) Total liabilities $ (73,579) Net assets acquired 11,990 Gain on bargain purchase $ (613) In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was acquired loans. The excess of expected cash flows above the fair value of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-20. Certain loans, for which specific credit-related deterioration was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on a reasonable expectation of the timing and amount of cash flows to be collected. The timing of the sale of loan collateral was estimated for acquired loans deemed impaired and considered collateral dependent. For these collateral dependent impaired loans, the excess of the future expected cash flow over the present value of the future expected cash flow represents the accretable yield, which will be accreted into interest income over the estimated liquidation period using the effective interest method. The following table details the loans that are accounted for in accordance with FASB ASC 310-30 as of May 1, 2020: (Dollars in thousands) Contractually required principal and interest at acquisition $ 619 Contractual cash flows not expected to be collected (nonaccretable difference) 431 Expected cash flows at acquisition 188 Interest component of expected cash flows (accretable discount) 27 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 161 Acquired loans not subject to the requirements of FASB ASC 310-30 are recorded at fair value. The fair value mark on each of these loans will be accreted into interest income over the remaining life of the loan. The following table details loans that are not accounted for in accordance with FASB ASC 310-30 as of May 1, 2020: (Dollars in thousands) Contractually required principal at acquisition $ 56,785 Contractual cash flows not expected to be collected (credit mark) 1,240 Expected cash flows at acquisition 55,545 Interest rate premium mark 243 Fair value of acquired loans not accounted for under FASB ASC 310-30 $ 55,788 In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by Fidelity. In connection with the acquisition of Fidelity, the Company recorded a net deferred income tax asset of $564 thousand related to tax attributes of the acquired company, along with the tax effects of fair value adjustments resulting from applying the acquisition method of accounting. The fair value of savings and transaction deposit accounts acquired from Fidelity provide value to the Company as a source of stable and low-cost funds. The fair value of the core deposit intangible (“CDI”) was determined based on a discounted cash flow analysis. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available to the Company. The life of the deposit base and projected deposit attrition rates were determined using industry historical deposit data. The CDI was valued at $65 thousand or 0.17% of acquired core deposits. The intangible asset is being amortized on an accelerated basis over ten years. Amortization for the years ended June 30, 2021 and 2020 was $12 thousand and $2 thousand, respectively. Certificates of deposit accounts were valued by comparing the contractual cost of the portfolio to an alternative deposit portfolio bearing current market rates. The portfolio was segregated into pools based on remaining maturity. For each pool, the projected cash flows from maturing certificates were then calculated based on contractual rates and prevailing market rates. The valuation adjustment for each pool is equal to the present value of the difference of these two cash flows, discounted at the assumed market rate for a certificate with a corresponding maturity. This valuation adjustment was valued at $393 thousand and is being amortized in line with the expected cash flows driven by maturities of these deposits over the next five years. Amortization for the years ended June 30, 2021 and 2020 was $171 thousand and $35 thousand, respectively, recorded as a reduction to interest expense. Borrowings from the Federal Home Loan Bank (FHLB) of Pittsburgh were valued comparing the contractual cost of the borrowings to current market rates. The future cash flows for each borrowing was calculated based on contractual rates and prevailing market rates. The valuation adjustment for each borrowing is equal to the present value of the difference of these two cash flows, discounted at an assumed market rate for the borrowing. This valuation adjustment was valued at $433 thousand and is being amortized over the remaining life of the individual borrowings. Amortization for the years ended June 30, 2021 and 2020 was $8 thousand and $17 thousand, respectively, recorded as a reduction to interest expense. The following table presents actual operating results attributable to Fidelity since the May 1, 2020 acquisition date through June 30, 2020. This information does not include purchase accounting adjustments or acquisition integration costs. Fidelity May 1, 2020 (Dollars in thousands) to June 30, 2020 Net interest income $ 313 Non-interest income 17 Non-interest expense (331) Pre-tax income $ (1) Income tax expense — Net income $ (1) The following table presents unaudited pro forma information as if the acquisition of Fidelity had occurred on July 1, 2018. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and other intangibles and related income tax effects. Acquisition costs expensed by The Bank of $1.5 million and Fidelity of $227 thousand were estimated to have been incurred during the year ended June 30, 2019. The pro forma information does not necessarily reflect the results of operations that would have occurred had the acquisition of Fidelity occurred on July 1, 2018. Expected cost savings are not reflected in the pro forma amounts. Pro Forma for the Year Ended (Dollars in thousands) June 30, 2020 June 30, 2019 Net interest income $ 17,352 $ 17,478 Provision for loan losses (695) (105) Non-interest income 1,672 1,915 Non-interest expense (16,005) (14,819) Pre-tax income $ 2,324 $ 4,469 Income tax expense 488 938 Net income $ 1,836 $ 3,531 Earnings per share basic and diluted $ 0.13 $ 0.24 Acquisition of Washington Savings Bank On May 1, 2020, the Bank also completed its acquisition of Washington pursuant to the terms of the Agreement and Plan of Merger, dated as of December 5, 2019, by and between William Penn, MHC, the Company, the Bank and Washington (the “Washington Merger Agreement”). At the effective time of the merger, Washington was merged with and into the Bank, with the Bank as the surviving institution, and the depositors of Washington became depositors of the Bank, with the same rights and privileges in William Penn, MHC as if their accounts had been established at the Bank on the date established at Washington. As part of the transaction, pursuant to the terms of the Washington Merger Agreement, the Company issued 827,222 shares of its common stock to William Penn, MHC. The acquisition of Washington increased the Company’s market share in southeastern Pennsylvania and provided the Company with four new branch locations. The results of Washington’s operations are included in the Company’s consolidated statements of income for the period beginning on May 1, 2020, the date of the acquisition, through June 30, 2021. The acquisition of Washington was accounted for using the acquisition method of accounting for a mutual-to-mutual merger and, accordingly, assets acquired, liabilities assumed, and equity were recorded at their estimated fair values as of the acquisition date. The excess of the fair value of net assets acquired over the fair value of the equity acquired was recorded as a gain on bargain purchase in the amount of $133 thousand, which was recognized immediately as income in the Company’s consolidated statements of income. The gain on bargain purchase was primarily due to lower estimated discounted future cash flows used to calculate the estimated fair value of equity due to the uncertainty of the COVID-19 pandemic, as well as a decline in public peer bank stocks pricing used to estimate change of control premium fair values when estimating the fair value of equity due to the COVID-19 pandemic. The assets purchased and liabilities assumed in the merger were recorded at their estimated fair values at the time of closing, subject to refinement for up to one year after the closing date. There were no adjustments to the fair value measurements of assets or liabilities in fiscal 2021. In connection with the acquisition of Washington, the fair value of equity, and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: (Dollars in thousands) Fair value of equity $ 9,165 Assets acquired: Cash and due from financial institutions $ 21,981 Securities available for sale 1,996 Interest-bearing time deposits 100 Loans receivable, net 121,520 Premises and equipment 6,356 Regulatory stock 1,214 Deferred income taxes 2,154 Bank-owned life insurance 3,208 Core deposit intangible 197 Accrued interest receivable 413 Other assets 146 Total assets $ 159,285 Liabilities assumed: Deposits $ (135,546) Advances from Federal Home Loan Bank (11,281) Accrued interest payable (145) Other liabilities (3,015) Total liabilities $ (149,987) Net assets acquired 9,298 Gain on bargain purchase $ (133) In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was acquired loans. The excess of expected cash flows above the fair value of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-20. Certain loans, for which specific credit-related deterioration was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on a reasonable expectation of the timing and amount of cash flows to be collected. The timing of the sale of loan collateral was estimated for acquired loans deemed impaired and considered collateral dependent. For these collateral dependent impaired loans, the excess of the future expected cash flow over the present value of the future expected cash flow represents the accretable yield, which will be accreted into interest income over the estimated liquidation period using the effective interest method. The following table details the loans that are accounted for in accordance with FASB ASC 310-30 as of May 1, 2020: (Dollars in thousands) Contractually required principal and interest at acquisition $ 420 Contractual cash flows not expected to be collected (nonaccretable difference) 230 Expected cash flows at acquisition 190 Interest component of expected cash flows (accretable discount) 27 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 163 Acquired loans not subject to the requirements of FASB ASC 310-30 are recorded at fair value. The fair value mark on each of these loans will be accreted into interest income over the remaining life of the loan. The following table details loans that are not accounted for in accordance with FASB ASC 310-30 as of May 1, 2020: (Dollars in thousands) Contractually required principal at acquisition $ 125,491 Contractual cash flows not expected to be collected (credit mark) 2,440 Expected cash flows at acquisition 123,051 Interest rate discount mark 1,694 Fair value of acquired loans not accounted for under FASB ASC 310-30 $ 121,357 In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by Washington. In connection with the acquisition of Washington, the Company recorded a net deferred income tax asset of $2.2 million related to a net operating loss carryforward and other tax attributes of the acquired company, along with the tax effects of fair value adjustments resulting from applying the acquisition method of accounting. The fair value of savings and transaction deposit accounts acquired from Washington provide value to the Company as a source of stable and low-cost funds. The fair value of the core deposit intangible (“CDI”) was determined based on a discounted cash flow analysis. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available to the Company. The life of the deposit base and projected deposit attrition rates were determined using industry historical deposit data. The CDI was valued at $197 thousand or 0.26% of acquired core deposits. The intangible asset is being amortized on an accelerated basis over ten years. Amortization for the years ended June 30, 2021 and 2020 was $35 thousand and $6 thousand, respectively. Certificates of deposit accounts were valued by comparing the contractual cost of the portfolio to an alternative deposit portfolio bearing current market rates. The portfolio was segregated into pools based on remaining maturity. For each pool, the projected cash flows from maturing certificates were then calculated based on contractual rates and prevailing market rates. The valuation adjustment for each pool is equal to the present value of the difference of these two cash flows, discounted at the assumed market rate for a certificate with a corresponding maturity. This valuation adjustment was valued at $1.2 million and is being amortized in line with the expected cash flows driven by maturities of these deposits over the next five years. Amortization for the years ended June 30, 2021 and 2020 was $529 thousand and $116 thousand, respectively, recorded as a reduction to interest expense. Borrowings from the FHLB of Pittsburgh were valued comparing the contractual cost of the borrowings to current market rates. The future cash flows for each borrowing was calculated based on contractual rates and prevailing market rates. The valuation adjustment for each borrowing is equal to the present value of the difference of these two cash flows, discounted at an assumed market rate for the borrowing. This valuation adjustment was valued at $281 thousand and is being amortized over the remaining life of the individual borrowings. Amortization for the years ended June 30, 2021 and 2020 was $15 thousand and $29 thousand, respectively, recorded as a reduction to interest expense. The following table presents actual operating results attributable to Washington since the May 1, 2020 acquisition date through June 30, 2020. This information does not include purchase accounting adjustments or acquisition integration costs. Washington May 1, 2020 (Dollars in thousands) to June 30, 2020 Net interest income $ 591 Non-interest income 67 Non-interest expense (628) Pre-tax income $ 30 Income tax expense (6) Net income $ 24 The following table presents unaudited pro forma information as if the acquisition of Washington had occurred on July 1, 2018. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and other intangibles and related income tax effects. Acquisition costs expensed by The Bank of $1.8 million and Washington of $312 thousand were estimated to have been incurred during the year ended June 30, 2019. The pro forma information does not necessarily reflect the results of operations that would have occurred had the acquisition of Washington occurred on July 1, 2018. Expected cost savings are not reflected in the pro forma amounts. Pro Forma for the Year Ended (Dollars in thousands) June 30, 2020 June 30, 2019 Net interest income $ 19,112 $ 20,149 Provision for loan losses (752) (196) Non-interest income 2,409 1,715 Non-interest expense (17,392) (18,223) Pre-tax income $ 3,377 $ 3,445 Income tax expense 709 723 Net income $ 2,668 $ 2,722 Earnings per share basic and diluted $ 0.18 $ 0.19 |
Changes in and Reclassification
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income | Note 5 – Changes in and Reclassifications Out of Accumulated Other Comprehensive Income The following tables present the changes in the balances of each component of accumulated other comprehensive income (“AOCI”) for the years ended June 30, 2021 and 2020. All amounts are presented net of tax. (Dollars in thousands) Unrealized Gains (Losses) on Securities Accumulated Other Comprehensive Income (1) Available for Sale Balance at June 30, 2019 $ 228 Other comprehensive income before reclassifications 36 Amounts reclassified from accumulated other comprehensive income (188) Period change (152) Balance at June 30, 2020 $ 76 Other comprehensive loss before reclassifications (112) Amounts reclassified from accumulated other comprehensive loss (28) Period change (140) Balance at June 30, 2021 $ (64) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate of approximately 22% for both 2021 and 2020. The following table presents reclassifications out of AOCI by component for the years ended June 30, 2021 and 2020: (Dollars in thousands) Amounts Reclassified from Other Comprehensive Income Details about Accumulated Other Comprehensive Year Ended June 30, Affected Line Item in the Income Components 2021 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 36 $ 238 Net gain on sale of securities Related income tax expense (8) (50) Income tax expense $ 28 $ 188 |
Interest-Bearing Time Deposits
Interest-Bearing Time Deposits | 12 Months Ended |
Jun. 30, 2021 | |
Interest-Bearing Time Deposits | |
Interest-Bearing Time Deposits | Note 6 — Interest-Bearing Time Deposits The interest-bearing time deposits by contractual maturity are shown below: As of June 30, (Dollars in thousands) 2021 2020 Due in one year or less $ 1,250 $ 1,050 Due after one year through five years 600 1,250 $ 1,850 $ 2,300 |
Investment Securities
Investment Securities | 12 Months Ended |
Jun. 30, 2021 | |
Investment Securities | |
Investment Securities | Note 7 – Investment Securities The amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities are as follows: June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 55,385 $ 53 $ (374) $ 55,064 U.S. agency collateralized mortgage obligations 15,641 47 (255) 15,433 U.S. government agency securities 6,952 — (56) 6,896 Municipal bonds 20,239 11 (389) 19,861 Corporate bonds 25,200 881 — 26,081 Total Available For Sale $ 123,417 $ 992 $ (1,074) $ 123,335 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,570 $ 272 $ (104) $ 51,738 U.S. agency collateralized mortgage obligations 3,215 33 (33) 3,215 U.S. government agency securities 6,226 2 (73) 6,155 U.S. treasury securities 1,000 — — 1,000 Municipal bonds 10,485 33 (10) 10,508 Corporate bonds 17,399 60 (77) 17,382 Total Available For Sale $ 89,895 $ 400 $ (297) $ 89,998 The Company recognized $447 thousand of gross gains and $411 thousand of gross losses on the sale of $35.7 million of investment securities during the year ended June 30, 2021. The Company recognized $241 thousand of gross gains and $3 thousand of gross losses on the sale of $13.6 million of investment securities during the year ended June 30, 2020. During the year ended June 30, 2020, the Company transferred the remaining balance of its held to maturity securities of $1.6 million to available for sale securities. As of June 30, 2021 and 2020, the Company had no securities classified as held to maturity. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without penalties. June 30, 2021 Available For Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ — $ — Due after one year through five years 78 77 Due after five years through ten years 27,718 28,596 Due after ten years 95,621 94,662 $ 123,417 $ 123,335 The following tables provide information on the gross unrealized losses and fair market value of the Company's investments with unrealized losses that are not deemed to be other than temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2021 and 2020: June 30, 2021 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 43,152 $ (374) $ — $ — $ 43,152 $ (374) U.S. agency collateralized mortgage obligations 10,613 (202) 2,407 (53) 13,020 (255) U.S. government agency securities 6,896 (56) — — 6,896 (56) Municipal bonds 17,748 (389) — — 17,748 (389) Total Temporarily Impaired Securities $ 78,409 $ (1,021) $ 2,407 $ (53) $ 80,816 $ (1,074) June 30, 2020 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 22,082 $ (104) $ — $ — $ 22,082 $ (104) U.S. agency collateralized mortgage obligations 1,513 (14) 1,129 (19) 2,642 (33) U.S. government agency securities 4,922 (49) 914 (24) 5,836 (73) Municipal bonds 3,694 (10) — — 3,694 (10) Corporate bonds 5,222 (77) — — 5,222 (77) Total Temporarily Impaired Securities $ 37,433 $ (254) $ 2,043 $ (43) $ 39,476 $ (297) The Company evaluates its investment securities holdings for other-than-temporary impairment (“OTTI”) on at least a quarterly basis. As part of this process, management considers its intent to sell each debt security and whether it is more likely than not the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, OTTI is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the Statement of Financial Condition date. For securities that meet neither of these conditions, management performs analysis to determine whether any of these securities are at risk for OTTI. To determine which individual securities are at risk for OTTI and should be quantitatively evaluated utilizing a detailed analysis, management uses indicators which consider various characteristics of each security including, but not limited to, the following: the credit rating; the duration and level of the unrealized loss; prepayment assumptions; and certain other collateral-related characteristics such as delinquency rates, the security’s performance, and the severity of expected collateral losses. The unrealized loss on securities greater than 12 months is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not 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 these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at June 30, 2021 and 2020. There were 42 investment securities that were temporarily impaired at June 30, 2021. There were 29 investment securities that were temporarily impaired at June 30, 2020. At June 30, 2021 and 2020, $3.8 million and $3.7 million, respectively, of investment securities were pledged to secure municipal deposits. |
