Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 06, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-40255 | |
Entity Registrant Name | WILLIAM PENN BANCORPORATION | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 85-3898797 | |
Entity Address, Address Line One | 10 Canal Street | |
Entity Address, Address Line Two | Suite 104 | |
Entity Address, City or Town | Bristol | |
Entity Address State Or Province | PA | |
Entity Address, Postal Zip Code | 19007 | |
City Area Code | 267 | |
Local Phone Number | 540-8500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | WMPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,170,566 | |
Entity Central Index Key | 0001828376 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
ASSETS | ||
Cash and due from banks | $ 8,713 | $ 21,385 |
Interest bearing deposits with other banks | 170,844 | 56,755 |
Federal funds sold | 4,775 | |
Total cash and cash equivalents | 179,557 | 82,915 |
Interest-bearing time deposits | 2,050 | 2,300 |
Securities available for sale | 109,184 | 89,998 |
Loans receivable, net of allowance for loan losses of $3,599 and $3,519, respectively | 475,730 | 508,605 |
Premises and equipment, net | 13,534 | 16,733 |
Regulatory stock, at cost | 3,025 | 4,200 |
Deferred income taxes | 4,044 | 4,817 |
Bank-owned life insurance | 15,078 | 14,758 |
Goodwill | 4,858 | 4,858 |
Intangible assets | 1,000 | 1,192 |
Accrued interest receivable and other assets | 9,367 | 6,076 |
TOTAL ASSETS | 817,427 | 736,452 |
LIABILITIES | ||
Deposits | 548,316 | 559,848 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Advances from borrowers for taxes and insurance | 3,403 | 4,536 |
Accrued interest payable and other liabilities | 9,668 | 10,811 |
TOTAL LIABILITIES | 602,387 | 640,087 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued | ||
Common Stock, $.01 par value, 150,000,000 shares authorized; 15,170,566 shares issued and outstanding as of March 31, 2021 and $0.10 par value, 49,000,000 shares authorized; 15,208,410 shares issued and 14,628,530 shares outstanding as of June 30, 2020 | 152 | 467 |
Additional paid-in capital | 168,349 | 42,932 |
Treasury Stock, 0 and 579,879 shares at cost at March 31, 2021 and June 30, 2020, respectively | (3,710) | |
Unearned common stock held by employee stock ownership plan | (10,104) | |
Retained earnings | 57,827 | 56,600 |
Accumulated other comprehensive (loss) income | (1,184) | 76 |
TOTAL STOCKHOLDERS' EQUITY | 215,040 | 96,365 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 817,427 | $ 736,452 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Allowance for loan losses | $ 3,599 | $ 3,519 |
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 | $ 0.10 |
Common stock, shares authorized (in shares) | 150,000,000 | 49,000,000 |
Common stock, issued (in shares) | 15,170,566 | 15,208,410 |
Common stock, outstanding (in shares) | 15,170,566 | 14,628,530 |
Treasury stock, shares (in shares) | 0 | 579,879 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST INCOME | ||||
Loans receivable, including fees | $ 5,701 | $ 4,277 | $ 17,827 | $ 12,500 |
Securities | 449 | 422 | 1,574 | 1,097 |
Other | 80 | 125 | 270 | 409 |
Total Interest Income | 6,230 | 4,824 | 19,671 | 14,006 |
INTEREST EXPENSE | ||||
Deposits | 652 | 891 | 2,651 | 2,658 |
Borrowings | 262 | 364 | 888 | 1,064 |
Total Interest Expense | 914 | 1,255 | 3,539 | 3,722 |
Net Interest Income | 5,316 | 3,569 | 16,132 | 10,284 |
Provision for loan losses | 15 | 21 | 113 | 21 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,301 | 3,548 | 16,019 | 10,263 |
OTHER INCOME | ||||
Service fees | 199 | 152 | 568 | 447 |
Net gain on sale of securities | 35 | 103 | 5 | 196 |
Earnings on bank-owned life insurance | 110 | 84 | 320 | 249 |
Net (loss) gain on disposition of premises and equipment | (34) | 0 | 435 | 0 |
Net gain (loss) on sale of other real estate owned | 160 | 206 | (16) | |
Other | 65 | 46 | 241 | 143 |
Total Other Income | 535 | 385 | 1,775 | 1,019 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 2,490 | 1,633 | 7,570 | 4,818 |
Occupancy and equipment | 813 | 399 | 2,227 | 1,208 |
Data processing | 419 | 277 | 1,350 | 799 |
Professional fees | 193 | 152 | 598 | 526 |
Amortization on intangible assets | 64 | 58 | 192 | 176 |
Prepayment penalties | 161 | |||
Other | 517 | 367 | 1,794 | 1,043 |
Total Other Expense | 4,496 | 2,886 | 13,892 | 8,570 |
Income Before Income Taxes | 1,340 | 1,047 | 3,902 | 2,712 |
Income Tax Expense | 273 | 210 | 789 | 92 |
NET INCOME | $ 1,067 | $ 837 | $ 3,113 | $ 2,620 |
Basic and diluted earnings per share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.21 | $ 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income | $ 1,067 | $ 837 | $ 3,113 | $ 2,620 |
Other comprehensive income (loss): | ||||
Changes in net unrealized gain (loss) on securities available for sale | (2,448) | 525 | (1,620) | 71 |
Tax effect | 551 | (118) | 364 | (16) |
Reclassification adjustment for gain recognized in net income | (35) | (103) | (5) | (196) |
Tax effect | 8 | 23 | 1 | 44 |
Other comprehensive income (loss), net of tax | (1,924) | 327 | (1,260) | (97) |
Comprehensive (loss) income | $ (857) | $ 1,164 | $ 1,853 | $ 2,523 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in capital | Treasury Stock | Unearned Common Stock held by ESOP | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total |
Beginning balance at Jun. 30, 2019 | $ 416 | $ 22,441 | $ (3,710) | $ 57,255 | $ 228 | $ 76,630 | |
Beginning balance (in shares) at Jun. 30, 2019 | 3,980,154 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 854 | 854 | |||||
Other comprehensive income (loss) | (190) | (190) | |||||
Dividend paid | (1,983) | (1,983) | |||||
Ending balance at Sep. 30, 2019 | $ 416 | 22,441 | (3,710) | 56,126 | 38 | 75,311 | |
Ending balance (in shares) at Sep. 30, 2019 | 3,980,154 | ||||||
Beginning balance at Jun. 30, 2019 | $ 416 | 22,441 | (3,710) | 57,255 | 228 | 76,630 | |
Beginning balance (in shares) at Jun. 30, 2019 | 3,980,154 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,620 | ||||||
Other comprehensive income (loss) | (97) | ||||||
Ending balance at Mar. 31, 2020 | $ 416 | 22,441 | (3,710) | 57,892 | 131 | 77,170 | |
Ending balance (in shares) at Mar. 31, 2020 | 3,980,154 | ||||||
Beginning balance at Sep. 30, 2019 | $ 416 | 22,441 | (3,710) | 56,126 | 38 | 75,311 | |
Beginning balance (in shares) at Sep. 30, 2019 | 3,980,154 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 929 | 929 | |||||
Other comprehensive income (loss) | (234) | (234) | |||||
Ending balance at Dec. 31, 2019 | $ 416 | 22,441 | (3,710) | 57,055 | (196) | 76,006 | |
Ending balance (in shares) at Dec. 31, 2019 | 3,980,154 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 837 | 837 | |||||
Other comprehensive income (loss) | 327 | 327 | |||||
Ending balance at Mar. 31, 2020 | $ 416 | 22,441 | (3,710) | 57,892 | 131 | 77,170 | |
Ending balance (in shares) at Mar. 31, 2020 | 3,980,154 | ||||||
Beginning balance at Jun. 30, 2020 | $ 467 | 42,932 | (3,710) | 56,600 | 76 | $ 96,365 | |
Beginning balance (in shares) at Jun. 30, 2020 | 4,489,345 | 14,628,530 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 670 | $ 670 | |||||
Other comprehensive income (loss) | 357 | 357 | |||||
Dividend paid | (1,886) | (1,886) | |||||
Ending balance at Sep. 30, 2020 | $ 467 | 42,932 | (3,710) | 55,384 | 433 | 95,506 | |
Ending balance (in shares) at Sep. 30, 2020 | 4,489,345 | ||||||
Beginning balance at Jun. 30, 2020 | $ 467 | 42,932 | (3,710) | 56,600 | 76 | $ 96,365 | |
Beginning balance (in shares) at Jun. 30, 2020 | 4,489,345 | 14,628,530 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | $ 3,113 | ||||||
Other comprehensive income (loss) | (1,260) | ||||||
Ending balance at Mar. 31, 2021 | $ 152 | 168,349 | $ (10,104) | 57,827 | (1,184) | $ 215,040 | |
Ending balance (in shares) at Mar. 31, 2021 | 15,170,566 | 15,170,566 | |||||
Beginning balance at Sep. 30, 2020 | $ 467 | 42,932 | (3,710) | 55,384 | 433 | $ 95,506 | |
Beginning balance (in shares) at Sep. 30, 2020 | 4,489,345 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,376 | 1,376 | |||||
Other comprehensive income (loss) | 307 | 307 | |||||
Ending balance at Dec. 31, 2020 | $ 467 | 42,932 | (3,710) | 56,760 | 740 | 97,189 | |
Ending balance (in shares) at Dec. 31, 2020 | 4,489,345 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,067 | 1,067 | |||||
Other comprehensive income (loss) | (1,924) | (1,924) | |||||
ESOP shares committed to be released | 8 | 8 | |||||
Purchase of treasury stock | (49) | (49) | |||||
Conversion of existing shares (in shares) | 10,134,029 | ||||||
William Penn, MHC shares sold in public offering, net of offering costs | $ (315) | 129,176 | 128,861 | ||||
William Penn, MHC shares sold in public offering, net of offering costs (in shares) | 12,640,035 | ||||||
Retirement of MHC shares (in shares) | (12,092,669) | ||||||
Fractional shares resulting from conversion of existing shares at 3.2585 exchange ratio (in shares) | (174) | ||||||
Treasury stock retired | (3,759) | $ 3,759 | |||||
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | (10,112) | |||||
Ending balance at Mar. 31, 2021 | $ 152 | $ 168,349 | $ (10,104) | $ 57,827 | $ (1,184) | $ 215,040 | |
Ending balance (in shares) at Mar. 31, 2021 | 15,170,566 | 15,170,566 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) | 3 Months Ended | |
Sep. 30, 2020$ / shares | Sep. 30, 2019$ / shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.42 | $ 0.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||||
Net income | $ 3,113 | $ 2,620 | ||
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||||
Provision for loan losses | $ 15 | $ 21 | 113 | 21 |
Depreciation expense | 229 | 124 | 757 | 334 |
Other accretion, net | (1,779) | (470) | ||
Deferred income taxes | 1,101 | 341 | ||
Impact of tax law change | (408) | |||
Net gain on disposition of premises and equipment | 34 | 0 | (435) | 0 |
Gain on sale of other real estate owned | (160) | (206) | 16 | |
Amortization of core deposit intangibles | 64 | 58 | 192 | 176 |
Amortization of ESOP | 8 | |||
Net gain on sale of securities | (35) | (103) | (5) | (196) |
Earnings on bank-owned life insurance | (110) | (84) | (320) | (249) |
Decrease in pension liabilities | (2,735) | |||
Other, net | (689) | (397) | ||
Net Cash (Used) Provided by Operating Activities | (885) | 1,772 | ||
Securities available for sale: | ||||
Purchases | (59,840) | (51,880) | ||
Maturities, calls and principal paydowns | 25,642 | 10,193 | ||
Proceeds from sale of securities | 4,500 | 3,200 | 12,365 | 7,550 |
Net decrease (increase) in loans receivable | 34,134 | (20,059) | ||
Interest bearing time deposits: | ||||
Purchases | (500) | (1,000) | ||
Maturities & principal paydowns | 750 | 7,486 | ||
Regulatory stock purchases | (390) | |||
Regulatory stock redemptions | 1,175 | |||
Proceeds from sale of other real estate owned | 367 | |||
Purchases of premises and equipment, net | (757) | (1,529) | ||
Proceeds from the sale of premises and equipment | 2,661 | |||
Net Cash Provided (Used) by Investing Activities | 15,997 | (49,629) | ||
Cash Flows from Financing Activities | ||||
Net (decrease) increase in deposits | (10,954) | 33,055 | ||
Proceeds from Federal Home Loan Bank advances | 11,000 | |||
Purchase of unearned common stock held by employee stock ownership plan | (10,112) | |||
Issuance of common stock funded by stock subscriptions | 128,861 | |||
Purchase of treasury stock | (49) | |||
Repayment of Federal Home Loan Bank advances | (23,197) | |||
Decrease in advances from borrowers for taxes and insurance | (1,133) | (230) | ||
Cash dividends | (1,886) | (1,983) | ||
Net Cash Provided by Financing Activities | 81,530 | 41,842 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 96,642 | (6,015) | ||
Cash and Cash Equivalents-Beginning | 82,915 | 26,168 | ||
Cash and Cash Equivalents-Ending | $ 179,557 | $ 20,153 | 179,557 | 20,153 |
Supplementary Cash Flows Information | ||||
Interest paid | 3,627 | 3,672 | ||
Income taxes paid | 400 | 12 | ||
Operating lease right-of-use asset recorded | 1,157 | 1,231 | ||
Operating lease liabilities recorded | 1,157 | $ 1,213 | ||
Premises transferred to held for sale | 3,199 | |||
Transfer of loans to other real estate owned | $ 161 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Mar. 31, 2021 | |
Nature of Operations | |
