| Loans receivable | Note 4. Loans receivable Loans that management has the intent and ability
to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, adjusted for deferred
loan origination costs, net, discounts on purchased loans, and the allowance for credit losses. Interest income is accrued on the unpaid
principal balance unless the collectability of the loan is in doubt. Loan origination fees, net of certain direct origination costs, are
deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on one- to four-family
residential loans is generally discontinued at the time a loan is 180 days delinquent and on other loans at the time a loan is 90 days
delinquent. All other loans are moved to non-accrual status in accordance with the Company’s policy, typically 90 days after the
loan becomes delinquent. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or
charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days
still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified
impaired loans. The composition of the loan portfolio was as follows:
March 31, June 30,
(in thousands) 2024 2023
Residential real estate
One- to four-family $ 254,789 $ 240,076
Multi-family 15,755 19,067
Construction 14,239 12,294
Land 1,069 470
Farm 1,313 1,346
Nonresidential real estate 30,329 30,217
Commercial nonmortgage 867 1,184
Consumer and other:
Loans on deposits 795 855
Home equity 10,326 9,217
Automobile 122 104
Unsecured 636 611
330,240 315,441
Allowance for credit losses (2,106 ) (1,634 )
$ 328,134 $ 313,807 The amounts above include net deferred loan costs
of $312,000 and $330,000 as of March 31, 2024 and June 30, 2023, respectively. The allowance for credit losses is a valuation
allowance that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected for the loans.
Loan losses are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent
recoveries, if any, are credited to the allowance. Management estimates the allowance balance required
using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and
supportable forecasts. Historical credit loss experience, derived from the Company’s data, provides the basis for estimation of
expected credit losses, although management also compares the Company’s data with peer group data. Adjustments to historical loss
information may be made for differences in: lending policy, procedures and practice; economic conditions; the nature and volume of the
loan portfolio; volume delinquent and problem loans; the current and anticipated economic conditions in the primary lending area; and
other external factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan
that, in management’s judgment, should be charged off. Loans that do not share risk characteristics are
evaluated on an individual basis. Loans evaluated individually are not included in the pool evaluation. When management determines that
foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be
provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at
the reporting date, less any discounts and selling costs. Management monitors loan performance on a monthly
basis and performs a quarterly evaluation of the adequacy of the ACL. The Banks begin enhanced monitoring of all loans rated 5-Watch or
worse and obtain a new appraisal or asset valuation for most loans placed on nonaccrual status. New appraisals are usually not obtained
on loans with outstanding principal amounts of $50,000 or less. Management, at its discretion, may determine that additional adjustments
to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited
to: the economy, deferred maintenance, industry, type of collateral, age of the appraisal, etc., and the knowledge Management has about
a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in
order to determine the net realizable value to the Banks. When determining the ACL, certain factors involved in the evaluation are inherently
subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash
flows. Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Board of Directors. Management
believes the ACL at March 31, 2024 is adequate. Expected credit losses are estimated over the
contractual term of the loans, adjusted for expected prepayments, when appropriate. The contractual term excludes expected extensions,
renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that
a modification will be executed with an individual borrower or the extension or renewal options are included in the original or modified
contract at the reporting date and are not unconditionally cancellable by the Banks. The Banks categorize loans into risk categories
based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical
payment experience, credit documentation, and current economic trends, among other factors. Management utilizes a risk rating scale ranging
from 1-Highest Pass to 9-Loss to evaluate loan quality. Consumer purpose loans are identified as either performing or nonperforming based
on the payment status of the loans. Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing. Our portfolio segments include residential real
estate, nonresidential real estate, farm, land, commercial and industrial, and consumer and other loans. Risk factors associated with
our portfolio segments are as follows: Residential Real Estate Our primary lending activity is the origination
of mortgage loans, which enable a borrower to purchase or refinance existing homes in the Banks’ respective market areas. We further
classify our residential real estate loans as one- to four-family (owner-occupied vs nonowner-occupied), multi-family or construction.
