Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $0.01 per share | |
Trading Symbol | WMPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,345,730 | |
Entity Central Index Key | 0001828376 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
ASSETS | ||
Cash and due from banks | $ 9,082 | $ 8,117 |
Interest bearing deposits with other banks | 10,041 | 28,053 |
Total cash and cash equivalents | 19,123 | 36,170 |
Interest-bearing time deposits | 600 | 600 |
Securities available for sale | 170,860 | 182,745 |
Securities held to maturity, fair value of $84,997 and $88,321, as of September 30, 2022 and June 30, 2022, respectively | 104,376 | 102,135 |
Equity securities | 1,985 | 2,258 |
Loans receivable, net of allowance for loan losses of $3,333 and $3,409 as of September 30, 2022 and June 30, 2022, respectively | 472,499 | 475,511 |
Premises and equipment, net | 11,553 | 11,696 |
Regulatory stock, at cost | 3,379 | 3,807 |
Deferred income taxes | 9,434 | 7,459 |
Bank-owned life insurance | 39,443 | 39,170 |
Goodwill | 4,858 | 4,858 |
Intangible assets | 664 | 712 |
Operating lease right-of-use assets | 6,716 | 6,843 |
Accrued interest receivable and other assets | 6,005 | 5,988 |
TOTAL ASSETS | 851,495 | 879,952 |
LIABILITIES | ||
Deposits | 600,174 | 606,617 |
Advances from Federal Home Loan Bank | 55,000 | 65,000 |
Advances from borrowers for taxes and insurance | 2,001 | 3,356 |
Operating lease liabilities | 6,833 | 6,949 |
Accrued interest payable and other liabilities | 6,293 | 5,704 |
TOTAL LIABILITIES | 670,301 | 687,626 |
Commitments and contingencies (note 12) | ||
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; 14,499,238 shares issued and outstanding at September 30, 2022 and 14,896,590 shares issued and outstanding at June 30, 2022 | 145 | 149 |
Additional paid-in capital | 155,458 | 159,546 |
Unearned common stock held by employee stock ownership plan | (9,497) | (9,599) |
Retained earnings | 58,195 | 57,587 |
Accumulated other comprehensive loss | (23,107) | (15,357) |
TOTAL WILLIAM PENN BANCORPORATION STOCKHOLDERS' EQUITY | 181,194 | 192,326 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 851,495 | $ 879,952 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Fair value | $ 84,997 | $ 88,321 |
Allowance for loan losses | $ 3,333 | $ 3,409 |
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) | 14,499,238 | 14,896,590 |
Common stock, outstanding (in shares) | 14,499,238 | 14,896,590 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 5,297 | $ 5,214 |
Securities | 1,657 | 664 |
Other | 129 | 106 |
Total interest income | 7,083 | 5,984 |
INTEREST EXPENSE | ||
Deposits | 509 | 484 |
Borrowings | 333 | 238 |
Total interest expense | 842 | 722 |
Net interest income | 6,241 | 5,262 |
Provision (recovery) for loan losses | (30) | |
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR LOAN LOSSES | 6,241 | 5,292 |
OTHER INCOME | ||
Service fees | 211 | 213 |
Net gain on sale of securities | 62 | |
Earnings on bank-owned life insurance | 273 | 238 |
Unrealized (loss) gain on equity securities | (273) | 105 |
Net loss on disposition of premises and equipment | (1) | |
Other | 72 | 87 |
Total other income | 282 | 705 |
OTHER EXPENSES | ||
Salaries and employee benefits | 3,241 | 2,712 |
Occupancy and equipment | 788 | 675 |
Data processing | 431 | 421 |
Professional fees | 263 | 248 |
Amortization of intangible assets | 48 | 57 |
Prepayment penalties | 64 | |
Other | 792 | 690 |
Total other expense | 5,563 | 4,867 |
Income before income taxes | 960 | 1,130 |
Income tax benefit | (67) | (30) |
NET INCOME | $ 1,027 | $ 1,160 |
Basic earnings per share | $ 0.08 | $ 0.08 |
Diluted earnings per share | $ 0.08 | $ 0.08 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||
Net income | $ 1,027 | $ 1,160 |
Other comprehensive loss: | ||
Changes in net unrealized loss on securities available for sale | (10,066) | (710) |
Tax effect | 2,316 | 160 |
Reclassification adjustment for gain recognized in net income | (62) | |
Tax effect | 14 | |
Other comprehensive loss, net of tax | (7,750) | (598) |
Comprehensive (loss) income | $ (6,723) | $ 562 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned Common Stock held by ESOP | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
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 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,160 | 1,160 | ||||
Other comprehensive 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 | |||||
Beginning balance at Jun. 30, 2022 | $ 149 | 159,546 | (9,599) | 57,587 | (15,357) | $ 192,326 |
Beginning balance (in shares) at Jun. 30, 2022 | 14,896,590 | 14,896,590 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,027 | $ 1,027 | ||||
Other comprehensive loss | (7,750) | (7,750) | ||||
Restricted stock expense | 289 | 289 | ||||
Stock option expense | 201 | 201 | ||||
Stock purchased and retired | $ (4) | (4,578) | (4,582) | |||
Stock purchased and retired (in shares) | (397,352) | |||||
ESOP shares committed to be released | 102 | 102 | ||||
Regular cash dividend paid | (419) | (419) | ||||
Ending balance at Sep. 30, 2022 | $ 145 | $ 155,458 | $ (9,497) | $ 58,195 | $ (23,107) | $ 181,194 |
Ending balance (in shares) at Sep. 30, 2022 | 14,499,238 | 14,499,238 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.03 | |
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, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 1,027 | $ 1,160 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision (recovery) for loan losses | (30) | |
Depreciation expense | 265 | 231 |
Other accretion, net | (133) | (258) |
Net loss on disposition of premises and equipment | 1 | |
Amortization of core deposit intangibles | 48 | 57 |
Amortization of ESOP | 102 | 108 |
Net gain on sale of securities | (62) | |
Unrealized loss (gain) on equity securities | 273 | (105) |
Earnings on bank-owned life insurance | (273) | (238) |
Stock based compensation expense | 490 | |
Other, net | 799 | 214 |
Net cash provided by operating activities | 2,599 | 1,077 |
Securities available for sale: | ||
Purchases | (1,923) | (10,100) |
Maturities, calls and principal paydowns | 3,637 | 2,896 |
Proceeds from sale of securities | 0 | 5,008 |
Securities held to maturity: | ||
Purchases | (4,484) | (38,252) |
Maturities, calls and principal paydowns | 2,243 | 122 |
Equity securities: | ||
Purchases | (2,500) | |
Net decrease in loans receivable | 3,181 | 7,369 |
Interest bearing time deposits: | ||
Maturities and principal paydowns | 500 | |
Purchase of bank-owned life insurance | (2,000) | |
Regulatory stock purchases | (1,487) | (1) |
Regulatory stock redemptions | 1,915 | 358 |
Purchases of premises and equipment, net | (122) | (256) |
Proceeds from the sale of premises and equipment | 123 | |
Net cash provided by (used in) investing activities | 3,083 | (36,856) |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (6,373) | 8,223 |
Net repayment of short-term borrowed funds | (10,000) | (7,000) |
Repurchase of common stock | (4,582) | |
Decrease in advances from borrowers for taxes and insurance | (1,355) | (1,667) |
Cash dividends | (419) | (4,551) |
Net cash used in financing activities | (22,729) | (4,995) |
Net decrease in cash and cash equivalents | (17,047) | (40,774) |
Cash and cash equivalents - beginning | 36,170 | 168,722 |
Cash and cash equivalents - ending | 19,123 | 127,948 |
Supplementary cash flows information | ||
Interest paid | 877 | 860 |
Income tax refunds | $ (467) | (575) |
Operating lease right-of-use asset recorded | 2,804 | |
Operating lease liabilities recorded | 2,804 | |
Unsettled purchases of securities available for sale | $ 2,344 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Sep. 30, 2022 | |
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. 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 thirteen full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington, Camden, and Mercer 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, 2022 | |
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, 2022, WPSLA held $267.3 million of the Bank’s $277.2 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, 2022 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 sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. This update is not expected to have a significant impact on the Company’s financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021. Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. The difference between common shares issued and basic average common shares outstanding, for purposes of calculating basic earnings per share, is a result of subtracting unallocated ESOP shares and unvested restricted stock shares. There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, the net income of $1.0 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively, were used as the numerators. See Note 11 to these consolidated financial statements for further discussion of stock grants. 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) 2022 2021 Basic and diluted earnings per share: Net income $ 1,027 $ 1,160 Basic average common shares outstanding 13,435,273 14,301,956 Effect of dilutive securities 17,629 — Dilutive average shares outstanding 13,452,902 14,301,956 Earnings per share: Basic $ 0.08 $ 0.08 Diluted $ 0.08 $ 0.08 |
Changes in and Reclassification
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 30, 2022 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | Note 4 – Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present the changes in the balances of each component of accumulated other comprehensive loss (“AOCI”) for the three months ended September 30, 2022 and 2021. (Dollars in thousands) Unrealized Losses on Securities Available for Sale Accumulated Other Comprehensive Loss (1) 2022 2021 Balance at June 30, $ (15,357) $ (64) Other comprehensive loss before reclassifications (7,750) (550) Amounts reclassified from accumulated other comprehensive loss — (48) Period change (7,750) (598) Balance at September 30, $ (23,107) $ (662) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 23% and 22% for 2022, and 2021, respectively. The following tables present reclassifications out of AOCI by component for the three months ended September 30, 2022 and 2021: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Details about Accumulated Other Comprehensive Three Months Ended September 30, Affected Line Item in the Loss Components 2022 2021 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 $ — $ 48 (1) Amounts in parenthesis indicate debits. |
Investment Securities
