Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
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 $0.01 per share | |
Trading Symbol | WMPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,170,566 | |
Entity Central Index Key | 0001828376 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
ASSETS | ||
Cash and due from banks | $ 8,368 | $ 11,102 |
Interest bearing deposits with other banks | 119,580 | 157,620 |
Total cash and cash equivalents | 127,948 | 168,722 |
Interest-bearing time deposits | 1,350 | 1,850 |
Securities available for sale | 127,007 | 123,335 |
Securities held to maturity, fair value of $37,669 and $0, as of September 30, 2021 and June 30, 2021, respectively | 38,127 | |
Equity securities | 2,635 | |
Loans receivable, net of allowance for loan losses of $3,591 and $3,613 as of September 30, 2021 and June 30, 2021, respectively | 454,157 | 461,196 |
Premises and equipment, net | 13,464 | 13,439 |
Regulatory stock, at cost | 2,597 | 2,954 |
Deferred income taxes | 3,716 | 3,574 |
Bank-owned life insurance | 37,469 | 35,231 |
Goodwill | 4,858 | 4,858 |
Intangible assets | 880 | 937 |
Accrued interest receivable and other assets | 8,733 | 6,312 |
TOTAL ASSETS | 822,941 | 822,408 |
LIABILITIES | ||
Deposits | 561,204 | 553,103 |
Advances from Federal Home Loan Bank | 34,000 | 41,000 |
Advances from borrowers for taxes and insurance | 2,064 | 3,731 |
Accrued interest payable and other liabilities | 12,628 | 7,648 |
TOTAL LIABILITIES | 609,896 | 605,482 |
Commitments and contingencies (note 11) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued | ||
Common Stock, $0.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding at both September 30, 2021 and June 30, 2021 | 152 | 152 |
Additional paid-in capital | 168,354 | 168,349 |
Unearned common stock held by employee stock ownership plan | (9,901) | (10,004) |
Retained earnings | 55,102 | 58,493 |
Accumulated other comprehensive loss | (662) | (64) |
TOTAL WILLIAM PENN BANCORPORATION STOCKHOLDERS' EQUITY | 213,045 | 216,926 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 822,941 | $ 822,408 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Fair value | $ 37,669 | $ 0 |
Allowance for loan losses | $ 3,591 | $ 3,613 |
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 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 15,170,566 | 15,170,566 |
Common stock, outstanding (in shares) | 15,170,566 | 15,170,566 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 5,214 | $ 5,893 |
Securities | 664 | 653 |
Other | 106 | 111 |
Total interest income | 5,984 | 6,657 |
INTEREST EXPENSE | ||
Deposits | 484 | 1,081 |
Borrowings | 238 | 359 |
Total interest expense | 722 | 1,440 |
Net interest income | 5,262 | 5,217 |
(Recovery) provision for loan losses | (30) | 66 |
NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR LOAN LOSSES | 5,292 | 5,151 |
OTHER INCOME | ||
Service fees | 213 | 183 |
Net gain on sale of securities | 62 | |
Earnings on bank-owned life insurance | 238 | 112 |
Unrealized gain on equity securities | 105 | |
Net gain on disposition of premises and equipment | 15 | |
Other | 87 | 90 |
Total other income | 705 | 400 |
OTHER EXPENSES | ||
Salaries and employee benefits | 2,712 | 2,554 |
Occupancy and equipment | 675 | 759 |
Data processing | 421 | 422 |
Professional fees | 248 | 188 |
Amortization of intangible assets | 57 | 64 |
Prepayment penalties | 64 | 161 |
Other | 690 | 587 |
Total other expense | 4,867 | 4,735 |
Income before income taxes | 1,130 | 816 |
Income tax (benefit) expense | (30) | 146 |
NET INCOME | $ 1,160 | $ 670 |
Basic earnings per share | $ 0.08 | $ 0.05 |
Diluted earnings per share | $ 0.08 | $ 0.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,160 | $ 670 |
Other comprehensive (loss) income: | ||
Changes in net unrealized gain (loss) on securities available for sale | (710) | 460 |
Tax effect | 160 | (103) |
Reclassification adjustment for gain recognized in net income | (62) | |
Tax effect | 14 | |
Other comprehensive (loss) income, net of tax | (598) | 357 |
Comprehensive income | $ 562 | $ 1,027 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in capital | Treasury Stock | Unearned Common Stock held by ESOP | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Beginning balance at Jun. 30, 2020 | $ 467 | $ 42,932 | $ (3,710) | $ 56,600 | $ 76 | $ 96,365 | |
Beginning balance (in shares) at Jun. 30, 2020 | 14,628,530 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 670 | 670 | |||||
Other comprehensive income (loss) | 357 | 357 | |||||
Regular cash dividend paid | (1,886) | (1,886) | |||||
Ending balance at Sep. 30, 2020 | $ 467 | 42,932 | $ (3,710) | 55,384 | 433 | 95,506 | |
Ending balance (in shares) at Sep. 30, 2020 | 14,628,530 | ||||||
Beginning balance at Jun. 30, 2021 | $ 152 | 168,349 | $ (10,004) | 58,493 | (64) | $ 216,926 | |
Beginning balance (in shares) at Jun. 30, 2021 | 15,170,566 | 15,170,566 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,160 | $ 1,160 | |||||
Other comprehensive income (loss) | (598) | (598) | |||||
ESOP shares committed to be released | 5 | 103 | 108 | ||||
Special cash dividend paid | (4,551) | (4,551) | |||||
Ending balance at Sep. 30, 2021 | $ 152 | $ 168,354 | $ (9,901) | $ 55,102 | $ (662) | $ 213,045 | |
Ending balance (in shares) at Sep. 30, 2021 | 15,170,566 | 15,170,566 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.13 | |
Special dividends paid (in dollars per share) | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 1,160 | $ 670 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
(Recovery) provision for loan losses | (30) | 66 |
Depreciation expense | 231 | 309 |
Other accretion, net | (258) | (966) |
Net gain on disposition of premises and equipment | (15) | |
Amortization of core deposit intangibles | 57 | 64 |
Amortization of ESOP | 108 | |
Net gain on sale of securities | (62) | |
Unrealized gain on equity securities | (105) | |
Earnings on bank-owned life insurance | (238) | (112) |
Other, net | 214 | (955) |
Net cash provided by (used in) operating activities | 1,077 | (939) |
Securities available for sale: | ||
Purchases | (10,100) | (42,523) |
Maturities, calls and principal paydowns | 2,896 | 9,099 |
Proceeds from sale of securities | 5,008 | |
Securities held to maturity: | ||
Purchases | (38,252) | |
Maturities, calls and principal paydowns | 122 | |
Equity securities: | ||
Purchases | (2,500) | |
Net decrease in loans receivable | 7,369 | 11,272 |
Interest bearing time deposits: | ||
Maturities and principal paydowns | 500 | |
Purchase of bank-owned life insurance | (2,000) | |
Regulatory stock purchases | (1) | |
Regulatory stock redemptions | 358 | 981 |
Purchases of premises and equipment, net | (256) | (302) |
Proceeds from the sale of premises and equipment | 425 | |
Net cash used in investing activities | (36,856) | (21,048) |
Cash flows from financing activities | ||
Net increase in deposits | 8,223 | 21,863 |
Repayment of borrowed funds | (7,000) | (23,197) |
Decrease in advances from borrowers for taxes and insurance | (1,667) | (1,626) |
Cash dividends | (4,551) | (1,886) |
Net cash used in financing activities | (4,995) | (4,846) |
Net decrease in cash and cash equivalents | (40,774) | (26,833) |
Cash and cash equivalents - beginning | 168,722 | 82,915 |
Cash and cash equivalents - ending | 127,948 | 56,082 |
Supplementary cash flows information | ||
Interest paid | 860 | 1,513 |
Income tax (refunds) payments | (575) | 25 |
Operating lease right-of-use asset recorded | 2,804 | |
Operating lease liabilities recorded | 2,804 | |
Unsettled purchases of securities available for sale | $ 2,344 | |
Premises transferred to held for sale | $ 2,392 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Sep. 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, 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. Such shares represent 6.97% of the shares of the Company common stock sold in the offering. The ESOP did not 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. The Company 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 | 3 Months Ended |
Sep. 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 Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At September 30, 2021, WPSLA held $154.9 million of the Bank’s $167.8 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. 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”) and in accordance with the rules of the U.S. Securities and Exchange Commission for Quarterly Reports on Form 10-Q. 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. The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended September 30, 2021 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. 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 ASC 606 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. 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. 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. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 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 | 3 Months Ended |
Sep. 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 three months ended September 30, 2021 and 2020. Earnings per share is computed by dividing net income available to common Stockholders 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 $1.2 million and $670 thousand for the three months ended September 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. Three Months Ended September 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 14,301,956 14,628,530 Net income $ 1,160 $ 670 Basic and diluted earnings per share $ 0.08 $ 0.05 |
Changes in and Reclassification
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Sep. 30, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | Note 4 – Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income The following tables present the changes in the balances of each component of accumulated other comprehensive (loss) income (“AOCI”) for the three months ended September 30, 2021 and 2020. All amounts are presented net of tax. (Dollars in thousands) Gains on Securities Available for Sale Accumulated Other Comprehensive (Loss) Income (1) 2021 2020 Balance at June 30, $ (64) $ 76 Other comprehensive (loss) income before reclassifications (550) 357 Amounts reclassified from accumulated other comprehensive (loss) income (48) — Period change (598) 357 Balance at September 30, $ (662) $ 433 (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. The following table presents reclassifications out of AOCI by component for the three months ended September 30, 2021 and 2020: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (1) Details about Accumulated Other Comprehensive Three Months Ended Three Months Ended Affected Line Item in the (Loss) Income Components September 30, 2021 September 30, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 62 $ — Net gain on sale of securities Related income tax expense (14) — Income tax (benefit) expense $ 48 $ — (1) Amounts in parenthesis indicate debits. |
Investment Securities