We believe that our first mortgage position on loans secured by residential real estate presents lower risk than our other loans, with
the exception of loans secured by deposits. We offer a mix of adjustable-rate and fixed-rate
mortgage loans with terms up to 30 years for owner-occupied properties. For these properties a borrower may be able to borrow up to 97%
of the value with private mortgage insurance. Alternatively, the borrower may be able to borrow up to 90% of the value through other programs
offered by the bank. We offer loans on one- to four-family rental properties
at a maximum of 80% loan-to-value (“LTV”) ratio and we generally charge a slightly higher interest rate on such loans. We also originate loans to individuals to finance
the construction of residential dwellings for personal use or for use as rental property. We lend to builders for construction of speculative
or custom residential properties for resale. Construction loans are generally less than one year in length, do not exceed 80% of the appraised
value, and provide for the payment of interest only during the construction phase. Funds are disbursed as progress is made toward completion
of the construction. Multi-family Loans We offer mortgage loans secured by residential
multi-family (five or more units). Generally, these loans are originated for 25 years or less and do not exceed 80% of the appraised value.
Loans secured by multi-family generally have larger balances and involve a greater degree of risk than one- to four-family residential
mortgage loans. These loans depend on the borrower’s creditworthiness and the feasibility and cash flow potential of the project.
Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment
on such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential
loans. Nonresidential Loans We offer mortgage loans secured by nonresidential
real estate comprised generally of commercial office buildings, churches and properties used for other purposes. Generally, these loans
are originated for 25 years or less and do not exceed 80% of the appraised value. As with multi-family loans, commercial real estate loans
generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans and these loans
depend on the borrower’s creditworthiness, as well as the feasibility and cash flow potential of the project. Payments on loans
secured by nonresidential properties often depend on successful operation and management of the properties. As a result, repayment on
such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential
loans. Consumer lending Our consumer loans include home equity lines of
credit, loans secured by savings deposits, automobile loans, and unsecured loans. Home equity loans are generally second mortgage loans
subordinate only to first mortgages also held by the bank and do not exceed 80% of the estimated value of the property. We do offer home
equity loans up to 90% of the estimated value to qualified borrowers and these loans carry a premium interest rate. Loans secured by savings
are originated up to 90% of the depositor’s savings account balance and bear interest at a rate higher than the rate paid on the
deposit account. Because the deposit account must be pledged as collateral to secure the loan, the inherent risk of this type of loan
is minimal. Loans secured by automobiles are made directly to consumers (there are no relationships with dealers) and are based on the
value of the vehicle and the borrower’s creditworthiness. Vehicle loans present a higher level of risk because of the natural decline
in the value of the property as well as its mobility. Unsecured loans are based entirely on the borrower’s creditworthiness and
present the highest level of risk to the bank. Impaired loans The Banks choose the most appropriate method for
accounting for impaired loans. For secured loans, which make up the vast majority of the loans in the Banks’ portfolio, this method
involves determining the fair value of the collateral, reduced by estimated selling costs. Where appropriate, the Banks would account
for impaired loans by determining the present value of expected future cash flows discounted at the loan’s effective interest rate. A loan is considered impaired when, based on current
information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of
the loan agreement. Although most of our loans are secured by collateral, we rely heavily on the capacity of our borrowers to generate
sufficient cash flow to service their debt. As a result, our loans do not become collateral-dependent until there is deterioration in
the borrower’s cash flow and financial condition, which makes it necessary for us to look to the collateral for our sole source
of repayment. Collateral-dependent loans which are more than ninety days delinquent are considered to constitute more than a minimum delay
in repayment and are evaluated for impairment under the policy at that time. We utilize updated independent appraisals to determine
fair value for collateral-dependent loans, adjusted for estimated selling costs, in determining our specific reserve. In some situations,
management does not secure an updated independent appraisal. These situations may involve small loan amounts or loans that, in management’s
opinion, have an abnormally low loan-to-value ratio. With respect to the Banks’ investment in
troubled debt restructurings, multi-family and nonresidential loans, and the evaluation of impairment thereof, such loans are nonhomogenous
and, as such, may be deemed to be collateral-dependent when they become more than 90 days delinquent. We obtain updated independent appraisals
in these situations or when we suspect that the previous appraisal may no longer be reflective of the property’s current fair value.