Nature of Operations | Note 1 - Nature of Operations William Penn Bancorporation (“the Company”) is a Maryland corporation that was incorporated in July 2020 to be the successor to William Penn Bancorp, Inc. (“William Penn Bancorp”) upon completion of the second-step conversion of William Penn Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. William Penn, MHC was the former mutual holding company for William Penn Bancorp prior to completion of the second-step conversion. In conjunction with the second-step conversion, each of William Penn, MHC and William Penn Bancorp ceased to exist. The second-step conversion was completed on March 24, 2021, at which time the Company sold, for gross proceeds of $126.4 million, a total of 12,640,035 shares of common stock at $10.00 per share. As part of the second-step conversion, each of the existing 776,647 outstanding shares of William Penn Bancorp common stock owned by persons other than William Penn, MHC was converted into 3.2585 shares of Company common stock. In addition, $5.4 million of cash held by William Penn, MHC was transferred to the Company and recorded as an increase to additional paid-in capital following the completion of the second-step conversion. As a result of the second-step conversion, all share information has been subsequently revised to reflect the 3.2585 exchange ratio, unless otherwise noted. In connection with the second-step offering, and as previously disclosed in the prospectus filed on January 15, 2021, 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 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 subscription offering. Subsequent to the completion of the second-step conversion on March 24, 2021, the ESOP trustees purchased 881,130 shares, or $10.1 million, of the Company’s common stock in the open market. The ESOP does not intend to purchase any additional shares of Company common stock in connection with the second-step conversion and offering. The Company owns 100% of the outstanding common stock of the Bank, a Pennsylvania chartered stock savings bank. The Bank offers consumer and commercial banking services to individuals, businesses, and nonprofit organizations throughout the Delaware Valley area through twelve full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington and Camden Counties in New Jersey. William Penn Bancorp 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 | 9 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities and loans for the Bank. At March 31, 2021, WPSLA held $89.4 million of the Bank’s $109.2 million investment securities portfolio and $24.5 million of the Bank’s $479.3 million loan portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are aggregated into one reportable operating segment: community banking as under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting. Use of Estimates in the Preparation of Financial Statements These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 and nine month periods ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing demand deposits, and federal funds sold. 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 insurance, 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 Bank 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 Bank or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Bank has an unconditional right to the fee consideration. The Bank also receives transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees, as well as bargain purchase gain. These fees are attributable to specific performance obligations of the Bank 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 acceptance 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 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 3 - Earnings Per Share The following table presents a calculation of basic and diluted earnings per share for the three and nine months ended March 31, 2021 and 2020. Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding. There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, the net income of $1.1 million and $3.1 million for the three and nine months ended March 31, 2021 and $837 thousand and $2.6 million for the three and nine months ended March 31, 2020, respectively, was used as the numerator. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and diluted earnings per share computation. 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 employee stock ownership plan (“ESOP”) shares. As a result of the second-step conversion, the 2020 period shares were adjusted to reflect the 3.2585 exchange ratio. Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share, net of treasury shares and unearned ESOP shares 14,613,210 12,969,331 14,623,497 12,969,331 Net Income $ 1,067 $ 837 $ 3,113 $ 2,620 Basic and diluted earnings per share $ 0.07 $ 0.06 $ 0.21 $ 0.20 |
Changes in and Reclassification
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Mar. 31, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Income | Note 4 – Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income The following tables present the changes in the balances of each component of accumulated other comprehensive (loss) income (“AOCI”) for the three and nine months ended March 31, 2021 and 2020. All amounts are presented net of tax. (Dollars in thousands) Gains (Losses) on Securities Accumulated Other Comprehensive (Loss) Income (1) Available for Sale Balance at June 30, 2019 $ 228 Other comprehensive loss before reclassifications (118) Amounts reclassified from accumulated other comprehensive income (72) Period change (190) Balance at September 30, 2019 $ 38 Other comprehensive loss before reclassifications (234) Amounts reclassified from accumulated other comprehensive income — Period change (234) Balance at December 31, 2019 $ (196) Other comprehensive income before reclassifications 407 Amounts reclassified from accumulated other comprehensive loss (80) Period change 327 Balance at March 31, 2020 $ 131 (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. (Dollars in thousands) Gains on Securities Accumulated Other Comprehensive Income (1) Available for Sale Balance at June 30, 2020 $ 76 Other comprehensive income before reclassifications 357 Amounts reclassified from accumulated other comprehensive income — Period change 357 Balance at September 30, 2020 $ 433 Other comprehensive income before reclassifications 284 Amounts reclassified from accumulated other comprehensive income 23 Period change 307 Balance at December 31, 2020 $ 740 Other comprehensive loss before reclassifications (1,897) Amounts reclassified from accumulated other comprehensive income (27) Period change (1,924) Balance at March 31, 2021 $ (1,184) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. The following table presents reclassifications out of AOCI by component for the three and nine months ended March 31, 2021 and 2020: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (1) Details about Accumulated Other Comprehensive Three Months Ended Three Months Ended Affected Line Item in the (Loss) Income Components March 31, 2021 March 31, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 35 $ 103 Net (loss)/gain on sale of securities Related income tax expense (8) (23) Income tax expense $ 27 $ 80 (1) (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (1) Details about Accumulated Other Comprehensive Nine Months Ended Nine Months Ended Affected Line Item in the (Loss) Income Components March 31, 2021 March 31, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 5 $ 196 Net (loss)/gain on sale of securities Related income tax expense (1) (44) Income tax expense $ 4 $ 152 (1) Amounts in parenthesis indicate debits. |
Investment Securities
Investment Securities | 9 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Investment Securities | Note 5 – Investment Securities The amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities are as follows: March 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 34,350 $ 24 $ (653) $ 33,721 U.S. agency collateralized mortgage obligations 18,881 45 (359) 18,567 U.S. government agency securities 10,401 — (92) 10,309 Municipal bonds 22,342 — (1,265) 21,077 Corporate bonds 24,700 826 (16) 25,510 Total Available For Sale $ 110,674 $ 895 $ (2,385) $ 109,184 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,570 $ 272 $ (104) $ 51,738 U.S. agency collateralized mortgage obligations 3,215 33 (33) 3,215 U.S. government agency securities 6,226 2 (73) 6,155 U.S. treasury securities 1,000 — — 1,000 Municipal bonds 10,485 33 (10) 10,508 Corporate bonds 17,399 60 (77) 17,382 Total Available For Sale $ 89,895 $ 400 $ (297) $ 89,998 The Company recognized $35 thousand of gross gains on the sale of $4.5 million of investment securities during the three months ended March 31, 2021. The Company recognized $58 thousand of gross gains and $53 thousand of gross losses on the sale of $12.4 million of investment securities during the nine months ended March 31, 2021. The Company recognized $106 thousand of gross gains and $3 thousand of gross losses on the sale of $3.2 million of investment securities during the three months ended March 31, 2020. The Company recognized $199 thousand of gross gains and $3 thousand of gross losses on the sale of $7.6 million of investment securities during the nine months ended March 31, 2020. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without penalties. March 31, 2021 Available For Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 5 $ 5 Due after one year through five years 11,983 12,442 Due after five years through ten years 18,436 18,717 Due after ten years 80,250 78,020 $ 110,674 $ 109,184 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 March 31, 2021 and June 30, 2020: March 31, 2021 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 31,222 $ 653 $ — $ — $ 31,222 $ 653 U.S. agency collateralized mortgage obligations 9,769 220 5,504 139 15,273 359 U.S. government agency securities 8,740 71 1,569 21 10,309 92 Municipal bonds 21,077 1,265 — — 21,077 1,265 Corporate bonds 2,234 16 — — 2,234 16 Total Temporarily Impaired Securities $ 73,042 $ 2,225 $ 7,073 $ 160 $ 80,115 $ 2,385 June 30, 2020 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 22,082 $ 104 $ — $ — $ 22,082 $ 104 U.S. agency collateralized mortgage obligations 1,513 14 1,129 19 2,642 33 U.S. government agency securities 4,922 49 914 24 5,836 73 Municipal bonds 3,694 10 — — 3,694 10 Corporate bonds 5,222 77 — — 5,222 77 Total Temporarily Impaired Securities $ 37,433 $ 254 $ 2,043 $ 43 $ 39,476 $ 297 The Company evaluates its investment securities holdings for other-than-temporary impairment (“OTTI”) on at least a quarterly basis. As part of this process, management considers its intent to sell each debt security and whether it is more likely than not the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, OTTI is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the most recent balance sheet date. For securities that meet neither of these conditions, management performs analysis to determine whether any of these securities are at risk for OTTI. To determine which individual securities are at risk for OTTI and should be quantitatively evaluated utilizing a detailed analysis, management uses indicators which consider various characteristics of each security including, but not limited to, the following: the credit rating; the duration and level of the unrealized loss; prepayment assumptions; and certain other collateral-related characteristics such as delinquency rates, the security’s performance, and the severity of expected collateral losses. The unrealized loss on securities greater than 12 months is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at March 31, 2021 and June 30, 2020. There were 61 investment securities that were temporarily impaired at March 31, 2021. Based on its analysis, management has concluded that the investment securities portfolio has experienced unrealized losses and a decrease in fair value due to interest rate volatility. However, the decline is considered temporary, and the Company does not intend to sell these securities nor is it more likely than not the Company would be required to sell the security before its anticipated recovery, which may be maturity. At March 31, 2021, $3.0 million of investment securities were pledged to secure municipal deposits. At June 30, 2020, $3.7 million of investment securities were pledged to secure municipal deposits. |
Loans
Loans | 9 Months Ended |
Mar. 31, 2021 | |
Loans | |
Loans | Note 6 – Loans Major classifications of loans at March 31, 2021 and June 30, 2020 are summarized as follows: March 31, June 30, 2021 2020 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1-4 family $ 305,650 63.33 % $ 345,915 66.85 % Home equity and HELOCs 43,999 9.12 47,054 9.10 Construction -residential 15,230 3.16 15,799 3.05 Commercial real estate: Multi-family (five or more) 12,932 2.68 14,964 2.89 Commercial non-residential 90,791 18.81 76,707 14.83 Land 6,172 1.28 6,690 1.29 Commercial 4,416 0.91 6,438 1.24 Consumer Loans 3,427 0.71 3,900 0.75 Total Loans 482,617 100.00 % 517,467 100.00 % Loans in process (2,535) (4,895) Unearned loan origination fees (753) (448) Allowance for loan losses (3,599) (3,519) Net Loans $ 475,730 $ 508,605 At March 31, 2021, the balance of one- to four-family residential real estate loans and home equity and HELOCs included $127.7 million of loans secured by non-owner-occupied, one-to-four-family residences (“investor loans”), representing approximately 26.5% of total loans. The $127.7 million of one- to four-family investor loans at March 31, 2021 included $127.3 million of first mortgages and $425 thousand of home equity and HELOCs. At June 30, 2020, the balance of one- to four-family residential real estate loans and home equity and HELOCs included $114.1 million of loans secured by one- to four-family investor loans, representing approximately 22.0% of total loans. The $114.1 million of one- to four-family investor loans at June 30, 2020 included $113.6 million of first mortgages and $507 thousand of home equity and HELOCs. During the three months ended June 30, 2020, the Bank provided $2.4 million in Paycheck Protection Program (PPP) loans for 56 new and existing customers, which are guaranteed by the Small Business Administration and mature in two years. As of June 30, 2020, the $2.4 million of PPP loans are included in commercial loans in the above table. During the three months ended March 31, 2021, the Bank provided an additional $1.1 million in PPP loans for 27 new and existing customers, which are guaranteed by the Small Business Administration and mature in two years. As of March 31, 2021, the remaining balance of $1.7 million of PPP loans is included in commercial loans in the above table. During the three months ended June 30, 2020, the Bank also modified approximately $49.8 million of existing loans in accordance with the provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide its customers with monetary relief. Generally, these modifications included the deferral of principal and interest payments for a period of three months, although interest income continued to accrue. The three-month deferral period has ended on a portion of the loans on deferral and the Bank received payments of principal and interest on a portion of the loans on deferral and, as of March 31, 2021, $608 thousand of loans remain on deferral under the CARES Act. Mortgage loans serviced for others are not included in the accompanying Consolidated Statements of Financial Condition. The total amount of loans serviced for the benefit of others was approximately $20.7 million and $26.6 million at March 31, 2021 and June 30, 2020, respectively. The Bank retained the related servicing rights for the loans that were sold and receives a 25 basis point servicing fee from the purchasers of the loans. Custodial escrow balances maintained in connection with the foregoing loan servicing are included in advances from borrowers for taxes and insurance. Allowance for Loan Losses. The provision for loan losses was determined by management to be an amount necessary to maintain a balance of allowance for loan losses at a level that considers all known and current losses in the loan portfolio as well as potential losses due to unknown factors such as the economic environment. Changes in the provision were based on management’s analysis of various factors such as: estimated fair value of underlying collateral, recent loss experience in particular segments of the portfolio, levels and trends in delinquent loans, and changes in general economic and business conditions. The Company considers the allowance for loan losses of $3.6 million and $3.5 million adequate to cover loan losses inherent in the loan portfolio at March 31, 2021 and June 30, 2020, respectively. The following table presents by portfolio segment, the changes in the allowance for loan losses for the periods ended: Three Months Ended March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 1,571 $ 160 $ 463 $ 161 $ 851 $ 334 $ 32 $ 15 $ 3,587 Charge-offs (3) — — — — — — — (3) Recoveries — — — — — — — — — Provision (48) 8 41 11 (9) 15 (3) — 15 Ending Balance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 March 31, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 1,828 $ 130 $ 159 $ 106 $ 435 $ 109 $ 42 $ 15 $ 164 $ 2,988 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision (338) (61) 218 (7) 215 133 18 7 (164) 21 Ending Balance $ 1,490 $ 69 $ 377 $ 99 $ 650 $ 242 $ 60 $ 22 $ — $ 3,009 Nine Months Ended March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 1,483 $ 166 $ 526 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs (3) — — — — — — (30) (33) Recoveries — — — — — — — — — Provision 40 2 (22) 49 115 (47) (54) 30 113 Ending Balance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 March 31, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 1,501 $ 122 $ 321 $ 71 $ 708 $ 121 $ 95 $ 3 $ 267 $ 3,209 Charge-offs (218) — — — — — (3) — — (221) Recoveries — — — — — — — — — — Provision 207 (53) 56 28 (58) 121 (32) 19 (267) 21 Ending Balance $ 1,490 $ 69 $ 377 $ 99 $ 650 $ 242 $ 60 $ 22 $ — $ 3,009 The following tables present the allowance for loan losses and recorded investment by loan portfolio classification as March 31, 2021 and June 30, 2020: March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 3,599 Total allowance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 Loans receivable ending balance: Individually evaluated for impairment $ 2,387 $ 580 $ — $ 182 $ 1,051 $ — $ — $ — $ 4,200 Collectively evaluated for impairment 187,162 18,399 11,697 12,576 60,419 6,172 3,428 568 300,421 Acquired non-credit impaired loans (1) 115,959 24,997 3,533 174 29,321 — 988 2,859 177,831 Acquired credit impaired loans (2) 142 23 — — — — — — 165 Total portfolio $ 305,650 $ 43,999 $ 15,230 $ 12,932 $ 90,791 $ 6,172 $ 4,416 $ 3,427 $ 482,617 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. June 30, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,483 166 526 123 727 396 83 15 — 3,519 Total allowance $ 1,483 $ 166 $ 526 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Loans receivable ending balance: Individually evaluated for impairment $ 973 $ 628 $ — $ 185 $ 585 $ — $ — $ — $ — $ 2,371 Collectively evaluated for impairment 189,055 15,677 9,218 9,267 45,214 6,690 4,150 713 — 279,984 Acquired non-credit impaired loans (1) 155,588 30,727 6,581 5,512 30,908 — 2,288 3,187 — 234,791 Acquired credit impaired loans (2) 299 22 — — — — — — — 321 Total portfolio $ 345,915 $ 47,054 $ 15,799 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 3,900 $ — $ 517,467 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. During the nine months ended March 31, 2021, the changes in the provision for loan losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each portfolio of loans collectively evaluated for impairment. The overall increase in the allowance during the nine months ended March 31, 2021 can be primarily attributed to an increase in non-accrual and delinquent loans and the corresponding qualitative adjustment. During the year ended June 30, 2020, the changes in the provision for loan losses related to one- to four-family residential real estate, residential real estate construction loans and commercial real estate land loans were primarily due to uncertainties with the risk profile of these portfolios in the current economic environment as impacted by the COVID-19 pandemic. The increase in reserves due to the COVID-19 pandemic was limited by the Bank making enhancements to its credit management function by adding new experienced team members and implementing more robust internal credit measurement and monitoring processes. Credit Quality Information The following tables represent credit exposures by internally assigned grades as of March 31, 2021 and June 30, 2020. 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 March 31, 2021 and June 30, 2020: March 31, 2021 Commercial Real Estate Construction Multi-family Non-residential and land Commercial Pass $ 12,750 $ 89,487 $ 6,172 $ 4,416 Special Mention — 450 — — Substandard 182 854 — — Doubtful — — — — Loss — — — — Ending Balance $ 12,932 $ 90,791 $ 6,172 $ 4,416 June 30, 2020 Commercial Real Estate Construction Multi-family Non-residential and land Commercial Pass $ 13,976 $ 75,973 $ 6,690 $ 6,438 Special Mention 803 507 — — Substandard 185 227 — — Doubtful — — — — Loss — — — — Ending Balance $ 14,964 $ 76,707 $ 6,690 $ 6,438 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 March 31, 2021 and June 30, 2020: March 31, 2021 Residential Real Estate Home equity & 1-4 family HELOCs Construction Consumer Performing $ 301,014 $ 43,646 $ 15,230 $ 3,309 Non-performing 4,636 353 — 118 $ 305,650 $ 43,999 $ 15,230 $ 3,427 June 30, 2020 Residential Real Estate Home equity & 1-4 family HELOCs Construction Consumer Performing $ 343,562 $ 46,580 $ 15,799 $ 3,785 Non-performing 2,353 474 — 115 $ 345,915 $ 47,054 $ 15,799 $ 3,900 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 March 31, 2021 and June 30, 2020, are as follows: (Dollars in thousands) March 31, 2021 June 30, 2020 Outstanding principal balance $ 254 $ 773 Carrying amount 165 321 The following table presents changes in the accretable discount on loans acquired with deteriorated credit quality, for which the Company applies the provisions of ASC 310-30, for the period presented: (Dollars in thousands) Accretable Discount Balance, May 1, 2020 $ 57 Accretion (4) Balance, June 30, 2020 $ 53 Accretion (7) Balance, September 30, 2020 $ 46 Accretion (16) Balance, December 31, 2020 30 Accretion (14) Balance, March 31, 2021 $ 16 Loan Delinquencies and Non-accrual Loans Following are tables which include an aging analysis of the recorded investment of past due loans as of March 31, 2021 and June 30, 2020. Aged Analysis of Past Due and Non-accrual Loans As of March 31, 2021 Recorded Recorded Acquired Investment > Investment 30-59 Days 60-89 Days 90 Days Total Past Credit Total Loans 90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1-4 family $ 1,796 $ 1,142 $ 1,831 $ 4,769 $ 142 $ 300,739 $ 305,650 $ — $ 4,636 Home equity and HELOCs — — 253 253 23 43,723 43,999 — 353 Construction - residential — — — — — 15,230 15,230 — — Commercial real estate: Multi-family — — 182 182 — 12,750 12,932 — 182 Commercial non-residential — 546 — 546 — 90,245 90,791 — 667 Construction and land — — — — — 6,172 6,172 — — Commercial — — — — — 4,416 4,416 — — Consumer 49 32 — 81 — 3,346 3,427 — 118 Total $ 1,845 $ 1,720 $ 2,266 $ 5,831 $ 165 $ 476,621 $ 482,617 $ — $ 5,956 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2020 Recorded Recorded 30-59 60-89 90 and Over Acquired Investment > Investment 30-59 Days 60-89 Days 90 Days Total Past Credit Total Loans 90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1-4 family $ 235 $ 1,020 $ 1,477 $ 2,732 $ 299 $ 342,884 $ 345,915 $ — $ 2,353 Home equity and HELOCs 126 101 181 408 22 46,624 47,054 90 384 Construction - residential — — — — — 15,799 15,799 — — Commercial real estate: Multi-family — 465 185 650 — 14,314 14,964 — 185 Commercial non-residential 100 507 — 607 — 76,100 76,707 — 135 Land — — — — — 6,690 6,690 — — Commercial — — — — — 6,438 6,438 — — Consumer 3 21 — 24 — 3,876 3,900 — 115 Total $ 464 $ 2,114 $ 1,843 $ 4,421 $ 321 $ 512,725 $ 517,467 $ 90 $ 3,172 Interest income on non-accrual loans that would have been recorded was approximately $71 thousand, $212 thousand, $8 thousand, and $24 thousand, respectively, during the three and nine months ended March 31, 2021 and 2020, respectively, if these loans had performed in accordance with their terms. Impaired Loans Management considers commercial loans and commercial real estate loans which are 90 days or more past due to be impaired. Larger commercial loans and commercial real estate loans which are 60 days or more past due are selected for impairment testing in accordance with GAAP. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance for loan losses. The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, at March 31, 2021 and June 30, 2020. March 31, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real Estate $ 2,387 $ 2,390 $ — Home equity and HELOCs 580 586 — Construction Residential — — — Multi-family 182 183 — Commercial non-residential 1,051 1,086 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family $ 2,387 $ 2,390 $ — Home equity and HELOCs 580 586 — Construction Residential — — — Multi-family 182 183 — Commercial non-residential 1,051 1,086 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructuings (“TDRs”) in the amount of $964 thousand that are performing in accordance with their modified terms. The Company recognized $13 thousand and $48 thousand of interest income on accruing TDRs during the three and nine months ended March 31, 2021, respectively. The table above does not include $165 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2020 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real Estate $ 973 $ 973 $ — Home equity and HELOCs 628 634 — Construction Residential — — — Multi-family 185 185 — Commercial non-residential 585 620 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family $ 973 $ 973 $ — Home equity and HELOCs 628 634 — Construction Residential — — — Multi-family 185 185 — Commercial non-residential 585 620 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing TDRs in the amount of $1.4 million that are performing in accordance with their modified terms. The Company recognized $18 thousand and $53 thousand of interest income on accruing TDRs during the three and nine months ended March 31, 2020. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three and nine months ended March 31, 2021 and March 31, 2020. March 31, 2021 Three Months Ended Nine Months Ended Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: 1-4 Family residential real Estate $ 2,209 $ 1 $ 1,789 $ 13 Home equity and HELOCs 626 5 643 15 Construction Residential — — — — Multi-family 182 — 183 — Commercial non-residential 1,059 8 897 26 Construction and land — — — — Commercial — — — — Consumer — — — — With an allowance recorded: 1-4 Family $ — $ — $ — $ — Home equity and HELOCs — — — — Construction Residential — — — — Multi-family — — — — Commercial non-residential — — — — Construction and land — — — — Commercial — — — — Consumer — — — — Total: 1-4 Family $ 2,209 $ 1 $ 1,789 $ 13 Home equity and HELOCs 626 5 643 15 Construction Residential — — — — Multi-family 182 — 183 — Commercial non-residential 1,059 8 897 26 Construction and land — — — — Commercial — — — — Consumer — — — — March 31, 2020 Three Months Ended Nine Months Ended Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: 1-4 Family residential real Estate $ 1,219 $ 8 $ 1,582 $ 39 Home equity and HELOCs 709 8 810 24 Construction Residential — — — — Multi-family 185 — 186 — Commercial non-residential 631 10 636 30 Construction and land — — — — Commercial — — — — Consumer — — — — With an allowance recorded: 1-4 Family $ — $ — $ — $ — Home equity and HELOCs — — — — Construction Residential — — — — Multi-family — — — — Commercial non-residential — — — — Construction and land — — — — Commercial — — — — Consumer — — — — Total: 1-4 Family $ 1,219 $ 8 $ 1,582 $ 39 Home equity and HELOCs 709 8 810 24 Construction Residential — — — — Multi-family 185 — 186 — Commercial non-residential 631 10 636 30 Construction and land — — — — Commercial — — — — Consumer — — — — Generally, the Company will charge-off the collateral or discounted cash flow deficiency on all impaired loans. Interest income that would have been recorded for the three and nine months ended March 31, 2021, had impaired loans been current according to their original terms, amounted to $50 thousand and $151 thousand, respectively. Interest income that would have been recorded for the three and nine months ended March 31, 2020, had impaired loans been current according to their original terms, amounted to $33 thousand and $100 thousand, respectively. Troubled Debt Restructurings The Bank determines whether a restructuring of debt constitutes a TDR in accordance with guidance under FASB ASC Topic 310 Receivables ● A review of the borrower’s current financial condition in which the borrower must demonstrate sufficient cash flow to support the repayment of all principal and interest including any amounts previously charged-off; ● An updated appraisal or home valuation which must demonstrate sufficient collateral value to support the debt; and ● Sustained performance based on the restructured terms for at least six consecutive months. During the three months