Investment Securities | 3 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Investment Securities | Note 5 – Investment Securities Debt Securities The amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities are as follows: September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,172 $ — $ (723) $ 50,449 U.S. agency collateralized mortgage obligations 14,876 44 (295) 14,625 U.S. government agency securities 6,293 — (60) 6,233 Municipal bonds 20,219 7 (662) 19,564 Corporate bonds 35,300 861 (25) 36,136 Total Available For Sale $ 127,860 $ 912 $ (1,765) $ 127,007 Held To Maturity: Mortgage-backed securities $ 38,127 $ — $ (458) $ 37,669 Total Held To Maturity $ 38,127 $ — $ (458) $ 37,669 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 The Company recognized $62 thousand of gross gains on the sale of $5.0 million of investment securities during the three months ended September 30, 2021. The Company did not sell any investment securities during the three months ended September 30, 2020. 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 be called or prepaid with or without penalties. September 30, 2021 September 30, 2021 Available For Sale Held To Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ — $ — Due after one year through five years 73 72 — — Due after five years through ten years 37,765 38,589 — — Due after ten years 90,022 88,346 38,127 37,669 $ 127,860 $ 127,007 $ 38,127 $ 37,669 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 September 30, 2021 and June 30, 2021: September 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 $ 45,290 $ (643) $ 2,815 $ (80) $ 48,105 $ (723) U.S. agency collateralized mortgage obligations 6,795 (102) 5,529 (193) 12,324 (295) U.S. government agency securities 171 (1) 4,665 (59) 4,836 (60) Municipal bonds 14,993 (530) 4,051 (132) 19,044 (662) Corporate bonds 4,975 (25) — — 4,975 (25) 72,224 (1,301) 17,060 (464) 89,284 (1,765) Held To Maturity: Mortgage-backed securities 37,669 (458) — — 37,669 (458) 37,669 (458) — — 37,669 (458) Total Temporarily Impaired Securities $ 109,893 $ (1,759) $ 17,060 $ (464) $ 126,953 $ (2,223) 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) 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 most recent 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 September 30, 2021 and June 30, 2021. There were 58 investment securities that were temporarily impaired at September 30, 2021 and 42 investment securities that were temporarily impaired at June 30, 2021. Based on its analysis, management has concluded that the investment securities portfolio has experienced unrealized losses and a decrease in fair value due to interest rate volatility. However, the decline is considered temporary, and the Company does not intend to sell these securities nor is it more likely than not the Company would be required to sell the security before its anticipated recovery, which may be maturity. At September 30, 2021 and June 30, 2021, $3.4 million and $3.8 million, respectively, of investment securities were pledged to secure municipal deposits. Equity Securities The Company had one equity security with a fair value of $2.6 million as of September 30, 2021. During the three months ended September 30, 2021, the Company recorded $105 thousand of unrealized gains, which were recorded in Unrealized gain on equity securities |
Loans
Loans | 3 Months Ended |
Sep. 30, 2021 | |
Loans | |
Loans | Note 6 – Loans Major classifications of loans at September 30, 2021 and June 30, 2021 are summarized as follows: September 30, June 30, 2021 2021 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 162,822 35.51 % $ 173,306 37.22 % Home equity and HELOCs 34,546 7.53 37,222 7.99 Construction -residential 10,734 2.34 10,841 2.33 Commercial real estate: 1 - 4 family investor 120,620 26.31 120,581 25.90 Multi-family (five or more) 11,367 2.48 12,315 2.64 Commercial non-residential 104,759 22.85 96,612 20.75 Construction and land 6,474 1.41 6,377 1.37 Commercial 4,515 0.98 5,145 1.10 Consumer Loans 2,675 0.59 3,230 0.70 Total Loans 458,512 100.00 % 465,629 100.00 % Unearned loan origination fees (764) (820) Allowance for loan losses (3,591) (3,613) Net Loans $ 454,157 $ 461,196 As of September 30, 2021 and June 30, 2021, the Bank had $843 thousand and $1.5 million of outstanding Paycheck Protection Program (PPP) loans to 24 and 44 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 modified approximately $49.8 million of existing loans in accordance with the provisions of 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 September 30, 2021, $1.8 million 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 $16.4 million and $18.6 million at September 30, 2021 and June 30, 2021, respectively. The Bank retained the related servicing rights for the loans that were sold and receives a 25 basis point servicing fee from the purchasers of the loans. 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. The Company considers the allowance for loan losses of $3.6 million adequate to cover loan losses inherent in the loan portfolio at both September 30, 2021 and June 30, 2021, respectively. The following table presents by portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2021 and 2020: September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Charge-offs — — — — — — — — — — Recoveries — 7 — — — — — — 1 8 Provision (recovery) (51) (17) (101) 33 (11) 114 6 (2) (1) (30) Ending Balance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 September 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 Total Allowance for credit losses: Beginning balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision (recovery) 49 (16) (65) 58 (2) 53 40 (51) — 66 Ending Balance $ 731 $ 150 $ 461 $ 859 $ 121 $ 780 $ 436 $ 32 $ 15 $ 3,585 The following tables present the allowance for loan losses and recorded investment by loan portfolio classification as September 30, 2021 and June 30, 2021: September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 658 123 386 876 148 968 368 49 15 3,591 Total allowance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 Loans receivable ending balance: Individually evaluated for impairment $ 1,743 $ 499 $ — $ 554 $ 503 $ 853 $ — $ — $ — $ 4,152 Collectively evaluated for impairment 83,773 13,988 8,487 99,093 10,781 78,746 6,474 3,421 529 305,292 Acquired non-credit impaired loans (1) 77,167 20,036 2,247 20,973 83 25,160 — 1,094 2,146 148,906 Acquired credit impaired loans (2) 139 23 — — — — — — — 162 Total portfolio $ 162,822 $ 34,546 $ 10,734 $ 120,620 $ 11,367 $ 104,759 $ 6,474 $ 4,515 $ 2,675 $ 458,512 (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, 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 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 87,540 14,617 8,582 98,043 12,008 68,530 6,377 4,151 535 300,383 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 $ 173,306 $ 37,222 $ 10,841 $ 120,581 $ 12,315 $ 96,612 $ 6,377 $ 5,145 $ 3,230 $ 465,629 (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 three months ended September 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 decrease in the allowance and provision credit during the three months ended September 30, 2021 can be primarily attributed to an improving economic outlook combined with continued stable asset quality metrics. During the year ended June 30, 2021, the changes in the provision for loan losses related to one- to four-family residential real estate loans, 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 Bank making enhancements to its credit management function by adding new experienced team members and implementing an enhanced internal credit measurement and monitoring processes. Credit Quality Information The following tables represent credit exposures by internally assigned grades as of September 30, 2021 and June 30, 2021. 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 September 30, 2021 and June 30, 2021: September 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,090 $ 10,864 $ 103,905 $ 6,474 $ 4,515 $ 243,848 Special Mention 2,054 — 332 — — 2,386 Substandard 476 503 522 — — 1,501 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,620 $ 11,367 $ 104,759 $ 6,474 $ 4,515 $ 247,735 June 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,175 $ 12,139 $ 95,720 $ 6,377 $ 5,145 $ 237,556 Special Mention 2,054 — 356 — — 2,410 Substandard 352 176 536 — — 1,064 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,581 $ 12,315 $ 96,612 $ 6,377 $ 5,145 $ 241,030 The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2021 and June 30, 2021: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) September 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 159,295 $ 34,136 $ 10,734 $ 2,558 $ 206,723 Non-performing 3,527 410 — 117 4,054 $ 162,822 $ 34,546 $ 10,734 $ 2,675 $ 210,777 June 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 169,532 $ 36,877 $ 10,841 $ 3,112 $ 220,362 Non-performing 3,774 345 — 118 4,237 $ 173,306 $ 37,222 $ 10,841 $ 3,230 $ 224,599 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 September 30, 2021 and June 30, 2021, are as follows: (Dollars in thousands) September 30, 2021 June 30, 2021 Outstanding principal balance $ 244 $ 247 Carrying amount 162 161 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 period presented: (Dollars in thousands) Accretable Discount Balance, May 1, 2020 $ 57 Accretion (4) Balance, June 30, 2020 $ 53 Accretion (40) Balance, June 30, 2021 $ 13 Accretion (4) Balance, September 30, 2021 $ 9 Loan Delinquencies and Non-accrual Loans Following are tables which include an aging analysis of the recorded investment of past due loans as of September 30, 2021 and June 30, 2021. Aged Analysis of Past Due and Non-accrual Loans As of September 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 $ 783 $ 293 $ 1,264 $ 2,340 $ 139 $ 160,343 $ 162,822 $ — $ 3,527 Home equity and HELOCs 112 8 150 270 23 34,253 34,546 — 410 Construction - residential — — — — — 10,734 10,734 — — Commercial real estate: 1 - 4 family investor 252 — 400 652 — 119,968 120,620 — 476 Multi-family 331 — 172 503 — 10,864 11,367 — 503 Commercial non-residential 569 15 — 584 — 104,175 104,759 — 522 Construction and land — — — — — 6,474 6,474 — — Commercial — — — — — 4,515 4,515 — — Consumer 35 32 — 67 — 2,608 2,675 — 117 Total $ 2,082 $ 348 $ 1,986 $ 4,416 $ 162 $ 453,934 $ 458,512 $ — $ 5,555 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 $ 169,960 $ 173,306 $ — $ 3,774 Home equity and HELOCs 58 150 80 288 23 36,911 37,222 — 345 Construction - residential — — — — — 10,841 10,841 — — Commercial real estate: 1 - 4 family investor 81 — 271 352 — 120,229 120,581 — 352 Multi-family — 344 176 520 — 11,795 12,315 — 176 Commercial non-residential 92 491 — 583 — 96,029 96,612 — 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 $ 460,453 $ 465,629 $ — $ 5,301 Interest income on non-accrual loans that would have been recorded if these loans had performed in accordance with their terms was approximately $65 thousand and $58 thousand, respectively, during the three months ended September 30, 2021 and 2020, respectively. 