Investment Securities | 3 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Investment Securities | Note 5 – Investment Securities Debt Securities The amortized cost, gross unrealized gains and losses, and fair value of investments in debt securities are as follows: September 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 129,145 $ 3 $ (19,734) $ 109,414 U.S. agency collateralized mortgage obligations 10,660 — (1,714) 8,946 U.S. government agency securities 4,624 25 (86) 4,563 Municipal bonds 20,141 — (5,699) 14,442 Corporate bonds 36,300 — (2,805) 33,495 Total Available For Sale $ 200,870 $ 28 $ (30,038) $ 170,860 Held To Maturity: Mortgage-backed securities $ 99,891 $ — $ (19,306) $ 80,585 U.S. government agency securities 4,485 — (73) 4,412 Total Held To Maturity $ 104,376 $ — $ (19,379) $ 84,997 June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 130,146 $ 85 $ (12,725) $ 117,506 U.S. agency collateralized mortgage obligations 11,001 — (1,292) 9,709 U.S. government agency securities 5,082 11 (55) 5,038 Municipal bonds 20,160 — (4,518) 15,642 Corporate bonds 36,300 16 (1,466) 34,850 Total Available For Sale $ 202,689 $ 112 $ (20,056) $ 182,745 Held To Maturity: Mortgage-backed securities $ 102,135 $ — $ (13,814) $ 88,321 Total Held To Maturity $ 102,135 $ — $ (13,814) $ 88,321 The Company did not sell any investment securities during the three months ended September 30, 2022. 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 amortized cost and fair value of debt securities, by contractual maturity, are shown below. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without penalties. September 30, 2022 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 39 38 4,485 4,412 Due after five years through ten years 40,488 36,980 — — Due after ten years 160,343 133,842 99,891 80,585 $ 200,870 $ 170,860 $ 104,376 $ 84,997 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, 2022 and June 30, 2022: September 30, 2022 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 $ 73,334 $ (11,368) $ 34,153 $ (8,366) $ 107,487 $ (19,734) U.S. agency collateralized mortgage obligations 1,334 (282) 7,612 (1,432) 8,946 (1,714) U.S. government agency securities 61 (3) 1,224 (83) 1,285 (86) Municipal bonds 393 (119) 14,049 (5,580) 14,442 (5,699) Corporate bonds 28,460 (2,590) 1,785 (215) 30,245 (2,805) 103,582 (14,362) 58,823 (15,676) 162,405 (30,038) Held To Maturity: Mortgage-backed securities 54,170 (12,738) 26,415 (6,568) 80,585 (19,306) U.S. government agency securities 4,412 (73) — — 4,412 (73) 58,582 (12,811) 26,415 (6,568) 84,997 (19,379) Total Temporarily Impaired Securities $ 162,164 $ (27,173) $ 85,238 $ (22,244) $ 247,402 $ (49,417) June 30, 2022 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 $ 93,726 $ (10,351) $ 13,750 $ (2,374) $ 107,476 $ (12,725) U.S. agency collateralized mortgage obligations 2,968 (488) 6,741 (804) 9,709 (1,292) U.S. government agency securities 61 (3) 1,556 (52) 1,617 (55) Municipal bonds 7,415 (1,979) 8,227 (2,539) 15,642 (4,518) Corporate bonds 25,584 (1,466) — — 25,584 (1,466) 129,754 (14,287) 30,274 (5,769) 160,028 (20,056) Held To Maturity: Mortgage-backed securities 88,321 (13,814) — — 88,321 (13,814) 88,321 (13,814) — — 88,321 (13,814) Total Temporarily Impaired Securities $ 218,075 $ (28,101) $ 30,274 $ (5,769) $ 248,349 $ (33,870) 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 an 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 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, 2022 and June 30, 2022. There were 122 investment securities that were temporarily impaired at September 30, 2022 and 115 investment securities that were temporarily impaired at June 30, 2022. At September 30, 2022 and June 30, 2022, $1.8 million and $2.0 million, respectively, of investment securities were pledged to secure municipal deposits. Equity Securities The Company had one equity security with a fair value of $2.0 million as of September 30, 2022 and $2.3 million as of June 30, 2022. During the three months ended September 30, 2022 and 2021, the Company recorded $273 thousand of unrealized losses and $105 thousand of unrealized gains, respectively, which were recorded in Unrealized (loss) gain on equity securities |
Loans
Loans | 3 Months Ended |
Sep. 30, 2022 | |
Loans | |
Loans | Note 6 – Loans Major classifications of loans at September 30, 2022 and June 30, 2022 are summarized as follows: September 30, June 30, 2022 2022 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 144,290 30.29 % $ 147,061 30.66 % Home equity and HELOCs 32,235 6.76 32,529 6.78 Construction -residential 11,630 2.44 14,834 3.09 Commercial real estate: 1 - 4 family investor 94,794 19.89 96,850 20.19 Multi-family (five or more) 14,922 3.13 13,069 2.72 Commercial non-residential 157,606 33.08 158,727 33.10 Construction and land 7,953 1.67 4,951 1.03 Commercial 10,932 2.29 9,409 1.96 Consumer loans 2,154 0.45 2,239 0.47 Total Loans 476,516 100.00 % 479,669 100.00 % Unearned loan origination fees (684) (749) Allowance for loan losses (3,333) (3,409) Net Loans $ 472,499 $ 475,511 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 $13.5 million and $14.4 million at September 30, 2022 and June 30, 2022, 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. Commercial non-residential loans include shared national credits, which are participations in loans or loan commitments of at least $20.0 million that are shared by three or more banks. As of September 30, 2022 and June 30, 2022, the Company had one shared national credit loan commitment for $12.5 million with $8.3 million and $9.2 million outstanding, respectively, that is a purchased participation classified as pass rated and all payments are current and the loan is performing in accordance with its contractual terms. The Company’s accounting policies for shared national credits, including our charge off and reserve policy, are consistent with the significant accounting policies disclosed in our financial statements for the Company’s total loan portfolio. Shared national credits are subject to the same underwriting guidelines as loans originated by the Bank and are subject to annual reviews where the risk rating of the loan is evaluated. Additionally, the Bank obtains quarterly financial information and performs a financial analysis on a regular basis to ensure that the borrower can comply with the financial terms of the loan. The information used in the analysis is provided by the borrower through the agent bank. 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 $3.3 million and $3.4 million adequate to cover loan losses inherent in the loan portfolio at both September 30, 2022 and June 30, 2022, respectively. The following table presents by portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2022 and 2021: September 30, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 506 $ 113 $ 386 $ 527 $ 110 $ 1,451 $ 166 $ 100 $ 50 $ 3,409 Charge-offs (79) — — — — — — — — (79) Recoveries — — — — — — — — 3 3 Provision (recovery) 66 3 (85) (32) 2 (20) 58 11 (3) — Ending Balance $ 493 $ 116 $ 301 $ 495 $ 112 $ 1,431 $ 224 $ 111 $ 50 $ 3,333 September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Charge-offs — — — — — — — — — — Recoveries — 7 — — — — — — 1 8 Provision (recovery) (51) (17) (101) 33 (11) 114 6 (2) (1) (30) Ending Balance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 During the three months ended September 30, 2022, 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. Specifically, we experienced significant growth in our commercial construction and land portfolio and a corresponding increase in the provision for loan losses for this portfolio. The overall decrease in the allowance during the three months ended September 30, 2022 can be primarily attributed to an improving asset quality and continued low levels of net charge-offs and non-performing assets. 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. The following tables present the allowance for loan losses and recorded investment by loan portfolio classification as September 30, 2022 and June 30, 2022: September 30, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 493 116 301 495 112 1,431 224 111 50 3,333 Total allowance $ 493 $ 116 $ 301 $ 495 $ 112 $ 1,431 $ 224 $ 111 $ 50 $ 3,333 Loans receivable ending balance: Individually evaluated for impairment $ 1,605 $ 343 $ — $ 99 $ 291 $ 1,474 $ — $ — $ — $ 3,812 Collectively evaluated for impairment 80,250 15,810 11,630 80,666 14,378 138,332 7,953 10,311 521 359,851 Acquired non-credit impaired loans (1) 62,302 16,059 — 14,029 253 17,800 — 621 1,633 112,697 Acquired credit impaired loans (2) 133 23 — — — — — — — 156 Total portfolio $ 144,290 $ 32,235 $ 11,630 $ 94,794 $ 14,922 $ 157,606 $ 7,953 $ 10,932 $ 2,154 $ 476,516 (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, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 506 113 386 527 110 1,451 166 100 50 3,409 Total allowance $ 506 $ 113 $ 386 $ 527 $ 110 $ 1,451 $ 166 $ 100 $ 50 $ 3,409 Loans receivable ending balance: Individually evaluated for impairment $ 3,336 $ 275 $ — $ 173 $ 291 $ 1,213 $ — $ — $ — $ 5,288 Collectively evaluated for impairment 78,478 15,679 14,834 81,834 12,525 138,812 4,951 8,626 531 356,270 Acquired non-credit impaired loans (1) 65,114 16,552 — 14,843 253 18,702 — 783 1,708 117,955 Acquired credit impaired loans (2) 133 23 — — — — — — — 156 Total portfolio $ 147,061 $ 32,529 $ 14,834 $ 96,850 $ 13,069 $ 158,727 $ 4,951 $ 9,409 $ 2,239 $ 479,669 (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. Credit Quality Information The following tables represent credit exposures by internally assigned grades as of September 30, 2022 and June 30, 2022. 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, 2022 and June 30, 2022: September 30, 2022 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 93,322 $ 14,631 $ 156,132 $ 7,953 $ 10,932 $ 282,970 Special Mention 1,373 — 289 — — 1,662 Substandard 99 291 1,185 — — 1,575 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 94,794 $ 14,922 $ 157,606 $ 7,953 $ 10,932 $ 286,207 June 30, 2022 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 95,271 $ 12,778 $ 157,514 $ 4,951 $ 9,409 $ 279,923 Special Mention 1,473 — 300 — — 1,773 Substandard 106 291 913 — — 1,310 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 96,850 $ 13,069 $ 158,727 $ 4,951 $ 9,409 $ 283,006 The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2022 and June 30, 2022: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) September 30, 2022 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 141,372 $ 32,046 $ 11,630 $ 2,038 $ 187,086 Non-performing 2,918 189 — 116 3,223 $ 144,290 $ 32,235 $ 11,630 $ 2,154 $ 190,309 June 30, 2022 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 142,280 $ 32,188 $ 14,834 $ 2,122 $ 191,424 Non-performing 4,781 341 — 117 5,239 $ 147,061 $ 32,529 $ 14,834 $ 2,239 $ 196,663 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, 2022 and June 30, 2022, are as follows: (Dollars in thousands) September 30, 2022 June 30, 2022 Outstanding principal balance $ 229 $ 229 Carrying amount 156 156 The accretable discount on loans acquired with deteriorated credit quality was fully accreted as of September 30, 2022 and June 30, 2022. 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, 2022 and June 30, 2022. Aged Analysis of Past Due and Non-accrual Loans As of September 30, 2022 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 387 $ 960 $ 1,564 $ 2,911 $ 133 $ 141,246 $ 144,290 $ — $ 2,918 Home equity and HELOCs — — 38 38 23 32,174 32,235 — 189 Construction - residential — — — — — 11,630 11,630 — — Commercial real estate: 1 - 4 family investor — — — — — 94,794 94,794 — 99 Multi-family — 291 — 291 — 14,631 14,922 — 291 Commercial non-residential — — 1,185 1,185 — 156,421 157,606 — 1,185 Construction and land — — — — — 7,953 7,953 — — Commercial — — — — — 10,932 10,932 — — Consumer — 10 32 42 — 2,112 2,154 — 116 Total $ 387 $ 1,261 $ 2,819 $ 4,467 $ 156 $ 471,893 $ 476,516 $ — $ 4,798 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2022 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 1,528 $ 622 $ 2,392 $ 4,542 $ 133 $ 142,386 $ 147,061 $ — $ 4,781 Home equity and HELOCs 19 — 183 202 23 32,304 32,529 — 341 Construction - residential — — — — — 14,834 14,834 — — Commercial real estate: 1 - 4 family investor — — — — — 96,850 96,850 — 106 Multi-family — — — — — 13,069 13,069 — 291 Commercial non-residential 275 494 418 1,187 — 157,540 158,727 — 875 Construction and land — — — — — 4,951 4,951 — — Commercial — — — — — 9,409 9,409 — — Consumer 27 — — 27 — 2,212 2,239 — 117 Total $ 1,849 $ 1,116 $ 2,993 $ 5,958 $ 156 $ 473,555 $ 479,669 $ — $ 6,511 Interest income on non-accrual loans that would have been recorded if these loans had performed in accordance with their terms was approximately $75 thousand and $65 thousand during the three months ended September 30, 2022 and 2021, 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, 2022 and June 30, 2022. September 30, 2022 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1 - 4 family residential real estate $ 1,605 $ 1,719 $ — Home equity and HELOCs 343 344 — Construction residential — — — 1 - 4 family investor commercial real estate 99 112 — Multi-family 291 308 — Commercial non-residential 1,474 1,527 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1 - 4 family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction residential — — — 1 - 4 family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1 - 4 family residential real estate $ 