ended June 30, 2020, the Bank began providing customer relief programs, such as payment deferrals or interest only payments on loans. The Company does not consider a modification to be a TDR if it occurred as a result of the loan forbearance program under the CARES Act. Currently, the CARES Act provides that a loan term modification does not automatically result in TDR status if the modification is made on a good-faith basis in response to COVID-19 to borrowers who were classified as current and not more than 30 days past due as of December 31, 2019, and executed between March 1, 2020 and the earlier of (a) 60 days after the date of termination of the COVID-19 pandemic national emergency, or (b) January 1, 2022. During the three months ended June 30, 2020, the Bank modified approximately $49.8 million of loans to provide its customers this monetary relief. Generally, these modifications included the deferral of principal and interest payments for a period of three months, although interest income continued to accrue. The three-month deferral period has ended on a portion of the loans on deferral and the Bank received payments of principal and interest on a portion of the loans on deferral and, as of March 31, 2021, $608 thousand of loans remain on deferral under the CARES Act. During the nine months ended March 31, 2021 and the year ended June 30, 2020, 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 nine months ended March 31, 2021 and the year ended June 30, 2020. |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 7 – Premises and Equipment The components of premises and equipment are as follows as of March 31, 2021 and June 30, 2020: March 31, June 30, (Dollars in thousands) 2021 2020 Land $ 2,581 $ 4,144 Office buildings and improvements 12,811 14,493 Furniture, fixtures and equipment 2,417 1,918 Automobiles 50 50 17,858 20,605 Accumulated depreciation (4,324) (3,872) $ 13,534 $ 16,733 Depreciation expense amounted to $229 thousand and $757 thousand for the three and nine months ended March 31, 2021, respectively. Depreciation expense amounted to $124 thousand and $334 thousand for the three and nine months ended March 31, 2020, respectively. During the nine months ended March 31, 2021, the Company transferred six properties from premises and equipment with a total carrying value of approximately $3.2 million to the held for sale classification included in other assets on its consolidated statement of financial condition. The Company sold five of the six properties prior to December 31, 2020 and, as of March 31, 2021, is actively marketing the one property that remains in the held for sale classification in other assets on its consolidated statement of financial condition. During the three and nine months ended March 31, 2021, the Company recorded $34 thousand of net losses and $435 thousand of net gains, respectively, on the disposition of premises and equipment. The $34 thousand net loss on the disposition of premises and equipment recorded during the three months ended March 31, 2021 relates to the strategic decision to consolidate three existing Bank branches into one branch based on branch deposit levels and the close geographic proximity of the three consolidating branches. The Company did not sell any premises and equipment during the three and nine months ended March 31, 2020. |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangibles | |
Goodwill and Intangibles | Note 8 – Goodwill and Intangibles The goodwill and intangible assets arising from acquisitions is accounted for in accordance with the accounting guidance in FASB ASC Topic 350 for Intangibles — Goodwill and Other The Company performs its annual impairment evaluation on June 30 or more frequently if events and circumstances indicate that the fair value of the banking unit is less than its carrying value. During the year ended June 30, 2020, management included considerations of the current economic environment caused by COVID-19 in its qualitative assessment of goodwill impairment and determined that a quantitative assessment of goodwill was warranted. Management engaged a third-party valuation specialist to perform a quantitative assessment of goodwill impairment and it was determined that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed at June 30, 2020. During the nine months ended March 31, 2021, management considered the current economic environment caused by the COVID-19 pandemic in its evaluation, and determined based on the totality of its qualitative assessment that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment exists during the nine months ended March 31, 2021. Goodwill and other intangibles are summarized as follows for the periods presented: Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (64) Balance, September 30, 2020 $ 4,858 $ 1,128 Adjustments: Additions — — Amortization — (64) Balance, December 31, 2020 $ 4,858 $ 1,064 Adjustments: Additions — — Amortization — (64) Balance, March 31, 2021 $ 4,858 $ 1,000 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, July 1, 2019 $ 4,858 $ 1,172 Adjustments: Additions — — Amortization — (59) Balance, September 30, 2019 $ 4,858 $ 1,113 Adjustments: Additions — — Amortization — (59) Balance, December 31, 2019 $ 4,858 $ 1,054 Adjustments: Additions — — Amortization — (58) Balance, March 31, 2020 $ 4,858 $ 996 Aggregate amortization expense was $64 thousand and $192 thousand for the three and nine months ended March 31, 2021, respectively. Aggregate amortization expense was $58 thousand and $176 thousand for the three and nine months ended March 31, 2020, respectively. |
Deposits
Deposits | 9 Months Ended |
Mar. 31, 2021 | |
Deposits. | |
Deposits | Note 9 – Deposits Deposits consist of the following major classifications as of March 31, 2021 and June 30, 2020: (Dollars in thousands) March 31, 2021 June 30, 2020 Non-interest bearing checking $ 45,687 $ 43,395 Interest bearing checking 101,888 98,828 Money market accounts 131,037 129,048 Savings and club accounts 100,581 94,097 Certificates of deposit 169,123 194,480 $ 548,316 $ 559,848 |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 9 Months Ended |
Mar. 31, 2021 | |
Advances from Federal Home Loan Bank | |
Advances from Federal Home Loan Bank | Note 10 – Advances from Federal Home Loan Bank The Bank is a member of the FHLB system, which consists of 11 regional Federal Home Loan Banks. The FHLB provides a central credit facility primarily for member institutions. The Bank had a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $296.2 million and $223.0 million at March 31, 2021 and June 30, 2020, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $429.6 million and $322.0 million of loans pledged as collateral as of March 31, 2021 and June 30, 2020, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in the FHLB of Pittsburgh. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $2.8 million and $3.9 million at March 31, 2021 and June 30, 2020, respectively. On August 24, 2020, the Bank paid off $23.2 million of advances from the FHLB of Pittsburgh due to the low interest rate environment and excess cash held on the Company’s consolidated statements of financial condition. Advances from the FHLB of Pittsburgh consisted of the following as of March 31, 2021 and June 30, 2020: (Dollars in thousands) March 31, 2021 June 30, 2020 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 21,767 Mid-term 7,000 23,125 Total FHLB advances $ 41,000 $ 64,892 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of financial condition. A summary of the Company's loan commitments is as follows as of March 31, 2021 and June 30, 2020: March 31, June 30, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 17,552 $ 18,602 Unfunded commitments under lines of credit 49,150 52,432 Standby letters of credit 2,000 — Commitments to extend credit are agreements to lend to a customer if there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have 90-day fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies, but primarily includes residential and commercial real estate. Periodically, there have been other various claims and lawsuits against the Bank, such as claims to enforce liens, condemnation proceedings on properties in which it holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business. The Bank is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Mar. 31, 2021 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 12 - Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (described below) of tangible and core capital to total adjusted assets and of total capital to risk-weighted assets. Management believes, as of March 31, 2021 and June 30, 2020, that the Bank meets all capital adequacy requirements to which it is subject. As of March 31, 2021 and June 30, 2020, the most recent notification from the regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum amounts and ratios of Tier I leverage capital to average assets and of common equity Tier I capital, Tier I capital, and total capital to risk-weighted assets, all as defined in the regulation. The Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in May 2018 required the federal banking agencies, including the Federal Deposit Insurance Corporation, to establish for banks with assets of less than $10 billion of assets a community bank leverage ratio (the ratio of a bank’s tangible equity capital to average total consolidated assets) of 8 to 10%. A qualifying community bank with capital meeting the specified requirements (including off balance sheet exposures of 25% or less of total assets and trading assets and liabilities of 5% or less of total assets) and electing to follow the alternative framework is considered to meet all applicable regulatory capital requirements including the risk-based requirements. The community bank leverage ratio was established at 9% Tier 1 capital to total average assets, effective January 1, 2020. A qualifying bank may opt in and out of the community bank leverage ratio framework on its quarterly call report. A bank that ceases to meet any qualifying criteria is provided with a two-quarter grace period to comply with the community bank leverage ratio requirements or the general capital regulations by the federal regulators. In addition, Section 4012 of the CARES Act required that the community bank leverage ratio be temporarily lowered to 8%. The federal regulators issued a rule making the lower ratio effective April 23, 2020. The rules also established a two-quarter grace period for a qualifying community bank whose leverage ratio falls below the 8% community bank leverage ratio requirement so long as the bank maintains a leverage ratio of 7% or greater. Another rule was issued providing for the transition back to the 9% community bank leverage ratio, increasing the ratio to 8.5% for calendar year 2021 and to 9% thereafter. During the fiscal year ended June 30, 2020, the Bank elected the community bank leverage ratio alternative reporting framework. A “small holding company,” as defined under Federal Reserve Board regulations as a bank holding company or savings and loan holding company with less than $3 billion of consolidated assets, such as the Company, is generally not subject to the regulatory capital requirements applicable to the Bank and outlined above, unless otherwise directed by the Federal Reserve Board. The community bank leverage ratios of the Bank at March 31, 2021 and June 30, 2020 are as follows: To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action As of March 31, 2021 Actual Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 151,251 19.27 % > $ 31,393 > 4.00 % > $ 39,242 > 5.00 % To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action As of June 30, 2020 Actual Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 86,822 13.67 % > $ 25,397 > 4.00 % > $ 31,746 > 5.00 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 13 – Fair Value of Financial Instruments The Company follows authoritative guidance under FASB ASC Topic 820 for Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The definition of fair value under ASC 820 is the exchange price. The guidance clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability. The definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is based on quoted market prices, when available. If listed prices or quotes are not available, fair value is based on fair value models that use market participant or independently sourced market data which include: discount rate, interest rate yield curves, credit risk, default rates and expected cash flow assumptions. In addition, valuation adjustments may be made in the determination of fair value. These fair value adjustments may include amounts to reflect counter party credit quality, creditworthiness, liquidity, and other unobservable inputs that are applied consistently over time. These adjustments are estimated and, therefore, subject to significant management judgment, and at times, may be necessary to mitigate the possibility of error or revision in the model-based estimate of the fair value provided by the model. The methods described above may produce fair value calculations that may not be indicative of the net realizable value. While the Company believes its valuation methods are consistent with other financial institutions, the use of different methods or assumptions to determine fair values could result in different estimates of fair value. FASB ASC Topic 820 for Fair Value Measurements and Disclosures describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following table presents the assets required to be measured and reported on a recurring basis on the Company’s consolidated statements of financial condition at their fair value as of March 31, 2021 and June 30, 2020, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. March 31, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 33,721 $ — $ 33,721 U.S. agency collateralized mortgage obligations — 18,567 — 18,567 U.S. government agency