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, at September 30, 2021 and June 30, 2021. September 30, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1 - 4 Family residential real estate $ 1,743 $ 1,800 $ — Home equity and HELOCs 499 499 — Construction Residential — — — 1 - 4 Family investor commercial real estate 554 600 — Multi-family 503 513 — Commercial non-residential 853 872 — 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 $ 1,743 $ 1,800 $ — Home equity and HELOCs 499 499 — Construction Residential — — — 1 - 4 Family investor commercial real estate 554 600 — Multi-family 503 513 — Commercial non-residential 853 872 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructuings (“TDRs”) in the amount of $908 thousand that are performing in accordance with their modified terms. The Company recognized $12 thousand of interest income on accruing TDRs during the three months ended September 30, 2021. The table above does not include $162 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real estate $ 1,907 $ 1,943 $ — Home equity and HELOCs 578 587 — Construction Residential — — — 1 - 4 Family investor commercial real estate 433 477 — Multi-family 176 180 — Commercial non-residential 892 900 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — 1 - 4 Family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family residential real estate $ 1,907 $ 1,943 $ — Home equity and HELOCs 578 587 — Construction Residential — — — 1 - 4 Family investor commercial real estate 433 477 — Multi-family 176 180 — Commercial non-residential 892 900 — 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 $13 thousand of interest income on accruing TDRs during the three months ended September 30, 2020. 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. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2021 and September 30, 2020. September 30, 2021 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction Residential — — 1-4 Family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 Family residential real estate $ — $ — Home equity and HELOCs — — Construction Residential — — 1-4 Family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 Family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction Residential — — 1-4 Family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — September 30, 2020 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 471 $ 6 Home equity and HELOCs 686 5 Construction Residential — — 1-4 Family investor commercial real estate 778 6 Multi-family 185 2 Commercial non-residential 667 9 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 Family residential real estate $ — $ — Home equity and HELOCs — — Construction Residential — — 1-4 Family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 Family residential real estate $ 471 $ 6 Home equity and HELOCs 686 5 Construction Residential — — 1-4 Family investor commercial real estate 778 6 Multi-family 185 2 Commercial non-residential 667 9 Construction and land — — Commercial — — Consumer — — Generally, the Bank will charge-off the collateral or discounted cash flow deficiency on all impaired loans. Interest income that would have been recorded for the three months ended September 30, 2021 an 2020, had impaired loans been current according to their original terms, amounted to $34 thousand and $16 thousand, respectively. Troubled Debt Restructurings The Bank determines whether a restructuring of debt constitutes a TDR in accordance with guidance under FASB ASC Topic 310 Receivables ● 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 three months ended June 30, 2020, the Bank began providing customer relief programs, such as payment deferrals or interest only payments on loans, in accordance with the CARES Act. The Bank does not consider a modification to be a TDR if it occurred as a result of the loan forbearance program under the CARES Act. Currently, the CARES Act provides 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 COVID-19 pandemic national emergency, or (b) January 1, 2022. During the three months ended June 30, 2020, the Bank modified approximately $49.8 million of loans to provide its customers this 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 September 30, 2021, $1.8 million of loans remain on deferral under the CARES Act. During the three months ended September 30, 2021 and the year ended June 30, 2021, there were no loans modified that were identified as a TDR. The Company did not experience any re-defaulted TDRs subsequent to the loan being modified during the three months ended September 30, 2021 and the year ended June 30, 2021. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Sep. 30, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 7 – Premises and Equipment The components of premises and equipment are as follows as of September 30, 2021 and June 30, 2021: September 30, June 30, (Dollars in thousands) 2021 2021 Land $ 2,581 $ 2,581 Office buildings and improvements 13,100 12,932 Furniture, fixtures and equipment 2,516 2,428 Automobiles 50 50 18,247 17,991 Accumulated depreciation (4,783) (4,552) $ 13,464 $ 13,439 Depreciation expense amounted to $231 thousand and $309 thousand for the three months ended September 30, 2021 and 2020, respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangibles | |
Goodwill and Intangibles | Note 8 – 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, management 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 existed at June 30, 2021. During the three months ended September 30, 2021, management considered the current economic environment caused by the COVID-19 pandemic in its evaluation, and determined based on the totality of its qualitative assessment that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed during the three months ended September 30, 2021. Goodwill and other intangibles are summarized as follows for the periods presented: Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2021 $ 4,858 $ 937 Adjustments: Additions — — Amortization — (57) Balance, September 30, 2021 $ 4,858 $ 880 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (64) Balance, September 30, 2020 $ 4,858 $ 1,128 Aggregate amortization expense was $57 thousand and $64 thousand for the three months ended September 30, 2021 and 2020, respectively. |
Deposits
Deposits | 3 Months Ended |
Sep. 30, 2021 | |
Deposits. | |
Deposits | Note 9 – Deposits Deposits consist of the following major classifications as of September 30, 2021 and June 30, 2021: (Dollars in thousands) September 30, 2021 June 30, 2021 Non-interest bearing checking $ 54,963 $ 51,086 Interest bearing checking 102,888 104,214 Money market accounts 150,606 136,719 Savings and club accounts 101,462 100,781 Certificates of deposit 151,285 160,303 $ 561,204 $ 553,103 |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 3 Months Ended |
Sep. 30, 2021 | |
Advances from Federal Home Loan Bank | |
Advances from Federal Home Loan Bank | Note 10 – 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 had a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $290.7 million and $280.8 million at September 30, 2021 and June 30, 2021, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $420.9 million and $407.4 million of loans pledged as collateral as of September 30, 2021 and June 30, 2021, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in the FHLB of Pittsburgh. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $2.3 million and $2.7 million at September 30, 2021 and June 30, 2021, respectively. On July 20, 2021, the Bank paid off $7.0 million of advances from the FHLB of Pittsburgh due to the low interest rate environment and excess cash held on the Company’s Consolidated Statements of Financial Condition. Advances from the FHLB of Pittsburgh consisted of the following as of September 30, 2021 and June 30, 2021: (Dollars in thousands) September 30, 2021 June 30, 2021 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 14,000 Mid-term — 7,000 Total FHLB advances $ 34,000 $ 41,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies 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 Statements of Financial Condition. A summary of the Company's loan commitments is as follows as of September 30, 2021 and June 30, 2021: September 30, June 30, (Dollars in thousands) 2021 2021 Commitments to extend credit $ 31,414 $ 35,350 Unfunded commitments under lines of credit 64,855 50,583 Standby letters of credit 1,000 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 | 3 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 12 - 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. As of September 30, 2021 and June 30, 2021, the most recent notification from the regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. 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 elected to adopt the optional community bank leverage ratio framework in the first quarter of 2020. Management believes, as of September 30, 2021 and June 30, 2021, that the Bank meets all capital adequacy requirements to which it is subject. 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 bank holding company or savings and loan holding company with 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 September 30, 2021 and June 30, 2021 are as follows: To be Well Capitalized Under For Capital Prompt Corrective Action As of September 30, 2021 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 153,322 18.82 % $ 32,583 4.00 % $ 40,729 5.00 % 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 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 13 – 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 September 30, 2021 and June 30, 2021, 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. September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 50,449 $ — $ 50,449 U.S. agency collateralized mortgage obligations — 14,625 — 14,625 U.S. government agency securities — 6,233 — 6,233 Municipal bonds — 19,564 — 19,564 Corporate bonds — 36,136 — 36,136 Equity securities 2,635 — — 2,635 Total Assets $ 2,635 $ 127,007 $ — $ 129,642 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 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 September 30, 2021 and June 30, 2021, the Company charged-off the collateral deficiency on impaired loans. As a result, there were no specific reserves on impaired loans as of September 30, 2021 and June 30, 2021. 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 September 30, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2021, 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 Quantitative information regarding assets measured at fair value on a non-recurring basis as of June 30, 2021 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 % (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 and Held to Maturity 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. Equity Securities The fair value of equity securities is equal to the available quoted market price. 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 tables below exclude financial instruments for which the carrying amount approximates fair value. Fair Value Measurements at September 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 $ 454,157 $ 465,506 $ — $ — $ 465,506 Securities Held to Maturity 38,127 37,669 — 37,669 — Financial instruments - liabilities: Certificates of deposit 151,285 152,550 — — 152,550 Advances from Federal Home Loan Bank 34,000 34,993 — — 34,993 Off-balance sheet financial instruments — — — — — 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 — — — — — |