This process varies from loan to loan, borrower to borrower, and also varies based on the nature of the collateral. The following table presents the activity in the
ACL by portfolio segment for the nine months ended March 31, 2024, after restatement of beginning balance for adoption of ASC 326: March 31, 2024:
(in thousands) Pre-ASC Impact of As Provision Loans Recoveries Credit Losses for Unfunded Ending
Residential real estate
One- to four-family $ 857 $ 740 $ 1,597 $ 58 $ (9 ) $ - $ - $ 1,646
Multi-family 278 (145 ) 133 (33 ) - - - 100
Construction 41 97 138 (33 ) - - (1 ) 104
Land 1 14 15 7 - - - 22
Farm 4 2 6 (1 ) - - - 5
Nonresidential real estate 405 (221 ) 184 (13 ) - - - 171
Commercial and industrial 23 (18 ) 5 - - - - 5
Consumer and other
Loans on deposits 1 (1 ) - - - - - -
Home equity 23 28 51 2 - - (2 ) 51
Automobile - 1 1 (1 ) - - - -
Unsecured 1 - 1 1 - - - 2
$ 1,634 $ 497 $ 2,131 $ (13 ) $ (9 ) $ - $ (3 ) $ 2,106 For the nine months ended March 31, 2024,
the provision for (recovery of) credit losses totaled $(16,000) including $13,000 of recovery on credit losses on loans and $3,000 recovery on credit losses on unfunded commitments. At March 31, 2024, the allowance for credit losses on unfunded
commitments totaled $57,000. The following table presents the activity in the
ALLL by portfolio segment for the nine months ended March 31, 2023:
(in thousands) Beginning Provision Loans Recoveries Ending
Residential real estate:
One-to four-family $ 800 $ 44 $ (22 ) $ 13 $ 835
Multi-family 231 96 – – 327
Construction 4 29 – – 33
Land 3 (2 ) – – 1
Farm 5 – – – 5
Nonresidential real estate 461 (53 ) – – 408
Commercial nonmortgage 2 – – – 2
Consumer and other:
Loans on deposits 1 – – – 1
Home equity 21 – – – 21
Automobile – – – – –
Unsecured 1 (1 ) – – –
Totals $ 1,529 $ 113 $ (22 ) $ 13 $ 1,633 The following table presents the activity in the
allowance for credit losses by portfolio segment for the three months ended March 31, 2024:
(in thousands) Beginning Provision Loans Recoveries Credit Ending
Residential real estate:
One- to four-family $ 1,587 $ 59 $ – $ – $ - $ 1,646
Multi-family 130 (30 ) – – - 100
Construction 124 (22 ) – – 2 104
Land 22 - – – - 22
Farm 5 – – – - 5
Nonresidential real estate 198 (27 ) – – - 171
Commercial nonmortgage 6 (1 ) – – - 5
Consumer and other: -
Loans on deposits – – – – - –
Home equity 59 (8 ) – – - 51
Automobile – – – – - –
Unsecured 1 1 – – - 2
Totals $ 2,132 $ (28 ) $ – $ – $ 2 $ 2,106 The following table presents the activity in the
allowance for loan losses by portfolio segment for the three months ended March 31, 2023:
(in thousands) Beginning Provision Loans Recoveries Ending
Residential real estate:
One- to four-family $ 778 $ 79 $ (22 ) $ – $ 835
Multi-family 363 (36 ) – – 327
Construction 26 7 – – 33
Land 1 – – – 1
Farm 5 – – – 5
Nonresidential real estate 457 (49 ) – – 408
Commercial nonmortgage 2 – – – 2
Consumer and other:
Loans on deposits 1 – – – 1
Home equity 21 – – – 21
Automobile – – – – –
Unsecured 1 (1 ) – – –
Totals $ 1,655 $ – $ (22 ) $ – $ 1,633 The following table presents the amortized cost
basis of collateral-dependent loans by portfolio class as of March 31, 2024. The recorded investment in loans excludes accrued interest
receivable due to immateriality. March 31, 2024:
(in thousands) Amortized Cost Ending
Loans individually evaluated for impairment:
Residential real estate:
One- to four-family $ 2,882 $ –
Nonresidential real estate 1,950 –
Commercial and industrial – –
$ 4,832 – Real estate stands as collateral for loans individually
evaluated for impairment. The following tables present the balance in the
ALLL and the recorded investment in loans by portfolio class and based on impairment method as of March 31, 2024. March 31, 2024:
(in thousands) Loans Loans acquired Ending loans Ending
Loans individually evaluated for impairment:
Residential real estate
One- to four-family $ 2,882 $ 178 $ 3,060 $ -
Nonresidential real estate 1,950 - 1,950 -
4,832 178 5,010 -
Loans collectively evaluated for impairment:
Residential real estate
One- to four-family $ 251,729 $ 1,646
Multi-family 15,755 100
Construction 14,239 104
Land 1,069 22
Farm 1,313 5
Nonresidential real estate 28,379 171
Commercial and industrial 867 5
Consumer and other
Loans on deposits 795 -
Home equity 10,326 51
Automobile 122 -
Unsecured 636 2
325,230 2,106
$ 330,240 $ 2,106 * These loans were evaluated at acquisition date at their estimated fair value and there has been no subsequent deterioration since acquisition. The following tables present the balance in the
allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of June 30, 2023. June 30, 2023:
(in thousands) Loans Loans acquired Ending loans Ending
Loans individually evaluated for impairment:
Residential real estate
One- to four-family $ 2,833 $ 196 $ 3,029 $ -
Nonresidential real estate 1,717 - 1,717 -
Home Equity 267 - 267 -
4,817 196 5,013 -
Loans collectively evaluated for impairment:
Residential real estate
One- to four-family $ 237,047 $ 857
Multi-family 19,067 278
Construction 12,294 41
Land 470 1
Farm 1,346 4
Nonresidential real estate 28,500 405
Commercial and industrial 1,184 23
Consumer and other
Loans on deposits 855 1
Home equity 8,950 23
Automobile 104 -
Unsecured 611 1
310,428 1,634
$ 315,441 $ 1,634
* These loans were evaluated at acquisition date at their estimated fair value and there has been no subsequent deterioration since acquisition. The following table presents interest income on
loans individually evaluated for impairment by class of loans for the nine months ended March 31:
(in thousands) Average Interest Cash Basis Average Interest Cash Basis
2024 2023
With no related allowance recorded:
One- to four-family $ 3,058 $ 55 $ 55 $ 3,227 $ 147 $ 147
Multi-family -- – – 561 15 15
Farm -- – – 270 – –
Nonresidential real estate 1,882 51 51 1,055 41 41
Consumer 89 – – 46 6 6
Purchased credit-impaired loans 191 7 7 383 17 17
5,220 113 113 5,542 226 226
With an allowance recorded:
One- to four-family – – – – – –
$ 5,220 $ 113 $ 113 $ 5,542 $ 226 $ 226 The following
table presents interest income on loans individually evaluated for impairment by class of loans for the three months ended March 31:
(in thousands) Average Interest Cash Basis Average Interest Cash Basis
2024 2023
With no related allowance recorded:
Residential real estate:
One- to four-family $ 3,073 $ 11 $ 11 $ 3,240 $ 66 $ 66
Multi-family – – – 555 5 5
Farm – – – 265 – –
Nonresidential real estate 1,965 2 2 1,047 12 12
Consumer – – – – – –
Purchased credit-impaired loans 182 6 6 371 6 6
5,220 19 19 5,478 89 89
With an allowance recorded:
One- to four-family – – – – – –
$ 5,220 $ 19 $ 19 $ 5,478 $ 89 $ 89 The following table presents the recorded investment
in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2024 and June 30, 2023:
March 31, 2024 June 30, 2023
(in thousands) Nonaccrual Loans Nonaccrual Loans
Residential real estate:
One- to four-family residential real estate $ 3,149 $ 373 $ 3,029 $ 365
Nonresidential real estate and land 1,670 – 1,717 28
Consumer – 35 267 0
$ 4,819 $ 408 $ 5,013 $ 393 One- to four-family loans in process of foreclosure
totaled $1.2 million and $766,000 at March 31, 2024 and June 30, 2023, respectively. Troubled Debt Restructurings: Prior to the adoption of ASC 326 a Troubled Debt
Restructuring (“TDR”) was the situation where the Bank granted a concession to the borrower that the Banks would not otherwise