1,605 $ 1,719 $ — Home equity and HELOCs 343 344 — Construction residential — — — 1 - 4 family investor commercial real estate 99 112 — Multi-family 291 308 — Commercial non-residential 1,474 1,527 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructurings (“TDRs”) in the amount of $586 thousand that are performing in accordance with their modified terms. The Company recognized $10 thousand of interest income on accruing TDRs during the three months ended September 30, 2022. The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2022 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real estate $ 3,336 $ 3,582 $ — Home equity and HELOCs 275 277 — Construction Residential — — — 1 - 4 Family investor commercial real estate 173 185 — Multi-family 291 308 — Commercial non-residential 1,213 1,265 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — 1 - 4 Family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family residential real estate $ 3,336 $ 3,582 $ — Home equity and HELOCs 275 277 — Construction Residential — — — 1 - 4 Family investor commercial real estate 173 185 — Multi-family 291 308 — Commercial non-residential 1,213 1,265 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing TDRs in the amount of $593 thousand that are performing in accordance with their modified terms. The Company recognized $12 thousand of interest income on accruing TDRs during the three months ended September 30, 2021. The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2022 and 2021. September 30, 2022 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — September 30, 2021 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction residential — — 1-4 family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction residential — — 1-4 family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — 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, 2022 and 2021, had impaired loans been current according to their original terms, amounted to $47 thousand and $34 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 September 30, 2022 and 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, 2022 and 2021. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Sep. 30, 2022 | |
Premises and Equipment | |
Premises and Equipment | Note 7 – Premises and Equipment The components of premises and equipment are as follows as of September 30, 2022 and June 30, 2022: September 30, June 30, (Dollars in thousands) 2022 2022 Land $ 2,156 $ 2,156 Office buildings and improvements 11,391 11,769 Furniture, fixtures and equipment 2,411 2,540 Automobiles 58 58 16,016 16,523 Accumulated depreciation (4,463) (4,827) $ 11,553 $ 11,696 Depreciation expense amounted to $265 thousand for the three months ended September 30, 2022 and $231 thousand for the three months ended September 30, 2021. During the three months ended September 30, 2022, the Company made a strategic decision to close the Bank’s branch office located in Collingswood, New Jersey and to consolidate the deposits from this branch office into the Bank’s Audubon, New Jersey branch office after assessing the branch’s profitability and its close geographic proximity to the Audubon, New Jersey branch location. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Sep. 30, 2022 | |
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, 2022, 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, 2022. During the three months ended September 30, 2022, management considered the current economic environment 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, 2022. Goodwill and other intangibles are summarized as follows for the periods presented: Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2022 $ 4,858 $ 712 Adjustments: Additions — — Amortization — (48) Balance, September 30, 2022 $ 4,858 $ 664 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 Aggregate amortization expense was $48 thousand and $57 thousand for the three months ended September 30, 2022 and 2021, respectively. |
Deposits
Deposits | 3 Months Ended |
Sep. 30, 2022 | |
Deposits. | |
Deposits | Note 9 – Deposits Deposits consist of the following major classifications as of September 30, 2022 and June 30, 2022: (Dollars in thousands) September 30, 2022 June 30, 2022 Non-interest bearing checking $ 63,135 $ 75,758 Interest bearing checking 129,955 122,675 Money market accounts 174,283 171,316 Savings and club accounts 103,435 105,507 Certificates of deposit 129,366 131,361 $ 600,174 $ 606,617 |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 3 Months Ended |
Sep. 30, 2022 | |
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 $296.1 million and $292.7 million at September 30, 2022 and June 30, 2022, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $428.3 million and $423.1 million of loans pledged as collateral as of September 30, 2022 and June 30, 2022, 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 $3.1 million and $3.5 million at September 30, 2022 and June 30, 2022, respectively. Advances from the FHLB of Pittsburgh consisted of the following as of September 30, 2022 and June 30, 2022: (Dollars in thousands) September 30, 2022 June 30, 2022 FHLB advances: Convertible $ — $ — Fixed 55,000 65,000 Mid-term — — Total FHLB advances $ 55,000 $ 65,000 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Sep. 30, 2022 | |
Stock Based Compensation | |
Stock Based Compensation | Note 11 – Stock Based Compensation Stock-based compensation is accounted for in accordance with FASB ASC Topic 718 for Compensation — Stock Compensation. The Company establishes fair value for its equity awards to determine their cost. The Company recognizes the related expense for employees over the appropriate vesting period, or when applicable, service period, using the straight-line method. However, consistent with the guidance, the amount of stock-based compensation recognized at any date must at least equal the portion of the grant date value of the award that is vested at that date. As a result, it may be necessary to recognize the expense using a ratable method. The Company held a special meeting of shareholders on May 10, 2022, at which meeting the shareholders of the Company approved the William Penn Bancorporation 2022 Equity Incentive Plan (the “Plan”). During the year ended June 30, 2022, the Company granted 492,960 shares of restricted stock, with a weighted average grant date fair value of $11.67 per share. To fund the grant of restricted common stock, the Company issued shares from authorized but unissued shares. Restricted shares granted under the Plan vest in equal installments over a five year period. Compensation expense related to the restricted shares is recognized ratably over the vesting period in an amount which totals the market price of the Company’s stock at the grant date. The expense recognized for the restricted shares for the three months ended September 30, 2022 was $289 thousand. The expected future compensation expense related to the 492,960 non-vested restricted shares outstanding at September 30, 2022 is $5.3 million over a weighted average period of 4.63 years. The following is a summary of the Company's restricted stock activity during the three months ended September 30, 2022: Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2022 492,960 $ 11.67 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2022 492,960 $ 11.67 During the year ended June 30, 2022, the Company granted 1,232,400 stock options, with a weighted average grant date fair value of $3.24 per share. Stock options granted under the Plan vest in equal installments over a five year period. Stock options were granted at a weighted average exercise price of $11.67, which represents the 1.03% . The following is a summary of the Company's stock option activity during the three months ended September 30, 2022: Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2022 1,232,400 $ 11.67 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2022 1,232,400 $ 11.67 The weighted average remaining contractual term was approximately 9.63 years and 9.88 years as of September 30, 2022 and June 30, 2022, respectively. There was no aggregate intrinsic value for options outstanding as of September 30, 2022. The aggregate intrinsic value was $80 thousand for outstanding options as of June 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 12 – 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, 2022 and June 30, 2022: September 30, June 30, (Dollars in thousands) 2022 2022 Commitments to extend credit $ 19,995 $ 16,894 Unfunded commitments under lines of credit 72,146 71,999 Standby letters of credit 30 30 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, 2022 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 13 - 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, 2022 and June 30, 2022, the most recent notification from the regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. Federal banking agencies have established 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. 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. The Bank has elected to adopt the optional community bank leverage ratio framework. Management believes, as of September 30, 2022 and June 30, 2022, that the Bank meets all capital adequacy requirements to which it is subject. The leverage ratios of the Bank at September 30, 2022 and June 30, 2022 are as follows: CBLR Framework As of September 30, 2022 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 158,915 18.25 % $ 78,380 9.00 % CBLR Framework As of June 30, 2022 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 157,519 18.28 % $ 77,547 9.00 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 30, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 14 – 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, 2022 and June 30, 2022, 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, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 109,414 $ — $ 109,414 U.S. agency collateralized mortgage obligations — 8,946 — 8,946 U.S. government agency securities — 4,563 — 4,563 Municipal bonds — 14,442 — 14,442 Corporate bonds — 33,495 — 33,495 Equity securities 1,985 — — 1,985 Total Assets $ 1,985 $ 170,860 $ — $ 172,845 June 30, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 117,506 $ — $ 117,506 U.S. agency collateralized mortgage obligations — 9,709 — 9,709 U.S. government agency securities — 5,038 — 5,038 Municipal bonds — 15,642 — 15,642 Corporate bonds — 34,850 — 34,850 Equity securities 2,258 — — 2,258 Total Assets $ 2,258 $ 182,745 $ — $ 185,003 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, 2022 and June 30, 2022, 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, 2022 and June 30, 2022. 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. There were no OREO properties held by the Company as of September 30, 2022. As of June 30, 2022, assets required to be measured and reported at fair value on a non-recurring basis are summarized as follows: June 30, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 1,690 $ 1,690 Premises transferred to held for sale — — 1,596 1,596 $ — $ — $ 3,286 $ 3,286 Quantitative information regarding assets measured at fair value on a non-recurring basis as of June 30, 2022 is as follows: Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2022 Impaired loans $ 1,690 Appraisal of collateral (1)(3) Appraisal adjustments (2) 0-7 % Premises transferred to held for sale 1,596 Appraisal of premises (1)(3) Appraisal adjustments (2) 0-1 % (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, 2022 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 $ 472,499 $ 444,984 $ — $ — $ 444,984 Securities held to maturity 104,376 84,997 — 84,997 — Financial instruments - liabilities: Certificates of deposit 129,366 127,158 — — 127,158 Advances from Federal Home Loan Bank 55,000 55,000 — — 55,000 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2022 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 $ 475,511 $ 468,485 $ — $ — $ 468,485 Securities held to maturity 102,135 88,321 — 88,321 — Financial instruments - liabilities: Certificates of deposit 131,361 130,974 — — 130,974 Advances from Federal Home Loan Bank 65,000 65,000 — — 65,000 Off-balance sheet financial instruments — — — — — |