Leases
Leases | 3 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | Note 14 – 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 2043. 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) September 30, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 4,819 Total Right-of-Use Assets $ 4,819 (in thousands) September 30, 2021 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 5,036 Total Lease Liabilities $ 5,036 (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 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. On September 7, 2021, the Company opened a new branch office located in Doylestown in Bucks County, Pennsylvania. During the three months ended September 30, 2021, the Company’s lease agreement for this branch office commenced, which resulted in an increase of the ROU asset and lease liability of $2.8 million. September 30, 2021 Weighted average remaining lease term Operating leases 16.5 years Weighted average discount rate Operating leases 2.21 % June 30, 2021 Weighted average remaining lease term Operating leases 9.8 years Weighted average discount rate Operating leases 1.76 % The Company recorded $114 thousand and $85 thousand of net lease costs during the three months ended September 30, 2021 and 2020, respectively. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2021 were as follows: September 30, 2021 Operating (in thousands) Leases Twelve months ended September 30, 2022 $ 509 2023 520 2024 524 2025 461 2026 266 Thereafter 3,930 Total future minimum lease payments $ 6,210 Amounts representing interest (1,174) Present value of net future minimum lease payments $ 5,036 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
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”) and in accordance with the rules of the U.S. Securities and Exchange Commission for Quarterly Reports on Form 10-Q. 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. The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended September 30, 2021 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. |
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 ASC 606 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. 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. |
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. |
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 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 (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Schedule of composition of the weighted average common shares used in the basic and diluted earnings per share computation | Three Months Ended September 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 14,301,956 14,628,530 Net income $ 1,160 $ 670 Basic and diluted earnings per share $ 0.08 $ 0.05 |
Changes in and Reclassificati_2
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | |
Schedule of changes in the balances of each component of accumulated other comprehensive (loss) income ("AOCI") | (Dollars in thousands) Gains on Securities Available for Sale Accumulated Other Comprehensive (Loss) Income (1) 2021 2020 Balance at June 30, $ (64) $ 76 Other comprehensive (loss) income before reclassifications (550) 357 Amounts reclassified from accumulated other comprehensive (loss) income (48) — Period change (598) 357 Balance at September 30, $ (662) $ 433 (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. |
Schedule of reclassifications out of AOCI by component | (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income (1) Details about Accumulated Other Comprehensive Three Months Ended Three Months Ended Affected Line Item in the (Loss) Income Components September 30, 2021 September 30, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 62 $ — Net gain on sale of securities Related income tax expense (14) — Income tax (benefit) expense $ 48 $ — (1) Amounts in parenthesis indicate debits. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities | September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,172 $ — $ (723) $ 50,449 U.S. agency collateralized mortgage obligations 14,876 44 (295) 14,625 U.S. government agency securities 6,293 — (60) 6,233 Municipal bonds 20,219 7 (662) 19,564 Corporate bonds 35,300 861 (25) 36,136 Total Available For Sale $ 127,860 $ 912 $ (1,765) $ 127,007 Held To Maturity: Mortgage-backed securities $ 38,127 $ — $ (458) $ 37,669 Total Held To Maturity $ 38,127 $ — $ (458) $ 37,669 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 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2021 September 30, 2021 Available For Sale Held To Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ — $ — Due after one year through five years 73 72 — — Due after five years through ten years 37,765 38,589 — — Due after ten years 90,022 88,346 38,127 37,669 $ 127,860 $ 127,007 $ 38,127 $ 37,669 |
Schedule of debt securities with unrealized loss position | September 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 $ 45,290 $ (643) $ 2,815 $ (80) $ 48,105 $ (723) U.S. agency collateralized mortgage obligations 6,795 (102) 5,529 (193) 12,324 (295) U.S. government agency securities 171 (1) 4,665 (59) 4,836 (60) Municipal bonds 14,993 (530) 4,051 (132) 19,044 (662) Corporate bonds 4,975 (25) — — 4,975 (25) 72,224 (1,301) 17,060 (464) 89,284 (1,765) Held To Maturity: Mortgage-backed securities 37,669 (458) — — 37,669 (458) 37,669 (458) — — 37,669 (458) Total Temporarily Impaired Securities $ 109,893 $ (1,759) $ 17,060 $ (464) $ 126,953 $ (2,223) 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) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Loans | |
Schedule of major classifications of loans | September 30, June 30, 2021 2021 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 162,822 35.51 % $ 173,306 37.22 % Home equity and HELOCs 34,546 7.53 37,222 7.99 Construction -residential 10,734 2.34 10,841 2.33 Commercial real estate: 1 - 4 family investor 120,620 26.31 120,581 25.90 Multi-family (five or more) 11,367 2.48 12,315 2.64 Commercial non-residential 104,759 22.85 96,612 20.75 Construction and land 6,474 1.41 6,377 1.37 Commercial 4,515 0.98 5,145 1.10 Consumer Loans 2,675 0.59 3,230 0.70 Total Loans 458,512 100.00 % 465,629 100.00 % Unearned loan origination fees (764) (820) Allowance for loan losses (3,591) (3,613) Net Loans $ 454,157 $ 461,196 |
Schedule for changes in the allowance for loan losses | The following table presents by portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2021 and 2020: September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Charge-offs — — — — — — — — — — Recoveries — 7 — — — — — — 1 8 Provision (recovery) (51) (17) (101) 33 (11) 114 6 (2) (1) (30) Ending Balance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 September 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 Total Allowance for credit losses: Beginning balance $ 682 $ 166 $ 526 $ 801 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision (recovery) 49 (16) (65) 58 (2) 53 40 (51) — 66 Ending Balance $ 731 $ 150 $ 461 $ 859 $ 121 $ 780 $ 436 $ 32 $ 15 $ 3,585 The following tables present the allowance for loan losses and recorded investment by loan portfolio classification as September 30, 2021 and June 30, 2021: September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 658 123 386 876 148 968 368 49 15 3,591 Total allowance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 Loans receivable ending balance: Individually evaluated for impairment $ 1,743 $ 499 $ — $ 554 $ 503 $ 853 $ — $ — $ — $ 4,152 Collectively evaluated for impairment 83,773 13,988 8,487 99,093 10,781 78,746 6,474 3,421 529 305,292 Acquired non-credit impaired loans (1) 77,167 20,036 2,247 20,973 83 25,160 — 1,094 2,146 148,906 Acquired credit impaired loans (2) 139 23 — — — — — — — 162 Total portfolio $ 162,822 $ 34,546 $ 10,734 $ 120,620 $ 11,367 $ 104,759 $ 6,474 $ 4,515 $ 2,675 $ 458,512 (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, 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 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 87,540 14,617 8,582 98,043 12,008 68,530 6,377 4,151 535 300,383 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 $ 173,306 $ 37,222 $ 10,841 $ 120,581 $ 12,315 $ 96,612 $ 6,377 $ 5,145 $ 3,230 $ 465,629 (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 September 30, 2021 and June 30, 2021: September 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,090 $ 10,864 $ 103,905 $ 6,474 $ 4,515 $ 243,848 Special Mention 2,054 — 332 — — 2,386 Substandard 476 503 522 — — 1,501 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,620 $ 11,367 $ 104,759 $ 6,474 $ 4,515 $ 247,735 June 30, 2021 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 118,175 $ 12,139 $ 95,720 $ 6,377 $ 5,145 $ 237,556 Special Mention 2,054 — 356 — — 2,410 Substandard 352 176 536 — — 1,064 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 120,581 $ 12,315 $ 96,612 $ 6,377 $ 5,145 $ 241,030 The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2021 and June 30, 2021: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) September 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 159,295 $ 34,136 $ 10,734 $ 2,558 $ 206,723 Non-performing 3,527 410 — 117 4,054 $ 162,822 $ 34,546 $ 10,734 $ 2,675 $ 210,777 June 30, 2021 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 169,532 $ 36,877 $ 10,841 $ 3,112 $ 220,362 Non-performing 3,774 345 — 118 4,237 $ 173,306 $ 37,222 $ 10,841 $ 3,230 $ 224,599 |
Summary of outstanding principal and related carrying amount of loans acquired with deteriorated credit quality | (Dollars in thousands) September 30, 2021 June 30, 2021 Outstanding principal balance $ 244 $ 247 Carrying amount 162 161 |
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 Accretion (4) Balance, September 30, 2021 $ 9 |
Schedule of aging analysis of past due loans | Aged Analysis of Past Due and Non-accrual Loans As of September 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 $ 783 $ 293 $ 1,264 $ 2,340 $ 139 $ 160,343 $ 162,822 $ — $ 3,527 Home equity and HELOCs 112 8 150 270 23 34,253 34,546 — 410 Construction - residential — — — — — 10,734 10,734 — — Commercial real estate: 1 - 4 family investor 252 — 400 652 — 119,968 120,620 — 476 Multi-family 331 — 172 503 — 10,864 11,367 — 503 Commercial non-residential 569 15 — 584 — 104,175 104,759 — 522 Construction and land — — — — — 6,474 6,474 — — Commercial — — — — — 4,515 4,515 — — Consumer 35 32 — 67 — 2,608 2,675 — 117 Total $ 2,082 $ 348 $ 1,986 $ 4,416 $ 162 $ 453,934 $ 458,512 $ — $ 5,555 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 $ 169,960 $ 173,306 $ — $ 3,774 Home equity and HELOCs 58 150 80 288 23 36,911 37,222 — 345 Construction - residential — — — — — 10,841 10,841 — — Commercial real estate: 1 - 4 family investor 81 — 271 352 — 120,229 120,581 — 352 Multi-family — 344 176 520 — 11,795 12,315 — 176 Commercial non-residential 92 491 — 583 — 96,029 96,612 — 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 $ 460,453 $ 465,629 $ — $ 5,301 |