Loans
Loans | 12 Months Ended |
Jun. 30, 2021 | |
Loans | |
Loans | Note 8 – Loans Major classifications of loans at June 30, 2021 and June 30, 2020 are summarized as follows: June 30, June 30, 2021 2020 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 173,399 37.05 % $ 230,955 44.64 % Home equity and HELOCs 37,222 7.95 46,519 8.99 Construction -residential 12,945 2.77 15,799 3.05 Commercial real estate: 1 - 4 family investor 120,727 25.79 115,495 22.32 Multi-family (five or more) 12,315 2.63 14,964 2.89 Commercial non-residential 96,712 20.66 76,707 14.83 Construction and land 6,377 1.36 6,690 1.29 Commercial 5,145 1.10 6,438 1.24 Consumer Loans 3,230 0.69 3,900 0.75 Total Loans 468,072 100.00 % 517,467 100.00 % Loans in process (2,443) (4,895) Unearned loan origination fees (820) (448) Allowance for loan losses (3,613) (3,519) Net Loans $ 461,196 $ 508,605 As of June 30, 2021 and 2020, the Bank had $1.5 million and $2.4 million of outstanding Paycheck Protection Program (PPP) loans to 44 and 56 new and existing customers, respectively, that are included in commercial loans in the above table and are guaranteed by the Small Business Administration and mature in two years. During the year ended June 30, 2020, the Bank also modified approximately $49.8 million of existing loans under the 2020 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide its customers with monetary relief. Generally, these modifications included the deferral of principal and interest payments for a period of three months, although interest income continued to accrue. The three-month deferral period has ended on a portion of the loans on deferral and the Bank received payments of principal and interest on a portion of the loans on deferral and, as of June 30, 2021, $366 thousand of loans remain on deferral under the CARES Act. Mortgage loans serviced for others are not included in the accompanying Consolidated Statements of Financial Condition. The total amount of loans serviced for the benefit of others was approximately $18.6 million and $26.6 million at, June 30, 2021 and 2020, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing are included in advances from borrowers for taxes and insurance. Allowance for Loan Losses. The provision for loan losses was determined by management to be an amount necessary to maintain a balance of allowance for loan losses at a level that considers all known and current losses in the loan portfolio as well as potential losses due to unknown factors such as the economic environment. Changes in the provision were based on management’s analysis of various factors such as: estimated fair value of underlying collateral, recent loss experience in particular segments of the portfolio, levels and trends in delinquent loans, and changes in general economic and business conditions. During the year ended June 30, 2021, management determined it was appropriate to further breakout loan classifications to include one-to four-family investor loans, as well as the related allowance for loan losses, within the commercial real estate category. The 2020 information is presented to be comparable with the 2021 presentation. The Company considers the allowance for loan losses of $3.6 million and $3.5 million adequate to cover loan losses inherent in the loan portfolio at June 30, 2021 and 2020, respectively. The following table presents by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the years ended June 30, 2021 and 2020, respectively: June 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs (17) (30) — — — — — — (30) (77) Recoveries — — — 3 — 35 — — — 38 Provision 44 (3) (39) 39 36 92 (34) (32) 30 133 Ending Balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 709 133 487 843 159 854 362 51 15 3,613 Total allowance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Loans receivable ending balance: Individually evaluated for impairment $ 1,907 $ 578 $ — $ 433 $ 176 $ 892 $ — $ — $ — $ 3,986 Collectively evaluated for impairment 87,633 14,617 10,686 98,189 12,008 68,630 6,377 4,151 535 302,826 Acquired non-credit impaired loans (1) 83,721 22,004 2,259 22,105 131 27,190 — 994 2,695 161,099 Acquired credit impaired loans (2) 138 23 — — — — — — — 161 Total portfolio $ 173,399 $ 37,222 $ 12,945 $ 120,727 $ 12,315 $ 96,712 $ 6,377 $ 5,145 $ 3,230 $ 468,072 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. June 30, 2020 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 691 $ 122 $ 321 $ 810 $ 71 $ 708 $ 121 $ 95 $ 3 $ 267 $ 3,209 Charge-offs — (6) — (260) — (35) — (3) (12) — (316) Recoveries — — — — — — — — — — — Provision (9) 50 205 251 52 54 275 (9) 24 (267) 626 Ending Balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 682 166 526 801 123 727 396 83 15 — 3,519 Total allowance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Loans receivable ending balance: Individually evaluated for impairment $ 478 $ 628 $ — $ 495 $ 185 $ 585 $ — $ — $ — $ — $ 2,371 Collectively evaluated for impairment 97,541 15,170 9,218 92,021 9,267 45,214 6,690 4,150 713 — 279,984 Acquired non-credit impaired loans (1) 132,637 30,699 6,581 22,979 5,512 30,908 — 2,288 3,187 — 234,791 Acquired credit impaired loans (2) 299 22 — — — — — — — — 321 Total portfolio $ 230,955 $ 46,519 $ 15,799 $ 115,495 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 3,900 $ — $ 517,467 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. During the year ended June 30, 2021, the changes in the provision for loan losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each portfolio of loans collectively evaluated for impairment. The overall increase in the allowance during the year ended June 30, 2021 can primarily be attributed to an increase in non-accrual and delinquent loans and the corresponding qualitative adjustment. During the year ended June 30, 2020, the changes in the provision for loan losses related to 1-4 family residential real estate, residential real estate construction loans and commercial real estate land loans were primarily due to concerns with the risk profile of these portfolios in the current economic environment as impacted by the COVID-19 pandemic. The increase in reserves due to the COVID-19 pandemic was limited by the Company making enhancements to its credit management function by adding new experienced team members and implementing more robust internal credit measurement and monitoring processes. Credit Quality Information The following tables represent credit exposures by internally assigned grades for the year ended June 30, 2021 and 2020, respectively. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans. The Company’s internally assigned grades are as follows: Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at June 30, 2021, and June 30, 2020: June 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,321 $ 12,139 $ 95,820 $ 6,377 $ 5,145 $ 237,802 Special Mention 2,054 — 356 — — 2,410 Substandard 352 176 536 — — 1,064 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,727 $ 12,315 $ 96,712 $ 6,377 $ 5,145 $ 241,276 June 30, 2020 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 113,540 $ 13,976 $ 75,973 $ 6,690 $ 6,438 $ 216,617 Special Mention 1,663 803 507 — — 2,973 Substandard 292 185 227 — — 704 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 115,495 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 220,294 The following tables set forth the amounts of the portfolio of classified asset categories for the residential and consumer loan portfolios at June 30, 2021 and 2020: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) June 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 169,625 $ 36,877 $ 12,945 $ 3,112 $ 222,559 Non-performing 3,774 345 — 118 4,237 $ 173,399 $ 37,222 $ 12,945 $ 3,230 $ 226,796 June 30, 2020 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 228,894 $ 46,045 $ 15,799 $ 3,785 $ 294,523 Non-performing 2,061 474 — 115 2,650 $ 230,955 $ 46,519 $ 15,799 $ 3,900 $ 297,173 Loans Acquired with Deteriorated Credit Quality The outstanding principal and related carrying amount of loans acquired with deteriorated credit quality, for which the Company applies the provisions of ASC 310-30, as of June 30, 2021 and June 30, 2020, are as follows. (Dollars in thousands) June 30, 2021 June 30, 2020 Outstanding principal balance $ 247 $ 773 Carrying amount 161 321 The following table presents changes in the accretable discount on loans acquired with deteriorated credit quality, for which the Company applies the provisions of ASC 310-30, for the years ended June 30, 2021 and 2020: (Dollars in thousands) Accretable Discount Balance, May 1, 2020 $ 57 Accretion (4) Balance, June 30, 2020 $ 53 Accretion (40) Balance, June 30, 2021 $ 13 Loan Delinquencies and Non-accrual Loans Following are tables which include an aging analysis of the recorded investment of past due loans as of June 30, 2021 and 2020. Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2021 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 1,658 $ 561 $ 989 $ 3,208 $ 138 $ 170,053 $ 173,399 $ — $ 3,774 Home equity and HELOCs 58 150 80 288 23 36,911 37,222 — 345 Construction - residential — — — — — 12,945 12,945 — — Commercial real estate: 1 - 4 family investor 81 — 271 352 — 120,375 120,727 — 352 Multi-family — 344 176 520 — 11,795 12,315 — 176 Commercial non-residential 92 491 — 583 — 96,129 96,712 — 536 Construction and land — — — — — 6,377 6,377 — — Commercial — — — — — 5,145 5,145 — — Consumer 64 — — 64 — 3,166 3,230 — 118 Total $ 1,953 $ 1,546 $ 1,516 $ 5,015 $ 161 $ 462,896 $ 468,072 $ — $ 5,301 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2020 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 235 $ 1,020 $ 1,185 $ 2,440 $ 299 $ 228,216 $ 230,955 $ — $ 2,061 Home equity and HELOCs 126 101 181 408 22 46,089 46,519 90 384 Construction - residential — — — — — 15,799 15,799 — — Commercial real estate: 1 - 4 family investor — — 292 292 — 115,203 115,495 — 292 Multi-family — 465 185 650 — 14,314 14,964 — 185 Commercial non-residential 100 507 — 607 — 76,100 76,707 — 135 Construction and land — — — — — 6,690 6,690 — — Commercial — — — — — 6,438 6,438 — — Consumer 3 21 — 24 — 3,876 3,900 — 115 Total $ 464 $ 2,114 $ 1,843 $ 4,421 $ 321 $ 512,724 $ 517,467 $ 90 $ 3,172 Interest income on non-accrual loans would have increased by approximately $136 thousand, and $91 thousand during the years ended June 30, 2021 and 2020, respectively, if these loans had performed in accordance with their terms. Impaired Loans Management considers commercial loans and commercial real estate loans which are 90 days or more past due to be impaired. Larger commercial loans and commercial real estate loans which are 60 days or more past due are selected for impairment testing in accordance with GAAP. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance for loan losses. The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. June 30, 2021 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: 1 - 4 Family residential real estate $ 1,907 $ 1,943 $ — $ 1,223 $ 23 Home equity and HELOCs 578 587 — 652 20 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 433 477 — 656 20 Multi-family 176 180 — 182 6 Commercial non-residential 892 900 — 882 36 Construction and land — — — — — Commercial — — — — — Consumer — — — — — With an allowance recorded: 1 - 4 Family $ — $ — $ — $ — $ — Home equity and HELOCs — — — — — Construction Residential — — — — — 1 - 4 Family investor commercial real estate — — — — — Multi-family — — — — — Commercial non-residential — — — — — Construction and land — — — — — Commercial — — — — — Consumer — — — — — Total: 1 - 4 Family $ 1,907 $ 1,943 $ — $ 1,223 $ 23 Home equity and HELOCs 578 587 — 652 20 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 433 477 — 656 20 Multi-family 176 180 — 182 6 Commercial non-residential 892 900 — 882 36 Construction and land — — — — — Commercial — — — — — Consumer — — — — — The impaired loans table above includes accruing TDRs in the amount of $935 thousand that are performing in accordance with their modified terms. The Company recognized $66 thousand of interest income on accruing TDRs during the year ended June 30, 2021. The table above does not include $161 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2020 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 478 $ 478 $ — $ 1,080 $ 26 Home equity and HELOCs 628 634 — 906 37 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 495 495 — 371 19 Multi-family 185 185 — 139 — Commercial non-residential 585 620 — 624 38 Construction and land — — — — — Commercial — — — — — Consumer — — — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — $ 67 $ 4 Home equity and HELOCs — — — — — Construction Residential — — — — — 1 - 4 Family investor commercial real estate — — — — — Multi-family — — — — — Commercial non-residential — — — — — Construction and land — — — — — Commercial — — — — — Consumer — — — — — Total: 1-4 Family residential real estate $ 478 $ 478 $ — $ 1,147 $ 30 Home equity and HELOCs 628 634 — 906 37 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 495 495 — 371 19 Multi-family 185 185 — 139 — Commercial non-residential 585 620 — 624 38 Construction and land — — — — — Commercial — — — — — Consumer — — — — — The impaired loans table above includes accruing TDRs in the amount of $1.4 million that are performing in accordance with their modified terms. The Company recognized $79 thousand of interest income on accruing TDRs during the year ended June 30, 2020. The table above does not include $321 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. Generally, the Company will charge-off the collateral or discounted cash flow deficiency on all impaired loans. Interest income that would have been recorded for the years ended June 30, 2021 and 2020, had impaired loans been current according to their original terms, amounted to $68 thousand and $40 thousand, respectively. Troubled Debt Restructurings The Bank determines whether a restructuring of debt constitutes a troubled debt restructuring (“TDR”) in accordance with guidance under FASB ASC Topic 310 Receivables ability of the borrower to obtain funds from sources other than the Bank at market rates. The Bank considers all TDR loans as impaired loans and, generally, they are put on non-accrual status. The Bank will not consider the loan a TDR if the loan modification was made for customer retention purposes and the modification reflects prevailing market conditions. The Bank’s policy for returning a loan to accruing status requires the preparation of a well-documented credit evaluation which includes the following: ● A review of the borrower’s current financial condition in which the borrower must demonstrate sufficient cash flow to support the repayment of all principal and interest including any amounts previously charged-off; ● An updated appraisal or home valuation which must demonstrate sufficient collateral value to support the debt; and ● Sustained performance based on the restructured terms for at least six consecutive months. During the quarter ended June 30, 2020, the Company began providing customer relief programs, such as payment deferrals or interest only payments on loans. The Company does not consider a modification to be a TDR if it occurred as a result of the loan forbearance program under the CARES Act. The CARES Act indicates that a loan term modification does not automatically result in TDR status if the modification is made on a good-faith basis in response to COVID-19 to borrowers who were classified as current and not more than 30 days past due as of December 31, 2019, and executed between March 1, 2020 and the earlier of (a) 60 days after the date of termination of the National Emergency, or (b) December 31, 2020. As of June 30, 2021 and 2020, there were no loans modified that were identified as a troubled debt restructuring. The Company did not experience any re-defaulted TDRs subsequent to the loan being modified during the years ended June 30, 2021 and 2020. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Jun. 30, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 9 – Premises and Equipment The components of premises and equipment are as follows as of June 30, 2021 and 2020: June 30, (Dollars in thousands) 2021 2020 Land $ 2,581 $ 4,144 Office buildings and improvements 12,932 14,493 Furniture, fixtures and equipment 2,428 1,918 Automobiles 50 50 17,991 20,605 Accumulated depreciation (4,552) (3,872) $ 13,439 $ 16,733 Depreciation expense amounted to $985 thousand and $582 thousand for the years ended June 30, 2021 and 2020, respectively. During the year ended June 30, 2021, the Company sold six commercial real estate properties from premises and equipment with a total carrying value of $3.2 million and recorded a $495 thousand net gain on sale. Two of the six properties sold were former Bank branches that were consolidated into a third existing branch based on branch deposit levels and close geographic proximity of the three consolidating branches. The remaining four properties sold were acquired as part of the acquisitions of Fidelity and Washington effective May 1, 2020. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangibles | |
Goodwill and Intangibles | Note 10 – Goodwill and Intangibles The goodwill and intangible assets arising from acquisitions is accounted for in accordance with the accounting guidance in FASB ASC Topic 350 for Intangibles — Goodwill and Other The Company performs its annual impairment evaluation on June 30 or more frequently if events and circumstances indicate that the fair value of the banking unit is less than its carrying value. During the year ended June 30, 2021, the Company included considerations of the current economic environment caused by COVID-19 in its evaluation, and determined that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment exists during the year ended June 30, 2021. Goodwill and other intangibles at June 30, 2021 and 2020, are summarized as follows: The Company performs its annual impairment evaluation on June 30 or more frequently if events and circumstances indicate that the fair value of the banking unit is less than its carrying value. During the year ended June 30, 2021, management included considerations of the current economic environment caused by COVID-19 in its qualitative assessment of goodwill impairment and determined that a quantitative assessment of goodwill was warranted. Management engaged a third-party valuation specialist to perform a quantitative assessment of goodwill impairment and it was determined that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed at June 30, 2021. Goodwill and other intangibles at June 30, 2021 and 2020, are summarized as follows: Core Deposit Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, July 1, 2019 $ 4,858 $ 1,172 Adjustments: Additions — 262 Amortization — (242) Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (255) Balance, June 30, 2021 $ 4,858 $ 937 The following tables summarize amortizing intangible assets at June 30, 2021, and 2020: June 30, 2021 Accumulated (Dollars in thousands) Gross Amortization Net Core deposit intangibles $ 1,694 $ (757) $ 937 June 30, 2020 Accumulated (Dollars in thousands) Gross Amortization Net Core deposit intangibles $ 1,694 $ (502) $ 1,192 Aggregate amortization expense was $255 thousand and $242 thousand for the years ended June 30, 2021 and 2020, respectively. Amortization expense for the next five years and thereafter is expected to be as follows: (Dollars in thousands) For the year ended June 30, Expense 2022 $ 224 2023 194 2024 163 2025 132 2026 101 2027 and thereafter 123 $ 937 |
Deposits
Deposits | 12 Months Ended |
Jun. 30, 2021 | |
Deposits. | |
Deposits | Note 11 – Deposits Deposits and their respective weighted-average interest rates consist of the following major classifications as of June 30, 2021 and 2020: June 30, 2021 June 30, 2020 Weighted Weighted (Dollars in thousands) Amount Average Rate Amount Average Rate Non-interest bearing checking $ 51,086 — % $ 43,395 — % Interest bearing checking 104,214 0.08 98,828 0.19 Money market accounts 136,719 0.33 129,048 0.94 Savings and club accounts 100,781 0.10 94,097 0.19 Certificates of deposit 160,303 1.18 194,480 1.86 $ 553,103 0.45 % $ 559,848 0.93 % Time deposit accounts outstanding as of June 30, 2021 mature as follows: (In thousands) June 30, 2021 Twelve months ending: 2022 $ 87,947 2023 37,019 2024 15,559 2025 10,416 2026 7,338 Thereafter 2,024 $ 160,303 The aggregate amount of certificates of deposit accounts in denominations of $250 thousand or more totaled $13.4 million and $22.7 million at June 30, 2021 and 2020, respectively. |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 12 Months Ended |
Jun. 30, 2021 | |
Advances from Federal Home Loan Bank | |