Leases
Leases | 3 Months Ended |
Sep. 30, 2022 | |
Leases | |
Leases | Note 15 – 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. 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. Topic 842 requires the Company to recognize a right-of-use (“ROU”) asset and corresponding lease liability for each of its operating leases. The operating lease ROU asset was $6.7 million and $6.8 million as of September 30, 2022 and June 30, 2022, respectively, and the operating lease liability was $6.8 million and $6.9 million as of September 30, 2022 and June 30, 2022, respectively. 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. The calculated amount of the ROU assets and lease liabilities 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. September 30, 2022 Weighted average remaining lease term Operating leases 17.5 years Weighted average discount rate Operating leases 2.01 % June 30, 2022 Weighted average remaining lease term Operating leases 17.6 years Weighted average discount rate Operating leases 2.01 % The Company recorded $162 thousand and $114 thousand of net lease costs during the three months ended September 30, 2022 and 2021, respectively. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2022 were as follows: September 30, 2022 Operating (in thousands) Leases Twelve months ended September 30, 2023 $ 609 2024 612 2025 547 2026 390 2027 400 Thereafter 5,675 Total future minimum lease payments $ 8,233 Amounts representing interest (1,400) Present value of net future minimum lease payments $ 6,833 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events | |
Subsequent Events | Note 16 – Subsequent Events On October 19, 2022, the Company declared a cash dividend of $0.03 per share, payable on November 10, 2022, to common shareholders of record at the close of business on October 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Mar. 31, 2022 | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At September 30, 2022, WPSLA held $267.3 million of the Bank’s $277.2 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 | 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, 2022 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 sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. This update is not expected to have a significant impact on the Company’s financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
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) 2022 2021 Basic and diluted earnings per share: Net income $ 1,027 $ 1,160 Basic average common shares outstanding 13,435,273 14,301,956 Effect of dilutive securities 17,629 — Dilutive average shares outstanding 13,452,902 14,301,956 Earnings per share: Basic $ 0.08 $ 0.08 Diluted $ 0.08 $ 0.08 |
Changes in and Reclassificati_2
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | |
Schedule of changes in the balances of each component of accumulated other comprehensive loss ("AOCI") | (Dollars in thousands) Unrealized Losses on Securities Available for Sale Accumulated Other Comprehensive Loss (1) 2022 2021 Balance at June 30, $ (15,357) $ (64) Other comprehensive loss before reclassifications (7,750) (550) Amounts reclassified from accumulated other comprehensive loss — (48) Period change (7,750) (598) Balance at September 30, $ (23,107) $ (662) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 23% and 22% for 2022, and 2021, respectively. |
Schedule of reclassifications out of AOCI by component | (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Details about Accumulated Other Comprehensive Three Months Ended September 30, Affected Line Item in the Loss Components 2022 2021 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 $ — $ 48 (1) Amounts in parenthesis indicate debits. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities | September 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 129,145 $ 3 $ (19,734) $ 109,414 U.S. agency collateralized mortgage obligations 10,660 — (1,714) 8,946 U.S. government agency securities 4,624 25 (86) 4,563 Municipal bonds 20,141 — (5,699) 14,442 Corporate bonds 36,300 — (2,805) 33,495 Total Available For Sale $ 200,870 $ 28 $ (30,038) $ 170,860 Held To Maturity: Mortgage-backed securities $ 99,891 $ — $ (19,306) $ 80,585 U.S. government agency securities 4,485 — (73) 4,412 Total Held To Maturity $ 104,376 $ — $ (19,379) $ 84,997 June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 130,146 $ 85 $ (12,725) $ 117,506 U.S. agency collateralized mortgage obligations 11,001 — (1,292) 9,709 U.S. government agency securities 5,082 11 (55) 5,038 Municipal bonds 20,160 — (4,518) 15,642 Corporate bonds 36,300 16 (1,466) 34,850 Total Available For Sale $ 202,689 $ 112 $ (20,056) $ 182,745 Held To Maturity: Mortgage-backed securities $ 102,135 $ — $ (13,814) $ 88,321 Total Held To Maturity $ 102,135 $ — $ (13,814) $ 88,321 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2022 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 39 38 4,485 4,412 Due after five years through ten years 40,488 36,980 — — Due after ten years 160,343 133,842 99,891 80,585 $ 200,870 $ 170,860 $ 104,376 $ 84,997 |
Schedule of debt securities with unrealized loss position | September 30, 2022 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 $ 73,334 $ (11,368) $ 34,153 $ (8,366) $ 107,487 $ (19,734) U.S. agency collateralized mortgage obligations 1,334 (282) 7,612 (1,432) 8,946 (1,714) U.S. government agency securities 61 (3) 1,224 (83) 1,285 (86) Municipal bonds 393 (119) 14,049 (5,580) 14,442 (5,699) Corporate bonds 28,460 (2,590) 1,785 (215) 30,245 (2,805) 103,582 (14,362) 58,823 (15,676) 162,405 (30,038) Held To Maturity: Mortgage-backed securities 54,170 (12,738) 26,415 (6,568) 80,585 (19,306) U.S. government agency securities 4,412 (73) — — 4,412 (73) 58,582 (12,811) 26,415 (6,568) 84,997 (19,379) Total Temporarily Impaired Securities $ 162,164 $ (27,173) $ 85,238 $ (22,244) $ 247,402 $ (49,417) June 30, 2022 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 $ 93,726 $ (10,351) $ 13,750 $ (2,374) $ 107,476 $ (12,725) U.S. agency collateralized mortgage obligations 2,968 (488) 6,741 (804) 9,709 (1,292) U.S. government agency securities 61 (3) 1,556 (52) 1,617 (55) Municipal bonds 7,415 (1,979) 8,227 (2,539) 15,642 (4,518) Corporate bonds 25,584 (1,466) — — 25,584 (1,466) 129,754 (14,287) 30,274 (5,769) 160,028 (20,056) Held To Maturity: Mortgage-backed securities 88,321 (13,814) — — 88,321 (13,814) 88,321 (13,814) — — 88,321 (13,814) Total Temporarily Impaired Securities $ 218,075 $ (28,101) $ 30,274 $ (5,769) $ 248,349 $ (33,870) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Loans | |
Schedule of major classifications of loans | September 30, June 30, 2022 2022 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 144,290 30.29 % $ 147,061 30.66 % Home equity and HELOCs 32,235 6.76 32,529 6.78 Construction -residential 11,630 2.44 14,834 3.09 Commercial real estate: 1 - 4 family investor 94,794 19.89 96,850 20.19 Multi-family (five or more) 14,922 3.13 13,069 2.72 Commercial non-residential 157,606 33.08 158,727 33.10 Construction and land 7,953 1.67 4,951 1.03 Commercial 10,932 2.29 9,409 1.96 Consumer loans 2,154 0.45 2,239 0.47 Total Loans 476,516 100.00 % 479,669 100.00 % Unearned loan origination fees (684) (749) Allowance for loan losses (3,333) (3,409) Net Loans $ 472,499 $ 475,511 |
Schedule for changes in the allowance for loan losses | The following table presents by portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2022 and 2021: September 30, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 506 $ 113 $ 386 $ 527 $ 110 $ 1,451 $ 166 $ 100 $ 50 $ 3,409 Charge-offs (79) — — — — — — — — (79) Recoveries — — — — — — — — 3 3 Provision (recovery) 66 3 (85) (32) 2 (20) 58 11 (3) — Ending Balance $ 493 $ 116 $ 301 $ 495 $ 112 $ 1,431 $ 224 $ 111 $ 50 $ 3,333 September 30, 2021 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 709 $ 133 $ 487 $ 843 $ 159 $ 854 $ 362 $ 51 $ 15 $ 3,613 Charge-offs — — — — — — — — — — Recoveries — 7 — — — — — — 1 8 Provision (recovery) (51) (17) (101) 33 (11) 114 6 (2) (1) (30) Ending Balance $ 658 $ 123 $ 386 $ 876 $ 148 $ 968 $ 368 $ 49 $ 15 $ 3,591 |
Schedule of risk category of loans by class of loans | The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at September 30, 2022 and June 30, 2022: September 30, 2022 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 93,322 $ 14,631 $ 156,132 $ 7,953 $ 10,932 $ 282,970 Special Mention 1,373 — 289 — — 1,662 Substandard 99 291 1,185 — — 1,575 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 94,794 $ 14,922 $ 157,606 $ 7,953 $ 10,932 $ 286,207 June 30, 2022 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 95,271 $ 12,778 $ 157,514 $ 4,951 $ 9,409 $ 279,923 Special Mention 1,473 — 300 — — 1,773 Substandard 106 291 913 — — 1,310 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 96,850 $ 13,069 $ 158,727 $ 4,951 $ 9,409 $ 283,006 The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2022 and June 30, 2022: Residential Real Estate and Consumer Loans Credit Risk Internally Assigned (Dollars in thousands) September 30, 2022 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 141,372 $ 32,046 $ 11,630 $ 2,038 $ 187,086 Non-performing 2,918 189 — 116 3,223 $ 144,290 $ 32,235 $ 11,630 $ 2,154 $ 190,309 June 30, 2022 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 142,280 $ 32,188 $ 14,834 $ 2,122 $ 191,424 Non-performing 4,781 341 — 117 5,239 $ 147,061 $ 32,529 $ 14,834 $ 2,239 $ 196,663 |
Summary of outstanding principal and related carrying amount of loans acquired with deteriorated credit quality | (Dollars in thousands) September 30, 2022 June 30, 2022 Outstanding principal balance $ 229 $ 229 Carrying amount 156 156 |
Schedule of aging analysis of past due loans | Aged Analysis of Past Due and Non-accrual Loans As of September 30, 2022 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 387 $ 960 $ 1,564 $ 2,911 $ 133 $ 141,246 $ 144,290 $ — $ 2,918 Home equity and HELOCs — — 38 38 23 32,174 32,235 — 189 Construction - residential — — — — — 11,630 11,630 — — Commercial real estate: 1 - 4 family investor — — — — — 94,794 94,794 — 99 Multi-family — 291 — 291 — 14,631 14,922 — 291 Commercial non-residential — — 1,185 1,185 — 156,421 157,606 — 1,185 Construction and land — — — — — 7,953 7,953 — — Commercial — — — — — 10,932 10,932 — — Consumer — 10 32 42 — 2,112 2,154 — 116 Total $ 387 $ 1,261 $ 2,819 $ 4,467 $ 156 $ 471,893 $ 476,516 $ — $ 4,798 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2022 Recorded Recorded Acquired Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Credit Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 1,528 $ 622 $ 2,392 $ 4,542 $ 133 $ 142,386 $ 147,061 $ — $ 4,781 Home equity and HELOCs 19 — 183 202 23 32,304 32,529 — 341 Construction - residential — — — — — 14,834 14,834 — — Commercial real estate: 1 - 4 family investor — — — — — 96,850 96,850 — 106 Multi-family — — — — — 13,069 13,069 — 291 Commercial non-residential 275 494 418 1,187 — 157,540 158,727 — 875 Construction and land — — — — — 4,951 4,951 — — Commercial — — — — — 9,409 9,409 — — Consumer 27 — — 27 — 2,212 2,239 — 117 Total $ 1,849 $ 1,116 $ 2,993 $ 5,958 $ 156 $ 473,555 $ 479,669 $ — $ 6,511 |