Summary of recorded investment and unpaid principal balances for impaired loans | The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, at September 30, 2021 and June 30, 2021. September 30, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1 - 4 Family residential real estate $ 1,743 $ 1,800 $ — Home equity and HELOCs 499 499 — Construction Residential — — — 1 - 4 Family investor commercial real estate 554 600 — Multi-family 503 513 — Commercial non-residential 853 872 — 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 $ 1,743 $ 1,800 $ — Home equity and HELOCs 499 499 — Construction Residential — — — 1 - 4 Family investor commercial real estate 554 600 — Multi-family 503 513 — Commercial non-residential 853 872 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructuings (“TDRs”) in the amount of $908 thousand that are performing in accordance with their modified terms. The Company recognized $12 thousand of interest income on accruing TDRs during the three months ended September 30, 2021. The table above does not include $162 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real estate $ 1,907 $ 1,943 $ — Home equity and HELOCs 578 587 — Construction Residential — — — 1 - 4 Family investor commercial real estate 433 477 — Multi-family 176 180 — Commercial non-residential 892 900 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — 1 - 4 Family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family residential real estate $ 1,907 $ 1,943 $ — Home equity and HELOCs 578 587 — Construction Residential — — — 1 - 4 Family investor commercial real estate 433 477 — Multi-family 176 180 — Commercial non-residential 892 900 — 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 $13 thousand of interest income on accruing TDRs during the three months ended September 30, 2020. 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. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2021 and September 30, 2020. September 30, 2021 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction Residential — — 1-4 Family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 Family residential real estate $ — $ — Home equity and HELOCs — — Construction Residential — — 1-4 Family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 Family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction Residential — — 1-4 Family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — September 30, 2020 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 Family residential real estate $ 471 $ 6 Home equity and HELOCs 686 5 Construction Residential — — 1-4 Family investor commercial real estate 778 6 Multi-family 185 2 Commercial non-residential 667 9 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 Family residential real estate $ — $ — Home equity and HELOCs — — Construction Residential — — 1-4 Family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 Family residential real estate $ 471 $ 6 Home equity and HELOCs 686 5 Construction Residential — — 1-4 Family investor commercial real estate 778 6 Multi-family 185 2 Commercial non-residential 667 9 Construction and land — — Commercial — — Consumer — — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Premises and Equipment | |
Schedule of components of premises and equipment | September 30, June 30, (Dollars in thousands) 2021 2021 Land $ 2,581 $ 2,581 Office buildings and improvements 13,100 12,932 Furniture, fixtures and equipment 2,516 2,428 Automobiles 50 50 18,247 17,991 Accumulated depreciation (4,783) (4,552) $ 13,464 $ 13,439 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangibles | |
Schedule of goodwill and other intangibles | Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2021 $ 4,858 $ 937 Adjustments: Additions — — Amortization — (57) Balance, September 30, 2021 $ 4,858 $ 880 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (64) Balance, September 30, 2020 $ 4,858 $ 1,128 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Deposits. | |
Schedule of classification of deposits | (Dollars in thousands) September 30, 2021 June 30, 2021 Non-interest bearing checking $ 54,963 $ 51,086 Interest bearing checking 102,888 104,214 Money market accounts 150,606 136,719 Savings and club accounts 101,462 100,781 Certificates of deposit 151,285 160,303 $ 561,204 $ 553,103 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Advances from Federal Home Loan Bank | |
Schedule of advances from FHLB | (Dollars in thousands) September 30, 2021 June 30, 2021 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 14,000 Mid-term — 7,000 Total FHLB advances $ 34,000 $ 41,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies. | |
Schedule of company's loan commitments | September 30, June 30, (Dollars in thousands) 2021 2021 Commitments to extend credit $ 31,414 $ 35,350 Unfunded commitments under lines of credit 64,855 50,583 Standby letters of credit 1,000 2,000 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital Requirements | |
Schedule of leverage ratios | To be Well Capitalized Under For Capital Prompt Corrective Action As of September 30, 2021 Actual Adequacy Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 153,322 18.82 % $ 32,583 4.00 % $ 40,729 5.00 % 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 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on recurring basis | September 30, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 50,449 $ — $ 50,449 U.S. agency collateralized mortgage obligations — 14,625 — 14,625 U.S. government agency securities — 6,233 — 6,233 Municipal bonds — 19,564 — 19,564 Corporate bonds — 36,136 — 36,136 Equity securities 2,635 — — 2,635 Total Assets $ 2,635 $ 127,007 $ — $ 129,642 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 |
Schedule of assets measured at fair value on non-recurring basis | As of September 30, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2021, 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 |
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 as of June 30, 2021 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 % (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 | 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 tables below exclude financial instruments for which the carrying amount approximates fair value. Fair Value Measurements at September 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 $ 454,157 $ 465,506 $ — $ — $ 465,506 Securities Held to Maturity 38,127 37,669 — 37,669 — Financial instruments - liabilities: Certificates of deposit 151,285 152,550 — — 152,550 Advances from Federal Home Loan Bank 34,000 34,993 — — 34,993 Off-balance sheet financial instruments — — — — — 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 — — — — — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of leases in consolidated statements of financial condition | (in thousands) September 30, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 4,819 Total Right-of-Use Assets $ 4,819 (in thousands) September 30, 2021 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 5,036 Total Lease Liabilities $ 5,036 (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 |
Schedule of weighted average remaining lease term and discount rate | September 30, 2021 Weighted average remaining lease term Operating leases 16.5 years Weighted average discount rate Operating leases 2.21 % June 30, 2021 Weighted average remaining lease term Operating leases 9.8 years Weighted average discount rate Operating leases 1.76 % |
Summary of maturities of the Company's lease liabilities | September 30, 2021 Operating (in thousands) Leases Twelve months ended September 30, 2022 $ 509 2023 520 2024 524 2025 461 2026 266 Thereafter 3,930 Total future minimum lease payments $ 6,210 Amounts representing interest (1,174) Present value of net future minimum lease payments $ 5,036 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | Mar. 24, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)Office |
Nature of Operations | ||
ESOP shares committed to be released | $ 108 | |
Percentage of shares of the outstanding stock sold | 6.97% | |
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_3
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Summary of Significant Accounting Policies | |
Estimated useful life | 10 years |
WPSLA Investment Corporation | |
Summary of Significant Accounting Policies | |
Loans held in portfolio | $ 154.9 |
Investment securities portfolio | $ 167.8 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 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 | 14,301,956 | 14,628,530 |
Net income | $ 1,160 | $ 670 |
Basic earnings per share | $ 0.08 | $ 0.05 |
Diluted earnings per share | $ 0.08 | $ 0.05 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share | ||
Antidilutive securities | 0 | 0 |
Net income | $ 1,160 | $ 670 |
Changes in and Reclassificati_3
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive (Loss) Income | ||
Beginning balance | $ 216,926 | $ 96,365 |
Other comprehensive income (loss) | (598) | 357 |
Ending balance | $ 213,045 | 95,506 |
Income tax rate | 22.50% | |
Net gain on sale of securities | ||
Accumulated Other Comprehensive (Loss) Income | ||
Beginning balance | $ (64) | 76 |
Other comprehensive (loss) income before reclassifications | (550) | 357 |
Amounts reclassified from accumulated other comprehensive (loss) income | (48) | |
Other comprehensive income (loss) | (598) | 357 |
Ending balance | $ (662) | $ 433 |
Changes in and Reclassificati_4
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities gains reclassified into net income | $ 62 | |
Income tax (benefit) expense | 30 | $ (146) |
NET INCOME | 1,160 | $ 670 |
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 | 62 | |
Income tax (benefit) expense | (14) | |
NET INCOME | $ 48 |
Investment Securities - Availab
Investment Securities - Available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Available For Sale: | ||
Amortized Cost | $ 127,860 | $ 123,417 |
Gross Unrealized Gains | 912 | 992 |
Gross Unrealized Losses | (1,765) | (1,074) |
Fair value | 127,007 | 123,335 |
Held To Maturity: | ||
Held to maturity securities, Amortized cost | 38,127 | |
Gross Unrealized Losses | (458) | |
Fair value | 37,669 | 0 |
Mortgage-backed securities | ||
Available For Sale: | ||
Amortized Cost | 51,172 | 55,385 |
Gross Unrealized Gains | 53 | |
Gross Unrealized Losses | (723) | (374) |
Fair value | 50,449 | 55,064 |
Held To Maturity: | ||
Held to maturity securities, Amortized cost | 38,127 | |
Gross Unrealized Losses | (458) | |
Fair value | 37,669 | |
U.S. agency collateralized mortgage obligations | ||
Available For Sale: | ||
Amortized Cost | 14,876 | 15,641 |
Gross Unrealized Gains | 44 | 47 |