securities — 10,309 — 10,309 Municipal bonds — 21,077 — 21,077 Corporate bonds — 25,510 — 25,510 Total Assets $ — $ 109,184 $ — $ 109,184 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 51,738 $ — $ 51,738 U.S. agency collateralized mortgage obligations — 3,215 — 3,215 U.S. government agency securities — 6,155 — 6,155 U.S. treasury securities — 1,000 — 1,000 Municipal bonds — 10,508 — 10,508 Corporate bonds — 17,382 — 17,382 Total Assets $ — $ 89,998 $ — $ 89,998 Assets and Liabilities Measured on a Non-Recurring Basis Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets and liabilities to be assessed for impairment or recorded at the lower of cost or fair value. Impaired loans are generally measured for impairment using the fair value of the collateral supporting the loan. Evaluating impaired loan collateral is based on Level 3 inputs utilizing outside appraisals adjusted by management for sales costs and other assumptions regarding market conditions to arrive at fair value. As of March 31, 2021 and June 30, 2020, the Company charged-off the collateral deficiency on impaired loans. As a result, there were no specific reserves on impaired loans as of March 31, 2021 and June 30, 2020. Other real estate owned (OREO) is measured at fair value, based on appraisals less cost to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. As of March 31, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2020, assets required to be measured and reported at fair value on a non-recurring basis are summarized as follows: June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 190 $ 190 Other real estate owned — — 100 100 $ — $ — $ 290 $ 290 Quantitative information regarding assets measured at fair value on a non-recurring basis as of June 30, 2020 is as follows: Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2020 Impaired loans $ 190 Appraisal of collateral (1) Appraisal adjustments (2) 0-28 % Foreclosed real estate owned $ 100 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % (1) F air value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. Management uses its best judgment in estimating the fair value of the Company's financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The following information should not be interpreted as an estimate of the fair value of the entire company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful. 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. Fair Value Measurements at March 31, 2021 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial assets: Loans receivable, net $ 475,730 $ 475,377 $ — $ — $ 475,377 Financial liabilities: Certificates of deposit 169,123 170,411 — — 170,411 Advances from Federal Home Loan Bank 41,000 42,038 — — 42,038 Fair Value Measurements at June 30, 2020 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial assets: Loans receivable, net $ 508,605 $ 541,779 $ — $ — $ 541,779 Financial liabilities: Certificates of deposit 194,480 198,268 — — 198,268 Advances from Federal Home Loan Bank 64,892 67,520 — — 67,520 For cash and due from banks, interest bearing time deposits, regulatory stock, bank-owned life insurance, accrued interest receivable, core deposits, advances from borrowers for taxes and insurance, and accrued interest payable, the carrying amount approximates the fair value and is considered a Level 1 measurement. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Mar. 31, 2021 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | Note 14 – Employee Stock Ownership Plan The Company offers ESOP benefits to employees who meet certain eligibility requirements. In connection with the second-step offering, and as previously disclosed in the prospectus filed on January 15, 2021, the William Penn Bank ESOP trustees subscribed for, and intended to purchase, on behalf of the ESOP, 8% of the shares of the Company common stock sold in the offering and to fund its stock purchase through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. As previously disclosed, as a result of the second-step 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 subscription offering. Subsequent to the completion of the second-step conversion on March 24, 2021, the ESOP trustees purchased 881,130 shares, or $10.1 million, of the Company’s common stock in the open market. The ESOP does not intend to purchase any additional shares of Company common stock in connection with the second-step conversion and offering. In connection with the purchase of the shares, the Plan borrowed $10.1 million from the Company at a fixed interest rate of 3.25% with a twenty-five-year |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities and loans for the Bank. At March 31, 2021, WPSLA held $89.4 million of the Bank’s $109.2 million investment securities portfolio and $24.5 million of the Bank’s $479.3 million loan portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are aggregated into one reportable operating segment: community banking as under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 and nine month periods ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. |
Presentation of Cash Flows | Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing demand deposits, and federal funds sold. |
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 insurance, 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 Bank 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 Bank or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Bank has an unconditional right to the fee consideration. The Bank also receives transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees, as well as bargain purchase gain. These fees are attributable to specific performance obligations of the Bank 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 acceptance 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share | |
Schedule of composition of the weighted average common shares used in the basic and diluted earnings per share computation | Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share, net of treasury shares and unearned ESOP shares 14,613,210 12,969,331 14,623,497 12,969,331 Net Income $ 1,067 $ 837 $ 3,113 $ 2,620 Basic and diluted earnings per share $ 0.07 $ 0.06 $ 0.21 $ 0.20 |
Changes in and Reclassificati_2
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | |
Schedule of changes in the balances of each component of accumulated other comprehensive income ("AOCI") | (Dollars in thousands) Gains (Losses) on Securities Accumulated Other Comprehensive (Loss) Income (1) Available for Sale Balance at June 30, 2019 $ 228 Other comprehensive loss before reclassifications (118) Amounts reclassified from accumulated other comprehensive income (72) Period change (190) Balance at September 30, 2019 $ 38 Other comprehensive loss before reclassifications (234) Amounts reclassified from accumulated other comprehensive income — Period change (234) Balance at December 31, 2019 $ (196) Other comprehensive income before reclassifications 407 Amounts reclassified from accumulated other comprehensive loss (80) Period change 327 Balance at March 31, 2020 $ 131 (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. (Dollars in thousands) Gains on Securities Accumulated Other Comprehensive Income (1) Available for Sale Balance at June 30, 2020 $ 76 Other comprehensive income before reclassifications 357 Amounts reclassified from accumulated other comprehensive income — Period change 357 Balance at September 30, 2020 $ 433 Other comprehensive income before reclassifications 284 Amounts reclassified from accumulated other comprehensive income 23 Period change 307 Balance at December 31, 2020 $ 740 Other comprehensive loss before reclassifications (1,897) Amounts reclassified from accumulated other comprehensive income (27) Period change (1,924) Balance at March 31, 2021 $ (1,184) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 22.5%. |
Schedule of reclassifications out of AOCI by component | (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (1) Details about Accumulated Other Comprehensive Three Months Ended Three Months Ended Affected Line Item in the (Loss) Income Components March 31, 2021 March 31, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 35 $ 103 Net (loss)/gain on sale of securities Related income tax expense (8) (23) Income tax expense $ 27 $ 80 (1) (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (1) Details about Accumulated Other Comprehensive Nine Months Ended Nine Months Ended Affected Line Item in the (Loss) Income Components March 31, 2021 March 31, 2020 Consolidated Statements of Income Securities available for sale: Net securities gains reclassified into net income $ 5 $ 196 Net (loss)/gain on sale of securities Related income tax expense (1) (44) Income tax expense $ 4 $ 152 (1) Amounts in parenthesis indicate debits. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities | March 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 34,350 $ 24 $ (653) $ 33,721 U.S. agency collateralized mortgage obligations 18,881 45 (359) 18,567 U.S. government agency securities 10,401 — (92) 10,309 Municipal bonds 22,342 — (1,265) 21,077 Corporate bonds 24,700 826 (16) 25,510 Total Available For Sale $ 110,674 $ 895 $ (2,385) $ 109,184 June 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 51,570 $ 272 $ (104) $ 51,738 U.S. agency collateralized mortgage obligations 3,215 33 (33) 3,215 U.S. government agency securities 6,226 2 (73) 6,155 U.S. treasury securities 1,000 — — 1,000 Municipal bonds 10,485 33 (10) 10,508 Corporate bonds 17,399 60 (77) 17,382 Total Available For Sale $ 89,895 $ 400 $ (297) $ 89,998 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | March 31, 2021 Available For Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 5 $ 5 Due after one year through five years 11,983 12,442 Due after five years through ten years 18,436 18,717 Due after ten years 80,250 78,020 $ 110,674 $ 109,184 |
Schedule of debt securities with unrealized loss position | March 31, 2021 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 31,222 $ 653 $ — $ — $ 31,222 $ 653 U.S. agency collateralized mortgage obligations 9,769 220 5,504 139 15,273 359 U.S. government agency securities 8,740 71 1,569 21 10,309 92 Municipal bonds 21,077 1,265 — — 21,077 1,265 Corporate bonds 2,234 16 — — 2,234 16 Total Temporarily Impaired Securities $ 73,042 $ 2,225 $ 7,073 $ 160 $ 80,115 $ 2,385 June 30, 2020 Less than 12 Months 12 Months or More Total Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available For Sale: Mortgage-backed securities $ 22,082 $ 104 $ — $ — $ 22,082 $ 104 U.S. agency collateralized mortgage obligations 1,513 14 1,129 19 2,642 33 U.S. government agency securities 4,922 49 914 24 5,836 73 Municipal bonds 3,694 10 — — 3,694 10 Corporate bonds 5,222 77 — — 5,222 77 Total Temporarily Impaired Securities $ 37,433 $ 254 $ 2,043 $ 43 $ 39,476 $ 297 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Loans | |
Schedule of major classifications of loans | March 31, June 30, 2021 2020 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1-4 family $ 305,650 63.33 % $ 345,915 66.85 % Home equity and HELOCs 43,999 9.12 47,054 9.10 Construction -residential 15,230 3.16 15,799 3.05 Commercial real estate: Multi-family (five or more) 12,932 2.68 14,964 2.89 Commercial non-residential 90,791 18.81 76,707 14.83 Land 6,172 1.28 6,690 1.29 Commercial 4,416 0.91 6,438 1.24 Consumer Loans 3,427 0.71 3,900 0.75 Total Loans 482,617 100.00 % 517,467 100.00 % Loans in process (2,535) (4,895) Unearned loan origination fees (753) (448) Allowance for loan losses (3,599) (3,519) Net Loans $ 475,730 $ 508,605 |
Schedule for changes in the allowance for loan losses | The following table presents by portfolio segment, the changes in the allowance for loan losses for the periods ended: Three Months Ended March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 1,571 $ 160 $ 463 $ 161 $ 851 $ 334 $ 32 $ 15 $ 3,587 Charge-offs (3) — — — — — — — (3) Recoveries — — — — — — — — — Provision (48) 8 41 11 (9) 15 (3) — 15 Ending Balance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 March 31, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 1,828 $ 130 $ 159 $ 106 $ 435 $ 109 $ 42 $ 15 $ 164 $ 2,988 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision (338) (61) 218 (7) 215 133 18 7 (164) 21 Ending Balance $ 1,490 $ 69 $ 377 $ 99 $ 650 $ 242 $ 60 $ 22 $ — $ 3,009 Nine Months Ended March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 1,483 $ 166 $ 526 $ 123 $ 727 $ 396 $ 83 $ 15 $ 3,519 Charge-offs (3) — — — — — — (30) (33) Recoveries — — — — — — — — — Provision 40 2 (22) 49 115 (47) (54) 30 113 Ending Balance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 March 31, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance for credit losses: Beginning balance $ 1,501 $ 122 $ 321 $ 71 $ 708 $ 121 $ 95 $ 3 $ 267 $ 3,209 Charge-offs (218) — — — — — (3) — — (221) Recoveries — — — — — — — — — — Provision 207 (53) 56 28 (58) 121 (32) 19 (267) 21 Ending Balance $ 1,490 $ 69 $ 377 $ 99 $ 650 $ 242 $ 60 $ 22 $ — $ 3,009 The following tables present the allowance for loan losses and recorded investment by loan portfolio classification as March 31, 2021 and June 30, 2020: March 31, 2021 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 3,599 Total allowance $ 1,520 $ 168 $ 504 $ 172 $ 842 $ 349 $ 29 $ 15 $ 3,599 Loans receivable ending balance: Individually evaluated for impairment $ 2,387 $ 580 $ — $ 182 $ 1,051 $ — $ — $ — $ 4,200 Collectively evaluated for impairment 187,162 18,399 11,697 12,576 60,419 6,172 3,428 568 300,421 Acquired non-credit impaired loans (1) 115,959 24,997 3,533 174 29,321 — 988 2,859 177,831 Acquired credit impaired loans (2) 142 23 — — — — — — 165 Total portfolio $ 305,650 $ 43,999 $ 15,230 $ 12,932 $ 90,791 $ 6,172 $ 4,416 $ 3,427 $ 482,617 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. June 30, 2020 Residential real estate: Commercial real estate: Home Equity Construction- Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential (five or more) non-residential and Land Commercial Consumer Unallocated Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,483 166 526 123 727 396 83 15 — 3,519 Total allowance $ 1,483 $ 166 $ 526 $ 123 $ 727 $ 396 $ 83 $ 15 $ — $ 3,519 Loans receivable ending balance: Individually evaluated for impairment $ 973 $ 628 $ — $ 185 $ 585 $ — $ — $ — $ — $ 2,371 Collectively evaluated for impairment 189,055 15,677 9,218 9,267 45,214 6,690 4,150 713 — 279,984 Acquired non-credit impaired loans (1) 155,588 30,727 6,581 5,512 30,908 — 2,288 3,187 — 234,791 Acquired credit impaired loans (2) 299 22 — — — — — — — 321 Total portfolio $ 345,915 $ 47,054 $ 15,799 $ 14,964 $ 76,707 $ 6,690 $ 6,438 $ 3,900 $ — $ 517,467 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. |