Advances from Federal Home Loan Bank | Note 12 – Advances from Federal Home Loan Bank The Bank is a member of the FHLB system, which consists of 11 regional Federal Home Loan Banks. The FHLB provides a central credit facility primarily for member institutions. The Bank has a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $280.8 million and $223.0 million at June 30, 2021 and June 30, 2020, respectively, of which $41.0 million and $64.2 million, exclusive of purchase accounting fair value adjustment, was outstanding at June 30, 2021 and June 30, 2020, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $407.4 million and $322.0 million of loans pledged as collateral as of June 30, 2021 and June 30, 2020, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in that FHLB. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $2.7 million and $3.9 million at June 30, 2021 and June 30, 2020, respectively. On August 24, 2020, the Company paid off $23.2 million of advances from the FHLB of Pittsburgh due to the low interest rate environment and excess cash held on the Company’s Statement of Financial Condition. Advances from the FHLB of Pittsburgh consist of the following as of June 30, 2021 and 2020: (Dollars in thousands) June 30, 2021 June 30, 2020 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 21,767 Mid-term 7,000 23,125 Total FHLB advances $ 41,000 $ 64,892 Regarding the convertible rate notes, the FHLB of Pittsburgh has the option to convert the notes at rates ranging from 0.01% to 0.23% above the three-month LIBOR on a quarterly basis upon the arrival of specified conversion dates or the occurrence of specific events. Accordingly, contractual maturities above may differ from expected maturities. In the event the FHLB of Pittsburgh converts these advances, the Bank has the option of accepting the variable rate or repaying the advances without penalty. Contractual maturities and the associated weighted average interest rate of FHLB advances at June 30, 2021 and 2020 are as follows: June 30, 2021 (Dollars in thousands) Weighted Twelve months ending: Amount Average Rate 2022 $ 7,000 2.03 % 2023 13,000 2.74 % 2024 7,000 2.00 % 2025 14,000 2.92 % Total FHLB advances $ 41,000 2.55 % |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | Note 13 — Income Taxes The components of income tax expense for the years ended June 30, 2021 and 2020 are as follows: Year ended June 30, (Dollars in thousands) 2021 2020 Federal: Current $ (396) $ (448) Deferred 1,283 51 887 (397) State, current 60 10 $ 947 $ (387) A reconciliation of the statutory federal income tax at a rate of 21.0% in 2021 and 2020 to the income tax expense included in the consolidated statements of income is as follows: Year ended June 30, 2021 2020 % of % of Pretax Pretax (Dollars in thousands) Amount Income Amount Income Federal income tax at statutory rate $ 992 21.0 % $ 198 21.0 % State tax, net of federal benefit 47 1.0 7 0.7 Bank owned-life insurance (99) (2.1) (74) (7.9) Gain on bargain purchase — — (157) (16.7) Non-deductible merger expenses — — 71 7.5 Impact of tax law change — — (408) (43.3) Other 7 0.1 (24) (2.4) $ 947 20.0 % $ (387) (41.1) % Income tax expense for the year ended June 30, 2020 included a $408 thousand one-time income tax benefit related to a change in tax law associated with bank-owned life insurance policies acquired as part of an acquisition. Items that gave rise to significant portions of deferred tax assets and liabilities are as follows: June 30, (Dollars in thousands) 2021 2020 Deferred tax assets: Loan origination fees $ 184 $ 100 Allowance for loan losses 809 788 Deferred director’s fees 278 289 Deferred compensation 470 525 Deferred pension — 613 Purchase accounting adjustments 811 1,552 NOL carry forward 1,022 1,090 Net unrealized loss on securities 19 — Other 138 — Total deferred tax assets 3,731 4,957 Deferred tax liabilities: Net unrealized gain on securities — (21) Premises and equipment (157) (114) Other — (5) Total deferred tax liabilities (157) (140) Net deferred tax asset $ 3,574 $ 4,817 Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items, such as the allowance for loan losses and loan fees are recognized in different periods for financial reporting and tax return purposes. As of June 30, 2021, the Company has a $6.0 million net operating loss carryforward that will begin to expire by December 31, 2033. A valuation allowance has not been established for deferred tax assets. Realization of the deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. GAAP prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Accounting literature also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest, and penalties. In accordance with GAAP, interest or penalties incurred for income taxes will be recorded as a component of other expenses. There are no material uncertain tax positions at June 30, 2021 or 2020. With few exceptions, the Company is no longer subject to U.S. Federal income tax examinations by taxing authorities for years before 2017. Retained earnings included $2.8 million at June 30, 2021 and 2020, respectively, for which no provision for federal income tax has been made. These amounts represent deductions for bad debt reserves for tax purposes which were only allowed to savings institutions which met certain definitional tests prescribed by the Internal Revenue Code of 1986, as amended. The Small Business Job Protection Act of 1996 eliminated the special bad debt deduction granted solely to thrifts. Under the terms of the Act, there would be no recapture of the pre-1988 (base year) reserves. However, these pre-1988 reserves would be subject to recapture under the rules of the Internal Revenue Code if the Bank itself pays a cash dividend in excess of earnings and profits, or liquidates. The Act also provides for the recapture of deductions arising from “applicable excess reserve” defined as the total amount of reserve over the base year reserve. The Bank’s total reserve exceeds the base year reserve and deferred taxes have been provided for this excess. |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Jun. 30, 2021 | |
Employee and Director Benefit Plans | |
Employee and Director Benefit Plans | Note 14 – Employee and Director Benefit Plans 401(k) Plan The Bank has a savings plan qualified under Section 401(k) of the Internal Revenue Code which covers substantially all of its employees. Employees can contribute up to 50% of gross pay and the Bank matches 100% of such contributions up to 6%. The Company recorded $521 thousand, and $250 thousand of expense associated with the 401(k) plan during the years ended June 30, 2021 and 2020, respectively. Employee Stock Ownership Plan (“ESOP”) The Company offers ESOP benefits to employees who meet certain eligibility requirements. In connection with the second-step conversion offering, and as previously disclosed, the William Penn Bank ESOP trustees subscribed for, and intended to purchase, on behalf of the ESOP, 8% of the shares of the Company common stock sold in the offering and to fund its stock purchase through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. As previously disclosed, as a result of the second-step conversion offering being oversubscribed in the first tier of subscription priorities, the ESOP trustees were unable to purchase shares of the Company’s common stock in the second-step conversion offering. Subsequent to the completion of the second-step conversion on March 24, 2021, the ESOP trustees purchased 881,130 shares, or $10.1 million, of the Company’s common stock in the open market. The ESOP does not intend to purchase any additional shares of Company common stock in connection with the second-step conversion and offering. In connection with the purchase of the shares, the ESOP borrowed $10.1 million from the Company at a fixed interest rate of 3.25% with a twenty-five-year for earnings-per-share computations. The Company recognized $108 thousand of ESOP expense associated with the release of shares from collateral during the year ended June, 30 2021. During the year ended June 30, 2020, the Company offered ESOP benefits to employees who met certain eligibility requirements. Directors Retirement Plan The Bank has a retirement plan for the directors of the Bank. Upon retirement, a director who agrees to serve as a consulting director to the Bank will receive a monthly benefit amount for a period of up to 120 months. The plan was amended in October 2017 to allow credit for service as a director while also serving as an employee. The Company recognized $26 thousand, and $128 thousand, respectively, of expense for these benefits in its Consolidated Statements of Income for the years ended June 30, 2021 and 2020. At both June 30, 2021 and 2020, approximately $1.6 million had been accrued under this plan. Director Deferred Compensation Plan The Bank has deferred compensation plans for certain directors of the Bank whereby they can elect to defer their directors’ fees. Under the plans’ provisions, benefits which accrue at the Bank’s highest certificate of deposit rate will be payable upon retirement, death, or permanent disability. The Company recognized $25 thousand and $61 thousand, respectively, of interest expense for these benefits in its Consolidated Statements of Income for the years ended June 30, 2021 and 2020. At June 30, 2021 and 2020, approximately $1.2 million and $1.3 million, respectively, had been accrued for this benefit plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies The Company leases several offices as part of its regular business operations. Please refer to Note 18 for further detail regarding the Company's operating lease commitments. In addition, the Company is a 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 extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated balance sheets. A summary of the Company's loan commitments is as follows as of June 30, 2021, and 2020: June 30, June 30, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 35,350 $ 18,602 Unfunded commitments under lines of credit 50,583 52,432 Standby letters of credit 2,000 — Commitments to extend credit are agreements to lend to a customer if there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have 90-day fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness 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. Collateral held varies, but primarily includes residential and commercial real estate. Periodically, there have been other various claims and lawsuits against the Bank, such as claims to enforce liens, condemnation proceedings on properties in which it holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business. The Bank is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 16 - Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the 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 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 (described below) of tangible and core capital to total adjusted assets and of total capital to risk-weighted assets. Management believes, as of June 30, 2021, that the Bank meets all capital adequacy requirements to which it is subject. As of June 30, 2021, the most recent notification from the regulators 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 amounts and ratios of Tier I leverage capital to average assets and of common equity Tier I capital, Tier I capital, and total capital to risk-weighted assets, all as defined in the regulation. In an effort to reduce regulatory burden, legislation enacted in May 2018 required the federal banking agencies to establish an optional “community bank leverage ratio” of between 8% to 10% tangible equity to average total consolidated assets for qualifying institutions with assets of less than $10 billion of assets. Institutions with capital meeting the specified requirement and electing to follow the alternative framework would be deemed to comply with the applicable regulatory capital requirements, including the risk-based requirements and would be considered well-capitalized under the prompt corrective action framework. The federal regulators issued a final rule, effective January 1, 2020, that set the elective community bank leverage ratio at 9% tier 1 capital to average total consolidated assets. The Bank has elected to adopt the optional community bank leverage ratio framework in the first quarter of 2020. In April 2020, the Federal banking regulatory agencies modified the original Community Bank Leverage Ratio (CBLR) framework and provided that, as of the second quarter 2020, a banking organization with a leverage ratio of 8 percent or greater and that meets the other existing qualifying criteria may elect to use the community bank leverage ratio framework. The modified rule also states that the community bank leverage ratio requirement will be greater than 8 percent for the second through fourth quarters of calendar year 2020, greater than 8.5 percent for calendar year 2021, and greater than 9 percent thereafter. The transition rule also maintains a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 100 basis points below the applicable community bank leverage ratio requirement. A “small holding company,” as defined under Federal Reserve Board regulations as a holding company less than $3 billion of consolidated assets, such as the Company, is generally not subject to the regulatory capital requirements applicable to the Bank and outlined above, unless otherwise directed by the Federal Reserve Board. The leverage ratios of the Bank at June 30, 2021 and 2020 are as follows: To be Well Capitalized Under For Capital Prompt Corrective Action As of June 30, 2021 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 152,104 18.89 % $ 32,203 4.00 % $ 40,254 5.00 % To be Well Capitalized Under For Capital Prompt Corrective Action As of June 30, 2020 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 86,822 13.67 % $ 25,397 4.00 % $ 31,746 5.00 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 17 – Fair Value of Financial Instruments The Company follows authoritative guidance under FASB ASC Topic 820 for Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The definition of fair value under ASC 820 is the exchange price. The guidance clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability. The definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is based on quoted market prices, when available. If listed prices or quotes are not available, fair value is based on fair value models that use market participant or independently sourced market data which include: discount rate, interest rate yield curves, credit risk, default rates and expected cash flow assumptions. In addition, valuation adjustments may be made in the determination of fair value. These fair value adjustments may include amounts to reflect counter party credit quality, creditworthiness, liquidity, and other unobservable inputs that are applied consistently over time. These adjustments are estimated and, therefore, subject to significant management judgment, and at times, may be necessary to mitigate the possibility of error or revision in the model-based estimate of the fair value provided by the model. The methods described above may produce fair value calculations that may not be indicative of the net realizable value. While the Company believes its valuation methods are consistent with other financial institutions, the use of different methods or assumptions to determine fair values could result in different estimates of fair value. FASB ASC Topic 820 for Fair Value Measurements and Disclosures describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following table presents the assets required to be measured and reported on a recurring basis on the Company’s Consolidated Statements of Financial Condition at their fair value as of June 30, 2021 and 2020, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 55,064 $ — $ 55,064 U.S. agency collateralized mortgage obligations — 15,433 — 15,433 U.S. government agency securities — 6,896 — 6,896 Municipal bonds — 19,861 — 19,861 Corporate bonds — 26,081 — 26,081 Total Assets $ — $ 123,335 $ — $ 123,335 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 51,738 $ — $ 51,738 U.S. agency collateralized mortgage obligations — 3,215 — 3,215 U.S. government agency securities — 6,155 — 6,155 U.S. treasury securities — 1,000 — 1,000 Municipal bonds — 10,508 — 10,508 Corporate bonds — 17,382 — 17,382 Total Assets $ — $ 89,998 $ — $ 89,998 Assets and Liabilities Measured on a Non-Recurring Basis Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets and liabilities to be assessed for impairment or recorded at the lower of cost or fair value. Impaired loans are generally measured for impairment using the fair value of the collateral supporting the loan. Evaluating impaired loan collateral is based on Level 3 inputs utilizing outside appraisals adjusted by management for sales costs and other assumptions regarding market conditions to arrive at fair value. As of June 30, 2021 and 2020, the Company charged-off the collateral deficiency on impaired loans. As a result, there were no specific reserves on impaired loans as of June 30, 2021 and 2020. Other real estate owned (OREO) is measured at fair value, based on appraisals less cost to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. As of June 30, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2020, assets required to be measured and reported at fair value on a non-recurring basis are summarized as follows: June 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Other real estate owned $ — $ — $ 75 $ 75 $ — $ — $ 75 $ 75 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 190 $ 190 Other real estate owned — — 100 100 $ — $ — $ 290 $ 290 Quantitative information regarding assets measured at fair value on a non-recurring basis is as follows: Quantative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2021 Foreclosed real estate owned $ 75 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % Quantative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2020 Impaired loans $ 190 Appraisal of collateral (1) Appraisal adjustments (2) 0-28 % Foreclosed real estate owned $ 100 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % (1) F air value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. Management uses its best judgment in estimating the fair value of the Company's financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments. Cash and Due from Banks and Interest-Bearing Time Deposits The carrying amounts of cash and amounts due from banks and interest-bearing time deposits approximate their fair value due to the relatively short time between origination of the instrument and its expected realization. Securities Available for Sale The fair value of investment and mortgage-backed securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Loans Receivable The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms are adjusted for liquidity and credit risk. Regulatory Stock The carrying amount of Federal Home Loan Bank stock approximates fair value because Federal Home Loan Bank stock can only be redeemed or sold at par value and only to the respective issuing government supported institution or to another member institution. Bank-Owned Life Insurance The Company reports bank-owned life insurance on its Consolidated Statements of Financial Condition at the cash surrender value. The carrying amount of bank-owned life insurance approximates fair value because the fair value of bank-owned life insurance is equal to the cash surrender value of the life insurance policies. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and payable approximates fair value. Deposits Fair values for demand deposits, NOW accounts, savings and club accounts, and money market deposits are, by definition, equal to the amount payable on demand at the reporting date as these products have no stated maturity. Fair values of fixed-maturity certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on similar instruments with similar maturities. Advances from Federal Home Loan Bank Fair value of advances from Federal Home Loan Bank is estimated using discounted cash flow analyses, based on rates currently available to the Company for advances from Federal Home Loan Bank with similar terms and remaining maturities. Off-Balance Sheet Financial Instruments Fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, considering market interest rates, the remaining terms and present credit worthiness of the counterparties. In accordance with FASB ASC Topic 825 for Financial Instruments, Disclosures about Fair Value of Financial Instruments The following tables set forth the carrying value of financial assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Statements of Financial Condition for the periods indicated. The table below excludes financial instruments for which the carrying amount approximates fair value. Fair Value Measurements at June 30, 2021 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 461,196 $ 472,292 $ — $ — $ 472,292 Financial instruments - liabilities: Certificates of deposit 160,303 161,057 — — 161,057 Advances from Federal Home Loan Bank 41,000 42,098 — — 42,098 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2020 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 508,605 $ 541,779 $ — $ — $ 541,779 Financial instruments - liabilities: Certificates of deposit 194,480 198,268 — — 198,268 Advances from Federal Home Loan Bank 64,892 67,520 — — 67,520 Off-balance sheet financial instruments — — — — — |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | Note 18 — Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. On July 1, 2019, the Company adopted ASU No 2016-02 “Leases” (Topic 842) Substantially all of the leases in which the Company is the lessee include real estate property for branches and office space with terms extending through 2042. All of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s Consolidated Statements of Financial Condition. Topic 842 requires the Company to recognize a right-of-use (“ROU”) asset and corresponding lease liability included in accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively, on the Company’s Consolidated Statements of Financial Condition. The following tables present the Consolidated Statements of Financial Condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months of less), or equipment leases (deemed immaterial) on the Consolidated Statements of Financial Condition. (in thousands) June 30, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 2,108 Total Right-of-Use Assets $ 2,108 (in thousands) June 30, 2021 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 2,307 Total Lease Liabilities $ 2,307 (in thousands) June 30, 2020 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 1,663 Total Right-of-Use Assets $ 1,663 (in thousands) June 30, 2020 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 1,638 Total Lease Liabilities $ 1,638 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. June 30, 2021 Weighted average remaining lease term Operating leases 9.8 years Weighted average discount rate Operating leases 1.76 % June 30, 2020 Weighted average remaining lease term Operating leases 11.9 years Weighted average discount rate Operating leases 2.19 % The Company recorded $365 thousand and $142 thousand of net lease costs during the years ended June 30, 2021 and 2020, respectively. During the year ended June 30, 2021, the Company recognized a $162 thousand loss on lease abandonment associated with the closure of the Frankford branch effective June 30, 2021 as part of the Company’s branch consolidation efforts. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021 were as follows: June 30, 2021 Operating (in thousands) Leases Twelve months ended: 2022 $ 369 2023 376 2024 384 2025 367 2026 125 Thereafter 935 Total future minimum lease payments $ 2,556 Amounts representing interest (249) Present value of net future minimum lease payments $ 2,307 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | |
Related Party Transactions | Note 19 — Related Party Transactions At June 30, 2021 and June 30, 2020 certain directors, executive officers, principal holders of the Company’s common stock, associates of such persons, and affiliated companies of such persons were indebted, including undrawn commitments to lend, to the Bank in the aggregate amount of $2.5 million and $1.8 million, respectively. These total commitments to lend include $1.3 million and $1.2 million of undrawn commitments at June 30, 2021 and June 30, 2020, respectively. The commitments are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rate and collateral, as those prevailing at the time of comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other unfavorable features. The following table shows the loan activity for related parties for the years ended June 30, 2021 and 2020: June 30, (Dollars in thousands) 2021 2020 Beginning Balance $ 587 $ 147 New loans and funding of existing lines of credit 1,190 505 Loans to newly appointed directors — 103 Repayments (148) (168) Loans to former related parties (439) — Ending balance $ 1,190 $ 587 None of the Company’s affiliates, officers, directors, or employees have an interest in or receive remuneration from any special purpose entities or qualified special purpose entities which the Company transacts business. At June 30, 2021 and June 30, 2020, certain directors, executive officers, principal holders of the Company’s common stock, associates of such persons, and affiliated companies of such persons had deposits with the Bank in the aggregate amount of $1.6 million and $2.6 million, respectively. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Jun. 30, 2021 | |
Parent Company Financial Information | |
Parent Company Financial Information | Note 20 — Parent Company Financial Information WILLIAM PENN BANCORPORATION CONDENSED STATEMENTS OF FINANCIAL CONDITION — PARENT COMPANY ONLY (Dollars in thousands) As of June 30, 2021 and 2020 June 30, June 30, 2021 2020 ASSETS Cash on deposit at the Bank $ 57,995 $ 2,861 Investment in the Bank 158,857 93,401 Other assets 103 103 TOTAL ASSETS $ 216,955 $ 96,365 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accrued and other liabilities $ 29 $ — TOTAL LIABILITIES 29 — Commitments and contingencies — — STOCKHOLDERS’ EQUITY Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued — — Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of June 30, 2021 152 467 Additional paid-in capital 168,349 42,932 Treasury Stock, 0 and 579,879 shares at cost at June 30, 2021 and 2020, respectively — (3,710) Unearned common stock held by employee stock ownership plan (10,004) — Retained earnings 58,493 56,600 Accumulated other comprehensive (loss) income (64) 76 TOTAL STOCKHOLDERS’ EQUITY 216,926 96,365 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 216,955 $ 96,365 WILLIAM PENN BANCORPORATION CONDENSED STATEMENTS OF OPERATIONS — PARENT COMPANY ONLY (Dollars in thousands) For the Years Ended June 30, 2021 and 2020 Year ended June 30, 2021 2020 INCOME Interest on interest-bearing deposits with the Bank $ 52 $ 8 Total income 52 8 EXPENSES Professional fees 147 50 Merger relates expenses — 532 Other expenses 44 12 Total expenses 191 594 Loss before income tax benefit and equity in undistributed net income of affiliates (139) (586) Income tax benefit (31) (51) Equity in undistributed net income of the Bank 3,887 1,863 NET INCOME $ 3,779 $ 1,328 Comprehensive income $ 3,639 $ 1,176 WILLIAM PENN BANCORPORATION CONDENSED STATEMENTS OF CASH FLOW — PARENT COMPANY ONLY (Dollars in thousands) For the Years Ended June 30, 2021 and 2020 Year ended June 30, 2021 2020 Cash flows from operating activities Net income $ 3,779 $ 1,328 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed net earnings of subsidiaries (3,887) (1,863) Dividend from the Bank — 4,000 Other 137 (61) Net cash provided by operating activities 29 3,404 Cash flows from investing activities Net second-step proceeds transferred to the Bank (61,709) — Net cash used in investing activities (61,709) — Cash flows from financing activities Cash dividends (1,886) (1,983) Issuance of common stock funded by stock subscriptions 128,861 — Purchase of unearned common stock held by employee stock ownership plan (10,112) — Purchase of treasury stock (49) — Net cash provided by (used in) financing activities 116,814 (1,983) Net increase in cash and cash equivalents 55,134 1,421 Cash and cash equivalents – beginning 2,861 1,440 Cash and cash equivalents – ending $ 57,995 $ 2,861 Supplementary cash flows information Income tax refunds $ (140) $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | |
Subsequent Events | Note 21 — Subsequent Events On July 21, 2021, the Company declared a one-time special dividend of $0.30 per common share, payable August 18, 2021, to common shareholders of record at the close of business on August 2, 2021. As previously disclosed, the Company intends to pay regular cash dividends on a quarterly basis, but has not determined the timing of its first regular quarterly dividend. In determining the amount of any future dividends, the board of directors will take into account the Company’s financial condition and results of operations, tax considerations, capital requirements and alternative uses for capital, industry standards, and economic conditions. The Company cannot guarantee that it will pay such dividends or that, if paid, it will not reduce or eliminate dividends in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA. WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At June 30, 2021, WPSLA held $112.7 million of the Bank’s $123.3 million investment securities portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are aggregated into one reportable operating segment: community banking as under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP 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 financial statements and the reported amounts of income and expenses during the reporting period. The significant estimates include the allowance for loan losses, goodwill, intangible assets, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions. |
Presentation of Cash Flows | Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing demand deposits. |
Revenue Recognition | Revenue Recognition Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment security and loan gains (losses), and earnings on bank owned life insurances are not within the scope of ASC 606. The main types of noninterest income within the scope of the standard include service charges on deposit accounts. The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees, as well as bargain purchase gain. These fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. |
Investment Securities | Investment Securities The Company classifies and accounts for debt securities as follows: Held-to-Maturity — Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and are recorded at amortized cost. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Available-for-Sale — Debt securities that will be held for indefinite periods of time that may be sold in response to changes to market interest or prepayment rates, needs for liquidity, and changes in the availability of and the yield of alternative investments, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported net of tax in other comprehensive income. Realized gains and losses on the sale of investment securities are recorded as of trade date and reported in the Consolidated Statements of Income and determined using the adjusted cost of the specific security sold. The Company determines whether any unrealized losses are temporary in accordance with guidance under FASB ASC Topic 320 for Investments — Debt Securities Accounting guidance for debt securities requires the Company to assess whether the loss existed by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery, or (3) it does not expect to recover the entire amortized cost basis of the security. The guidance requires the Company to bifurcate the impact on securities where impairment in value was deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The difference between the fair market value and the credit loss is recognized in other comprehensive income. |
Regulatory Stock, at Cost | Regulatory Stock, at Cost Common stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) represents ownership in institutions which are wholly owned by other financial institutions. This restricted equity security is accounted for at cost. The Company invests in Federal Home Loan Bank of Pittsburgh (“FHLB”) stock as required to support borrowing activities, as detailed in Note 12 to these consolidated financial statements. Although FHLB stock is an equity interest in a FHLB, it does not have a readily determinable fair value because its ownership is restricted and it lacks a market. FHLB stock can be sold back only at its par value of $100 per share and only to the FHLBs or to another member institution. The Company evaluates this investment for impairment on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company reviews this stock for impairment based on guidance from FASB ASC Topic 320 for Investments — Debt Securities FASB ASC Topic 942 for Financial Services — Depository and Lending |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans. Generally, the Company amortizes loan origination fees and costs over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for at least six months and the ultimate collectability of the total contractual principal and interest is no longer in doubt. |
Loans Acquired with Deteriorated Credit Quality | Loans Acquired with Deteriorated Credit Quality The Company accounts for loans acquired with deteriorated credit quality in accordance with the provisions included in FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality These loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, the excess is recognized as part of future interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is determined by management based upon portfolio segment, past experience, evaluation of estimated loss and impairment in the loan portfolio, current economic conditions, and other pertinent factors. Management also considers risk characteristics by portfolio segments including, but not limited to, renewals and real estate valuations. The allowance for loan losses is maintained at a level that management considers appropriate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. Loan impairment is evaluated based on the fair value of collateral or estimated net realizable value. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. The allowance for loan losses is established through a provision for loan losses charged to expense which is based upon past loan and loss experience and an evaluation of estimated losses in the current loan portfolio, including the evaluation of impaired loans. Under the accounting guidance FASB ASC Topic 310 for Receivables |
Loan Charge-off Policies | Loan Charge-off Policies Generally, loans are charged down to the net realizable value when the loan is 90 days past due. However, student loans are fully charged down when the loan is 180 days past due. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) The Company considers a loan a TDR when the borrower is experiencing financial difficulty and the Company has granted a concession that it would not otherwise consider but for the borrower’s financial difficulties. A TDR includes a modification of debt terms or assets received in satisfaction of the debt (which may include foreclosure or deed in lieu of foreclosure) or a combination of types. The Company evaluates selective criteria to determine if a borrower is experiencing financial difficulty including the ability of the borrower to obtain funds from sources other than the Bank at market rates. The Company evaluates all TDR loans for impairment on an individual basis in accordance with ASC 310. Management does not consider a loan a TDR if the loan modification was a result of a customer retention program. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, 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 (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives of the related assets: Years Office buildings and improvements 5 – 33 Furniture, fixtures, and equipment 5 – 10 Automobiles 4 |
Other Real Estate Owned | Other Real Estate Owned Real estate owned acquired in settlement of foreclosed loans is carried as a component of other assets at fair value minus estimated cost to sell. Prior to foreclosure, the estimated collectible value of the collateral is evaluated to determine whether a partial charge-off of the loan balance is necessary. After transfer to real estate owned, any subsequent write-downs are charged against other operating expenses. Direct costs incurred in the foreclosure process and subsequent holding costs incurred on such properties are recorded as expenses of current operations. |
Income Taxes | Income Taxes Deferred taxes are provided on the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. In certain circumstances, the Company will record a gain on bargain purchase when the fair value of the net assets of the acquired company exceeds the fair value of the equity of the acquired company. When calculating goodwill or a gain on bargain purchase in accordance with FASB ASC 805-30-55-3, the Company evaluates whether the fair value of equity of the acquired company is a more reliable measure than the fair value of the equity interests transferred. The Company considers the assumptions required to calculate the fair value of equity of an acquired company using discounted cash flow models (income approach) and/or change of control premium models (market approach) which are generally based on a higher level of market participant inputs and therefore a lower level of subjectivity when compared to the assumptions required to calculate the fair value of equity interests transferred under a fair value pricing model. As a result, the Company considers the calculation of the fair value of the equity of an acquired company to be more reliable than the calculation of the fair value of the equity interests transferred. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified. Intangible assets consist of core deposit intangibles arising from whole bank acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives of ten years. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit. Such financial instruments are recorded in the Consolidated Statements of Financial Condition when they are funded. |
Bank-owned Life Insurance | Bank-owned Life Insurance The Company funds the purchase of insurance policies on the lives of certain former officers and employees of the Company. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The Company has recognized any change in cash surrender value of life insurance in other income in the Company’s Consolidated Statements of Income. |
Comprehensive Income | Comprehensive Income The Company presents a separate financial statement of comprehensive income that includes amounts from transactions and other events excluded from the Company’s Consolidated Statements of Income and recorded directly to retained earnings. |
Business Combinations | Business Combinations At the date of acquisition, the Company records the assets and liabilities of the acquired companies at fair value. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Income beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Income during the period incurred. |
Segment Reporting | Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business, and government customers. Through its branch network, the Bank offers a full array of commercial and retail financial services, including; the taking of time, savings and demand deposits; the making of commercial and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Bank. As such, discrete financial information is not available and segment reporting would not be meaningful. |
Reclassifications | Reclassifications Certain amounts in the previous year financial statements have been reclassified to conform to the current year presentation. These reclassifications have no impact on prior year net income or stockholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments those fiscal years. We expect to recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives | Years Office buildings and improvements 5 – 33 Furniture, fixtures, and equipment 5 – 10 Automobiles 4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Schedule of composition of the weighted average common shares used in the basic and diluted earnings per share computation | Year ended June 30, (Dollars in thousands, except share and per share amounts) 2021 2020 Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share 14,541,136 13,245,864 Net income $ 3,779 $ 1,328 Basic and diluted earnings per share $ 0.26 $ 0.10 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Fidelity | |
Business Acquisition [Line Items] | |
Summary of fair value of equity, and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition | (Dollars in thousands) Fair value of equity $ 11,377 Assets acquired: Cash and due from financial institutions $ 26,867 Interest-bearing time deposits 462 Loans receivable, net 55,949 Premises and equipment 747 Regulatory stock 334 Deferred income taxes 564 Other real estate owned 100 Core deposit intangible 65 Accrued interest receivable 209 Other assets 272 Total assets $ 85,569 Liabilities assumed: Deposits $ (66,409) Advances from Federal Home Loan Bank (5,688) Accrued interest payable (5) Other liabilities (1,477) Total liabilities $ (73,579) Net assets acquired 11,990 Gain on bargain purchase $ (613) |
Summary of details the loans that are accounted for in accordance with FASB ASC 310-30 | (Dollars in thousands) Contractually required principal and interest at acquisition $ 619 Contractual cash flows not expected to be collected (nonaccretable difference) 431 Expected cash flows at acquisition 188 Interest component of expected cash flows (accretable discount) 27 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 161 |
Schedule of acquired loans not subject to the requirements of FASB ASC 310-30 | (Dollars in thousands) Contractually required principal at acquisition $ 56,785 Contractual cash flows not expected to be collected (credit mark) 1,240 Expected cash flows at acquisition 55,545 Interest rate premium mark 243 Fair value of acquired loans not accounted for under FASB ASC 310-30 $ 55,788 |
Schedule of operating results attributable to acquiree | Fidelity May 1, 2020 (Dollars in thousands) to June 30, 2020 Net interest income $ 313 Non-interest income 17 Non-interest expense (331) Pre-tax income $ (1) Income tax expense — Net income $ (1) |
Summary of pro forma information | Pro Forma for the Year Ended (Dollars in thousands) June 30, 2020 June 30, 2019 Net interest income $ 17,352 $ 17,478 Provision for loan losses (695) (105) Non-interest income 1,672 1,915 Non-interest expense (16,005) (14,819) Pre-tax income $ 2,324 $ 4,469 Income tax expense 488 938 Net income $ 1,836 $ 3,531 Earnings per share basic and diluted $ 0.13 $ 0.24 |
Washington | |
Business Acquisition [Line Items] | |