Summary of recorded investment and unpaid principal balances for impaired loans | The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, at September 30, 2022 and June 30, 2022. September 30, 2022 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1 - 4 family residential real estate $ 1,605 $ 1,719 $ — Home equity and HELOCs 343 344 — Construction residential — — — 1 - 4 family investor commercial real estate 99 112 — Multi-family 291 308 — Commercial non-residential 1,474 1,527 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1 - 4 family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction residential — — — 1 - 4 family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1 - 4 family residential real estate $ 1,605 $ 1,719 $ — Home equity and HELOCs 343 344 — Construction residential — — — 1 - 4 family investor commercial real estate 99 112 — Multi-family 291 308 — Commercial non-residential 1,474 1,527 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructurings (“TDRs”) in the amount of $586 thousand that are performing in accordance with their modified terms. The Company recognized $10 thousand of interest income on accruing TDRs during the three months ended September 30, 2022. The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2022 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real estate $ 3,336 $ 3,582 $ — Home equity and HELOCs 275 277 — Construction Residential — — — 1 - 4 Family investor commercial real estate 173 185 — Multi-family 291 308 — Commercial non-residential 1,213 1,265 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — 1 - 4 Family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family residential real estate $ 3,336 $ 3,582 $ — Home equity and HELOCs 275 277 — Construction Residential — — — 1 - 4 Family investor commercial real estate 173 185 — Multi-family 291 308 — Commercial non-residential 1,213 1,265 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing TDRs in the amount of $593 thousand that are performing in accordance with their modified terms. The Company recognized $12 thousand of interest income on accruing TDRs during the three months ended September 30, 2021. The table above does not include $156 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2022 and 2021. September 30, 2022 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — September 30, 2021 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction residential — — 1-4 family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 1,802 $ — Home equity and HELOCs 558 5 Construction residential — — 1-4 family investor commercial real estate 461 1 Multi-family 258 — Commercial non-residential 870 6 Construction and land — — Commercial — — Consumer — — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Premises and Equipment | |
Schedule of components of premises and equipment | September 30, June 30, (Dollars in thousands) 2022 2022 Land $ 2,156 $ 2,156 Office buildings and improvements 11,391 11,769 Furniture, fixtures and equipment 2,411 2,540 Automobiles 58 58 16,016 16,523 Accumulated depreciation (4,463) (4,827) $ 11,553 $ 11,696 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangibles | |
Schedule of goodwill and other intangibles | Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2022 $ 4,858 $ 712 Adjustments: Additions — — Amortization — (48) Balance, September 30, 2022 $ 4,858 $ 664 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 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Deposits. | |
Schedule of classification of deposits | (Dollars in thousands) September 30, 2022 June 30, 2022 Non-interest bearing checking $ 63,135 $ 75,758 Interest bearing checking 129,955 122,675 Money market accounts 174,283 171,316 Savings and club accounts 103,435 105,507 Certificates of deposit 129,366 131,361 $ 600,174 $ 606,617 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Advances from Federal Home Loan Bank | |
Schedule of advances from FHLB | (Dollars in thousands) September 30, 2022 June 30, 2022 FHLB advances: Convertible $ — $ — Fixed 55,000 65,000 Mid-term — — Total FHLB advances $ 55,000 $ 65,000 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Stock Based Compensation | |
Schedule of restricted stock activity | Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2022 492,960 $ 11.67 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2022 492,960 $ 11.67 |
Schedule of stock option activity | Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2022 1,232,400 $ 11.67 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2022 1,232,400 $ 11.67 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies. | |
Schedule of company's loan commitments | September 30, June 30, (Dollars in thousands) 2022 2022 Commitments to extend credit $ 19,995 $ 16,894 Unfunded commitments under lines of credit 72,146 71,999 Standby letters of credit 30 30 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Requirements | |
Schedule of leverage ratios | CBLR Framework As of September 30, 2022 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 158,915 18.25 % $ 78,380 9.00 % CBLR Framework As of June 30, 2022 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 157,519 18.28 % $ 77,547 9.00 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on recurring basis | September 30, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 109,414 $ — $ 109,414 U.S. agency collateralized mortgage obligations — 8,946 — 8,946 U.S. government agency securities — 4,563 — 4,563 Municipal bonds — 14,442 — 14,442 Corporate bonds — 33,495 — 33,495 Equity securities 1,985 — — 1,985 Total Assets $ 1,985 $ 170,860 $ — $ 172,845 June 30, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 117,506 $ — $ 117,506 U.S. agency collateralized mortgage obligations — 9,709 — 9,709 U.S. government agency securities — 5,038 — 5,038 Municipal bonds — 15,642 — 15,642 Corporate bonds — 34,850 — 34,850 Equity securities 2,258 — — 2,258 Total Assets $ 2,258 $ 182,745 $ — $ 185,003 |
Schedule of assets measured at fair value on non-recurring basis | June 30, 2022 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 1,690 $ 1,690 Premises transferred to held for sale — — 1,596 1,596 $ — $ — $ 3,286 $ 3,286 |
Schedule of quantitative information of assets measured at fair value on non-recurring basis | Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2022 Impaired loans $ 1,690 Appraisal of collateral (1)(3) Appraisal adjustments (2) 0-7 % Premises transferred to held for sale 1,596 Appraisal of premises (1)(3) Appraisal adjustments (2) 0-1 % (1) F air value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of carrying amount and fair value of financial assets and liabilities | Fair Value Measurements at September 30, 2022 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 $ 472,499 $ 444,984 $ — $ — $ 444,984 Securities held to maturity 104,376 84,997 — 84,997 — Financial instruments - liabilities: Certificates of deposit 129,366 127,158 — — 127,158 Advances from Federal Home Loan Bank 55,000 55,000 — — 55,000 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2022 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 $ 475,511 $ 468,485 $ — $ — $ 468,485 Securities held to maturity 102,135 88,321 — 88,321 — Financial instruments - liabilities: Certificates of deposit 131,361 130,974 — — 130,974 Advances from Federal Home Loan Bank 65,000 65,000 — — 65,000 Off-balance sheet financial instruments — — — — — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Leases | |
Schedule of weighted average remaining lease term and discount rate | September 30, 2022 Weighted average remaining lease term Operating leases 17.5 years Weighted average discount rate Operating leases 2.01 % June 30, 2022 Weighted average remaining lease term Operating leases 17.6 years Weighted average discount rate Operating leases 2.01 % |
Summary of maturities of the Company's lease liabilities | September 30, 2022 Operating (in thousands) Leases Twelve months ended September 30, 2023 $ 609 2024 612 2025 547 2026 390 2027 400 Thereafter 5,675 Total future minimum lease payments $ 8,233 Amounts representing interest (1,400) Present value of net future minimum lease payments $ 6,833 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 24, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) Office | Sep. 30, 2021 USD ($) | |
Nature of Operations | |||
ESOP shares committed to be released | $ 102 | $ 108 | |
Percentage of shares of the outstanding stock sold | 6.97% | ||
Number of full service branch offices | Office | 13 | ||
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% | ||
Percentage of aggregate purchase price of common stock | 100% | ||
ESOP shares committed to be released | $ 10,100 | ||
ESOP issued | shares | 881,130 | ||
Ownership percentage held by parent (as a percent) | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - WPSLA Investment Corporation $ in Millions | Sep. 30, 2022 USD ($) |
Summary of Significant Accounting Policies | |
Loans held in portfolio | $ 267.3 |
Investment securities portfolio | $ 277.2 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Composition of the weighted average common shares used in the basic and diluted earnings per share computation | ||
Net income | $ 1,027 | $ 1,160 |
Basic average common shares outstanding | 13,435,273 | 14,301,956 |
Effect of dilutive securities | 17,629 | |
Dilutive average shares outstanding | 13,452,902 | 14,301,956 |
Basic earnings per share | $ 0.08 | $ 0.08 |
Diluted earnings per share | $ 0.08 | $ 0.08 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share | ||
Antidilutive securities | 0 | 0 |
Net income | $ 1,027 | $ 1,160 |
Changes in and Reclassificati_3
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | $ 192,326 | $ 216,926 |
Period change | (7,750) | (598) |
Ending balance | $ 181,194 | $ 213,045 |
Income tax rate | 23% | 22% |
Unrealized Losses on Securities Available for Sale | ||
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | $ (15,357) | $ (64) |
Other comprehensive loss before reclassifications | (7,750) | (550) |
Amounts reclassified from accumulated other comprehensive loss | (48) | |
Period change | (7,750) | (598) |
Ending balance | $ (23,107) | $ (662) |
Changes in and Reclassificati_4
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss- Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Net securities gains reclassified into net income | $ 62 | |
Related income tax expense | $ 67 | 30 |
NET INCOME | $ 1,027 | 1,160 |
Reclassifications out of AOCI | Unrealized Losses on Securities Available for Sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Net securities gains reclassified into net income | 62 | |
Related income tax expense | (14) | |
NET INCOME | $ 48 |
Investment Securities - Availab
Investment Securities - Available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Available For Sale: | ||
Amortized Cost | $ 200,870 | $ 202,689 |
Gross Unrealized Gains | 28 | 112 |
Gross Unrealized Losses | (30,038) | (20,056) |
Fair value | 170,860 | 182,745 |
Held To Maturity: | ||
Held to maturity securities, Amortized cost | 104,376 | 102,135 |
Gross Unrealized Losses | (19,379) | (13,814) |
Fair value | 84,997 | 88,321 |
Mortgage-backed securities | ||
Available For Sale: | ||
Amortized Cost | 129,145 | 130,146 |
Gross Unrealized Gains | 3 | 85 |
Gross Unrealized Losses | (19,734) | (12,725) |
Fair value | 109,414 | 117,506 |
Held To Maturity: | ||
Held to maturity securities, Amortized cost | 99,891 | 102,135 |
Gross Unrealized Losses | (19,306) | (13,814) |
Fair value | 80,585 | 88,321 |
U.S. agency collateralized mortgage obligations | ||
Available For Sale: | ||
Amortized Cost | 10,660 | 11,001 |
Gross Unrealized Losses | (1,714) | (1,292) |
Fair value | 8,946 | 9,709 |
U.S. government agency securities | ||
Available For Sale: | ||
Amortized Cost | 4,624 | 5,082 |
Gross Unrealized Gains | 25 | 11 |
Gross Unrealized Losses | (86) | (55) |
Fair value | 4,563 | 5,038 |
Held To Maturity: | ||
Held to maturity securities, Amortized cost | 4,485 | |
Gross Unrealized Losses | (73) | |
Fair value | 4,412 | |
Municipal bonds | ||
Available For Sale: | ||
Amortized Cost | 20,141 | 20,160 |
Gross Unrealized Losses | (5,699) | (4,518) |
Fair value | 14,442 | 15,642 |
Corporate bonds | ||
Available For Sale: | ||
Amortized Cost | 36,300 | 36,300 |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (2,805) | (1,466) |
Fair value | $ 33,495 | $ 34,850 |
Investment Securities - Securit
Investment Securities - Securities by contractual maturity (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Available for sale, Amortized Cost | |
Due after one year through five years | $ 39 |
Due after five years through ten years | 40,488 |
Due after ten years | 160,343 |