Gross Unrealized Losses | (295) | (255) |
Fair value | 14,625 | 15,433 |
U.S. government agency securities | ||
Available For Sale: | ||
Amortized Cost | 6,293 | 6,952 |
Gross Unrealized Losses | (60) | (56) |
Fair value | 6,233 | 6,896 |
Municipal bonds | ||
Available For Sale: | ||
Amortized Cost | 20,219 | 20,239 |
Gross Unrealized Gains | 7 | 11 |
Gross Unrealized Losses | (662) | (389) |
Fair value | 19,564 | 19,861 |
Corporate bonds | ||
Available For Sale: | ||
Amortized Cost | 35,300 | 25,200 |
Gross Unrealized Gains | 861 | 881 |
Gross Unrealized Losses | (25) | |
Fair value | $ 36,136 | $ 26,081 |
Investment Securities - Securit
Investment Securities - Securities by contractual maturity (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Available for sale, Amortized Cost | |
Due after one year through five years | $ 73 |
Due after five years through ten years | 37,765 |
Due after ten years | 90,022 |
Amortized Cost | 127,860 |
Available for sale, Fair Value | |
Due after one year through five years | 72 |
Due after five years through ten years | 38,589 |
Due after ten years | 88,346 |
Fair Value | 127,007 |
Held to maturity, Amortized Cost | |
Due after ten years | 38,127 |
Amortized Cost | 38,127 |
Held to maturity, Fair Value | |
Due after ten years | 37,669 |
Fair Value | $ 37,669 |
Investment Securities - Investm
Investment Securities - Investments with unrealized losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Fair Value | ||
Less than 12 Months | $ 72,224 | $ 78,409 |
12 Months or More | 17,060 | 2,407 |
Total Fair Value | 89,284 | 80,816 |
Unrealized Losses | ||
Less than 12 Months | (1,301) | (1,021) |
12 Months or More | (464) | (53) |
Total Unrealized Losses | (1,765) | (1,074) |
Fair Value | ||
Less than 12 Months | 37,669 | |
Total Fair Value | 37,669 | |
Unrealized Losses | ||
Less than 12 Months | (458) | |
Total Unrealized Losses | (458) | |
Less than 12 Months Fair Value | 109,893 | |
12 Months or More Fair Value | 17,060 | |
Total Fair Value | 126,953 | |
Less than 12 Months Unrealized Losses | (1,759) | |
12 Months or More Unrealized Losses | (464) | |
Total Unrealized Losses | (2,223) | |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 45,290 | 43,152 |
12 Months or More | 2,815 | |
Total Fair Value | 48,105 | 43,152 |
Unrealized Losses | ||
Less than 12 Months | (643) | (374) |
12 Months or More | (80) | |
Total Unrealized Losses | (723) | (374) |
Fair Value | ||
Less than 12 Months | 37,669 | |
Total Fair Value | 37,669 | |
Unrealized Losses | ||
Less than 12 Months | (458) | |
Total Unrealized Losses | (458) | |
U.S. agency collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 6,795 | 10,613 |
12 Months or More | 5,529 | 2,407 |
Total Fair Value | 12,324 | 13,020 |
Unrealized Losses | ||
Less than 12 Months | (102) | (202) |
12 Months or More | (193) | (53) |
Total Unrealized Losses | (295) | (255) |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 Months | 171 | 6,896 |
12 Months or More | 4,665 | |
Total Fair Value | 4,836 | 6,896 |
Unrealized Losses | ||
Less than 12 Months | (1) | (56) |
12 Months or More | (59) | |
Total Unrealized Losses | (60) | (56) |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | 14,993 | 17,748 |
12 Months or More | 4,051 | |
Total Fair Value | 19,044 | 17,748 |
Unrealized Losses | ||
Less than 12 Months | (530) | (389) |
12 Months or More | (132) | |
Total Unrealized Losses | (662) | $ (389) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 4,975 | |
Total Fair Value | 4,975 | |
Unrealized Losses | ||
Less than 12 Months | (25) | |
Total Unrealized Losses | $ (25) |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021USD ($)securityitem | Jun. 30, 2021USD ($)item | |
Variable Interest Entity [Line Items] | ||
Gross realized gains | $ 62 | |
Proceeds from sale of securities | 5,008 | |
Held to maturity securities, Amortized cost | $ 38,127 | |
Number of securities temporarily impaired | item | 58 | 42 |
Number of equity securities | security | 1 | |
Equity securities | $ 2,635 | |
Unrealized gain on equity securities | 105 | |
Asset Pledged as Collateral | ||
Variable Interest Entity [Line Items] | ||
Pledged investment securities | $ 3,400 | $ 3,800 |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 458,512 | $ 465,629 | ||
Unearned loan origination fees | (764) | (820) | ||
Allowance for loan losses | (3,591) | (3,613) | $ (3,585) | $ (3,519) |
Net Loans | $ 454,157 | $ 461,196 | ||
Percentage of loans | 100.00% | 100.00% | ||
Residential real estate | 1-4 Family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 162,822 | $ 173,306 | ||
Allowance for loan losses | $ (658) | $ (709) | (731) | (682) |
Percentage of loans | 35.51% | 37.22% | ||
Residential real estate | Home equity and HELOCs | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 34,546 | $ 37,222 | ||
Allowance for loan losses | $ (123) | $ (133) | (150) | (166) |
Percentage of loans | 7.53% | 7.99% | ||
Residential real estate | Construction Residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 10,734 | $ 10,841 | ||
Allowance for loan losses | $ (386) | $ (487) | (461) | (526) |
Percentage of loans | 2.34% | 2.33% | ||
Commercial real estate | 1 - 4 family investor | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 120,620 | $ 120,581 | ||
Allowance for loan losses | $ (876) | $ (843) | (859) | (801) |
Percentage of loans | 26.31% | 25.90% | ||
Commercial real estate | Multi-family (five or more) | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 11,367 | $ 12,315 | ||
Allowance for loan losses | $ (148) | $ (159) | (121) | (123) |
Percentage of loans | 2.48% | 2.64% | ||
Commercial real estate | Commercial non-residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 104,759 | $ 96,612 | ||
Allowance for loan losses | $ (968) | $ (854) | (780) | (727) |
Percentage of loans | 22.85% | 20.75% | ||
Commercial real estate | Construction and Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 6,474 | $ 6,377 | ||
Allowance for loan losses | $ (368) | $ (362) | ||
Percentage of loans | 1.41% | 1.37% | ||
Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 4,515 | $ 5,145 | ||
Allowance for loan losses | $ (49) | $ (51) | (32) | (83) |
Percentage of loans | 0.98% | 1.10% | ||
Commercial | Construction and Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses | $ (368) | $ (362) | (436) | (396) |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | 2,675 | 3,230 | ||
Allowance for loan losses | $ (15) | $ (15) | $ (15) | $ (15) |
Percentage of loans | 0.59% | 0.70% |
Loans - PPP (Details)
Loans - PPP (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)customer | Jun. 30, 2021USD ($)customer | Jun. 30, 2020USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 458,512 | $ 465,629 | |
PPP Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Amount of loan provided | $ 843 | $ 1,500 | |
Number of customers | customer | 24 | 44 | |
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 | $ 1,800 | ||
Mortgage Loan Serviced To Others | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 16,400 | $ 18,600 | |
Servicing rights basis points received | 25.00% |
Loans - Allowance for loan loss
Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Allowance for credit losses: | |||
Beginning balance | $ 3,613 | $ 3,519 | |
Recoveries | 8 | ||
(Recovery) provision for loan losses | (30) | 66 | |
Ending Balance | 3,591 | 3,585 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 3,591 | ||
Allowance for loan losses | 3,591 | 3,585 | $ 3,613 |
Loans receivable ,Individually evaluated for impairment | 4,152 | ||
Loans receivable, Collectively evaluated for impairment | 305,292 | ||
Total Loans | 458,512 | 465,629 | |
Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 162 | ||
Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 148,906 | ||
Residential real estate | 1-4 Family | |||
Allowance for credit losses: | |||
Beginning balance | 709 | 682 | |
(Recovery) provision for loan losses | (51) | 49 | |
Ending Balance | 658 | 731 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 658 | 709 | |
Allowance for loan losses | 658 | 731 | 709 |
Loans receivable ,Individually evaluated for impairment | 1,743 | 1,907 | |
Loans receivable, Collectively evaluated for impairment | 83,773 | 87,540 | |
Total Loans | 162,822 | 173,306 | |
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 139 | 138 | |
Residential real estate | 1-4 Family | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 77,167 | 83,721 | |
Residential real estate | Home equity and HELOCs | |||
Allowance for credit losses: | |||
Beginning balance | 133 | 166 | |
Recoveries | 7 | ||
(Recovery) provision for loan losses | (17) | (16) | |
Ending Balance | 123 | 150 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 123 | 133 | |
Allowance for loan losses | 123 | 150 | 133 |
Loans receivable ,Individually evaluated for impairment | 499 | 578 | |
Loans receivable, Collectively evaluated for impairment | 13,988 | 14,617 | |
Total Loans | 34,546 | 37,222 | |
Residential real estate | Home equity and HELOCs | Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 23 | 23 | |
Residential real estate | Home equity and HELOCs | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 20,036 | 22,004 | |
Residential real estate | Construction Residential | |||
Allowance for credit losses: | |||
Beginning balance | 487 | 526 | |
(Recovery) provision for loan losses | (101) | (65) | |
Ending Balance | 386 | 461 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 386 | 487 | |
Allowance for loan losses | 386 | 461 | 487 |
Loans receivable, Collectively evaluated for impairment | 8,487 | 8,582 | |
Total Loans | 10,734 | 10,841 | |
Residential real estate | Construction Residential | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 2,247 | 2,259 | |
Commercial real estate | 1 - 4 family investor | |||
Allowance for credit losses: | |||
Beginning balance | 843 | 801 | |
(Recovery) provision for loan losses | 33 | 58 | |
Ending Balance | 876 | 859 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 876 | 843 | |
Allowance for loan losses | 876 | 859 | 843 |
Loans receivable ,Individually evaluated for impairment | 554 | 433 | |
Loans receivable, Collectively evaluated for impairment | 99,093 | 98,043 | |
Total Loans | 120,620 | 120,581 | |
Commercial real estate | 1 - 4 family investor | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 20,973 | 22,105 | |
Commercial real estate | Multi-family (five or more) | |||
Allowance for credit losses: | |||
Beginning balance | 159 | 123 | |
(Recovery) provision for loan losses | (11) | (2) | |
Ending Balance | 148 | 121 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 148 | 159 | |
Allowance for loan losses | 148 | 121 | 159 |
Loans receivable ,Individually evaluated for impairment | 503 | 176 | |
Loans receivable, Collectively evaluated for impairment | 10,781 | 12,008 | |
Total Loans | 11,367 | 12,315 | |
Commercial real estate | Multi-family (five or more) | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 83 | 131 | |
Commercial real estate | Commercial non-residential | |||