Summary of fair value of equity, and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition | (Dollars in thousands) Fair value of equity $ 9,165 Assets acquired: Cash and due from financial institutions $ 21,981 Securities available for sale 1,996 Interest-bearing time deposits 100 Loans receivable, net 121,520 Premises and equipment 6,356 Regulatory stock 1,214 Deferred income taxes 2,154 Bank-owned life insurance 3,208 Core deposit intangible 197 Accrued interest receivable 413 Other assets 146 Total assets $ 159,285 Liabilities assumed: Deposits $ (135,546) Advances from Federal Home Loan Bank (11,281) Accrued interest payable (145) Other liabilities (3,015) Total liabilities $ (149,987) Net assets acquired 9,298 Gain on bargain purchase $ (133) |
Summary of details the loans that are accounted for in accordance with FASB ASC 310-30 | (Dollars in thousands) Contractually required principal and interest at acquisition $ 420 Contractual cash flows not expected to be collected (nonaccretable difference) 230 Expected cash flows at acquisition 190 Interest component of expected cash flows (accretable discount) 27 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 163 |
Schedule of acquired loans not subject to the requirements of FASB ASC 310-30 | (Dollars in thousands) Contractually required principal at acquisition $ 125,491 Contractual cash flows not expected to be collected (credit mark) 2,440 Expected cash flows at acquisition 123,051 Interest rate discount mark 1,694 Fair value of acquired loans not accounted for under FASB ASC 310-30 $ 121,357 |
Schedule of operating results attributable to acquiree | Washington May 1, 2020 (Dollars in thousands) to June 30, 2020 Net interest income $ 591 Non-interest income 67 Non-interest expense (628) Pre-tax income $ 30 Income tax expense (6) Net income $ 24 |
Summary of pro forma information | Pro Forma for the Year Ended (Dollars in thousands) June 30, 2020 June 30, 2019 Net interest income $ 19,112 $ 20,149 Provision for loan losses (752) (196) Non-interest income 2,409 1,715 Non-interest expense (17,392) (18,223) Pre-tax income $ 3,377 $ 3,445 Income tax expense 709 723 Net income $ 2,668 $ 2,722 Earnings per share basic and diluted $ 0.18 $ 0.19 |
Changes in and Reclassificati_2
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income | |
Schedule of changes in the balances of each component of accumulated other comprehensive income ("AOCI") | (Dollars in thousands) Unrealized Gains (Losses) on Securities Accumulated Other Comprehensive Income (1) Available for Sale Balance at June 30, 2019 $ 228 Other comprehensive income before reclassifications 36 Amounts reclassified from accumulated other comprehensive income (188) Period change (152) Balance at June 30, 2020 $ 76 Other comprehensive loss before reclassifications (112) Amounts reclassified from accumulated other comprehensive loss (28) Period change (140) Balance at June 30, 2021 $ (64) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate of approximately 22% for both 2021 and 2020. |
Schedule of reclassifications out of AOCI by component | (Dollars in thousands) Amounts Reclassified from Other Comprehensive Income Details about Accumulated Other Comprehensive Year Ended June 30, Affected Line Item in the Income Components 2021 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 36 $ 238 Net gain on sale of securities Related income tax expense (8) (50) Income tax expense $ 28 $ 188 |
Interest-Bearing Time Deposits
Interest-Bearing Time Deposits (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Interest-Bearing Time Deposits | |
Schedule of interest-bearing time deposits by contractual maturity | As of June 30, (Dollars in thousands) 2021 2020 Due in one year or less $ 1,250 $ 1,050 Due after one year through five years 600 1,250 $ 1,850 $ 2,300 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities | June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 55,385 $ 53 $ (374) $ 55,064 U.S. agency collateralized mortgage obligations 15,641 47 (255) 15,433 U.S. government agency securities 6,952 — (56) 6,896 Municipal bonds 20,239 11 (389) 19,861 Corporate bonds 25,200 881 — 26,081 Total Available For Sale $ 123,417 $ 992 $ (1,074) $ 123,335 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,570 $ 272 $ (104) $ 51,738 U.S. agency collateralized mortgage obligations 3,215 33 (33) 3,215 U.S. government agency securities 6,226 2 (73) 6,155 U.S. treasury securities 1,000 — — 1,000 Municipal bonds 10,485 33 (10) 10,508 Corporate bonds 17,399 60 (77) 17,382 Total Available For Sale $ 89,895 $ 400 $ (297) $ 89,998 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | June 30, 2021 Available For Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ — $ — Due after one year through five years 78 77 Due after five years through ten years 27,718 28,596 Due after ten years 95,621 94,662 $ 123,417 $ 123,335 |
Schedule of debt securities with unrealized loss position | June 30, 2021 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 43,152 $ (374) $ — $ — $ 43,152 $ (374) U.S. agency collateralized mortgage obligations 10,613 (202) 2,407 (53) 13,020 (255) U.S. government agency securities 6,896 (56) — — 6,896 (56) Municipal bonds 17,748 (389) — — 17,748 (389) Total Temporarily Impaired Securities $ 78,409 $ (1,021) $ 2,407 $ (53) $ 80,816 $ (1,074) June 30, 2020 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 22,082 $ (104) $ — $ — $ 22,082 $ (104) U.S. agency collateralized mortgage obligations 1,513 (14) 1,129 (19) 2,642 (33) U.S. government agency securities 4,922 (49) 914 (24) 5,836 (73) Municipal bonds 3,694 (10) — — 3,694 (10) Corporate bonds 5,222 (77) — — 5,222 (77) Total Temporarily Impaired Securities $ 37,433 $ (254) $ 2,043 $ (43) $ 39,476 $ (297) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Loans | |
Schedule of major classifications of loans | June 30, June 30, 2021 2020 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 173,399 37.05 % $ 230,955 44.64 % Home equity and HELOCs 37,222 7.95 46,519 8.99 Construction -residential 12,945 2.77 15,799 3.05 Commercial real estate: 1 - 4 family investor 120,727 25.79 115,495 22.32 Multi-family (five or more) 12,315 2.63 14,964 2.89 Commercial non-residential 96,712 20.66 76,707 14.83 Construction and land 6,377 1.36 6,690 1.29 Commercial 5,145 1.10 6,438 1.24 Consumer Loans 3,230 0.69 3,900 0.75 Total Loans 468,072 100.00 % 517,467 100.00 % Loans in process (2,443) (4,895) Unearned loan origination fees (820) (448) Allowance for loan losses (3,613) (3,519) Net Loans $ 461,196 $ 508,605 |
Schedule for changes in the allowance for loan losses | The following table presents by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the years ended June 30, 2021 and 2020, respectively: June 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs (17) (30) — — — — — — (30) (77) Recoveries — — — 3 — 35 — — — 38 Provision 44 (3) (39) 39 36 92 (34) (32) 30 133 Ending Balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 709 133 487 843 159 854 362 51 15 3,613 Total allowance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Loans receivable ending balance: Individually evaluated for impairment $ 1,907 $ 578 $ — $ 433 $ 176 $ 892 $ — $ — $ — $ 3,986 Collectively evaluated for impairment 87,633 14,617 10,686 98,189 12,008 68,630 6,377 4,151 535 302,826 Acquired non-credit impaired loans (1) 83,721 22,004 2,259 22,105 131 27,190 — 994 2,695 161,099 Acquired credit impaired loans (2) 138 23 — — — — — — — 161 Total portfolio $ 173,399 $ 37,222 $ 12,945 $ 120,727 $ 12,315 $ 96,712 $ 6,377 $ 5,145 $ 3,230 $ 468,072 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. June 30, 2020 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 691 $ 122 $ 321 $ 810 $ 71 $ 708 $ 121 $ 95 $ 3 $ 267 $ 3,209 Charge-offs — (6) — (260) — (35) — (3) (12) — (316) Recoveries — — — — — — — — — — — Provision (9) 50 205 251 52 54 275 (9) 24 (267) 626 Ending Balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 682 166 526 801 123 727 396 83 15 — 3,519 Total allowance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Loans receivable ending balance: Individually evaluated for impairment $ 478 $ 628 $ — $ 495 $ 185 $ 585 $ — $ — $ — $ — $ 2,371 Collectively evaluated for impairment 97,541 15,170 9,218 92,021 9,267 45,214 6,690 4,150 713 — 279,984 Acquired non-credit impaired loans (1) 132,637 30,699 6,581 22,979 5,512 30,908 — 2,288 3,187 — 234,791 Acquired credit impaired loans (2) 299 22 — — — — — — — — 321 Total portfolio $ 230,955 $ 46,519 $ 15,799 $ 115,495 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 3,900 $ — $ 517,467 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. |
Schedule of risk category of loans by class of loans | The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at June 30, 2021, and June 30, 2020: June 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,321 $ 12,139 $ 95,820 $ 6,377 $ 5,145 $ 237,802 Special Mention 2,054 — 356 — — 2,410 Substandard 352 176 536 — — 1,064 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,727 $ 12,315 $ 96,712 $ 6,377 $ 5,145 $ 241,276 June 30, 2020 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 113,540 $ 13,976 $ 75,973 $ 6,690 $ 6,438 $ 216,617 Special Mention 1,663 803 507 — — 2,973 Substandard 292 185 227 — — 704 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 115,495 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 220,294 The following tables set forth the amounts of the portfolio of classified asset categories for the residential and consumer loan portfolios at June 30, 2021 and 2020: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) June 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 169,625 $ 36,877 $ 12,945 $ 3,112 $ 222,559 Non-performing 3,774 345 — 118 4,237 $ 173,399 $ 37,222 $ 12,945 $ 3,230 $ 226,796 June 30, 2020 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 228,894 $ 46,045 $ 15,799 $ 3,785 $ 294,523 Non-performing 2,061 474 — 115 2,650 $ 230,955 $ 46,519 $ 15,799 $ 3,900 $ 297,173 |
Summary of outstanding principal and related carrying amount of loans acquired with deteriorated credit quality | (Dollars in thousands) June 30, 2021 June 30, 2020 Outstanding principal balance $ 247 $ 773 Carrying amount 161 321 |
Schedule of accretable discount on loans acquired with deteriorated credit quality | (Dollars in thousands) Accretable Discount Balance, May 1, 2020 $ 57 Accretion (4) Balance, June 30, 2020 $ 53 Accretion (40) Balance, June 30, 2021 $ 13 |
Schedule of aging analysis of past due loans | Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2021 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 1,658 $ 561 $ 989 $ 3,208 $ 138 $ 170,053 $ 173,399 $ — $ 3,774 Home equity and HELOCs 58 150 80 288 23 36,911 37,222 — 345 Construction - residential — — — — — 12,945 12,945 — — Commercial real estate: 1 - 4 family investor 81 — 271 352 — 120,375 120,727 — 352 Multi-family — 344 176 520 — 11,795 12,315 — 176 Commercial non-residential 92 491 — 583 — 96,129 96,712 — 536 Construction and land — — — — — 6,377 6,377 — — Commercial — — — — — 5,145 5,145 — — Consumer 64 — — 64 — 3,166 3,230 — 118 Total $ 1,953 $ 1,546 $ 1,516 $ 5,015 $ 161 $ 462,896 $ 468,072 $ — $ 5,301 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2020 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 235 $ 1,020 $ 1,185 $ 2,440 $ 299 $ 228,216 $ 230,955 $ — $ 2,061 Home equity and HELOCs 126 101 181 408 22 46,089 46,519 90 384 Construction - residential — — — — — 15,799 15,799 — — Commercial real estate: 1 - 4 family investor — — 292 292 — 115,203 115,495 — 292 Multi-family — 465 185 650 — 14,314 14,964 — 185 Commercial non-residential 100 507 — 607 — 76,100 76,707 — 135 Construction and land — — — — — 6,690 6,690 — — Commercial — — — — — 6,438 6,438 — — Consumer 3 21 — 24 — 3,876 3,900 — 115 Total $ 464 $ 2,114 $ 1,843 $ 4,421 $ 321 $ 512,724 $ 517,467 $ 90 $ 3,172 |
Summary of recorded investment and unpaid principal balances for impaired loans | The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. June 30, 2021 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: 1 - 4 Family residential real estate $ 1,907 $ 1,943 $ — $ 1,223 $ 23 Home equity and HELOCs 578 587 — 652 20 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 433 477 — 656 20 Multi-family 176 180 — 182 6 Commercial non-residential 892 900 — 882 36 Construction and land — — — — — Commercial — — — — — Consumer — — — — — With an allowance recorded: 1 - 4 Family $ — $ — $ — $ — $ — Home equity and HELOCs — — — — — Construction Residential — — — — — 1 - 4 Family investor commercial real estate — — — — — Multi-family — — — — — Commercial non-residential — — — — — Construction and land — — — — — Commercial — — — — — Consumer — — — — — Total: 1 - 4 Family $ 1,907 $ 1,943 $ — $ 1,223 $ 23 Home equity and HELOCs 578 587 — 652 20 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 433 477 — 656 20 Multi-family 176 180 — 182 6 Commercial non-residential 892 900 — 882 36 Construction and land — — — — — Commercial — — — — — Consumer — — — — — The impaired loans table above includes accruing TDRs in the amount of $935 thousand that are performing in accordance with their modified terms. The Company recognized $66 thousand of interest income on accruing TDRs during the year ended June 30, 2021. The table above does not include $161 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2020 Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 478 $ 478 $ — $ 1,080 $ 26 Home equity and HELOCs 628 634 — 906 37 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 495 495 — 371 19 Multi-family 185 185 — 139 — Commercial non-residential 585 620 — 624 38 Construction and land — — — — — Commercial — — — — — Consumer — — — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — $ 67 $ 4 Home equity and HELOCs — — — — — Construction Residential — — — — — 1 - 4 Family investor commercial real estate — — — — — Multi-family — — — — — Commercial non-residential — — — — — Construction and land — — — — — Commercial — — — — — Consumer — — — — — Total: 1-4 Family residential real estate $ 478 $ 478 $ — $ 1,147 $ 30 Home equity and HELOCs 628 634 — 906 37 Construction Residential — — — — — 1 - 4 Family investor commercial real estate 495 495 — 371 19 Multi-family 185 185 — 139 — Commercial non-residential 585 620 — 624 38 Construction and land — — — — — Commercial — — — — — Consumer — — — — — The impaired loans table above includes accruing TDRs in the amount of $1.4 million that are performing in accordance with their modified terms. The Company recognized $79 thousand of interest income on accruing TDRs during the year ended June 30, 2020. The table above does not include $321 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Premises and Equipment | |
Schedule of components of premises and equipment | June 30, (Dollars in thousands) 2021 2020 Land $ 2,581 $ 4,144 Office buildings and improvements 12,932 14,493 Furniture, fixtures and equipment 2,428 1,918 Automobiles 50 50 17,991 20,605 Accumulated depreciation (4,552) (3,872) $ 13,439 $ 16,733 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangibles | |
Schedule of goodwill and other intangibles | The Company performs its annual impairment evaluation on June 30 or more frequently if events and circumstances indicate that the fair value of the banking unit is less than its carrying value. During the year ended June 30, 2021, management included considerations of the current economic environment caused by COVID-19 in its qualitative assessment of goodwill impairment and determined that a quantitative assessment of goodwill was warranted. Management engaged a third-party valuation specialist to perform a quantitative assessment of goodwill impairment and it was determined that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed at June 30, 2021. Goodwill and other intangibles at June 30, 2021 and 2020, are summarized as follows: Core Deposit Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, July 1, 2019 $ 4,858 $ 1,172 Adjustments: Additions — 262 Amortization — (242) Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (255) Balance, June 30, 2021 $ 4,858 $ 937 |
Schedule of amortizing intangible assets | June 30, 2021 Accumulated (Dollars in thousands) Gross Amortization Net Core deposit intangibles $ 1,694 $ (757) $ 937 June 30, 2020 Accumulated (Dollars in thousands) Gross Amortization Net Core deposit intangibles $ 1,694 $ (502) $ 1,192 |
Schedule of amortization expenses | (Dollars in thousands) For the year ended June 30, Expense 2022 $ 224 2023 194 2024 163 2025 132 2026 101 2027 and thereafter 123 $ 937 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Deposits. | |
Schedule of classification of deposits | June 30, 2021 June 30, 2020 Weighted Weighted (Dollars in thousands) Amount Average Rate Amount Average Rate Non-interest bearing checking $ 51,086 — % $ 43,395 — % Interest bearing checking 104,214 0.08 98,828 0.19 Money market accounts 136,719 0.33 129,048 0.94 Savings and club accounts 100,781 0.10 94,097 0.19 Certificates of deposit 160,303 1.18 194,480 1.86 $ 553,103 0.45 % $ 559,848 0.93 % |
Schedule of time deposit accounts outstanding | (In thousands) June 30, 2021 Twelve months ending: 2022 $ 87,947 2023 37,019 2024 15,559 2025 10,416 2026 7,338 Thereafter 2,024 $ 160,303 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Advances from Federal Home Loan Bank | |
Schedule of advances from FHLB | (Dollars in thousands) June 30, 2021 June 30, 2020 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 21,767 Mid-term 7,000 23,125 Total FHLB advances $ 41,000 $ 64,892 |
Schedule of contractual maturities and the associated weighted average interest rate | June 30, 2021 (Dollars in thousands) Weighted Twelve months ending: Amount Average Rate 2022 $ 7,000 2.03 % 2023 13,000 2.74 % 2024 7,000 2.00 % 2025 14,000 2.92 % Total FHLB advances $ 41,000 2.55 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Schedule of components of income tax expense | Year ended June 30, (Dollars in thousands) 2021 2020 Federal: Current $ (396) $ (448) Deferred 1,283 51 887 (397) State, current 60 10 $ 947 $ (387) |
Schedule of reconciliation of the statutory federal income to the income tax expense | Year ended June 30, 2021 2020 % of % of Pretax Pretax (Dollars in thousands) Amount Income Amount Income Federal income tax at statutory rate $ 992 21.0 % $ 198 21.0 % State tax, net of federal benefit 47 1.0 7 0.7 Bank owned-life insurance (99) (2.1) (74) (7.9) Gain on bargain purchase — — (157) (16.7) Non-deductible merger expenses — — 71 7.5 Impact of tax law change — — (408) (43.3) Other 7 0.1 (24) (2.4) $ 947 20.0 % $ (387) (41.1) % |
Schedule of deferred tax assets and liabilities | June 30, (Dollars in thousands) 2021 2020 Deferred tax assets: Loan origination fees $ 184 $ 100 Allowance for loan losses 809 788 Deferred director’s fees 278 289 Deferred compensation 470 525 Deferred pension — 613 Purchase accounting adjustments 811 1,552 NOL carry forward 1,022 1,090 Net unrealized loss on securities 19 — Other 138 — Total deferred tax assets 3,731 4,957 Deferred tax liabilities: Net unrealized gain on securities — (21) Premises and equipment (157) (114) Other — (5) Total deferred tax liabilities (157) (140) Net deferred tax asset $ 3,574 $ 4,817 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies. | |
Schedule of company's loan commitments | June 30, June 30, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 35,350 $ 18,602 Unfunded commitments under lines of credit 50,583 52,432 Standby letters of credit 2,000 — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital Requirements | |
Schedule of leverage ratios | To be Well Capitalized Under For Capital Prompt Corrective Action As of June 30, 2021 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 152,104 18.89 % $ 32,203 4.00 % $ 40,254 5.00 % To be Well Capitalized Under For Capital Prompt Corrective Action As of June 30, 2020 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 86,822 13.67 % $ 25,397 4.00 % $ 31,746 5.00 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on recurring basis | June 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 55,064 $ — $ 55,064 U.S. agency collateralized mortgage obligations — 15,433 — 15,433 U.S. government agency securities — 6,896 — 6,896 Municipal bonds — 19,861 — 19,861 Corporate bonds — 26,081 — 26,081 Total Assets $ — $ 123,335 $ — $ 123,335 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 51,738 $ — $ 51,738 U.S. agency collateralized mortgage obligations — 3,215 — 3,215 U.S. government agency securities — 6,155 — 6,155 U.S. treasury securities — 1,000 — 1,000 Municipal bonds — 10,508 — 10,508 Corporate bonds — 17,382 — 17,382 Total Assets $ — $ 89,998 $ — $ 89,998 |
Schedule of assets measured at fair value on non-recurring basis | As of June 30, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2020, assets required to be measured and reported at fair value on a non-recurring basis are summarized as follows: June 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Other real estate owned $ — $ — $ 75 $ 75 $ — $ — $ 75 $ 75 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 190 $ 190 Other real estate owned — — 100 100 $ — $ — $ 290 $ 290 |