Amortized Cost | 200,870 |
Available for sale, Fair Value | |
Due after one year through five years | 38 |
Due after five years through ten years | 36,980 |
Due after ten years | 133,842 |
Fair Value | 170,860 |
Held to maturity, Amortized Cost | |
Due after one year through five years | 4,485 |
Due after ten years | 99,891 |
Amortized Cost | 104,376 |
Held to maturity, Fair Value | |
Due after one year through five years | 4,412 |
Due after ten years | 80,585 |
Fair Value | $ 84,997 |
Investment Securities - Investm
Investment Securities - Investments with unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Fair Value | ||
Less than 12 Months | $ 103,582 | $ 129,754 |
12 Months or More | 58,823 | 30,274 |
Total Fair Value | 162,405 | 160,028 |
Unrealized Losses | ||
Less than 12 Months | (14,362) | (14,287) |
12 Months or More | (15,676) | (5,769) |
Total Unrealized Losses | (30,038) | (20,056) |
Fair Value | ||
Less than 12 Months | 58,582 | 88,321 |
12 Months or More | 26,415 | |
Total Fair Value | 84,997 | 88,321 |
Unrealized Losses | ||
Less than 12 Months | (12,811) | (13,814) |
12 Months or More | (6,568) | |
Total Unrealized Losses | (19,379) | (13,814) |
Less than 12 Months Fair Value | 162,164 | 218,075 |
12 Months or More Fair Value | 85,238 | 30,274 |
Total Fair Value | 247,402 | 248,349 |
Less than 12 Months Unrealized Losses | (27,173) | (28,101) |
12 Months or More Unrealized Losses | (22,244) | (5,769) |
Total Unrealized Losses | (49,417) | (33,870) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 73,334 | 93,726 |
12 Months or More | 34,153 | 13,750 |
Total Fair Value | 107,487 | 107,476 |
Unrealized Losses | ||
Less than 12 Months | (11,368) | (10,351) |
12 Months or More | (8,366) | (2,374) |
Total Unrealized Losses | (19,734) | (12,725) |
Fair Value | ||
Less than 12 Months | 54,170 | 88,321 |
12 Months or More | 26,415 | |
Total Fair Value | 80,585 | 88,321 |
Unrealized Losses | ||
Less than 12 Months | (12,738) | (13,814) |
12 Months or More | (6,568) | |
Total Unrealized Losses | (19,306) | (13,814) |
U.S. agency collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 1,334 | 2,968 |
12 Months or More | 7,612 | 6,741 |
Total Fair Value | 8,946 | 9,709 |
Unrealized Losses | ||
Less than 12 Months | (282) | (488) |
12 Months or More | (1,432) | (804) |
Total Unrealized Losses | (1,714) | (1,292) |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 Months | 61 | 61 |
12 Months or More | 1,224 | 1,556 |
Total Fair Value | 1,285 | 1,617 |
Unrealized Losses | ||
Less than 12 Months | (3) | (3) |
12 Months or More | (83) | (52) |
Total Unrealized Losses | (86) | (55) |
Fair Value | ||
Less than 12 Months | 4,412 | |
Total Fair Value | 4,412 | |
Unrealized Losses | ||
Less than 12 Months | (73) | |
Total Unrealized Losses | (73) | |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | 393 | 7,415 |
12 Months or More | 14,049 | 8,227 |
Total Fair Value | 14,442 | 15,642 |
Unrealized Losses | ||
Less than 12 Months | (119) | (1,979) |
12 Months or More | (5,580) | (2,539) |
Total Unrealized Losses | (5,699) | (4,518) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 28,460 | 25,584 |
12 Months or More | 1,785 | |
Total Fair Value | 30,245 | 25,584 |
Unrealized Losses | ||
Less than 12 Months | (2,590) | (1,466) |
12 Months or More | (215) | |
Total Unrealized Losses | $ (2,805) | $ (1,466) |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 USD ($) item security | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item | |
Variable Interest Entity [Line Items] | |||
Gross realized gains | $ 62 | ||
Proceeds from sale of securities | $ 0 | 5,008 | |
Number of securities temporarily impaired | item | 122 | 115 | |
Number of equity securities | security | 1 | ||
Equity securities | $ 1,985 | $ 2,258 | |
Unrealized (loss) gain on equity securities | $ (273) | $ 105 | |
Financial Instrument, Owned, Pledged Status | Asset Pledged as Collateral without Right [Member] | Asset Pledged as Collateral without Right [Member] | |
Asset Pledged as Collateral | |||
Variable Interest Entity [Line Items] | |||
Pledged investment securities | $ 1,800 | $ 2,000 | |
Asset Pledged as Collateral without Right [Member] | |||
Variable Interest Entity [Line Items] | |||
Financial Instrument, Owned, Pledging Purpose | wmpn:MunicipalDeposits | wmpn:MunicipalDeposits |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 476,516 | $ 479,669 | ||
Unearned loan origination fees | (684) | (749) | ||
Allowance for loan losses | (3,333) | (3,409) | $ (3,591) | $ (3,613) |
Net Loans | $ 472,499 | $ 475,511 | ||
Percentage of loans | 100% | 100% | ||
Residential real estate | 1-4 Family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 144,290 | $ 147,061 | ||
Allowance for loan losses | $ (493) | $ (506) | (658) | (709) |
Percentage of loans | 30.29% | 30.66% | ||
Residential real estate | Home equity and HELOCs | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 32,235 | $ 32,529 | ||
Allowance for loan losses | $ (116) | $ (113) | (123) | (133) |
Percentage of loans | 6.76% | 6.78% | ||
Residential real estate | Construction Residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 11,630 | $ 14,834 | ||
Allowance for loan losses | $ (301) | $ (386) | (386) | (487) |
Percentage of loans | 2.44% | 3.09% | ||
Commercial real estate | 1 - 4 family investor | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 94,794 | $ 96,850 | ||
Allowance for loan losses | $ (495) | $ (527) | (876) | (843) |
Percentage of loans | 19.89% | 20.19% | ||
Commercial real estate | Multi-family (five or more) | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 14,922 | $ 13,069 | ||
Allowance for loan losses | $ (112) | $ (110) | (148) | (159) |
Percentage of loans | 3.13% | 2.72% | ||
Commercial real estate | Commercial non-residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 157,606 | $ 158,727 | ||
Allowance for loan losses | $ (1,431) | $ (1,451) | (968) | (854) |
Percentage of loans | 33.08% | 33.10% | ||
Commercial real estate | Construction and Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 7,953 | $ 4,951 | ||
Allowance for loan losses | $ (224) | $ (166) | (368) | (362) |
Percentage of loans | 1.67% | 1.03% | ||
Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 10,932 | $ 9,409 | ||
Allowance for loan losses | $ (111) | $ (100) | (49) | (51) |
Percentage of loans | 2.29% | 1.96% | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 2,154 | $ 2,239 | ||
Allowance for loan losses | $ (50) | $ (50) | $ (15) | $ (15) |
Percentage of loans | 0.45% | 0.47% |
Loans - PPP (Details)
Loans - PPP (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 USD ($) loan item | Jun. 30, 2022 USD ($) loan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 476,516 | $ 479,669 |
Threshold loan commitment | $ 20,000 | |
Number of banks sharing national credits | item | 3 | |
Number of national credit | loan | 1 | 1 |
Credit loan commitment | $ 12,500 | $ 12,500 |
Loan commitment | 8,300 | 9,200 |
Mortgage Loan Serviced To Others | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 13,500 | $ 14,400 |
Servicing rights basis points received | 25% |
Loans - Allowance for loan loss
Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Allowance for credit losses: | |||
Beginning balance | $ 3,409 | $ 3,613 | |
Charge-offs | (79) | ||
Recoveries | 3 | 8 | |
Provision (recovery) for loan losses | (30) | ||
Ending Balance | 3,333 | 3,591 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 3,333 | $ 3,409 | |
Allowance for loan losses | 3,333 | 3,591 | 3,409 |
Loans receivable ,Individually evaluated for impairment | 3,812 | 5,288 | |
Loans receivable, Collectively evaluated for impairment | 359,851 | 356,270 | |
Total Loans | 476,516 | 479,669 | |
Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 156 | 156 | |
Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 112,697 | 117,955 | |
Residential real estate | 1-4 Family | |||
Allowance for credit losses: | |||
Beginning balance | 506 | 709 | |
Charge-offs | (79) | ||
Provision (recovery) for loan losses | 66 | (51) | |
Ending Balance | 493 | 658 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 493 | 506 | |
Allowance for loan losses | 493 | 658 | 506 |
Loans receivable ,Individually evaluated for impairment | 1,605 | 3,336 | |
Loans receivable, Collectively evaluated for impairment | 80,250 | 78,478 | |
Total Loans | 144,290 | 147,061 | |
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 133 | 133 | |
Residential real estate | 1-4 Family | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 62,302 | 65,114 | |
Residential real estate | Home equity and HELOCs | |||
Allowance for credit losses: | |||
Beginning balance | 113 | 133 | |
Recoveries | 7 | ||
Provision (recovery) for loan losses | 3 | (17) | |
Ending Balance | 116 | 123 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 116 | 113 | |
Allowance for loan losses | 116 | 123 | 113 |
Loans receivable ,Individually evaluated for impairment | 343 | 275 | |
Loans receivable, Collectively evaluated for impairment | 15,810 | 15,679 | |
Total Loans | 32,235 | 32,529 | |
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 | 16,059 | 16,552 | |
Residential real estate | Construction Residential | |||
Allowance for credit losses: | |||
Beginning balance | 386 | 487 | |
Provision (recovery) for loan losses | (85) | (101) | |
Ending Balance | 301 | 386 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 301 | 386 | |
Allowance for loan losses | 301 | 386 | 386 |
Loans receivable, Collectively evaluated for impairment | 11,630 | 14,834 | |
Total Loans | 11,630 | 14,834 | |
Commercial real estate | 1 - 4 family investor | |||
Allowance for credit losses: | |||
Beginning balance | 527 | 843 | |
Provision (recovery) for loan losses | (32) | 33 | |
Ending Balance | 495 | 876 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 495 | 527 | |
Allowance for loan losses | 495 | 876 | 527 |
Loans receivable ,Individually evaluated for impairment | 99 | 173 | |
Loans receivable, Collectively evaluated for impairment | 80,666 | 81,834 | |
Total Loans | 94,794 | 96,850 | |
Commercial real estate | 1 - 4 family investor | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 14,029 | 14,843 | |
Commercial real estate | Multi-family (five or more) | |||
Allowance for credit losses: | |||
Beginning balance | 110 | 159 | |
Provision (recovery) for loan losses | 2 | (11) | |
Ending Balance | 112 | 148 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 112 | 110 | |
Allowance for loan losses | 112 | 148 | 110 |
Loans receivable ,Individually evaluated for impairment | 291 | 291 | |
Loans receivable, Collectively evaluated for impairment | 14,378 | 12,525 | |
Total Loans | 14,922 | 13,069 | |
Commercial real estate | Multi-family (five or more) | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 253 | 253 | |
Commercial real estate | Commercial non-residential | |||
Allowance for credit losses: | |||
Beginning balance | 1,451 | 854 | |
Provision (recovery) for loan losses | (20) | 114 | |
Ending Balance | 1,431 | 968 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 1,431 | 1,451 | |
Allowance for loan losses | 1,431 | 968 | 1,451 |
Loans receivable ,Individually evaluated for impairment | 1,474 | 1,213 | |
Loans receivable, Collectively evaluated for impairment | 138,332 | 138,812 | |
Total Loans | 157,606 | 158,727 | |
Commercial real estate | Commercial non-residential | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 17,800 | 18,702 | |
Commercial real estate | Construction and Land | |||
Allowance for credit losses: | |||
Beginning balance | 166 | 362 | |
Provision (recovery) for loan losses | 58 | 6 | |
Ending Balance | 224 | 368 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 224 | 166 | |
Allowance for loan losses | 224 | 368 | 166 |
Loans receivable, Collectively evaluated for impairment | 7,953 | 4,951 | |
Total Loans | 7,953 | 4,951 | |
Commercial | |||
Allowance for credit losses: | |||
Beginning balance | 100 | 51 | |
Provision (recovery) for loan losses | 11 | (2) | |