have considered due to the borrower’s financial difficulties. All TDRs are considered “impaired.” At June 30, 2023, the Company had $1.4 million
of loans classified as TDRs. During the nine months ended March 31, 2024 there were no loans modified
to borrowers experiencing financial difficulty. The following table presents the aging of the
principal balance outstanding in past due loans as of March 31, 2024, by class of loans:
(in thousands) 30-89 Days 90 Days or Total Past Loans Not Total
Residential real estate:
One-to four-family $ 4,264 $ 1,684 $ 5,948 $ 248,841 $ 254,789
Multi-family – – – 15,755 15,755
Construction 231 – 231 14,008 14,239
Land – – – 1,069 1,069
Farm – – – 1,313 1,313
Nonresidential real estate 809 – 809 29,520 30,329
Commercial non-mortgage – – – 867 867
Consumer and other:
Loans on deposits – – – 795 795
Home equity 153 35 188 10,138 10,326
Automobile – – – 122 122
Unsecured -- – – 636 636
Total $ 5,457 $ 1,719 $ 7,176 $ 323,064 $ 330,240 The following tables present the aging of the
principal balance outstanding in past due loans as of June 30, 2023, by class of loans: June 30, 2023:
(in thousands) 30-89 Days Greater than Total Past Loans Not Total
Residential real estate
One- to four-family $ 3,415 $ 1,514 $ 4,929 $ 235,147 $ 240,076
Multi-family - - - 19,067 19,067
Construction - - - 12,294 12,294
Land - - - 470 470
Farm - - - 1,346 1,346
Nonresidential real estate 662 - 662 29,555 30,217
Commercial and industrial - 28 28 1,156 1,184
Consumer and other
Loans on deposits - - - 855 855
Home equity 168 267 435 8,782 9,217
Automobile - - - 104 104
Unsecured 17 - 17 594 611
$ 4,262 $ 1,809 $ 6,071 $ 309,370 $ 315,441 Credit Quality Indicators: The Company categorizes loans into risk categories
based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical
payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans
individually by classifying the loans as to credit risk. This analysis is performed on an annual basis. The Company uses the following
definitions for risk ratings: Special Mention. Substandard. Doubtful. Loans not meeting the criteria above that are
analyzed individually as part of the above-described process are considered to be pass rated loans. Loans listed that are not rated are
included in groups of homogeneous loans and are evaluated for credit quality based on performing status. See the aging of past due loan
table above. As of March 31, 2024, and based on the most recent analysis performed, the risk category of loans by class of loans is as
follows:
Revolving
(in thousands) Term Loans Amortized Cost by Origination Fiscal Year Loans
As of March 31, 2024 2024 2023 2022 2021 2020 Prior Cost Basis Total
Residential real estate:
One- to four-family
Risk Rating:
Pass $ 24,346 $ 50,368 $ 48,136 $ 43,911 $ 27,424 $ 55,244 $ - $ 249,429
Special mention - - - - - 138 - 138
Substandard - - -- 82 17 5,123 - 5,222
Doubtful - - - - - - - -
Total $ 24,346 $ 50,368 $ 48,136 $ 43,933 $ 27,411 $ 60,505 $ - $ 254,789
Current period gross charge offs $ - $ - $ - $ - $ - $ 9 $ - $ 9
Multi-family
Risk Rating:
Pass $ 200 $ - $ 6,132 $ 5,948 $ 1,248 $ 2,227 $ - $ 15,755
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 200 $ - $ 6,132 $ 5,948 $ 1,248 $ 2,227 $ - $ 15,755
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Construction
Risk Rating:
Pass $ 5,660 $ 8,483 $ 23 $ - $ - $ 73 $ - $ 14,239
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 5,660 $ 8,483 $ 23 $ - $ - $ 73 $ - $ 14,239
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Land
Risk Rating:
Pass $ 508 $ 283 $ 215 $ - $ - $ 63 $ - $ 1,069
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 508 $ 283 $ 215 $ - $ - $ 63 $ - $ 1,069