Schedule of quantitative information of assets measured at fair value on non-recurring basis | Quantitative information regarding assets measured at fair value on a non-recurring basis is as follows: Quantative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2021 Foreclosed real estate owned $ 75 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % Quantative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2020 Impaired loans $ 190 Appraisal of collateral (1) Appraisal adjustments (2) 0-28 % Foreclosed real estate owned $ 100 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % (1) F air value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of carrying amount and fair value of financial assets and liabilities | Fair Value Measurements at June 30, 2021 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 461,196 $ 472,292 $ — $ — $ 472,292 Financial instruments - liabilities: Certificates of deposit 160,303 161,057 — — 161,057 Advances from Federal Home Loan Bank 41,000 42,098 — — 42,098 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2020 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 508,605 $ 541,779 $ — $ — $ 541,779 Financial instruments - liabilities: Certificates of deposit 194,480 198,268 — — 198,268 Advances from Federal Home Loan Bank 64,892 67,520 — — 67,520 Off-balance sheet financial instruments — — — — — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of leases in consolidated statements of financial condition | (in thousands) June 30, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 2,108 Total Right-of-Use Assets $ 2,108 (in thousands) June 30, 2021 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 2,307 Total Lease Liabilities $ 2,307 (in thousands) June 30, 2020 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 1,663 Total Right-of-Use Assets $ 1,663 (in thousands) June 30, 2020 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 1,638 Total Lease Liabilities $ 1,638 |
Schedule of weighted average remaining lease term and discount rate | June 30, 2021 Weighted average remaining lease term Operating leases 9.8 years Weighted average discount rate Operating leases 1.76 % June 30, 2020 Weighted average remaining lease term Operating leases 11.9 years Weighted average discount rate Operating leases 2.19 % |
Summary of maturities of the Company's lease liabilities | June 30, 2021 Operating (in thousands) Leases Twelve months ended: 2022 $ 369 2023 376 2024 384 2025 367 2026 125 Thereafter 935 Total future minimum lease payments $ 2,556 Amounts representing interest (249) Present value of net future minimum lease payments $ 2,307 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | |
Schedule of the loan activity for related parties | June 30, (Dollars in thousands) 2021 2020 Beginning Balance $ 587 $ 147 New loans and funding of existing lines of credit 1,190 505 Loans to newly appointed directors — 103 Repayments (148) (168) Loans to former related parties (439) — Ending balance $ 1,190 $ 587 |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Parent Company Financial Information | |
Schedule of condensed statements of financial condition | June 30, June 30, 2021 2020 ASSETS Cash on deposit at the Bank $ 57,995 $ 2,861 Investment in the Bank 158,857 93,401 Other assets 103 103 TOTAL ASSETS $ 216,955 $ 96,365 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accrued and other liabilities $ 29 $ — TOTAL LIABILITIES 29 — Commitments and contingencies — — STOCKHOLDERS’ EQUITY Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued — — Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of June 30, 2021 152 467 Additional paid-in capital 168,349 42,932 Treasury Stock, 0 and 579,879 shares at cost at June 30, 2021 and 2020, respectively — (3,710) Unearned common stock held by employee stock ownership plan (10,004) — Retained earnings 58,493 56,600 Accumulated other comprehensive (loss) income (64) 76 TOTAL STOCKHOLDERS’ EQUITY 216,926 96,365 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 216,955 $ 96,365 |
Schedule of condensed statements operations | Year ended June 30, 2021 2020 INCOME Interest on interest-bearing deposits with the Bank $ 52 $ 8 Total income 52 8 EXPENSES Professional fees 147 50 Merger relates expenses — 532 Other expenses 44 12 Total expenses 191 594 Loss before income tax benefit and equity in undistributed net income of affiliates (139) (586) Income tax benefit (31) (51) Equity in undistributed net income of the Bank 3,887 1,863 NET INCOME $ 3,779 $ 1,328 Comprehensive income $ 3,639 $ 1,176 |
Schedule of condensed statements cashflow | Year ended June 30, 2021 2020 Cash flows from operating activities Net income $ 3,779 $ 1,328 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed net earnings of subsidiaries (3,887) (1,863) Dividend from the Bank — 4,000 Other 137 (61) Net cash provided by operating activities 29 3,404 Cash flows from investing activities Net second-step proceeds transferred to the Bank (61,709) — Net cash used in investing activities (61,709) — Cash flows from financing activities Cash dividends (1,886) (1,983) Issuance of common stock funded by stock subscriptions 128,861 — Purchase of unearned common stock held by employee stock ownership plan (10,112) — Purchase of treasury stock (49) — Net cash provided by (used in) financing activities 116,814 (1,983) Net increase in cash and cash equivalents 55,134 1,421 Cash and cash equivalents – beginning 2,861 1,440 Cash and cash equivalents – ending $ 57,995 $ 2,861 Supplementary cash flows information Income tax refunds $ (140) $ — |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | Mar. 24, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)Office |
Nature of Operations | ||
Conversion of existing shares at 3.2585 exchange ratio | 3.2585 | |
ESOP shares committed to be released | $ 108 | |
Number of full service branch offices | Office | 12 | |
Additional Paid-in capital | ||
Nature of Operations | ||
Cash Acquired from Acquisition | $ 5,400 | |
William Penn Bank | ||
Nature of Operations | ||
Gross proceeds | $ 126,400 | |
William Penn, MHC shares sold in public offering, net of offering costs (in shares) | shares | 12,640,035 | |
Share price | $ / shares | $ 10 | |
Shares outstanding | shares | 776,647 | |
Conversion of existing shares at 3.2585 exchange ratio | 3.2585 | |
Percentage of shares sold in offering | 8.00% | |
Percentage of aggregate purchase price of common stock | 100.00% | |
ESOP issued | shares | 881,130 | |
ESOP shares committed to be released | $ 10,100 | |
Ownership percentage held by parent (as a percent) | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2021USD ($)segment$ / shares | |
Summary of Significant Accounting Policies | |
Reportable operating segment | segment | 1 |
FHLB stock, par value | $ / shares | $ 100 |
Estimated useful life | 10 years |
WPSLA Investment Corporation | |
Summary of Significant Accounting Policies | |
Loans held in portfolio | $ 112.7 |
Investment securities portfolio | $ 123.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Premises and equipment (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Office buildings and improvements | Minimum | |
Accounting Policies [Line items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office buildings and improvements | Maximum | |
Accounting Policies [Line items] | |
Property, Plant and Equipment, Useful Life | 33 years |
Furniture, fixtures and equipment | Minimum | |
Accounting Policies [Line items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, fixtures and equipment | Maximum | |
Accounting Policies [Line items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Automobiles | |
Accounting Policies [Line items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Composition of the weighted average common shares used in the basic and diluted earnings per share computation | ||
Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share | 14,541,136 | 13,245,864 |
Net income | $ 3,779 | $ 1,328 |
Basic and diluted earnings per share (in dollars per share) | $ 0.26 | $ 0.10 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share | ||
Antidilutive securities | 0 | 0 |
Net income | $ 3,779 | $ 1,328 |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | May 01, 2020USD ($)itemshares | Jun. 30, 2021USD ($)item |
Fidelity | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 831,976 | |
Number of new branch acquired | item | 1 | |
Gain on bargain purchase | $ 613 | |
Fair value adjustments to assets or liabilities | $ 0 | |
Washington | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 827,222 | |
Number of new branch acquired | item | 4 | |
Gain on bargain purchase | $ 133 | |
Fair value adjustments to assets or liabilities | $ 0 |
Business Combinations - Fair va
Business Combinations - Fair value of identifiable assets acquired and liabilities assumed (Details) $ in Thousands | May 01, 2020USD ($) |
Fidelity | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Fair value of equity | $ 11,377 |
Assets acquired: | |
Cash and due from financial institutions | 26,867 |
Interest-bearing time deposits | 462 |
Loans receivable, net | 55,949 |
Premises and equipment | 747 |
Regulatory stock | 334 |
Deferred income taxes | 564 |
Other real estate owned | 100 |
Core deposit intangible | 65 |
Accrued interest receivable | 209 |
Other assets | 272 |
Total assets | 85,569 |
Liabilities assumed: | |
Deposits | (66,409) |
Advances from Federal Home Loan Bank | (5,688) |
Accrued interest payable | (5) |
Other liabilities | (1,477) |
Total liabilities | (73,579) |
Net assets acquired | 11,990 |
Gain on bargain purchase | (613) |
Washington | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Fair value of equity | 9,165 |
Assets acquired: | |
Cash and due from financial institutions | 21,981 |
Securities available for sale | 1,996 |
Interest-bearing time deposits | 100 |
Loans receivable, net | 121,520 |
Premises and equipment | 6,356 |
Regulatory stock | 1,214 |
Deferred income taxes | 2,154 |
Bank-owned life insurance | 3,208 |
Core deposit intangible | 197 |
Accrued interest receivable | 413 |
Other assets | 146 |
Total assets | 159,285 |
Liabilities assumed: | |
Deposits | (135,546) |
Advances from Federal Home Loan Bank | (11,281) |
Accrued interest payable | (145) |
Other liabilities | (3,015) |
Total liabilities | (149,987) |
Net assets acquired | 9,298 |
Gain on bargain purchase | $ (133) |
Business Combinations - Summary
Business Combinations - Summary of loans and acquired loans (Details) $ in Thousands | May 01, 2020USD ($)item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) |
Business Combination, Acquired Receivables [Abstract] | |||
Amortization of intangible assets | $ 255 | $ 242 | |
Fidelity | |||
Deteriorated Loans Transferred in [Abstract] | |||
Contractually required principal and interest at acquisition | $ 619 | ||
Contractual cash flows not expected to be collected (nonaccretable difference) | 431 | ||
Expected cash flows at acquisition | 188 | ||
Interest component of expected cash flows (accretable discount) | 27 | ||
Fair value of acquired loans accounted for under FASB ASC 310-30 | 161 | ||
Business Combination, Acquired Receivables [Abstract] | |||
Contractually required principal at acquisition | 56,785 | ||
Contractual cash flows not expected to be collected (credit mark) | 1,240 | ||
Business Combination, Number Of New Branch Acquired | item | 1 | ||
Expected cash flows at acquisition | 55,545 | ||
Interest rate premium mark | 243 | ||
Fair value of acquired loans not accounted for under FASB ASC 310-30 | 55,788 | ||
Carryover of allowance for loan losses | 0 | ||
Net deferred income tax asset | 564 | ||
CDI | $ 65 | ||
Percentage of acquired core deposits | 0.17% | ||
Amortization period | 10 years | ||
Amortization of intangible assets | $ 12 | 2 | |
Valuation adjustments of certificate of deposits | $ 393 | ||
Amortization period of valuation adjustments relating to certificate of deposits | 5 years | ||
Amortization of valuation adjustments relating to certificate of deposits | 171 | 35 | |
Fidelity | Pittsburgh | |||
Business Combination, Acquired Receivables [Abstract] | |||
Valuation adjustments of borrowings from FHLB | $ 433 | ||
Amortization of valuation adjustments relating to borrowings from FHLB | 8 | 17 | |
Washington | |||
Deteriorated Loans Transferred in [Abstract] | |||
Contractually required principal and interest at acquisition | 420 | ||
Contractual cash flows not expected to be collected (nonaccretable difference) | 230 | ||
Expected cash flows at acquisition | 190 | ||
Interest component of expected cash flows (accretable discount) | 27 | ||
Fair value of acquired loans accounted for under FASB ASC 310-30 | 163 | ||
Business Combination, Acquired Receivables [Abstract] | |||
Contractually required principal at acquisition | 125,491 | ||
Contractual cash flows not expected to be collected (credit mark) | $ 2,440 | ||
Business Combination, Number Of New Branch Acquired | item | 4 | ||
Expected cash flows at acquisition | $ 123,051 | ||
Interest rate discount mark | 1,694 | ||
Fair value of acquired loans not accounted for under FASB ASC 310-30 | 121,357 | ||
Carryover of allowance for loan losses | 0 | ||
Net deferred income tax asset | 2,154 | ||
CDI | $ 197 | ||
Percentage of acquired core deposits | 0.26% | ||
Amortization period | 10 years | ||
Amortization of intangible assets | 35 | 6 | |
Valuation adjustments of certificate of deposits | $ 1,200 | ||
Amortization period of valuation adjustments relating to certificate of deposits | 5 years | ||
Amortization of valuation adjustments relating to borrowings from FHLB | 529 | 116 | |
Washington | Pittsburgh | |||
Business Combination, Acquired Receivables [Abstract] | |||
Valuation adjustments of certificate of deposits | $ 281 | ||
Amortization of valuation adjustments relating to borrowings from FHLB | $ 15 | $ 29 |
Business Combinations - Schedul
Business Combinations - Schedule of operating results attributable to acquiree (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | |||
Acquisition costs | $ 3,294 | ||
Fidelity | |||
Business Acquisition [Line Items] | |||
Net interest income | $ 313 | ||
Non-interest income | 17 | ||
Non-interest expense | (331) | ||
Pre-tax income | (1) | ||
Net income | (1) | ||
Acquisition costs | $ 1,500 | ||
Acquisition costs by acquiree | 227 | ||
Washington | |||
Business Acquisition [Line Items] | |||
Net interest income | 591 | ||
Non-interest income | 67 | ||
Non-interest expense | (628) | ||
Income tax expense | $ (6) | ||
Acquisition costs | 1,800 | ||
Acquisition costs by acquiree | $ 312 |
Business Combinations - Summa_2
Business Combinations - Summary of pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net interest income | $ 21,540 | $ 14,799 | ||
Provision for loan losses | 133 | 626 | ||
Non-interest income | 2,311 | 2,160 | ||
Non-interest expense | (18,992) | (15,392) | ||
Pre-tax income | 4,726 | 941 | ||
Income tax expense (benefit) | $ 947 | (387) | ||
Washington | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Pre-tax income | $ 30 | |||
Net income | $ 24 | |||
Pro Forma | Fidelity | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net interest income | 17,352 | $ 17,478 | ||
Provision for loan losses | (695) | (105) | ||
Non-interest income | 1,672 | 1,915 | ||
Non-interest expense | (16,005) | (14,819) | ||
Pre-tax income | 2,324 | 4,469 | ||
Income tax expense (benefit) | 488 | 938 | ||
Net income | $ 1,836 | $ 3,531 | ||
Earnings per share basic | $ 0.13 | $ 0.24 | ||
Earnings per share diluted | $ 0.13 | $ 0.24 | ||
Pro Forma | Washington | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net interest income | $ 19,112 | $ 20,149 | ||
Provision for loan losses | (752) | (196) | ||
Non-interest income | 2,409 | 1,715 | ||
Non-interest expense | (17,392) | (18,223) | ||
Pre-tax income | 3,377 | 3,445 | ||
Income tax expense (benefit) | 709 | 723 | ||
Net income | $ 2,668 | $ 2,722 | ||
Earnings per share basic | $ 0.18 | $ 0.19 | ||
Earnings per share diluted | $ 0.18 | $ 0.19 |
Changes in and Reclassificati_3
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive (Loss) Income | ||
Beginning balance | $ 96,365 | $ 76,630 |
Other comprehensive (loss) income, net of tax | (140) | (152) |
Ending balance | $ 216,926 | $ 96,365 |
Income tax rate | 22.00% | 22.00% |
Net gain on sale of securities | ||
Accumulated Other Comprehensive (Loss) Income | ||
Beginning balance | $ 76 | $ 228 |
Other comprehensive income (loss) before reclassifications | (112) | 36 |
Amounts reclassified from accumulated other comprehensive income (loss) | (28) | (188) |
Other comprehensive (loss) income, net of tax | (140) | (152) |
Ending balance | $ (64) | $ 76 |
Changes in and Reclassificati_4
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities gains reclassified into net income | $ 36 | $ 238 |
Income tax expense (benefit) | (947) | 387 |
NET INCOME | 3,779 | 1,328 |
Reclassifications out of AOCI | Net gain on sale of securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities gains reclassified into net income | 36 | 238 |
Income tax expense (benefit) | (8) | (50) |
NET INCOME | $ 28 | $ 188 |
Interest-Bearing Time Deposit_2
Interest-Bearing Time Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Interest-Bearing Time Deposits | ||
Due in one year or less | $ 1,250 | $ 1,050 |
Due after one year through five years | 600 | 1,250 |
Interest-bearing time deposits | $ 1,850 | $ 2,300 |
Investment Securities - Availab
Investment Securities - Available for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Available For Sale: | ||
Amortized Cost | $ 123,417 | $ 89,895 |
Gross Unrealized Gains | 992 | 400 |
Gross Unrealized Losses | (1,074) | (297) |
Fair value | 123,335 | 89,998 |
Mortgage-backed securities | ||
Available For Sale: | ||
Amortized Cost | 55,385 | 51,570 |
Gross Unrealized Gains | 53 | 272 |
Gross Unrealized Losses | (374) | (104) |
Fair value | 55,064 | 51,738 |
U.S. agency collateralized mortgage obligations | ||
Available For Sale: | ||
Amortized Cost | 15,641 | 3,215 |
Gross Unrealized Gains | 47 | 33 |
Gross Unrealized Losses | (255) | (33) |
Fair value | 15,433 | 3,215 |
U.S. government agency securities | ||
Available For Sale: | ||
Amortized Cost | 6,952 | 6,226 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (56) | (73) |
Fair value | 6,896 | 6,155 |
U.S treasury securities | ||
Available For Sale: | ||
Amortized Cost | 1,000 | |
Fair value | 1,000 | |
Municipal bonds | ||
Available For Sale: | ||
Amortized Cost | 20,239 | 10,485 |
Gross Unrealized Gains | 11 | 33 |
Gross Unrealized Losses | (389) | (10) |
Fair value | 19,861 | 10,508 |
Corporate bonds | ||
Available For Sale: | ||
Amortized Cost | 25,200 | 17,399 |
Gross Unrealized Gains | 881 | 60 |
Gross Unrealized Losses | (77) | |
Fair value | $ 26,081 | $ 17,382 |
Investment Securities - Securit
Investment Securities - Securities by contractual maturity (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Available for sale, Amortized Cost | |
Due after one year through five years | $ 78 |
Due after five years through ten years | 27,718 |
Due after ten years | 95,621 |
Amortized Cost | 123,417 |
Available for sale, Fair Value | |
Due after one year through five years | 77 |
Due after five years through ten years | 28,596 |
Due after ten years | 94,662 |
Fair Value | $ 123,335 |
Investment Securities - Investm
Investment Securities - Investments with unrealized losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Fair Value | ||
Less than 12 Months | $ 78,409 | $ 37,433 |
12 Months or More | 2,407 | 2,043 |
Total Fair Value | 80,816 | 39,476 |
Unrealized Losses | ||
Less than 12 Months | (1,021) | (254) |
12 Months or More | (53) | (43) |
Total Unrealized Losses | (1,074) | (297) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 43,152 | 22,082 |
Total Fair Value | 43,152 | 22,082 |
Unrealized Losses | ||
Less than 12 Months | (374) | (104) |
Total Unrealized Losses | (374) | (104) |
U.S. agency collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 10,613 | 1,513 |
12 Months or More | 2,407 | 1,129 |
Total Fair Value | 13,020 | 2,642 |
Unrealized Losses | ||
Less than 12 Months | (202) | (14) |
12 Months or More | (53) | (19) |
Total Unrealized Losses | (255) | (33) |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 Months | 6,896 | 4,922 |
12 Months or More | 914 | |
Total Fair Value | 6,896 | 5,836 |
Unrealized Losses | ||
Less than 12 Months | (56) | (49) |
12 Months or More | (24) | |
Total Unrealized Losses | (56) | (73) |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | 17,748 | 3,694 |
Total Fair Value | 17,748 | 3,694 |
Unrealized Losses | ||
Less than 12 Months | (389) | (10) |
Total Unrealized Losses | $ (389) | (10) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 5,222 | |
Total Fair Value | 5,222 | |
Unrealized Losses | ||
Less than 12 Months | (77) | |
Total Unrealized Losses | $ (77) |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($)item | |
Variable Interest Entity [Line Items] | ||
Gross realized gains | $ 447 | $ 241 |
Gross realized losses | 411 | 3 |
Proceeds from sale of securities | $ 35,743 | 13,575 |
Held to maturity securities | $ 1,600 | |
Number of securities classified held to maturity | 0 | 0 |
Number of securities temporarily impaired | item | 42 | 29 |
Asset Pledged as Collateral | ||
Variable Interest Entity [Line Items] | ||
Pledged investment securities | $ 3,800 | $ 3,700 |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 468,072 | $ 517,467 | |
Loans in process | (2,443) | (4,895) | |
Unearned loan origination fees | (820) | (448) | |
Allowance for loan losses | (3,613) | (3,519) | $ (3,209) |
Net Loans | $ 461,196 | $ 508,605 | |
Percentage of loans | 100.00% | 100.00% | |