Ending Balance | 111 | 49 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 111 | 100 | |
Allowance for loan losses | 111 | 49 | 100 |
Loans receivable, Collectively evaluated for impairment | 10,311 | 8,626 | |
Total Loans | 10,932 | 9,409 | |
Commercial | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 621 | 783 | |
Consumer | |||
Allowance for credit losses: | |||
Beginning balance | 50 | 15 | |
Recoveries | 3 | 1 | |
Provision (recovery) for loan losses | (3) | (1) | |
Ending Balance | 50 | 15 | |
Allowance ending balance: | |||
Collectively evaluated for impairment | 50 | 50 | |
Allowance for loan losses | 50 | $ 15 | 50 |
Loans receivable, Collectively evaluated for impairment | 521 | 531 | |
Total Loans | 2,154 | 2,239 | |
Consumer | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | $ 1,633 | $ 1,708 |
Loans - Credit quality indicato
Loans - Credit quality indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 476,516 | $ 479,669 |
Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 190,309 | 196,663 |
Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 187,086 | 191,424 |
Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,223 | 5,239 |
Commercial Loan Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 286,207 | 283,006 |
Commercial Loan Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 282,970 | 279,923 |
Commercial Loan Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,662 | 1,773 |
Commercial Loan Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,575 | 1,310 |
Residential real estate | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 144,290 | 147,061 |
Residential real estate | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 32,235 | 32,529 |
Residential real estate | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 11,630 | 14,834 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 144,290 | 147,061 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 141,372 | 142,280 |
Residential real estate | Residential and Consumer Loan | 1-4 Family | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,918 | 4,781 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 32,235 | 32,529 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 32,046 | 32,188 |
Residential real estate | Residential and Consumer Loan | Home equity and HELOCs | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 189 | 341 |
Residential real estate | Residential and Consumer Loan | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 11,630 | 14,834 |
Residential real estate | Residential and Consumer Loan | Construction Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 11,630 | 14,834 |
Commercial real estate | 1 - 4 family investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 94,794 | 96,850 |
Commercial real estate | 1 - 4 family investor | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 93,322 | 95,271 |
Commercial real estate | 1 - 4 family investor | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,373 | 1,473 |
Commercial real estate | 1 - 4 family investor | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 99 | 106 |
Commercial real estate | Multi-family (five or more) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,922 | 13,069 |
Commercial real estate | Multi-family (five or more) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,631 | 12,778 |
Commercial real estate | Multi-family (five or more) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 291 | 291 |
Commercial real estate | Commercial non-residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 157,606 | 158,727 |
Commercial real estate | Commercial non-residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 156,132 | 157,514 |
Commercial real estate | Commercial non-residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 289 | 300 |
Commercial real estate | Commercial non-residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,185 | 913 |
Commercial real estate | Construction and Land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 7,953 | 4,951 |
Commercial real estate | Construction and Land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 7,953 | 4,951 |
Commercial real estate | Construction and Land | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,932 | 9,409 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,932 | 9,409 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,154 | 2,239 |
Consumer | Residential and Consumer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,154 | 2,239 |
Consumer | Residential and Consumer Loan | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,038 | 2,122 |
Consumer | Residential and Consumer Loan | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 116 | $ 117 |
Loans - Loans Acquired with Det
Loans - Loans Acquired with Deteriorated Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Loans | ||
Outstanding principal balance | $ 229 | $ 229 |
Carrying amount | $ 156 | $ 156 |
Loans - Loan Delinquencies and
Loans - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 476,516 | $ 479,669 | |
Recorded Investment Loans on Non-Accrual | 4,798 | 6,511 | |
Interest income | 75 | $ 65 | |
30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 387 | 1,849 | |
60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,261 | 1,116 | |
90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,819 | 2,993 | |
Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,467 | 5,958 | |
Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 471,893 | 473,555 | |
Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 156 | 156 | |
Residential real estate | 1-4 Family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 144,290 | 147,061 | |
Recorded Investment Loans on Non-Accrual | 2,918 | 4,781 | |
Residential real estate | 1-4 Family | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 387 | 1,528 | |
Residential real estate | 1-4 Family | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 960 | 622 | |
Residential real estate | 1-4 Family | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,564 | 2,392 | |
Residential real estate | 1-4 Family | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,911 | 4,542 | |
Residential real estate | 1-4 Family | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 141,246 | 142,386 | |
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 133 | 133 | |
Residential real estate | Home equity and HELOCs | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 32,235 | 32,529 | |
Recorded Investment Loans on Non-Accrual | 189 | 341 | |
Residential real estate | Home equity and HELOCs | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 19 | ||
Residential real estate | Home equity and HELOCs | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 38 | 183 | |
Residential real estate | Home equity and HELOCs | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 38 | 202 | |
Residential real estate | Home equity and HELOCs | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 32,174 | 32,304 | |
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] | |||
Total Loans | 11,630 | 14,834 | |
Residential real estate | Construction Residential | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 11,630 | 14,834 | |
Commercial real estate | 1 - 4 family investor | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 94,794 | 96,850 | |
Recorded Investment Loans on Non-Accrual | 99 | 106 | |
Commercial real estate | 1 - 4 family investor | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 94,794 | 96,850 | |
Commercial real estate | Multi-family (five or more) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 14,922 | 13,069 | |
Recorded Investment Loans on Non-Accrual | 291 | 291 | |
Commercial real estate | Multi-family (five or more) | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 291 | ||
Commercial real estate | Multi-family (five or more) | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 291 | ||
Commercial real estate | Multi-family (five or more) | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 14,631 | 13,069 | |
Commercial real estate | Commercial non-residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 157,606 | 158,727 | |
Recorded Investment Loans on Non-Accrual | 1,185 | 875 | |
Commercial real estate | Commercial non-residential | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 275 | ||
Commercial real estate | Commercial non-residential | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 494 | ||
Commercial real estate | Commercial non-residential | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,185 | 418 | |
Commercial real estate | Commercial non-residential | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,185 | 1,187 | |
Commercial real estate | Commercial non-residential | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 156,421 | 157,540 | |
Commercial real estate | Construction and Land | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 7,953 | 4,951 | |
Commercial real estate | Construction and Land | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 7,953 | 4,951 | |
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 10,932 | 9,409 | |
Commercial | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 10,932 | 9,409 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,154 | 2,239 | |
Recorded Investment Loans on Non-Accrual | 116 | 117 | |
Consumer | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 27 | ||
Consumer | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 10 | ||
Consumer | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 32 | ||
Consumer | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 42 | 27 | |
Consumer | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Current | $ 2,112 | $ 2,212 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Financing Receivable, Impaired [Line Items] | |||
Threshold past due period | 90 days | ||
Threshold past due period for larger companies | 60 days | ||
Residential real estate | 1-4 Family | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | $ 1,605 | $ 3,336 | |
Recorded Investment | 1,605 | 3,336 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 1,719 | 3,582 | |
Unpaid Principal Balance | 1,719 | 3,582 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 2,476 | $ 1,802 | |
Average Recorded Investment | 2,476 | 1,802 | |
Residential real estate | Home equity and HELOCs | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 343 | 275 | |
Recorded Investment | 343 | 275 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 344 | 277 | |
Unpaid Principal Balance | 344 | 277 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 385 | 558 | |
Average Recorded Investment | 385 | 558 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 4 | 5 | |
Interest Income Recognized | 4 | 5 | |
Commercial real estate | 1 - 4 family investor | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 99 | 173 | |
Recorded Investment | 99 | 173 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 185 | ||
Unpaid Principal Balance | 112 | 185 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 121 | 461 | |
Average Recorded Investment | 121 | 461 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 1 | 1 | |
Interest Income Recognized | 1 | 1 | |
Commercial real estate | Multi-family (five or more) | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 291 | 291 | |
Recorded Investment | 291 | 291 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 308 | 308 | |
Unpaid Principal Balance | 308 | 308 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 291 | 258 | |
Average Recorded Investment | 291 | 258 | |
Commercial real estate | Commercial non-residential | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 1,474 | 1,213 | |
Recorded Investment | 1,474 | 1,213 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 1,527 | 1,265 | |
Unpaid Principal Balance | 1,527 | $ 1,265 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 1,348 | 870 | |
Average Recorded Investment | 1,348 | 870 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 5 | 6 | |