Allowance for credit losses: | |||
Beginning balance | 854 | 727 | |
(Recovery) provision for loan losses | 114 | 53 | |
Ending Balance | 968 | 780 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 968 | 854 | |
Allowance for loan losses | 968 | 780 | 854 |
Loans receivable ,Individually evaluated for impairment | 853 | 892 | |
Loans receivable, Collectively evaluated for impairment | 78,746 | 68,530 | |
Total Loans | 104,759 | 96,612 | |
Commercial real estate | Commercial non-residential | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 25,160 | 27,190 | |
Commercial real estate | Construction and Land | |||
Allowance for credit losses: | |||
Beginning balance | 362 | ||
Ending Balance | 368 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 368 | 362 | |
Allowance for loan losses | 368 | 362 | |
Loans receivable, Collectively evaluated for impairment | 6,474 | 6,377 | |
Total Loans | 6,474 | 6,377 | |
Commercial | |||
Allowance for credit losses: | |||
Beginning balance | 51 | 83 | |
(Recovery) provision for loan losses | (2) | (51) | |
Ending Balance | 49 | 32 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 49 | 51 | |
Allowance for loan losses | 49 | 32 | 51 |
Loans receivable, Collectively evaluated for impairment | 3,421 | 4,151 | |
Total Loans | 4,515 | 5,145 | |
Commercial | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 1,094 | 994 | |
Commercial | Construction and Land | |||
Allowance for credit losses: | |||
Beginning balance | 362 | 396 | |
(Recovery) provision for loan losses | 6 | 40 | |
Ending Balance | 368 | 436 | |
Allowance ending balance: | |||
Allowance for loan losses | 368 | 436 | 362 |
Consumer | |||
Allowance for credit losses: | |||
Beginning balance | 15 | 15 | |
Recoveries | 1 | ||
(Recovery) provision for loan losses | (1) | ||
Ending Balance | 15 | 15 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 15 | 15 | |
Allowance for loan losses | 15 | $ 15 | 15 |
Loans receivable, Collectively evaluated for impairment | 529 | 535 | |
Total Loans | 2,675 | 3,230 | |
Consumer | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 2,146 | 2,695 | |
Unallocated | |||
Allowance for credit losses: | |||
Beginning balance | $ 3,613 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 3,613 | ||
Allowance for loan losses | 3,613 | ||
Loans receivable ,Individually evaluated for impairment | 3,986 | ||
Loans receivable, Collectively evaluated for impairment | 300,383 | ||
Total Loans | 465,629 | ||
Unallocated | Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 161 | ||
Unallocated | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | $ 161,099 |
Loans - Credit quality indicato
Loans - Credit quality indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 458,512 | $ 465,629 |
Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 210,777 | 224,599 |
Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 206,723 | 220,362 |
Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,054 | 4,237 |
Commercial Loan Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 247,735 | 241,030 |
Commercial Loan Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 243,848 | 237,556 |
Commercial Loan Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,386 | 2,410 |
Commercial Loan Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,501 | 1,064 |
Residential real estate | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 162,822 | 173,306 |
Residential real estate | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 34,546 | 37,222 |
Residential real estate | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,734 | 10,841 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 162,822 | 173,306 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 159,295 | 169,532 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,527 | 3,774 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 34,546 | 37,222 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 34,136 | 36,877 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 410 | 345 |
Residential real estate | Residential and Consumer Loan | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,734 | 10,841 |
Residential real estate | Residential and Consumer Loan | Construction Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,734 | 10,841 |
Commercial real estate | 1 - 4 family investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 120,620 | 120,581 |
Commercial real estate | 1 - 4 family investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 118,090 | 118,175 |
Commercial real estate | 1 - 4 family investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,054 | 2,054 |
Commercial real estate | 1 - 4 family investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 476 | 352 |
Commercial real estate | Multi-family (five or more) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 11,367 | 12,315 |
Commercial real estate | Multi-family (five or more) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,864 | 12,139 |
Commercial real estate | Multi-family (five or more) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 503 | 176 |
Commercial real estate | Commercial non-residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 104,759 | 96,612 |
Commercial real estate | Commercial non-residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 103,905 | 95,720 |
Commercial real estate | Commercial non-residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 332 | 356 |
Commercial real estate | Commercial non-residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 522 | 536 |
Commercial real estate | Construction and Land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,474 | 6,377 |
Commercial real estate | Construction and Land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,474 | 6,377 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,515 | 5,145 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,515 | 5,145 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,675 | 3,230 |
Consumer | Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,675 | 3,230 |
Consumer | Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,558 | 3,112 |
Consumer | Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 117 | $ 118 |
Loans - Loans Acquired with Det
Loans - Loans Acquired with Deteriorated Credit Quality (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | |
Loans | |||
Outstanding principal balance | $ 244 | $ 247 | |
Carrying amount | 162 | 161 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning Balance | $ 57 | 13 | 53 |
Accretion | (4) | (4) | (40) |
Ending balance | $ 53 | $ 9 | $ 13 |
Loans - Loan Delinquencies and
Loans - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 4,416 | $ 5,015 | |
Current | 453,934 | 460,453 | |
Total Loans | 458,512 | 465,629 | |
Recorded Investment Loans on Non-Accrual | 5,555 | 5,301 | |
Interest income | 65 | $ 58 | |
30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,082 | 1,953 | |
60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 348 | 1,546 | |
90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,986 | 1,516 | |
Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 162 | 161 | |
Residential real estate | 1-4 Family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,340 | 3,208 | |
Current | 160,343 | 169,960 | |
Total Loans | 162,822 | 173,306 | |
Recorded Investment Loans on Non-Accrual | 3,527 | 3,774 | |
Residential real estate | 1-4 Family | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 783 | 1,658 | |
Residential real estate | 1-4 Family | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 293 | 561 | |
Residential real estate | 1-4 Family | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,264 | 989 | |
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 139 | 138 | |
Residential real estate | Home equity and HELOCs | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 270 | 288 | |
Current | 34,253 | 36,911 | |
Total Loans | 34,546 | 37,222 | |
Recorded Investment Loans on Non-Accrual | 410 | 345 | |
Residential real estate | Home equity and HELOCs | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 112 | 58 | |
Residential real estate | Home equity and HELOCs | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 8 | 150 | |
Residential real estate | Home equity and HELOCs | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 150 | 80 | |
Residential real estate | Home equity and HELOCs | Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 23 | 23 | |
Residential real estate | Construction Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 10,734 | 10,841 | |
Total Loans | 10,734 | 10,841 | |
Commercial real estate | 1 - 4 family investor | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 652 | 352 | |
Current | 119,968 | 120,229 | |
Total Loans | 120,620 | 120,581 | |
Recorded Investment Loans on Non-Accrual | 476 | 352 | |
Commercial real estate | 1 - 4 family investor | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 252 | 81 | |
Commercial real estate | 1 - 4 family investor | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 400 | 271 | |
Commercial real estate | Multi-family (five or more) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 503 | 520 | |
Current | 10,864 | 11,795 | |
Total Loans | 11,367 | 12,315 | |
Recorded Investment Loans on Non-Accrual | 503 | 176 | |
Commercial real estate | Multi-family (five or more) | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 331 | ||
Commercial real estate | Multi-family (five or more) | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 344 | ||
Commercial real estate | Multi-family (five or more) | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 172 | 176 | |
Commercial real estate | Commercial non-residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 584 | 583 | |
Current | 104,175 | 96,029 | |
Total Loans | 104,759 | 96,612 | |
Recorded Investment Loans on Non-Accrual | 522 | 536 | |
Commercial real estate | Commercial non-residential | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 569 | 92 | |
Commercial real estate | Commercial non-residential | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 15 | 491 | |
Commercial real estate | Construction and Land | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 6,474 | 6,377 | |
Total Loans | 6,474 | 6,377 | |
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 4,515 | 5,145 | |
Total Loans | 4,515 | 5,145 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 67 | 64 | |
Current | 2,608 | 3,166 | |
Total Loans | 2,675 | 3,230 | |
Recorded Investment Loans on Non-Accrual | 117 | 118 | |
Consumer | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 35 | $ 64 | |
Consumer | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 32 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
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 | $ 778 | ||
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 6 | ||
Residential real estate | 1-4 Family | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | $ 1,743 | $ 1,907 | |