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Farm
Risk Rating:
Pass $ 212 $ - $ 248 $ - $ 26 $ 827 $ - $ 1,313
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 212 $ - $ 248 $ - $ 26 $ 827 $ - $ 1,313
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Nonresidential real estate
Risk Rating:
Pass $ 2,564 $ 2,346 $ 3,165 $ 3,437 $ 5,795 $ 10,400 $ - $ 27,707
Special mention - - - - - 672 - 672
Substandard - 1,017 - - - 933 - 1,950
Doubtful - - - - - - - -
Total $ 2,564 $ 3,363 $ 3,165 $ 3,437 $ 5,795 $ 12,005 $ - $ 30,329
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Commercial and industrial
Risk Rating:
Pass $ 328 $ - $ 398 $ 4 $ - $ 137 $ - $ 867
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 328 $ - $ 398 $ 4 $ - $ 137 $ - $ 867
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Share Loans
Risk Rating:
Pass $ 94 $ 95 $ - $ 17 $ 177 $ 412 $ - $ 795
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 94 $ 95 $ - $ 17 $ 177 $ 412 $ - $ 795
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Home Equity
Risk Rating:
Pass $ - $ - $ - $ - $ - $ - $ 9,904 $ 9,904
Special mention - - - - - - - -
Substandard - - - - - - 422 422
Doubtful - - - - - - - -
Total $ - $ - $ - $ - $ - $ - $ 10,326 $ 10,326
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Auto
Risk Rating:
Pass $ 69 $ 10 $ 37 $ 3 $ 2 $ 1 $ - $ 122
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 69 $ 10 $ 37 $ 3 $ 2 $ 1 $ - $ 122
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ -
Unsecured
Risk Rating:
Pass $ 282 $ 120 $ 32 $ 174 $ 23 $ 5 $ - $ 636
Special mention - - - - - - - -
Substandard - - - - - - - -
Doubtful - - - - - - - -
Total $ 282 $ 120 $ 32 $ 174 $ 23 $ 5 $ - $ 636
Current period gross charge offs $ - $ - $ - $ - $ - $ - $ - $ - At March 31, 2024, the risk category of loans
by class of loans was as follows:
(in thousands) Pass Special Substandard Doubtful
Residential real estate:
One- to four-family $ 249,429 $ 138 $ 5,222 $ -
Multi-family 15,755 - - -
Construction 14,239 - - -
Land 1,069 - - -
Farm 1,313 - - -
Nonresidential real estate 27,707 672 1,950 -
Commercial nonmortgage 867 - - -
Consumer:
Loans on deposits 795 - - -
Home equity 9,904 - 422 -
Automobile 122 - - -
Unsecured 636 - - -
$ 321,836 $ 810 $ 7,594 $ - At June 30, 2023, the risk category of loans by
class of loans was as follows:
(in thousands) Pass Special Substandard Doubtful
Residential real estate
One- to four-family $ 234,765 $ 170 $ 5,141 $ -
Multi-family 19,067 - - -
Construction 12,294 - - -
Land 470 - - -
Farm 1,346 - - -
Nonresidential real estate 27,816 684 1,013 -
Commercial and industrial 1,184 - - -
Consumer and other
Loans on deposits 855 - - -
Home equity 8,879 - 338 -
Automobile 104 - - -
Unsecured 611 - - -
$ 307,391 $ 854 $ 6,492 $ - Purchased Credit Impaired Loans: The Company purchased loans during fiscal year
2013 for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition,
that all contractually required payments would not be collected. The carrying amount of those loans, net of a purchase credit discount
of $88,000 and $88,000 at March 31, 2024 and June 30, 2023, respectively, is as follows:
(in thousands) March 31, June 30,
One- to four-family residential real estate $ 178 $ 196
Accretable yield, or income expected to be collected,
is as follows:
(in thousands) Nine months Twelve months
Balance at beginning of period $ 294 $ 339
Accretion of income (30 ) (45 )
Balance at end of period $ 264 $ 294 For those purchased loans disclosed above, the
Company made no increase in allowance for loan losses for the year ended June 30, 2023, nor for the nine-month period ended March 31,
2024. Neither were any allowance for loan losses reversed during those periods. |