Residential real estate | 1-4 Family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 173,399 | $ 230,955 | |
Allowance for loan losses | $ (709) | $ (682) | (691) |
Percentage of loans | 37.05% | 44.64% | |
Residential real estate | Home equity and HELOCs | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 37,222 | $ 46,519 | |
Allowance for loan losses | $ (133) | $ (166) | (122) |
Percentage of loans | 7.95% | 8.99% | |
Residential real estate | Construction Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 12,945 | $ 15,799 | |
Allowance for loan losses | $ (487) | $ (526) | (321) |
Percentage of loans | 2.77% | 3.05% | |
Commercial real estate | 1 - 4 family investor | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 120,727 | $ 115,495 | |
Allowance for loan losses | $ (843) | $ (801) | (810) |
Percentage of loans | 25.79% | 22.32% | |
Commercial real estate | Multi-family (five or more) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 12,315 | $ 14,964 | |
Allowance for loan losses | $ (159) | $ (123) | (71) |
Percentage of loans | 2.63% | 2.89% | |
Commercial real estate | Commercial non-residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 96,712 | $ 76,707 | |
Allowance for loan losses | $ (854) | $ (727) | (708) |
Percentage of loans | 20.66% | 14.83% | |
Commercial real estate | Construction and Land | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 6,377 | $ 6,690 | |
Allowance for loan losses | $ (362) | $ (396) | (121) |
Percentage of loans | 1.36% | 1.29% | |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 5,145 | $ 6,438 | |
Allowance for loan losses | $ (51) | $ (83) | (95) |
Percentage of loans | 1.10% | 1.24% | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 3,230 | $ 3,900 | |
Allowance for loan losses | $ (15) | $ (15) | $ (3) |
Percentage of loans | 0.69% | 0.75% |
Loans - PPP (Details)
Loans - PPP (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)customer | Jun. 30, 2020USD ($)customer | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 468,072 | $ 517,467 |
PPP Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Amount of loan provided | $ 1,500 | $ 2,400 |
Number of customers | customer | 44 | 56 |
Small Business Administration, CARES Act, Monetary Relief [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Amount of loan provided | $ 49,800 | |
Small Business Administration, CARES Act, Monetary Relief [Member] | Payment Deferral | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 366 | |
Mortgage Loan Serviced To Others | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 18,600 | $ 26,600 |
Loans - Allowance for loan loss
Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for credit losses: | ||
Beginning balance | $ 3,519 | $ 3,209 |
Charge-offs | (77) | (316) |
Recoveries | 38 | |
Provision for loan losses | 133 | 626 |
Ending Balance | 3,613 | 3,519 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 3,613 | 3,519 |
Allowance for loan losses | 3,613 | 3,519 |
Loans receivable ,Individually evaluated for impairment | 3,986 | 2,371 |
Loans receivable, Collectively evaluated for impairment | 302,826 | 279,984 |
Total Loans | 468,072 | 517,467 |
Acquired credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 161 | 321 |
Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 161,099 | 234,791 |
Residential real estate | 1-4 Family | ||
Allowance for credit losses: | ||
Beginning balance | 682 | 691 |
Charge-offs | (17) | |
Provision for loan losses | 44 | (9) |
Ending Balance | 709 | 682 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 709 | 682 |
Allowance for loan losses | 709 | 682 |
Loans receivable ,Individually evaluated for impairment | 1,907 | 478 |
Loans receivable, Collectively evaluated for impairment | 87,633 | 97,541 |
Total Loans | 173,399 | 230,955 |
Residential real estate | 1-4 Family | Acquired credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 138 | 299 |
Residential real estate | 1-4 Family | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 83,721 | 132,637 |
Residential real estate | Home equity and HELOCs | ||
Allowance for credit losses: | ||
Beginning balance | 166 | 122 |
Charge-offs | (30) | (6) |
Provision for loan losses | (3) | 50 |
Ending Balance | 133 | 166 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 133 | 166 |
Allowance for loan losses | 133 | 166 |
Loans receivable ,Individually evaluated for impairment | 578 | 628 |
Loans receivable, Collectively evaluated for impairment | 14,617 | 15,170 |
Total Loans | 37,222 | 46,519 |
Residential real estate | Home equity and HELOCs | Acquired credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 23 | 22 |
Residential real estate | Home equity and HELOCs | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 22,004 | 30,699 |
Residential real estate | Construction Residential | ||
Allowance for credit losses: | ||
Beginning balance | 526 | 321 |
Provision for loan losses | (39) | 205 |
Ending Balance | 487 | 526 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 487 | 526 |
Allowance for loan losses | 487 | 526 |
Loans receivable, Collectively evaluated for impairment | 10,686 | 9,218 |
Total Loans | 12,945 | 15,799 |
Residential real estate | Construction Residential | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 2,259 | 6,581 |
Commercial real estate | 1 - 4 family investor | ||
Allowance for credit losses: | ||
Beginning balance | 801 | 810 |
Charge-offs | (260) | |
Recoveries | 3 | |
Provision for loan losses | 39 | 251 |
Ending Balance | 843 | 801 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 843 | 801 |
Allowance for loan losses | 843 | 801 |
Loans receivable ,Individually evaluated for impairment | 433 | 495 |
Loans receivable, Collectively evaluated for impairment | 98,189 | 92,021 |
Total Loans | 120,727 | 115,495 |
Commercial real estate | 1 - 4 family investor | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 22,105 | 22,979 |
Commercial real estate | Multi-family (five or more) | ||
Allowance for credit losses: | ||
Beginning balance | 123 | 71 |
Provision for loan losses | 36 | 52 |
Ending Balance | 159 | 123 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 159 | 123 |
Allowance for loan losses | 159 | 123 |
Loans receivable ,Individually evaluated for impairment | 176 | 185 |
Loans receivable, Collectively evaluated for impairment | 12,008 | 9,267 |
Total Loans | 12,315 | 14,964 |
Commercial real estate | Multi-family (five or more) | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 131 | 5,512 |
Commercial real estate | Commercial non-residential | ||
Allowance for credit losses: | ||
Beginning balance | 727 | 708 |
Charge-offs | (35) | |
Recoveries | 35 | |
Provision for loan losses | 92 | 54 |
Ending Balance | 854 | 727 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 854 | 727 |
Allowance for loan losses | 854 | 727 |
Loans receivable ,Individually evaluated for impairment | 892 | 585 |
Loans receivable, Collectively evaluated for impairment | 68,630 | 45,214 |
Total Loans | 96,712 | 76,707 |
Commercial real estate | Commercial non-residential | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 27,190 | 30,908 |
Commercial real estate | Construction and Land | ||
Allowance for credit losses: | ||
Beginning balance | 396 | 121 |
Provision for loan losses | (34) | 275 |
Ending Balance | 362 | 396 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 362 | 396 |
Allowance for loan losses | 362 | 396 |
Loans receivable, Collectively evaluated for impairment | 6,377 | 6,690 |
Total Loans | 6,377 | 6,690 |
Commercial | ||
Allowance for credit losses: | ||
Beginning balance | 83 | 95 |
Charge-offs | (3) | |
Provision for loan losses | (32) | (9) |
Ending Balance | 51 | 83 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 51 | 83 |
Allowance for loan losses | 51 | 83 |
Loans receivable, Collectively evaluated for impairment | 4,151 | 4,150 |
Total Loans | 5,145 | 6,438 |
Commercial | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | 994 | 2,288 |
Consumer | ||
Allowance for credit losses: | ||
Beginning balance | 15 | 3 |
Charge-offs | (30) | (12) |
Provision for loan losses | 30 | 24 |
Ending Balance | 15 | 15 |
Allowance ending balance: | ||
Collectively evaluated for impairment | 15 | 15 |
Allowance for loan losses | 15 | 15 |
Loans receivable, Collectively evaluated for impairment | 535 | 713 |
Total Loans | 3,230 | 3,900 |
Consumer | Acquired non-credit impaired | ||
Allowance ending balance: | ||
Loans receivable, Collectively evaluated for impairment | $ 2,695 | 3,187 |
Unallocated | ||
Allowance for credit losses: | ||
Beginning balance | 267 | |
Provision for loan losses | $ (267) | |
Ending Balance | ||
Allowance ending balance: | ||
Allowance for loan losses |
Loans - Credit quality indicato
Loans - Credit quality indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 468,072 | $ 517,467 |
Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 226,796 | 297,173 |
Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 222,559 | 294,523 |
Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,237 | 2,650 |
Commercial Loan Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 241,276 | 220,294 |
Commercial Loan Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 237,802 | 216,617 |
Commercial Loan Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,410 | 2,973 |
Commercial Loan Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,064 | 704 |
Residential real estate | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 173,399 | 230,955 |
Residential real estate | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 37,222 | 46,519 |
Residential real estate | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,945 | 15,799 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 173,399 | 230,955 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 169,625 | 228,894 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,774 | 2,061 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 37,222 | 46,519 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 36,877 | 46,045 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 345 | 474 |
Residential real estate | Residential and Consumer Loan | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,945 | 15,799 |
Residential real estate | Residential and Consumer Loan | Construction Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,945 | 15,799 |
Commercial real estate | 1 - 4 family investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 120,727 | 115,495 |
Commercial real estate | 1 - 4 family investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 118,321 | 113,540 |
Commercial real estate | 1 - 4 family investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,054 | 1,663 |
Commercial real estate | 1 - 4 family investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 352 | 292 |
Commercial real estate | Multi-family (five or more) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,315 | 14,964 |
Commercial real estate | Multi-family (five or more) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,139 | 13,976 |
Commercial real estate | Multi-family (five or more) | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 803 | |
Commercial real estate | Multi-family (five or more) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 176 | 185 |
Commercial real estate | Commercial non-residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 96,712 | 76,707 |
Commercial real estate | Commercial non-residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 95,820 | 75,973 |
Commercial real estate | Commercial non-residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 356 | 507 |
Commercial real estate | Commercial non-residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 536 | 227 |
Commercial real estate | Construction and Land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,377 | 6,690 |
Commercial real estate | Construction and Land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,377 | 6,690 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,145 | 6,438 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,145 | 6,438 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,230 | 3,900 |
Consumer | Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,230 | 3,900 |
Consumer | Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,112 | 3,785 |
Consumer | Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 118 | $ 115 |
Loans - Loans Acquired with Det
Loans - Loans Acquired with Deteriorated Credit Quality (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Loans | ||
Outstanding principal balance | $ 247 | $ 773 |
Carrying amount | 161 | 321 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning Balance | 53 | 57 |
Accretion | (40) | (4) |
Ending balance | $ 13 | $ 53 |
Loans - Loan Delinquencies and
Loans - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 5,015 | $ 4,421 |
Current | 462,896 | 512,724 |
Total Loans | 468,072 | 517,467 |
Recorded Investment > 90 Days and Accruing | 90 | |
Recorded Investment Loans on Non-Accrual | 5,301 | 3,172 |
Interest income | 136 | 91 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,953 | 464 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,546 | 2,114 |
90 Days Or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,516 | 1,843 |
Acquired credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 161 | 321 |
Residential real estate | 1-4 Family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,208 | 2,440 |
Current | 170,053 | 228,216 |
Total Loans | 173,399 | 230,955 |
Recorded Investment Loans on Non-Accrual | 3,774 | 2,061 |
Residential real estate | 1-4 Family | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,658 | 235 |
Residential real estate | 1-4 Family | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 561 | 1,020 |
Residential real estate | 1-4 Family | 90 Days Or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 989 | 1,185 |
Residential real estate | 1-4 Family | Acquired credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 138 | 299 |
Residential real estate | Home equity and HELOCs | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 288 | 408 |
Current | 36,911 | 46,089 |
Total Loans | 37,222 | 46,519 |
Recorded Investment > 90 Days and Accruing | 90 | |
Recorded Investment Loans on Non-Accrual | 345 | 384 |
Residential real estate | Home equity and HELOCs | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 58 | 126 |
Residential real estate | Home equity and HELOCs | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 150 | 101 |
Residential real estate | Home equity and HELOCs | 90 Days Or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 80 | 181 |
Residential real estate | Home equity and HELOCs | Acquired credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 23 | 22 |
Residential real estate | Construction Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 12,945 | 15,799 |
Total Loans | 12,945 | 15,799 |
Commercial real estate | 1 - 4 family investor | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 352 | 292 |
Current | 120,375 | 115,203 |
Total Loans | 120,727 | 115,495 |
Recorded Investment Loans on Non-Accrual | 352 | 292 |
Commercial real estate | 1 - 4 family investor | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 81 | |
Commercial real estate | 1 - 4 family investor | 90 Days Or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 271 | 292 |
Commercial real estate | Multi-family (five or more) | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 520 | 650 |
Current | 11,795 | 14,314 |
Total Loans | 12,315 | 14,964 |
Recorded Investment Loans on Non-Accrual | 176 | 185 |
Commercial real estate | Multi-family (five or more) | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 344 | 465 |
Commercial real estate | Multi-family (five or more) | 90 Days Or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 176 | 185 |
Commercial real estate | Commercial non-residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 583 | 607 |
Current | 96,129 | 76,100 |
Total Loans | 96,712 | 76,707 |
Recorded Investment Loans on Non-Accrual | 536 | 135 |
Commercial real estate | Commercial non-residential | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 92 | 100 |
Commercial real estate | Commercial non-residential | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 491 | 507 |
Commercial real estate | Construction and Land | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 6,377 | 6,690 |
Total Loans | 6,377 | 6,690 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 5,145 | 6,438 |
Total Loans | 5,145 | 6,438 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 64 | 24 |
Current | 3,166 | 3,876 |
Total Loans | 3,230 | 3,900 |
Recorded Investment Loans on Non-Accrual | 118 | 115 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 64 | 3 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 21 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Threshold past due period | 90 days | |
Threshold past due period for larger companies | 60 days | |
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | $ 495 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 495 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 371 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 19 | |
Residential real estate | 1-4 Family | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | $ 1,907 | 478 |
Recorded Investment | 1,907 | 478 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 1,943 | 478 |
Unpaid Principal Balance | 1,943 | 478 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 1,223 | 1,080 |
Average Recorded Investment, With an allowance recorded | 67 | |
Average Recorded Investment | 1,223 | 1,147 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 23 | 26 |
Interest Income Recognized, With an allowance recorded | 4 | |
Interest Income Recognized | 23 | 30 |
Residential real estate | Home equity and HELOCs | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 578 | 628 |
Recorded Investment | 578 | 628 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 587 | 634 |
Unpaid Principal Balance | 587 | 634 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 652 | 906 |
Average Recorded Investment | 652 | 906 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 20 | 37 |
Interest Income Recognized | 20 | 37 |
Commercial real estate | 1 - 4 family investor | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 433 | |
Recorded Investment | 433 | 495 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 477 | |
Unpaid Principal Balance | 477 | 495 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 656 | |
Average Recorded Investment | 656 | 371 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 20 | |
Interest Income Recognized | 20 | 19 |
Commercial real estate | Multi-family (five or more) | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 176 | 185 |
Recorded Investment | 176 | 185 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 180 | 185 |
Unpaid Principal Balance | 180 | 185 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 182 | 139 |
Average Recorded Investment | 182 | 139 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 6 | |
Interest Income Recognized | 6 | |
Commercial real estate | Commercial non-residential | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 892 | 585 |
Recorded Investment | 892 | 585 |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 900 | 620 |
Unpaid Principal Balance | 900 | 620 |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 882 | 624 |
Average Recorded Investment | 882 | 624 |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 36 | 38 |
Interest Income Recognized | $ 36 | $ 38 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||
Troubled debt restructuring | $ 935 | $ 1,400 |
Interest income on accruing TDR | 66 | 79 |
Impairment on TDR | $ 68 | $ 40 |
Number of contracts | loan | 0 | 0 |
Small Business Administration, CARES Act, Monetary Relief [Member] | Payment Deferral | ||
Financing Receivable, Impaired [Line Items] | ||
Period of principal and interest deferment | 3 months | |
Acquired credit impaired | ||
Financing Receivable, Impaired [Line Items] | ||
Loans acquired | $ 161 | $ 321 |
Premises and Equipment - Compon
Premises and Equipment - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 17,991 | $ 20,605 |
Accumulated depreciation | (4,552) | (3,872) |
Net book value | 13,439 | 16,733 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,581 | 4,144 |
Office buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 12,932 | 14,493 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,428 | 1,918 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 50 | $ 50 |
Premises and Equipment (Details
Premises and Equipment (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)propertyitem | Jun. 30, 2020USD ($)property | |
Premises and Equipment | ||
Depreciation expense | $ | $ 985 | $ 582 |
Number of properties transferred | property | 6 | |
Carrying value of property held for sale | $ | $ 3,200 | |
Number of properties sold | property | 2 | |
Net gain on disposition of premises and equipment | $ | $ 495 | |
Number of branches consolidated into one branch | property | 4 | |
Number of consolidating branches close geographic proximity | item | 3 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill | ||
Beginning Balance | $ 4,858 | $ 4,858 |
Ending Balance | 4,858 | 4,858 |
Core Deposit Intangibles | ||
Beginning Balance | 1,192 | 1,172 |