Schedule of risk category of loans by class of loans | The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at March 31, 2021 and June 30, 2020: March 31, 2021 Commercial Real Estate Construction Multi-family Non-residential and land Commercial Pass $ 12,750 $ 89,487 $ 6,172 $ 4,416 Special Mention — 450 — — Substandard 182 854 — — Doubtful — — — — Loss — — — — Ending Balance $ 12,932 $ 90,791 $ 6,172 $ 4,416 June 30, 2020 Commercial Real Estate Construction Multi-family Non-residential and land Commercial Pass $ 13,976 $ 75,973 $ 6,690 $ 6,438 Special Mention 803 507 — — Substandard 185 227 — — Doubtful — — — — Loss — — — — Ending Balance $ 14,964 $ 76,707 $ 6,690 $ 6,438 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 March 31, 2021 and June 30, 2020: March 31, 2021 Residential Real Estate Home equity & 1-4 family HELOCs Construction Consumer Performing $ 301,014 $ 43,646 $ 15,230 $ 3,309 Non-performing 4,636 353 — 118 $ 305,650 $ 43,999 $ 15,230 $ 3,427 June 30, 2020 Residential Real Estate Home equity & 1-4 family HELOCs Construction Consumer Performing $ 343,562 $ 46,580 $ 15,799 $ 3,785 Non-performing 2,353 474 — 115 $ 345,915 $ 47,054 $ 15,799 $ 3,900 |
Summary of outstanding principal and related carrying amount of loans acquired with deteriorated credit quality | (Dollars in thousands) March 31, 2021 June 30, 2020 Outstanding principal balance $ 254 $ 773 Carrying amount 165 321 |
Schedule of accretable discount on loans acquired with deteriorated credit quality | (Dollars in thousands) Accretable Discount Balance, May 1, 2020 $ 57 Accretion (4) Balance, June 30, 2020 $ 53 Accretion (7) Balance, September 30, 2020 $ 46 Accretion (16) Balance, December 31, 2020 30 Accretion (14) Balance, March 31, 2021 $ 16 |
Schedule of aging analysis of past due loans | Aged Analysis of Past Due and Non-accrual Loans As of March 31, 2021 Recorded Recorded Acquired Investment > Investment 30-59 Days 60-89 Days 90 Days Total Past Credit Total Loans 90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1-4 family $ 1,796 $ 1,142 $ 1,831 $ 4,769 $ 142 $ 300,739 $ 305,650 $ — $ 4,636 Home equity and HELOCs — — 253 253 23 43,723 43,999 — 353 Construction - residential — — — — — 15,230 15,230 — — Commercial real estate: Multi-family — — 182 182 — 12,750 12,932 — 182 Commercial non-residential — 546 — 546 — 90,245 90,791 — 667 Construction and land — — — — — 6,172 6,172 — — Commercial — — — — — 4,416 4,416 — — Consumer 49 32 — 81 — 3,346 3,427 — 118 Total $ 1,845 $ 1,720 $ 2,266 $ 5,831 $ 165 $ 476,621 $ 482,617 $ — $ 5,956 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2020 Recorded Recorded 30-59 60-89 90 and Over Acquired Investment > Investment 30-59 Days 60-89 Days 90 Days Total Past Credit Total Loans 90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Impaired Current Receivable Accruing Non-Accrual Residential real estate: 1-4 family $ 235 $ 1,020 $ 1,477 $ 2,732 $ 299 $ 342,884 $ 345,915 $ — $ 2,353 Home equity and HELOCs 126 101 181 408 22 46,624 47,054 90 384 Construction - residential — — — — — 15,799 15,799 — — Commercial real estate: Multi-family — 465 185 650 — 14,314 14,964 — 185 Commercial non-residential 100 507 — 607 — 76,100 76,707 — 135 Land — — — — — 6,690 6,690 — — Commercial — — — — — 6,438 6,438 — — Consumer 3 21 — 24 — 3,876 3,900 — 115 Total $ 464 $ 2,114 $ 1,843 $ 4,421 $ 321 $ 512,725 $ 517,467 $ 90 $ 3,172 |
Summary of recorded investment and unpaid principal balances for impaired loans | The following tables include the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, at March 31, 2021 and June 30, 2020. March 31, 2021 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real Estate $ 2,387 $ 2,390 $ — Home equity and HELOCs 580 586 — Construction Residential — — — Multi-family 182 183 — Commercial non-residential 1,051 1,086 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family $ 2,387 $ 2,390 $ — Home equity and HELOCs 580 586 — Construction Residential — — — Multi-family 182 183 — Commercial non-residential 1,051 1,086 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing troubled debt restructuings (“TDRs”) in the amount of $964 thousand that are performing in accordance with their modified terms. The Company recognized $13 thousand and $48 thousand of interest income on accruing TDRs during the three and nine months ended March 31, 2021, respectively. The table above does not include $165 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. June 30, 2020 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 Family residential real Estate $ 973 $ 973 $ — Home equity and HELOCs 628 634 — Construction Residential — — — Multi-family 185 185 — Commercial non-residential 585 620 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 Family $ — $ — $ — Home equity and HELOCs — — — Construction Residential — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 Family $ 973 $ 973 $ — Home equity and HELOCs 628 634 — Construction Residential — — — Multi-family 185 185 — Commercial non-residential 585 620 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing TDRs in the amount of $1.4 million that are performing in accordance with their modified terms. The Company recognized $18 thousand and $53 thousand of interest income on accruing TDRs during the three and nine months ended March 31, 2020. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three and nine months ended March 31, 2021 and March 31, 2020. March 31, 2021 Three Months Ended Nine Months Ended Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: 1-4 Family residential real Estate $ 2,209 $ 1 $ 1,789 $ 13 Home equity and HELOCs 626 5 643 15 Construction Residential — — — — Multi-family 182 — 183 — Commercial non-residential 1,059 8 897 26 Construction and land — — — — Commercial — — — — Consumer — — — — With an allowance recorded: 1-4 Family $ — $ — $ — $ — Home equity and HELOCs — — — — Construction Residential — — — — Multi-family — — — — Commercial non-residential — — — — Construction and land — — — — Commercial — — — — Consumer — — — — Total: 1-4 Family $ 2,209 $ 1 $ 1,789 $ 13 Home equity and HELOCs 626 5 643 15 Construction Residential — — — — Multi-family 182 — 183 — Commercial non-residential 1,059 8 897 26 Construction and land — — — — Commercial — — — — Consumer — — — — March 31, 2020 Three Months Ended Nine Months Ended Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: 1-4 Family residential real Estate $ 1,219 $ 8 $ 1,582 $ 39 Home equity and HELOCs 709 8 810 24 Construction Residential — — — — Multi-family 185 — 186 — Commercial non-residential 631 10 636 30 Construction and land — — — — Commercial — — — — Consumer — — — — With an allowance recorded: 1-4 Family $ — $ — $ — $ — Home equity and HELOCs — — — — Construction Residential — — — — Multi-family — — — — Commercial non-residential — — — — Construction and land — — — — Commercial — — — — Consumer — — — — Total: 1-4 Family $ 1,219 $ 8 $ 1,582 $ 39 Home equity and HELOCs 709 8 810 24 Construction Residential — — — — Multi-family 185 — 186 — Commercial non-residential 631 10 636 30 Construction and land — — — — Commercial — — — — Consumer — — — — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Premises and Equipment | |
Schedule of components of premises and equipment | March 31, June 30, (Dollars in thousands) 2021 2020 Land $ 2,581 $ 4,144 Office buildings and improvements 12,811 14,493 Furniture, fixtures and equipment 2,417 1,918 Automobiles 50 50 17,858 20,605 Accumulated depreciation (4,324) (3,872) $ 13,534 $ 16,733 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangibles | |
Schedule of goodwill and other intangibles | Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2020 $ 4,858 $ 1,192 Adjustments: Additions — — Amortization — (64) Balance, September 30, 2020 $ 4,858 $ 1,128 Adjustments: Additions — — Amortization — (64) Balance, December 31, 2020 $ 4,858 $ 1,064 Adjustments: Additions — — Amortization — (64) Balance, March 31, 2021 $ 4,858 $ 1,000 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, July 1, 2019 $ 4,858 $ 1,172 Adjustments: Additions — — Amortization — (59) Balance, September 30, 2019 $ 4,858 $ 1,113 Adjustments: Additions — — Amortization — (59) Balance, December 31, 2019 $ 4,858 $ 1,054 Adjustments: Additions — — Amortization — (58) Balance, March 31, 2020 $ 4,858 $ 996 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Deposits. | |
Schedule of classification of deposits | (Dollars in thousands) March 31, 2021 June 30, 2020 Non-interest bearing checking $ 45,687 $ 43,395 Interest bearing checking 101,888 98,828 Money market accounts 131,037 129,048 Savings and club accounts 100,581 94,097 Certificates of deposit 169,123 194,480 $ 548,316 $ 559,848 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Advances from Federal Home Loan Bank | |
Schedule of advances from FHLB | (Dollars in thousands) March 31, 2021 June 30, 2020 FHLB advances: Convertible $ 20,000 $ 20,000 Fixed 14,000 21,767 Mid-term 7,000 23,125 Total FHLB advances $ 41,000 $ 64,892 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies. | |
Schedule of company's loan commitments | March 31, June 30, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 17,552 $ 18,602 Unfunded commitments under lines of credit 49,150 52,432 Standby letters of credit 2,000 — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Regulatory Capital Requirements | |
Schedule of leverage ratios | To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action As of March 31, 2021 Actual Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 151,251 19.27 % > $ 31,393 > 4.00 % > $ 39,242 > 5.00 % To be Well Capitalized Under For Capital Adequacy Prompt Corrective Action As of June 30, 2020 Actual Purposes Provisions (Dollars in thousands except for ratios) Amount Ratio Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 86,822 13.67 % > $ 25,397 > 4.00 % > $ 31,746 > 5.00 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on recurring basis | March 31, 2021 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 33,721 $ — $ 33,721 U.S. agency collateralized mortgage obligations — 18,567 — 18,567 U.S. government agency securities — 10,309 — 10,309 Municipal bonds — 21,077 — 21,077 Corporate bonds — 25,510 — 25,510 Total Assets $ — $ 109,184 $ — $ 109,184 June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available-for-sale: Mortgage-backed securities $ — $ 51,738 $ — $ 51,738 U.S. agency collateralized mortgage obligations — 3,215 — 3,215 U.S. government agency securities — 6,155 — 6,155 U.S. treasury securities — 1,000 — 1,000 Municipal bonds — 10,508 — 10,508 Corporate bonds — 17,382 — 17,382 Total Assets $ — $ 89,998 $ — $ 89,998 |
Schedule of assets measured at fair value on non-recurring basis | As of March 31, 2021, there were no assets required to be measured and reported at fair value on a non-recurring basis. As of June 30, 2020, assets required to be measured and reported at fair value on a non-recurring basis are summarized as follows: June 30, 2020 (Dollars in thousands) Level I Level II Level III Total Assets: Impaired loans $ — $ — $ 190 $ 190 Other real estate owned — — 100 100 $ — $ — $ 290 $ 290 |
Schedule of quantitative information of assets measured at fair value on non-recurring basis | Quantitative information regarding assets measured at fair value on a non-recurring basis as of June 30, 2020 is as follows: Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable (Dollars in thousands) Estimate Techniques Input Range June 30, 2020 Impaired loans $ 190 Appraisal of collateral (1) Appraisal adjustments (2) 0-28 % Foreclosed real estate owned $ 100 Appraisal of collateral (1)(3) Liquidation expenses (2) 0 % (1) F air value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of carrying amount and fair value of financial assets and liabilities | 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. Fair Value Measurements at March 31, 2021 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial assets: Loans receivable, net $ 475,730 $ 475,377 $ — $ — $ 475,377 Financial liabilities: Certificates of deposit 169,123 170,411 — — 170,411 Advances from Federal Home Loan Bank 41,000 42,038 — — 42,038 Fair Value Measurements at June 30, 2020 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial assets: Loans receivable, net $ 508,605 $ 541,779 $ — $ — $ 541,779 Financial liabilities: Certificates of deposit 194,480 198,268 — — 198,268 Advances from Federal Home Loan Bank 64,892 67,520 — — 67,520 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | Mar. 24, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)Office |
Nature of Operations | ||
Exchange ratio | 3.2585 | |
ESOP shares committed to be released | $ 8 | |
Number of full service branch offices | Office | 12 | |
Additional Paid-in capital | ||
Nature of Operations | ||
Cash Acquired from Acquisition | $ 5,400 | |
William Penn Bank | ||
Nature of Operations | ||
Gross proceeds | $ 126,400 | |
Shares issued | shares | 12,640,035 | |
Share price | $ / shares | $ 10 | |
Shares outstanding | shares | 776,647 | |
Exchange ratio | 3.2585 | |
Percentage of shares sold in offering | 8.00% | |
Percentage of aggregate purchase price of common stock | 100.00% | |
ESOP issued | shares | 881,130 | |