Recorded Investment | 1,743 | 1,907 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 1,800 | 1,943 | |
Unpaid Principal Balance | 1,800 | 1,943 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 1,802 | 471 | |
Average Recorded Investment | 1,802 | 471 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 6 | ||
Interest Income Recognized | 6 | ||
Residential real estate | Home equity and HELOCs | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 499 | 578 | |
Recorded Investment | 499 | 578 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 499 | 587 | |
Unpaid Principal Balance | 499 | 587 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 558 | 686 | |
Average Recorded Investment | 558 | 686 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 5 | 5 | |
Interest Income Recognized | 5 | 5 | |
Commercial real estate | 1 - 4 family investor | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 554 | 433 | |
Recorded Investment | 554 | 433 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 477 | ||
Unpaid Principal Balance | 600 | 477 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 461 | ||
Average Recorded Investment | 461 | 778 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 1 | ||
Interest Income Recognized | 1 | 6 | |
Commercial real estate | Multi-family (five or more) | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 503 | 176 | |
Recorded Investment | 503 | 176 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 513 | 180 | |
Unpaid Principal Balance | 513 | 180 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 258 | 185 | |
Average Recorded Investment | 258 | 185 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 2 | ||
Interest Income Recognized | 2 | ||
Commercial real estate | Commercial non-residential | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 853 | 892 | |
Recorded Investment | 853 | 892 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 872 | 900 | |
Unpaid Principal Balance | 872 | $ 900 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 870 | 667 | |
Average Recorded Investment | 870 | 667 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 6 | 9 | |
Interest Income Recognized | $ 6 | $ 9 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | |
Financing Receivable, Impaired [Line Items] | ||||
Troubled debt restructuring | $ 908,000 | $ 935 | ||
Interest income on accruing TDR | 12 | 13 | ||
Total Loans | 458,512 | $ 465,629 | ||
Impairment on TDR | $ 34 | 16 | ||
Number of contracts | loan | 0 | 0 | ||
Small Business Administration, CARES Act, Monetary Relief [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Amount of loans modified into PPP | $ 49,800 | |||
Small Business Administration, CARES Act, Monetary Relief [Member] | Payment Deferral | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Loans | $ 1,800 | |||
Period of principal and interest deferment | 3 months | |||
Acquired credit impaired | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans acquired | $ 162 | $ 161 |
Premises and Equipment - Compon
Premises and Equipment - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 18,247 | $ 17,991 |
Accumulated depreciation | (4,783) | (4,552) |
Net book value | 13,464 | 13,439 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,581 | 2,581 |
Office buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 13,100 | 12,932 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,516 | 2,428 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 50 | $ 50 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Premises and Equipment | |||
Depreciation expense | $ 231 | $ 309 | $ 309 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill | ||
Beginning Balance | $ 4,858 | $ 4,858 |
Ending Balance | 4,858 | 4,858 |
Core Deposit Intangibles | ||
Beginning Balance | 937 | 1,192 |
Amortization | (57) | (64) |
Ending Balance | $ 880 | $ 1,128 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 |
Core deposit intangibles | $ 880 | 1,128 | 937 | $ 1,192 |
Estimated useful life | 10 years | |||
Goodwill impairment | $ 0 | $ 0 | ||
Aggregate amortization expense | 57 | $ 64 | ||
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 |
Deposits - Weighted-average int
Deposits - Weighted-average interest rates (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Deposits. | ||
Non-interest bearing checking | $ 54,963 | $ 51,086 |
Interest bearing checking | 102,888 | 104,214 |
Money market accounts | 150,606 | 136,719 |
Savings and club accounts | 101,462 | 100,781 |
Certificates of deposit | 151,285 | 160,303 |
Total deposits | $ 561,204 | $ 553,103 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 34,000 | $ 41,000 |
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 | 14,000 |
Mid-term | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 7,000 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank (Details) $ in Thousands | Jul. 20, 2021USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) |
Advances from Federal Home Loan Bank | ||||
FHLB number of regional banks | item | 11 | |||
Maximum borrowing capacity with FHLB | $ 290,700 | $ 280,800 | ||
Loans pledged as collateral | 420,900 | 407,400 | ||
Investments | 2,300 | $ 2,700 | ||
Repayment of FHLB advances | $ 7,000 | $ 7,000 | $ 23,197 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Other Commitments [Line Items] | ||
Commitments fixed expiration period | 90 days | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 31,414 | $ 35,350 |
Unfunded commitments under lines of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | 64,855 | 50,583 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 1,000 | $ 2,000 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) |
Tier One Leverage, Amount | ||
Leverage capital, actual amount | $ 153,322 | $ 152,104 |
Capital adequacy, amount | 32,583 | 32,203 |
Well capitalized, amount | $ 40,729 | $ 40,254 |
Tier One Leverage, Ratio | ||
Leverage capital, actual ratio | 18.82 | 18.89 |
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 | Sep. 30, 2021 | Jun. 30, 2021 |
Investments available for sale: | ||
Equity securities | $ 2,635 | |
Fair value | 127,007 | $ 123,335 |
Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 50,449 | 55,064 |
U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 14,625 | 15,433 |
U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,233 | 6,896 |
Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,564 | 19,861 |
Corporate bonds | ||
Investments available for sale: | ||
Fair value | 36,136 | 26,081 |
Recurring | ||
Investments available for sale: | ||
Equity securities | 2,635 | |
Fair value | 129,642 | |
Fair value | 123,335 | |
Recurring | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 50,449 | 55,064 |
Recurring | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 14,625 | 15,433 |
Recurring | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,233 | 6,896 |
Recurring | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,564 | 19,861 |
Recurring | Corporate bonds | ||
Investments available for sale: | ||
Fair value | 36,136 | 26,081 |
Recurring | Level 1 | ||
Investments available for sale: | ||
Equity securities | 2,635 | |
Fair value | 2,635 | |
Recurring | Level 2 | ||
Investments available for sale: | ||
Fair value | 127,007 | |
Fair value | 123,335 | |
Recurring | Level 2 | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 50,449 | 55,064 |
Recurring | Level 2 | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 14,625 | 15,433 |
Recurring | Level 2 | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 6,233 | 6,896 |
Recurring | Level 2 | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 19,564 | 19,861 |
Recurring | Level 2 | Corporate bonds | ||
Investments available for sale: | ||
Fair value | $ 36,136 | $ 26,081 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Non-Recurring Basis (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
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 | 75,000 | |
Non-recurring basis | Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | 75,000 | |
Non-recurring basis | Level 3 | ||
Assets at fair value | ||
Total assets at fair value | 75,000 | |
Non-recurring basis | Level 3 | Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | $ 75,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information (Details) $ in Thousands | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) |
Assets at fair value | ||
Fair value estimate | $ 0 | |
Non-recurring basis | ||
Assets at fair value | ||
Fair value estimate | $ 75 | |
Non-recurring basis | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 75 | |
Non-recurring basis | Other real estate owned | ||
Assets at fair value | ||
Fair value estimate | 75 | |
Non-recurring basis | Other real estate owned | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 75 | |
Non-recurring basis | Other real estate owned | Level 3 | Liquidation expenses | ||
Assets at fair value | ||
Fair value estimate | $ 75 | |
Measurement input | 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying value and fair value of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Financial assets: | ||
Loans receivable, net | $ 454,157 | $ 461,196 |
Held to maturity securities, Amortized cost | 38,127 | |
Financial liabilities: | ||
Certificates of deposit | 151,285 | 160,303 |
Advances from Federal Home Loan Bank | 34,000 | 41,000 |
Level 2 | ||
Financial assets: | ||
Held to maturity securities, Amortized cost | 37,669 | |
Level 3 | ||
Financial assets: | ||
Loans receivable, net | 465,506 | 472,292 |
Financial liabilities: | ||
Certificates of deposit | 152,550 | 161,057 |
Advances from Federal Home Loan Bank | 34,993 | 42,098 |
Carrying Value | ||
Financial assets: | ||
Loans receivable, net | 454,157 | 461,196 |
Held to maturity securities, Amortized cost | 38,127 | |
Financial liabilities: | ||
Certificates of deposit | 151,285 | 160,303 |
Advances from Federal Home Loan Bank | 34,000 | 41,000 |
Fair Value | ||
Financial assets: | ||
Loans receivable, net | 465,506 | 472,292 |
Held to maturity securities, Amortized cost | 37,669 | |
Financial liabilities: | ||
Certificates of deposit | 152,550 | 161,057 |
Advances from Federal Home Loan Bank | $ 34,993 | $ 42,098 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease right-of-use assets | $ 4,819 | $ 2,108 | |
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 | $ 5,036 | $ 2,307 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | |
ROU asset and lease liability | $ 2,800 | ||
Weighted average remaining lease term - Operating leases | 16 years 6 months | 9 years 9 months 18 days | |
Weighted average discount rate - Operating leases | 2.21% | 1.76% | |
Net lease costs | $ 114 | $ 85 |
Leases - Summary of maturities
Leases - Summary of maturities of the Company's lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
2022 | $ 509 | |
2023 | 520 | |
2024 | 524 | |
2025 | 461 | |
2026 | 266 | |
Thereafter | 3,930 | |
Total future minimum lease payments | 6,210 | |
Amounts representing interest | (1,174) | |
Present value of net future minimum lease payments | $ 5,036 | $ 2,307 |