Additions | 262 | |
Amortization | (255) | (242) |
Ending Balance | $ 937 | $ 1,192 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 4,858 | $ 4,858 | $ 4,858 |
Core deposit intangibles | $ 937 | 1,192 | $ 1,172 |
Estimated useful life | 10 years | ||
Goodwill impairment | $ 0 | ||
Aggregate amortization expense | 255 | $ 242 | |
Audubon Savings Bank | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 4,900 | ||
Core deposit intangibles | 1,400 | ||
Fidelity Savings and Loan Association | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangibles | 65 | ||
Washington Savings Bank | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangibles | $ 197 |
Goodwill and Intangibles - Su_2
Goodwill and Intangibles - Summary of amortizing intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Goodwill and Intangibles | |||
Intangible assets, Gross | $ 1,694 | $ 1,694 | |
Accumulated Amortization | (757) | (502) | |
Intangible assets, Net | $ 937 | $ 1,192 | $ 1,172 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of amortization of expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2022 | $ 224 | ||
2023 | 194 | ||
2024 | 163 | ||
2025 | 132 | ||
2026 | 101 | ||
2027 and thereafter | 123 | ||
Intangible assets, Net | $ 937 | $ 1,192 | $ 1,172 |
Deposits - Weighted-average int
Deposits - Weighted-average interest rates (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deposits. | ||
Non-interest bearing checking | $ 51,086 | $ 43,395 |
Interest bearing checking | 104,214 | 98,828 |
Money market accounts | 136,719 | 129,048 |
Savings and club accounts | 100,781 | 94,097 |
Certificates of deposit | 160,303 | 194,480 |
Total deposits | $ 553,103 | $ 559,848 |
Weighted Average Rate | ||
Interest bearing checking | 0.08% | 0.19% |
Money market accounts | 0.33% | 0.94% |
Savings and club accounts | 0.10% | 0.19% |
Certificates of deposit | 1.18% | 1.86% |
Total deposits | 0.45% | 0.93% |
Deposits - Schedule of time dep
Deposits - Schedule of time deposit accounts outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Time deposit accounts outstanding | ||
2022 | $ 87,947 | |
2023 | 37,019 | |
2024 | 15,559 | |
2025 | 10,416 | |
2026 | 7,338 | |
Thereafter | 2,024 | |
Time Deposits, Total | 160,303 | |
Certificates of deposit accounts, amount | $ 13,400 | $ 22,700 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 41,000 | $ 64,892 |
Convertible | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | 20,000 | 20,000 |
Fixed | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | 14,000 | 21,767 |
Mid-term | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 7,000 | $ 23,125 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank - Contractual maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Amount | ||
Year 1 | $ 7,000 | |
Year 2 | 13,000 | |
Year 3 | 7,000 | |
Year 4 | 14,000 | |
Total FHLB advances | $ 41,000 | $ 64,892 |
Weighted Average Rate | ||
Year 1 | 2.03% | |
Year 2 | 2.74% | |
Year 3 | 2.00% | |
Year 4 | 2.92% | |
Total FHLB advances | 2.55% |
Advances from Federal Home Lo_5
Advances from Federal Home Loan Bank (Details) $ in Thousands | Aug. 24, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) |
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB number of regional banks | item | 11 | ||
Maximum borrowing capacity with FHLB | $ 280,800 | $ 223,000 | |
Purchase accounting fair value adjustment | 41,000 | 41,000 | |
Outstanding balance | 64,200 | 64,200 | |
Loans pledged as collateral | 407,400 | 322,000 | |
Investments | 2,700 | 3,900 | |
Repayment of FHLB advances | $ 23,200 | $ 25,725 | $ 14,031 |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Basis spread on variable rate | 0.01% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Basis spread on variable rate | 0.23% |
Income Taxes - Schedule of comp
Income Taxes - Schedule of components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Federal: | ||
Current | $ (396) | $ (448) |
Deferred | 1,283 | 51 |
Federal income tax expense (benefit) | 887 | (397) |
State, current | 60 | 10 |
Income tax expense (benefit) | $ 947 | $ (387) |
Income Taxes - Schedule of reco
Income Taxes - Schedule of reconciliation of the statutory federal income to the income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of the statutory federal income to the income tax expense | ||
Federal income tax at statutory rate | $ 992 | $ 198 |
State tax, net of federal benefit | 47 | 7 |
Bank owned-life insurance | (99) | (74) |
Gain on bargain purchase | (157) | |
Non-deductible merger expenses | 71 | |
Impact of tax law change | (408) | |
Other | 7 | (24) |
Income tax expense (benefit) | $ 947 | $ (387) |
Reconciliation of the statutory federal income to the income tax expense (Percentage) | ||
Federal income tax at statutory rate, percent | 21.00% | 21.00% |
State tax, net of federal benefit, percent | 1.00% | 0.70% |
Bank owned-life insurance, percent | (2.10%) | (7.90%) |
Gain on bargain purchase, percent | (16.70%) | |
Non-deductible merger expenses, percent | 7.50% | |
Impact of tax law change, percent | (43.30%) | |
Other, percent | 0.10% | (2.40%) |
Effective tax rate, percent | 20.00% | (41.10%) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Loan origination fees | $ 184 | $ 100 |
Allowance for loan losses | 809 | 788 |
Deferred director's fees | 278 | 289 |
Deferred compensation | 470 | 525 |
Deferred pension | 613 | |
Purchase accounting adjustments | 811 | 1,552 |
NOL carry forward | 1,022 | 1,090 |
Net unrealized loss on securities | 19 | |
Other | 138 | |
Total deferred tax assets | 3,731 | 4,957 |
Deferred tax liabilities: | ||
Net unrealized gain on securities | (21) | |
Premises and equipment | (157) | (114) |
Other | (5) | |
Total deferred tax liabilities | (157) | (140) |
Net deferred tax asset | $ 3,574 | $ 4,817 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Line items] | ||
Federal income tax at statutory rate, percent | 21.00% | 21.00% |
Income tax benefit related to a change in tax law | $ 408 | |
Net operating loss carryforward | $ 6,000 | |
Uncertain tax positions | 0 | 0 |
Retained earnings | 58,493 | 56,600 |
Income tax expense (benefit) | 947 | (387) |
Federal | ||
Income Tax Disclosure [Line items] | ||
Retained earnings | 2,800 | 2,800 |
Income tax expense (benefit) | $ 0 | $ 0 |
Employee and Director Benefit_2
Employee and Director Benefit Plans (Details) - USD ($) $ in Thousands | Mar. 24, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Percentage of employees contributions | 50.00% | ||
Percentage of matching contributions | 100.00% | ||
Percentage of employer contributions | 6.00% | ||
Expense | $ 521 | $ 250 | |
ESOP shares committed to be released | 108 | ||
ESOP Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Percentage of shares sold in offering | 8.00% | ||
Percentage of aggregate purchase price of common stock | 100.00% | ||
ESOP issued | 881,130 | ||
ESOP shares committed to be released | $ 10,100 | ||
Loan to trustees for ESOP | $ 10,100 | ||
Interest percentage | 3.25% | ||
Debt term | 25 years | ||
ESOP expenses | $ 108 | $ 223 |
Employee and Director Benefit_3
Employee and Director Benefit Plans - Benefit plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Directors Retirement Plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Benefit amount for a period | 120 months | |
Expense related to benefit plan | $ 26 | $ 128 |
Accumulated liability | 1,600 | 1,600 |
Director Deferred Compensation Plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Expense related to benefit plan | 25 | 61 |
Accumulated liability | $ 1,200 | $ 1,300 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other Commitments [Line Items] | ||
Commitments fixed expiration period | 90 days | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 35,350 | $ 18,602 |
Unfunded commitments under lines of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | 50,583 | $ 52,432 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 2,000 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Tier One Leverage, Amount | ||
Leverage capital, actual amount | $ 152,104 | $ 86,822 |
Capital adequacy, amount | 32,203 | 25,397 |
Well capitalized, amount | $ 40,254 | $ 31,746 |
Tier One Leverage, Ratio | ||
Leverage capital, actual ratio | 18.89 | 13.67 |
Capital adequacy, ratio | 4 | 4 |
Well capitalized, ratio | 5 | 5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Investments available for sale: | ||
Fair value | $ 123,335 | $ 89,998 |
Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 55,064 | 51,738 |
U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 15,433 | 3,215 |
U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,896 | 6,155 |
U.S treasury securities | ||
Investments available for sale: | ||
Fair value | 1,000 | |
Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,861 | 10,508 |
Corporate bonds | ||
Investments available for sale: | ||
Fair value | 26,081 | 17,382 |
Recurring | ||
Investments available for sale: | ||
Fair value | 123,335 | 89,998 |
Recurring | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 55,064 | 51,738 |
Recurring | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 15,433 | 3,215 |
Recurring | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,896 | 6,155 |
Recurring | U.S treasury securities | ||
Investments available for sale: | ||
Fair value | 1,000 | |
Recurring | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,861 | 10,508 |
Recurring | Corporate bonds | ||
Investments available for sale: | ||
Fair value | 26,081 | 17,382 |
Recurring | Level 2 | ||
Investments available for sale: | ||
Fair value | 123,335 | 89,998 |
Recurring | Level 2 | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 55,064 | 51,738 |
Recurring | Level 2 | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 15,433 | 3,215 |
Recurring | Level 2 | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,896 | 6,155 |
Recurring | Level 2 | U.S treasury securities | ||
Investments available for sale: | ||
Fair value | 1,000 | |
Recurring | Level 2 | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,861 | 10,508 |
Recurring | Level 2 | Corporate bonds | ||
Investments available for sale: | ||
Fair value | $ 26,081 | $ 17,382 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Assets at fair value | ||
Total assets at fair value | $ 0 | |
Reserves on impaired loans | 0 | $ 0 |
Non-recurring basis | ||
Assets at fair value | ||
Total assets at fair value | 75 | 290 |
Non-recurring basis | Impaired loans | ||
Assets at fair value | ||
Total assets at fair value | 190 | |
Non-recurring basis | Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | 75 | 100 |
Non-recurring basis | Level 3 | ||
Assets at fair value | ||
Total assets at fair value | 75 | 290 |
Non-recurring basis | Level 3 | Impaired loans | ||
Assets at fair value | ||
Total assets at fair value | 190 | |
Non-recurring basis | Level 3 | Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | $ 75 | $ 100 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information (Details) $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Assets at fair value | ||
Fair value estimate | $ 0 | |
Non-recurring basis | ||
Assets at fair value | ||
Fair value estimate | 75 | $ 290 |
Non-recurring basis | Level 3 | ||
Assets at fair value | ||
Fair value estimate | $ 75 | 290 |
Non-recurring basis | Impaired loans | ||
Assets at fair value | ||
Fair value estimate | 190 | |
Non-recurring basis | Impaired loans | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 190 | |
Non-recurring basis | Impaired loans | Level 3 | Appraisal adjustments | ||
Assets at fair value | ||
Fair value estimate | $ 190 | |
Non-recurring basis | Impaired loans | Level 3 | Appraisal adjustments | Minimum | ||
Assets at fair value | ||
Measurement input | 0 | |
Non-recurring basis | Impaired loans | Level 3 | Appraisal adjustments | Maximum | ||
Assets at fair value | ||
Measurement input | 28 | |
Non-recurring basis | Other real estate owned | ||
Assets at fair value | ||
Fair value estimate | $ 75 | $ 100 |
Non-recurring basis | Other real estate owned | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 75 | 100 |
Non-recurring basis | Other real estate owned | Level 3 | Liquidation expenses | ||
Assets at fair value | ||
Fair value estimate | $ 75 | $ 100 |
Measurement input | 0 | 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying value and fair value of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Financial assets: | ||
Cash and due from banks | $ 11,102 | $ 21,385 |
Interest-bearing time deposits | 1,850 | 2,300 |
Loans receivable, net | 461,196 | 508,605 |
Regulatory stock | 2,954 | 4,200 |
Bank-owned life insurance | 35,231 | 14,758 |
Financial liabilities: | ||
Certificates of deposit | 160,303 | 194,480 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Level 3 | ||
Financial assets: | ||
Loans receivable, net | 472,292 | 541,779 |
Financial liabilities: | ||
Certificates of deposit | 161,057 | 198,268 |
Advances from Federal Home Loan Bank | 42,098 | 67,520 |
Carrying Value | ||
Financial assets: | ||
Loans receivable, net | 461,196 | 508,605 |
Financial liabilities: | ||
Certificates of deposit | 160,303 | 194,480 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Fair Value | ||
Financial assets: | ||
Loans receivable, net | 472,292 | 541,779 |
Financial liabilities: | ||
Certificates of deposit | 161,057 | 198,268 |
Advances from Federal Home Loan Bank | $ 42,098 | $ 67,520 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 2,108 | $ 1,663 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Interest Receivable and Other Assets | Interest Receivable and Other Assets |
Operating Lease, Liability [Abstract] | ||
Operating lease liabilities | $ 2,307 | $ 1,638 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted average remaining lease term - Operating leases | 9 years 9 months 18 days | 11 years 10 months 24 days |
Weighted average discount rate - Operating leases | 1.76% | 2.19% |
Net lease costs | $ 365 | $ 142 |
Loss on lease abandonment | $ 162 |
Leases - Summary of maturities
Leases - Summary of maturities of the Company's lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 369 | |
2023 | 376 | |
2024 | 384 | |
2025 | 367 | |
2026 | 125 | |
Thereafter | 935 | |
Total future minimum lease payments | 2,556 | |
Amounts representing interest | (249) | |
Present value of net future minimum lease payments | $ 2,307 | $ 1,638 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | |
Related Party Transactions | ||
Undrawn commitments to lend | $ 2,500 | $ 1,800 |
Total commitments to lend | $ 1,300 | 1,200 |
Number of person receive remuneration from any special purpose entities | item | 0 | |
Deposits with the Bank | $ 1,600 | 2,600 |
Loan activity for related parties | ||
Beginning Balance | 587 | 147 |
New loans and funding of existing lines of credit | 1,190 | 505 |
Loans to newly appointed directors | 103 | |
Repayments | (148) | (168) |
Loans to former related parties | (439) | |
Ending balance | $ 1,190 | $ 587 |
Parent Company Financial Info_3
Parent Company Financial Information - Schedule of condensed statements of financial condition (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
ASSETS | |||
Cash on deposit at the Bank | $ 11,102 | $ 21,385 | |
Investment in the Bank | 157,620 | 56,755 | |
Other assets | 6,312 | 6,076 | |
TOTAL ASSETS | 822,408 | 736,452 | |
LIABILITIES | |||
Accrued and other liabilities | 7,648 | 10,811 | |
TOTAL LIABILITIES | 605,482 | 640,087 | |
Commitments and contingencies | |||
STOCKHOLDERS' EQUITY | |||
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued | |||
Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of June 30, 2021 and $.03 par value, 159,666,500 shares authorized; 15,208,410 shares issued and 14,628,530 shares outstanding as of June 30, 2020 | 152 | 467 | |
Additional paid-in capital | 168,349 | 42,932 | |
Treasury Stock, 0 and 579,879 shares at cost at June 30, 2021 and June 30, 2020, respectively | (3,710) | ||
Unearned common stock held by employee stock ownership plan | (10,004) | ||
Retained earnings | 58,493 | 56,600 | |
Accumulated other comprehensive (loss) income | (64) | 76 | |
TOTAL WILLIAM PENN BANCORPORATION STOCKHOLDERS' EQUITY | 216,926 | 96,365 | $ 76,630 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 822,408 | 736,452 | |
Parent Company | |||
ASSETS | |||
Cash on deposit at the Bank | 57,995 | 2,861 | |
Investment in the Bank | 158,857 | 93,401 | |
Other assets | 103 | 103 | |
TOTAL ASSETS | 216,955 | 96,365 | |
LIABILITIES | |||
Accrued and other liabilities | 29 | ||
TOTAL LIABILITIES | 29 | ||
Commitments and contingencies | |||
STOCKHOLDERS' EQUITY | |||
Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of June 30, 2021 and $.03 par value, 159,666,500 shares authorized; 15,208,410 shares issued and 14,628,530 shares outstanding as of June 30, 2020 | 152 | 467 | |
Additional paid-in capital | 168,349 | 42,932 | |
Treasury Stock, 0 and 579,879 shares at cost at June 30, 2021 and June 30, 2020, respectively | (3,710) | ||
Unearned common stock held by employee stock ownership plan | (10,004) | ||
Retained earnings | 58,493 | 56,600 | |
Accumulated other comprehensive (loss) income | (64) | 76 | |
TOTAL WILLIAM PENN BANCORPORATION STOCKHOLDERS' EQUITY | 216,926 | 96,365 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 216,955 | $ 96,365 |
Parent Company Financial Info_4
Parent Company Financial Information - Schedule of condensed statements of financial condition (Parenthetical) (Details) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.03 |
Common stock, shares authorized (in shares) | 150,000,000 | 159,666,500 |
Common stock, issued (in shares) | 15,170,566 | 15,208,410 |
Common stock, outstanding (in shares) | 15,170,566 | 14,628,530 |
Treasury stock, shares (in shares) | 0 | 579,879 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.03 |
Common stock, shares authorized (in shares) | 150,000,000 | 159,666,500 |
Common stock, issued (in shares) | 15,170,566 | 15,208,410 |
Common stock, outstanding (in shares) | 15,170,566 | 14,628,530 |
Treasury stock, shares (in shares) | 0 | 579,879 |
Parent Company Financial Info_5
Parent Company Financial Information - Schedule of condensed statements operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest on interest-bearing deposits with the Bank | $ 23,390 | $ 17,914 |
Total interest income | 25,846 | 19,817 |
Professional fees | 1,064 | 451 |
Merger related expenses | 3,294 | |
Other expenses | 2,361 | 1,611 |
Total other expense | 18,992 | 15,392 |
Loss before income tax benefit and equity in undistributed net income of affiliates | 4,726 | 941 |
Income tax benefit | 947 | (387) |
NET INCOME | 3,779 | 1,328 |
Comprehensive income | 3,639 | 1,176 |
Parent Company | ||
Condensed Income Statements, Captions [Line Items] | ||
Interest on interest-bearing deposits with the Bank | 52 | 8 |
Total interest income | 52 | 8 |
Professional fees | 147 | 50 |
Merger related expenses | 532 | |
Other expenses | 44 | 12 |
Total other expense | 191 | 594 |
Loss before income tax benefit and equity in undistributed net income of affiliates | (139) | (586) |
Income tax benefit | (31) | (51) |
Equity in undistributed net income of the Bank | 3,887 | 1,863 |
NET INCOME | 3,779 | 1,328 |
Comprehensive income | $ 3,639 | $ 1,176 |
Parent Company Financial Info_6
Parent Company Financial Information - Schedule of condensed statements cashflow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,779 | $ 1,328 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||
Net cash (used in) provided by operating activities | (259) | 150 |
Cash Flows from Investing activities | ||
Net cash used in investing activities | (686) | (16,945) |
Cash Flows from Financing Activities | ||
Cash dividends | (1,886) | (1,983) |
Issuance of common stock funded by stock subscriptions | 128,861 | |
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | |
Purchase of treasury stock | (49) | |
Net cash provided by financing activities | 86,752 | 73,542 |
Net increase in cash and cash equivalents | 85,807 | 56,747 |
Cash and cash equivalents - beginning | 82,915 | 26,168 |
Cash and cash equivalents - ending | 168,722 | 82,915 |
Supplementary Cash Flows Information | ||
Income tax refunds | (301) | 12 |
Parent Company | ||
Cash Flows from Operating Activities | ||
Net income | 3,779 | 1,328 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||
Equity in undistributed net earnings of subsidiaries | (3,887) | (1,863) |
Dividend from the Bank | 4,000 | |
Other | 137 | (61) |
Net cash (used in) provided by operating activities | 29 | 3,404 |
Cash Flows from Investing activities | ||
Net second-step proceeds transferred to the Bank | (61,709) | |
Net cash used in investing activities | (61,709) | |
Cash Flows from Financing Activities | ||
Cash dividends | (1,886) | (1,983) |
Issuance of common stock funded by stock subscriptions | 128,861 | |
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | |
Purchase of treasury stock | (49) | |
Net cash provided by financing activities | 116,814 | (1,983) |
Net increase in cash and cash equivalents | 55,134 | 1,421 |
Cash and cash equivalents - beginning | 2,861 | 1,440 |
Cash and cash equivalents - ending | 57,995 | $ 2,861 |
Supplementary Cash Flows Information | ||
Income tax refunds | $ (140) |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 21, 2021$ / shares |
Subsequent Event | |
Subsequent Events | |
Dividends declared (in dollars per share) | $ 0.30 |