ESOP shares committed to be released | $ 10,100 | |
Ownership percentage held by parent (as a percent) | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2021USD ($)segment | |
Summary of Significant Accounting Policies | |
Reportable operating segment | segment | 1 |
WPSLA Investment Corporation | |
Summary of Significant Accounting Policies | |
Loans held in portfolio | $ 89.4 |
Investment securities portfolio | 109.2 |
William Penn Bank | |
Summary of Significant Accounting Policies | |
Loans held in portfolio | 24.5 |
Investment securities portfolio | $ 479.3 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Composition of the weighted average common shares used in the basic and diluted earnings per share computation | ||||||||
Weighted-average common shares and common stock equivalents used to calculate basic and diluted earnings per share, net of treasury shares and unearned ESOP shares | 14,613,210 | 12,969,331 | 14,623,497 | 12,969,331 | ||||
Net Income | $ 1,067 | $ 1,376 | $ 670 | $ 837 | $ 929 | $ 854 | $ 3,113 | $ 2,620 |
Basic and diluted earnings per share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.21 | $ 0.20 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | |
Earnings Per Share | ||||||||
Antidilutive securities | shares | 0 | 0 | 0 | 0 | ||||
Net income | $ | $ 1,067 | $ 1,376 | $ 670 | $ 837 | $ 929 | $ 854 | $ 3,113 | $ 2,620 |
Fractional shares exchange ratio | 3.2585 |
Changes in and Reclassificati_3
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive (Loss) Income | ||||||||
Beginning balance | $ 97,189 | $ 95,506 | $ 96,365 | $ 76,006 | $ 75,311 | $ 76,630 | $ 96,365 | $ 76,630 |
Period change | (1,924) | 307 | 357 | 327 | (234) | (190) | (1,260) | (97) |
Ending balance | $ 215,040 | $ 97,189 | $ 95,506 | $ 77,170 | $ 76,006 | $ 75,311 | 215,040 | 77,170 |
Income tax rate | 22.50% | 22.50% | 22.50% | 22.50% | 22.50% | 22.50% | ||
Gains (Losses) on Securities Available for Sale | ||||||||
Accumulated Other Comprehensive (Loss) Income | ||||||||
Beginning balance | $ 740 | $ 433 | $ 76 | $ (196) | $ 38 | $ 228 | 76 | 228 |
Other comprehensive income (loss) before reclassifications | (1,897) | 284 | 357 | 407 | (234) | (118) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (27) | 23 | (80) | (72) | ||||
Period change | (1,924) | 307 | 357 | 327 | (234) | (190) | ||
Ending balance | $ (1,184) | $ 740 | $ 433 | $ 131 | $ (196) | $ 38 | $ (1,184) | $ 131 |
Changes in and Reclassificati_4
Changes in and Reclassifications Out of Accumulated Other Comprehensive (Loss) Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net securities gains reclassified into net income | $ 35 | $ 103 | $ 5 | $ 196 | ||||
Related income tax expense | 273 | 210 | 789 | 92 | ||||
NET INCOME | 1,067 | $ 1,376 | $ 670 | 837 | $ 929 | $ 854 | 3,113 | 2,620 |
Reclassifications out of AOCI | Gains (Losses) on Securities Available for Sale | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net securities gains reclassified into net income | 35 | 103 | 5 | 196 | ||||
Related income tax expense | (8) | (23) | (1) | (44) | ||||
NET INCOME | $ 27 | $ 80 | $ 4 | $ 152 |
Investment Securities - Availab
Investment Securities - Available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Available For Sale: | ||
Amortized Cost | $ 110,674 | $ 89,895 |
Gross Unrealized Gains | 895 | 400 |
Gross Unrealized Losses | (2,385) | (297) |
Fair value of securities | 109,184 | 89,998 |
Mortgage-backed securities | ||
Available For Sale: | ||
Amortized Cost | 34,350 | 51,570 |
Gross Unrealized Gains | 24 | 272 |
Gross Unrealized Losses | (653) | (104) |
Fair value of securities | 33,721 | 51,738 |
U.S. agency collateralized mortgage obligations | ||
Available For Sale: | ||
Amortized Cost | 18,881 | 3,215 |
Gross Unrealized Gains | 45 | 33 |
Gross Unrealized Losses | (359) | (33) |
Fair value of securities | 18,567 | 3,215 |
U.S. government agency securities | ||
Available For Sale: | ||
Amortized Cost | 10,401 | 6,226 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (92) | (73) |
Fair value of securities | 10,309 | 6,155 |
U.S treasury securities | ||
Available For Sale: | ||
Amortized Cost | 1,000 | |
Fair value of securities | 1,000 | |
Municipal bonds | ||
Available For Sale: | ||
Amortized Cost | 22,342 | 10,485 |
Gross Unrealized Gains | 33 | |
Gross Unrealized Losses | (1,265) | (10) |
Fair value of securities | 21,077 | 10,508 |
Corporate bonds | ||
Available For Sale: | ||
Amortized Cost | 24,700 | 17,399 |
Gross Unrealized Gains | 826 | 60 |
Gross Unrealized Losses | (16) | (77) |
Fair value of securities | $ 25,510 | $ 17,382 |
Investment Securities - Securit
Investment Securities - Securities by contractual maturity (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Available for sale, Amortized Cost | |
Due in one year or less | $ 5 |
Due after one year through five years | 11,983 |
Due after five years through ten years | 18,436 |
Due after ten years | 80,250 |
Amortized Cost | 110,674 |
Available for sale, Fair Value | |
Due in one year or less | 5 |
Due after one year through five years | 12,442 |
Due after five years through ten years | 18,717 |
Due after ten years | 78,020 |
Fair Value | $ 109,184 |
Investment Securities - Investm
Investment Securities - Investments with unrealized losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value | ||
Less than 12 Months | $ 73,042 | $ 37,433 |
12 Months or More | 7,073 | 2,043 |
Total Fair Value | 80,115 | 39,476 |
Unrealized Losses | ||
Less than 12 Months | 2,225 | 254 |
12 Months or More | 160 | 43 |
Total Unrealized Losses | 2,385 | 297 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 31,222 | 22,082 |
Total Fair Value | 31,222 | 22,082 |
Unrealized Losses | ||
Less than 12 Months | 653 | 104 |
Total Unrealized Losses | 653 | 104 |
U.S. agency collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 9,769 | 1,513 |
12 Months or More | 5,504 | 1,129 |
Total Fair Value | 15,273 | 2,642 |
Unrealized Losses | ||
Less than 12 Months | 220 | 14 |
12 Months or More | 139 | 19 |
Total Unrealized Losses | 359 | 33 |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 Months | 8,740 | 4,922 |
12 Months or More | 1,569 | 914 |
Total Fair Value | 10,309 | 5,836 |
Unrealized Losses | ||
Less than 12 Months | 71 | 49 |
12 Months or More | 21 | 24 |
Total Unrealized Losses | 92 | 73 |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | 21,077 | 3,694 |
Total Fair Value | 21,077 | 3,694 |
Unrealized Losses | ||
Less than 12 Months | 1,265 | 10 |
Total Unrealized Losses | 1,265 | 10 |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 2,234 | 5,222 |
Total Fair Value | 2,234 | 5,222 |
Unrealized Losses | ||
Less than 12 Months | 16 | 77 |
Total Unrealized Losses | $ 16 | $ 77 |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Gross realized gains | $ 35 | $ 106 | $ 58 | $ 199 | |
Gross realized losses | 3 | 53 | 3 | ||
Proceeds from sale of securities | $ 4,500 | $ 3,200 | $ 12,365 | $ 7,550 | |
Number of securities temporarily impaired | item | 61 | 61 | |||
Asset Pledged as Collateral | |||||
Variable Interest Entity [Line Items] | |||||
Pledged investment securities | $ 3,000 | $ 3,000 | $ 3,700 |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 482,617 | $ 517,467 | ||||
Loans in process | (2,535) | (4,895) | ||||
Unearned loan origination fees | (753) | (448) | ||||
Allowance for loan losses | (3,599) | $ (3,587) | (3,519) | $ (3,009) | $ (2,988) | $ (3,209) |
Net Loans | $ 475,730 | $ 508,605 | ||||
Percentage of loans | 100.00% | 100.00% | ||||
Residential real estate | 1-4 Family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 305,650 | $ 345,915 | ||||
Allowance for loan losses | $ (1,520) | (1,571) | $ (1,483) | (1,490) | (1,828) | (1,501) |
Percentage of loans | 63.33% | 66.85% | ||||
Residential real estate | Home equity and HELOCs | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 43,999 | $ 47,054 | ||||
Allowance for loan losses | $ (168) | (160) | $ (166) | (69) | (130) | (122) |
Percentage of loans | 9.12% | 9.10% | ||||
Residential real estate | Construction Residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 15,230 | $ 15,799 | ||||
Allowance for loan losses | $ (504) | (463) | $ (526) | (377) | (159) | (321) |
Percentage of loans | 3.16% | 3.05% | ||||
Commercial real estate | Multi-family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 12,932 | $ 14,964 | ||||
Allowance for loan losses | $ (172) | (161) | $ (123) | (99) | (106) | (71) |
Percentage of loans | 2.68% | 2.89% | ||||
Commercial real estate | Commercial non-residential | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 90,791 | $ 76,707 | ||||
Allowance for loan losses | $ (842) | (851) | $ (727) | (650) | (435) | (708) |
Percentage of loans | 18.81% | 14.83% | ||||
Commercial real estate | Construction and Land | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 6,172 | $ 6,690 | ||||
Allowance for loan losses | $ (349) | (334) | $ (396) | (242) | (109) | (121) |
Percentage of loans | 1.28% | 1.29% | ||||
Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 4,416 | $ 6,438 | ||||
Allowance for loan losses | $ (29) | (32) | $ (83) | (60) | (42) | (95) |
Percentage of loans | 0.91% | 1.24% | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total Loans | $ 3,427 | $ 3,900 | ||||
Allowance for loan losses | $ (15) | $ (15) | $ (15) | $ (22) | $ (15) | $ (3) |
Percentage of loans | 0.71% | 0.75% |
Loans - PPP (Details)
Loans - PPP (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021USD ($)customer | Jun. 30, 2020USD ($)customer | Mar. 31, 2021USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 482,617 | $ 517,467 | $ 482,617 |
Percentage of loans | 100.00% | 100.00% | 100.00% |
PPP Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Amount of loan provided | $ 1,100 | $ 2,400 | $ 1,100 |
Remaining balance of loan provided | $ 1,700 | 1,700 | |
Number of customers | customer | 27 | 56 | |
Small Business Administration, CARES Act, Monetary Relief [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Amount of loans modified into PPP | $ 49,800 | ||
Small Business Administration, CARES Act, Monetary Relief [Member] | Payment Deferral | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 608 | $ 608 | |
Period of principal and interest deferment | 3 months | ||
Investor Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 127,700 | $ 114,100 | $ 127,700 |
Percentage of loans | 26.50% | 22.00% | 26.50% |
First Mortgage Investor Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 127,300 | $ 113,600 | $ 127,300 |
Home Equity And HELOC Investor Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | 425,000 | 507 | 425,000 |
Mortgage Loan Serviced To Others | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 20,700 | $ 26,600 | $ 20,700 |
Servicing rights basis points received | 25.00% |
Loans - Allowance for loan loss
Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Allowance for credit losses: | ||||||
Beginning balance | $ 3,587 | $ 2,988 | $ 3,519 | $ 3,209 | ||
Charge-offs | (3) | (33) | (221) | |||
Provision for loan losses | 15 | 21 | 113 | 21 | ||
Ending Balance | 3,599 | 3,009 | 3,599 | 3,009 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | $ 3,599 | $ 3,519 | ||||
Allowance for loan losses | 3,587 | 3,009 | 3,519 | 3,209 | 3,599 | 3,519 |
Loans receivable ,Individually evaluated for impairment | 4,200 | 2,371 | ||||
Loans receivable, Collectively evaluated for impairment | 300,421 | 279,984 | ||||
Total Loans | 482,617 | 517,467 | ||||
Acquired credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 165 | 321 | ||||
Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 177,831 | 234,791 | ||||
Residential real estate | 1-4 Family | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 1,571 | 1,828 | 1,483 | 1,501 | ||
Charge-offs | (3) | (3) | (218) | |||
Provision for loan losses | (48) | (338) | 40 | 207 | ||
Ending Balance | 1,520 | 1,490 | 1,520 | 1,490 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 1,520 | 1,483 | ||||
Allowance for loan losses | 1,520 | 1,490 | 1,483 | 1,501 | 1,520 | 1,483 |
Loans receivable ,Individually evaluated for impairment | 2,387 | 973 | ||||
Loans receivable, Collectively evaluated for impairment | 187,162 | 189,055 | ||||
Total Loans | 305,650 | 345,915 | ||||
Residential real estate | 1-4 Family | Acquired credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 142 | 299 | ||||
Residential real estate | 1-4 Family | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 115,959 | 155,588 | ||||
Residential real estate | Home equity and HELOCs | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 160 | 130 | 166 | 122 | ||
Provision for loan losses | 8 | (61) | 2 | (53) | ||
Ending Balance | 168 | 69 | 168 | 69 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 168 | 166 | ||||
Allowance for loan losses | 168 | 69 | 166 | 122 | 168 | 166 |
Loans receivable ,Individually evaluated for impairment | 580 | 628 | ||||
Loans receivable, Collectively evaluated for impairment | 18,399 | 15,677 | ||||
Total Loans | 43,999 | 47,054 | ||||
Residential real estate | Home equity and HELOCs | Acquired credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 23 | 22 | ||||
Residential real estate | Home equity and HELOCs | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 24,997 | 30,727 | ||||
Residential real estate | Construction Residential | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 463 | 159 | 526 | 321 | ||
Provision for loan losses | 41 | 218 | (22) | 56 | ||
Ending Balance | 504 | 377 | 504 | 377 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 504 | 526 | ||||
Allowance for loan losses | 504 | 377 | 526 | 321 | 504 | 526 |
Loans receivable, Collectively evaluated for impairment | 11,697 | 9,218 | ||||
Total Loans | 15,230 | 15,799 | ||||
Residential real estate | Construction Residential | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 3,533 | 6,581 | ||||
Commercial real estate | Multi-family | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 161 | 106 | 123 | 71 | ||