Interest Income Recognized | $ 5 | $ 6 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Troubled debt restructuring | $ 586 | $ 593 | |
Interest income on accruing TDR | 10 | $ 12 | |
Impairment on TDR | $ 47 | $ 34 | |
Number of contracts | loan | 0 | 0 | |
Acquired credit impaired | |||
Financing Receivable, Impaired [Line Items] | |||
Loans acquired | $ 156 | $ 156 |
Premises and Equipment - Compon
Premises and Equipment - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 16,016 | $ 16,523 |
Accumulated depreciation | (4,463) | (4,827) |
Net book value | 11,553 | 11,696 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,156 | 2,156 |
Office buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 11,391 | 11,769 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,411 | 2,540 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 58 | $ 58 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Premises and Equipment | ||
Depreciation expense | $ 265 | $ 231 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill | ||
Beginning Balance | $ 4,858 | $ 4,858 |
Ending Balance | 4,858 | 4,858 |
Core Deposit Intangibles | ||
Beginning Balance | 712 | 937 |
Amortization | (48) | (57) |
Ending Balance | $ 664 | $ 880 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 |
Core deposit intangibles | $ 664 | 712 | 880 | $ 937 |
Estimated useful life | 10 years | |||
Goodwill impairment | $ 0 | $ 0 | ||
Aggregate amortization expense | 48 | $ 57 | ||
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, 2022 | Jun. 30, 2022 |
Deposits. | ||
Non-interest bearing checking | $ 63,135 | $ 75,758 |
Interest bearing checking | 129,955 | 122,675 |
Money market accounts | 174,283 | 171,316 |
Savings and club accounts | 103,435 | 105,507 |
Certificates of deposit | 129,366 | 131,361 |
Total deposits | $ 600,174 | $ 606,617 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank (Details) $ in Millions | Sep. 30, 2022 USD ($) item | Jun. 30, 2022 USD ($) |
Advances from Federal Home Loan Bank | ||
FHLB number of regional banks | item | 11 | |
Maximum borrowing capacity with FHLB | $ 296.1 | $ 292.7 |
Loans pledged as collateral | 428.3 | 423.1 |
Investments | $ 3.1 | $ 3.5 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 55,000 | $ 65,000 |
Fixed | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 55,000 | $ 65,000 |
Stock Based Compensation - Plan
Stock Based Compensation - Plan and Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | May 10, 2022 | |
Stock Based Compensation | |||
Stock based compensation expense | $ 490 | ||
Restricted stock | |||
Stock Based Compensation | |||
Number of shares granted | 492,960 | ||
Fair value of awards granted (in dollars per shares) | $ 11.67 | ||
Vesting period | 5 years | ||
Stock based compensation expense | $ 289 | ||
Non-vested Restricted Stock Awards outstanding (in shares) | 492,960 | 492,960 | |
Unrecognized compensation expense | $ 5,300 | ||
Unrecognized compensation expense recognition period | 4 years 7 months 17 days | ||
Stock options | |||
Stock Based Compensation | |||
Vesting period | 5 years | ||
Stock based compensation expense | $ 201 | ||
Unrecognized compensation expense recognition period | 4 years 7 months 17 days | ||
2022 Equity incentive plan | |||
Stock Based Compensation | |||
Shares authorized | 1,769,604 | ||
2022 Equity incentive plan | Restricted stock | |||
Stock Based Compensation | |||
Shares authorized | 505,601 | ||
2022 Equity incentive plan | Stock options | |||
Stock Based Compensation | |||
Shares authorized | 1,264,003 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock activity (Details) - Restricted stock - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | |
Number of shares | ||
Non-vested Restricted Stock Awards outstanding (in shares) | 492,960 | 492,960 |
Issued | 492,960 | |
Average grant price | ||
Issued (in dollars per share) | $ 11.67 | |
Non-vested Restricted Stock Awards outstanding (in dollars per share) | $ 11.67 | $ 11.67 |
Stock Based Compensation - Opti
Stock Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Fair value assumptions | ||
Stock based compensation expense | $ 490 | |
Stock options | ||
Stock Based Compensation | ||
Number of options granted | 1,232,400 | |
Fair value of options granted | $ 3.24 | |
Vesting period | 5 years | |
Exercise price of options granted (in dollars per share) | $ 11.67 | |
Term of award | 10 years | |
Fair value assumptions | ||
Expected life | 6 years 6 months | |
Risk free rate of return | 2.92% | |
Volatility | 24.85% | |
Dividend yield | 1.03% | |
Stock based compensation expense | $ 201 | |
Options outstanding | 1,232,400 | 1,232,400 |
Unrecognized compensation expense | $ 3,700 | |
Unrecognized compensation expense recognition period | 4 years 7 months 17 days | |
Remaining contractual term | 9 years 7 months 17 days | 9 years 10 months 17 days |
Aggregate intrinsic value | $ 0 | $ 80 |
Stock Based Compensation - Op_2
Stock Based Compensation - Options activity (Details) - Stock options - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | |
Number of options | ||
Options outstanding | 1,232,400 | 1,232,400 |
Granted | 1,232,400 | |
Exercise price per shares | ||
Granted (in dollars per share) | $ 11.67 | |
Exercise price per share (in dollars per share) | $ 11.67 | $ 11.67 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | |
Other Commitments [Line Items] | ||
Commitments fixed expiration period | 90 days | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 19,995 | $ 16,894 |
Unfunded commitments under lines of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | 72,146 | 71,999 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 30 | $ 30 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) |
Tier One Leverage, Amount | ||
Leverage capital, actual amount | $ 158,915 | $ 157,519 |
CBLR Framework Requirement, amount | $ 78,380 | $ 77,547 |
Tier One Leverage, Ratio | ||
Leverage capital, actual ratio | 0.1825 | 0.1828 |
CBLR Framework Requirement, ratio | 0.0900 | 0.0900 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Investments available for sale: | ||
Equity securities | $ 1,985 | $ 2,258 |
Fair value | 170,860 | 182,745 |
Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 109,414 | 117,506 |
U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,946 | 9,709 |
U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 4,563 | 5,038 |
Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,442 | 15,642 |
Corporate bonds | ||
Investments available for sale: | ||
Fair value | 33,495 | 34,850 |
Recurring | ||
Investments available for sale: | ||
Equity securities | 1,985 | 2,258 |
Fair value | 172,845 | 185,003 |
Recurring | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 109,414 | 117,506 |
Recurring | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,946 | 9,709 |
Recurring | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 4,563 | 5,038 |
Recurring | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,442 | 15,642 |
Recurring | Corporate bonds | ||
Investments available for sale: | ||
Fair value | 33,495 | 34,850 |
Recurring | Level 1 | ||
Investments available for sale: | ||
Equity securities | 1,985 | 2,258 |
Fair value | 1,985 | 2,258 |
Recurring | Level 2 | ||
Investments available for sale: | ||
Fair value | 170,860 | 182,745 |
Recurring | Level 2 | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 109,414 | 117,506 |
Recurring | Level 2 | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,946 | 9,709 |
Recurring | Level 2 | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 4,563 | 5,038 |
Recurring | Level 2 | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,442 | 15,642 |
Recurring | Level 2 | Corporate bonds | ||
Investments available for sale: | ||
Fair value | $ 33,495 | $ 34,850 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Non-Recurring Basis (Details) | 3 Months Ended | |
Sep. 30, 2022 USD ($) property | Jun. 30, 2022 USD ($) | |
Assets at fair value | ||
Reserves on impaired loans | $ 0 | $ 0 |
Other real estate owned | ||
Assets at fair value | ||
Number of other real estate owned properties | property | 0 | |
Non-recurring basis | ||
Assets at fair value | ||
Premises transferred to held for sale | 1,596,000 | |
Total assets at fair value | 3,286,000 | |
Non-recurring basis | Impaired loans | ||
Assets at fair value | ||
Impaired loans | 1,690,000 | |
Non-recurring basis | Level 3 | ||
Assets at fair value | ||
Premises transferred to held for sale | 1,596,000 | |
Total assets at fair value | 3,286,000 | |
Non-recurring basis | Level 3 | Impaired loans | ||
Assets at fair value | ||
Impaired loans | $ 1,690,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information (Details) - Non-recurring basis $ in Thousands | Jun. 30, 2022 USD ($) |
Assets at fair value | |
Premises transferred to held for sale, Fair value estimate | $ 1,596 |
Level 3 | |
Assets at fair value | |
Premises transferred to held for sale, Fair value estimate | 1,596 |
Level 3 | Appraisal adjustments | |
Assets at fair value | |
Premises transferred to held for sale, Fair value estimate | $ 1,596 |
Level 3 | Appraisal adjustments | Minimum | |
Assets at fair value | |
Premises transferred to held for sale, Measurement input | 0 |
Level 3 | Appraisal adjustments | Maximum | |
Assets at fair value | |
Premises transferred to held for sale, Measurement input | 1 |
Impaired loans | |
Assets at fair value | |
Fair value estimate | $ 1,690 |
Impaired loans | Level 3 | |
Assets at fair value | |
Fair value estimate | 1,690 |
Impaired loans | Level 3 | Appraisal adjustments | |
Assets at fair value | |
Fair value estimate | $ 1,690 |
Impaired loans | Level 3 | Appraisal adjustments | Minimum | |
Assets at fair value | |
Measurement input | 0 |
Impaired loans | Level 3 | Appraisal adjustments | Maximum | |
Assets at fair value | |
Measurement input | 7 |
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, 2022 | Jun. 30, 2022 |
Financial assets: | ||
Loans receivable, net | $ 472,499 | $ 475,511 |
Held to maturity securities, Amortized cost | 104,376 | 102,135 |
Financial liabilities: | ||
Certificates of deposit | 129,366 | 131,361 |
Advances from Federal Home Loan Bank | 55,000 | 65,000 |
Level 2 | ||
Financial assets: | ||
Held to maturity securities, Amortized cost | 84,997 | 88,321 |
Level 3 | ||
Financial assets: | ||
Loans receivable, net | 444,984 | 468,485 |
Financial liabilities: | ||
Certificates of deposit | 127,158 | 130,974 |
Advances from Federal Home Loan Bank | 55,000 | 65,000 |
Carrying Value | ||
Financial assets: | ||
Loans receivable, net | 472,499 | 475,511 |
Held to maturity securities, Amortized cost | 104,376 | 102,135 |
Financial liabilities: | ||
Certificates of deposit | 129,366 | 131,361 |
Advances from Federal Home Loan Bank | 55,000 | 65,000 |
Fair Value | ||
Financial assets: | ||
Loans receivable, net | 444,984 | 468,485 |
Held to maturity securities, Amortized cost | 84,997 | 88,321 |
Financial liabilities: | ||
Certificates of deposit | 127,158 | 130,974 |
Advances from Federal Home Loan Bank | $ 55,000 | $ 65,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease right-of-use assets | $ 6,716 | $ 6,843 | |
Operating Lease, Liability [Abstract] | |||
Operating lease liabilities | $ 6,833 | $ 6,949 | |
Weighted average remaining lease term - Operating leases | 17 years 6 months | 17 years 7 months 6 days | |
Weighted average discount rate - Operating leases | 2.01% | 2.01% | |
Net lease costs | $ 162 | $ 114 |
Leases - Summary of maturities
Leases - Summary of maturities of the Company's lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 | $ 609 | |
2024 | 612 | |
2025 | 547 | |
2026 | 390 | |
2027 | 400 | |
Thereafter | 5,675 | |
Total future minimum lease payments | 8,233 | |
Amounts representing interest | (1,400) | |
Present value of net future minimum lease payments | $ 6,833 | $ 6,949 |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 19, 2022 $ / shares |
Subsequent Events. | |
Subsequent Events | |
Dividends declared (in dollars per share) | $ 0.03 |