Provision for loan losses | 11 | (7) | 49 | 28 | ||
Ending Balance | 172 | 99 | 172 | 99 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 172 | 123 | ||||
Allowance for loan losses | 172 | 99 | 123 | 71 | 172 | 123 |
Loans receivable ,Individually evaluated for impairment | 182 | 185 | ||||
Loans receivable, Collectively evaluated for impairment | 12,576 | 9,267 | ||||
Total Loans | 12,932 | 14,964 | ||||
Commercial real estate | Multi-family | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 174 | 5,512 | ||||
Commercial real estate | Commercial non-residential | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 851 | 435 | 727 | 708 | ||
Provision for loan losses | (9) | 215 | 115 | (58) | ||
Ending Balance | 842 | 650 | 842 | 650 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 842 | 727 | ||||
Allowance for loan losses | 842 | 650 | 727 | 708 | 842 | 727 |
Loans receivable ,Individually evaluated for impairment | 1,051 | 585 | ||||
Loans receivable, Collectively evaluated for impairment | 60,419 | 45,214 | ||||
Total Loans | 90,791 | 76,707 | ||||
Commercial real estate | Commercial non-residential | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 29,321 | 30,908 | ||||
Commercial real estate | Construction and Land | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 334 | 109 | 396 | 121 | ||
Provision for loan losses | 15 | 133 | (47) | 121 | ||
Ending Balance | 349 | 242 | 349 | 242 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 349 | 396 | ||||
Allowance for loan losses | 349 | 242 | 396 | 121 | 349 | 396 |
Loans receivable, Collectively evaluated for impairment | 6,172 | 6,690 | ||||
Total Loans | 6,172 | 6,690 | ||||
Commercial | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 32 | 42 | 83 | 95 | ||
Charge-offs | (3) | |||||
Provision for loan losses | (3) | 18 | (54) | (32) | ||
Ending Balance | 29 | 60 | 29 | 60 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 29 | 83 | ||||
Allowance for loan losses | 29 | 60 | 83 | 95 | 29 | 83 |
Loans receivable, Collectively evaluated for impairment | 3,428 | 4,150 | ||||
Total Loans | 4,416 | 6,438 | ||||
Commercial | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | 988 | 2,288 | ||||
Consumer | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 15 | 15 | 15 | 3 | ||
Charge-offs | (30) | |||||
Provision for loan losses | 7 | 30 | 19 | |||
Ending Balance | 15 | 22 | 15 | 22 | ||
Allowance ending balance: | ||||||
Collectively evaluated for impairment | 15 | 15 | ||||
Allowance for loan losses | $ 15 | 22 | $ 15 | 3 | 15 | 15 |
Loans receivable, Collectively evaluated for impairment | 568 | 713 | ||||
Total Loans | 3,427 | 3,900 | ||||
Consumer | Acquired non-credit impaired | ||||||
Allowance ending balance: | ||||||
Loans receivable, Collectively evaluated for impairment | $ 2,859 | $ 3,187 | ||||
Unallocated | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 164 | 267 | ||||
Provision for loan losses | (164) | (267) | ||||
Allowance ending balance: | ||||||
Allowance for loan losses | $ 164 | $ 267 |
Loans - Credit quality indicato
Loans - Credit quality indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 482,617 | $ 517,467 |
Residential real estate | 1-4 Family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 305,650 | 345,915 |
Residential real estate | 1-4 Family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 301,014 | 343,562 |
Residential real estate | 1-4 Family | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,636 | 2,353 |
Residential real estate | Home equity and HELOCs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 43,999 | 47,054 |
Residential real estate | Home equity and HELOCs | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 43,646 | 46,580 |
Residential real estate | Home equity and HELOCs | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 353 | 474 |
Residential real estate | Construction Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 15,230 | 15,799 |
Residential real estate | Construction Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 15,230 | 15,799 |
Commercial real estate | Multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,932 | 14,964 |
Commercial real estate | Multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,750 | 13,976 |
Commercial real estate | Multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 803 | |
Commercial real estate | Multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 182 | 185 |
Commercial real estate | Commercial non-residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 90,791 | 76,707 |
Commercial real estate | Commercial non-residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 89,487 | 75,973 |
Commercial real estate | Commercial non-residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 450 | 507 |
Commercial real estate | Commercial non-residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 854 | 227 |
Commercial real estate | Construction and Land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,172 | 6,690 |
Commercial real estate | Construction and Land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,172 | 6,690 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,416 | 6,438 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,416 | 6,438 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,427 | 3,900 |
Consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,309 | 3,785 |
Consumer | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 118 | $ 115 |
Loans - Loans Acquired with Det
Loans - Loans Acquired with Deteriorated Credit Quality (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Loans | ||||
Outstanding principal balance | $ 773 | $ 254 | ||
Carrying amount | 321 | 165 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Beginning Balance | 57 | 30 | $ 46 | $ 53 |
Accretion | (4) | (14) | (16) | (7) |
Ending balance | $ 53 | $ 16 | $ 30 | $ 46 |
Loans - Loan Delinquencies and
Loans - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | $ 5,831 | $ 5,831 | $ 4,421 | ||
Current | 476,621 | 476,621 | 512,725 | ||
Total Loans | 482,617 | 482,617 | 517,467 | ||
Recorded Investment > 90 Days and Accruing | 90 | ||||
Recorded Investment Loans on Non-Accrual | 5,956 | 5,956 | 3,172 | ||
Interest income | 71 | $ 8 | 212 | $ 24 | |
30 - 59 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,845 | 1,845 | 464 | ||
60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,720 | 1,720 | 2,114 | ||
90 Days Or Greater | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 2,266 | 2,266 | 1,843 | ||
Acquired credit impaired | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 165 | 165 | 321 | ||
Residential real estate | 1-4 Family | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 4,769 | 4,769 | 2,732 | ||
Current | 300,739 | 300,739 | 342,884 | ||
Total Loans | 305,650 | 305,650 | 345,915 | ||
Recorded Investment Loans on Non-Accrual | 4,636 | 4,636 | 2,353 | ||
Residential real estate | 1-4 Family | 30 - 59 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,796 | 1,796 | 235 | ||
Residential real estate | 1-4 Family | 60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,142 | 1,142 | 1,020 | ||
Residential real estate | 1-4 Family | 90 Days Or Greater | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 1,831 | 1,831 | 1,477 | ||
Residential real estate | 1-4 Family | Acquired credit impaired | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 142 | 142 | 299 | ||
Residential real estate | Home equity and HELOCs | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 253 | 253 | 408 | ||
Current | 43,723 | 43,723 | 46,624 | ||
Total Loans | 43,999 | 43,999 | 47,054 | ||
Recorded Investment > 90 Days and Accruing | 90 | ||||
Recorded Investment Loans on Non-Accrual | 353 | 353 | 384 | ||
Residential real estate | Home equity and HELOCs | 30 - 59 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 126 | ||||
Residential real estate | Home equity and HELOCs | 60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 101 | ||||
Residential real estate | Home equity and HELOCs | 90 Days Or Greater | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 253 | 253 | 181 | ||
Residential real estate | Home equity and HELOCs | Acquired credit impaired | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 23 | 23 | 22 | ||
Residential real estate | Construction Residential | |||||
Financing Receivable, Past Due [Line Items] | |||||
Current | 15,230 | 15,230 | 15,799 | ||
Total Loans | 15,230 | 15,230 | 15,799 | ||
Commercial real estate | Multi-family | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 182 | 182 | 650 | ||
Current | 12,750 | 12,750 | 14,314 | ||
Total Loans | 12,932 | 12,932 | 14,964 | ||
Recorded Investment Loans on Non-Accrual | 182 | 182 | 185 | ||
Commercial real estate | Multi-family | 60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 465 | ||||
Commercial real estate | Multi-family | 90 Days Or Greater | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 182 | 182 | 185 | ||
Commercial real estate | Commercial non-residential | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 546 | 546 | 607 | ||
Current | 90,245 | 90,245 | 76,100 | ||
Total Loans | 90,791 | 90,791 | 76,707 | ||
Recorded Investment Loans on Non-Accrual | 667 | 667 | 135 | ||
Commercial real estate | Commercial non-residential | 30 - 59 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 100 | ||||
Commercial real estate | Commercial non-residential | 60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 546 | 546 | 507 | ||
Commercial real estate | Construction and Land | |||||
Financing Receivable, Past Due [Line Items] | |||||
Current | 6,172 | 6,172 | 6,690 | ||
Total Loans | 6,172 | 6,172 | 6,690 | ||
Commercial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Current | 4,416 | 4,416 | 6,438 | ||
Total Loans | 4,416 | 4,416 | 6,438 | ||
Consumer | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 81 | 81 | 24 | ||
Current | 3,346 | 3,346 | 3,876 | ||
Total Loans | 3,427 | 3,427 | 3,900 | ||
Recorded Investment Loans on Non-Accrual | 118 | 118 | 115 | ||
Consumer | 30 - 59 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | 49 | 49 | 3 | ||
Consumer | 60 - 89 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Total Past Due | $ 32 | $ 32 | $ 21 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
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 | $ 2,387 | $ 2,387 | $ 973 | ||
Recorded Investment | 2,387 | 2,387 | 973 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 2,390 | 2,390 | 973 | ||
Unpaid Principal Balance | 2,390 | 2,390 | 973 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 2,209 | $ 1,219 | 1,789 | $ 1,582 | |
Average Recorded Investment | 2,209 | 1,219 | 1,789 | 1,582 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 1 | 8 | 13 | 39 | |
Interest Income Recognized | 1 | 8 | 13 | 39 | |
Residential real estate | Home equity and HELOCs | |||||
Recorded Investment | |||||
Recorded Investment, With no related allowance recorded | 580 | 580 | 628 | ||
Recorded Investment | 580 | 580 | 628 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 586 | 586 | 634 | ||
Unpaid Principal Balance | 586 | 586 | 634 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 626 | 709 | 643 | 810 | |
Average Recorded Investment | 626 | 709 | 643 | 810 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 5 | 8 | 15 | 24 | |
Interest Income Recognized | 5 | 8 | 15 | 24 | |
Commercial real estate | Multi-family | |||||
Recorded Investment | |||||
Recorded Investment, With no related allowance recorded | 182 | 182 | 185 | ||
Recorded Investment | 182 | 182 | 185 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 183 | 183 | 185 | ||
Unpaid Principal Balance | 183 | 183 | 185 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 182 | 185 | 183 | 186 | |
Average Recorded Investment | 182 | 185 | 183 | 186 | |
Commercial real estate | Commercial non-residential | |||||
Recorded Investment | |||||
Recorded Investment, With no related allowance recorded | 1,051 | 1,051 | 585 | ||
Recorded Investment | 1,051 | 1,051 | 585 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 1,086 | 1,086 | 620 | ||
Unpaid Principal Balance | 1,086 | 1,086 | $ 620 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 1,059 | 631 | 897 | 636 | |
Average Recorded Investment | 1,059 | 631 | 897 | 636 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 8 | 10 | 26 | 30 | |
Interest Income Recognized | $ 8 | $ 10 | $ 26 | $ 30 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |||||
Troubled debt restructuring | $ 964,000 | $ 1,400 | $ 964,000 | $ 1,400 | |
Interest income on accruing TDR | 13 | 18 | 48 | 53 | |
Impairment on TDR | 50 | $ 33 | 151 | $ 100 | |
Total Loans | 482,617 | $ 482,617 | $ 517,467 | ||
Number of contracts | loan | 0 | 0 | |||
Small Business Administration, CARES Act, Monetary Relief [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Amount of loans modified into PPP | $ 49,800 | ||||
Small Business Administration, CARES Act, Monetary Relief [Member] | Payment Deferral | |||||
Financing Receivable, Impaired [Line Items] | |||||
Period of principal and interest deferment | 3 months | ||||
Total Loans | 608 | $ 608 | |||
Acquired credit impaired | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loans acquired | 165 | 165 | |||
Residential real estate | 1-4 Family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 305,650 | 305,650 | 345,915 | ||
Residential real estate | Home equity and HELOCs | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 43,999 | 43,999 | 47,054 | ||
Residential real estate | Construction Residential | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 15,230 | 15,230 | 15,799 | ||
Commercial real estate | Multi-family | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 12,932 | 12,932 | 14,964 | ||
Commercial real estate | Commercial non-residential | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 90,791 | 90,791 | 76,707 | ||
Commercial real estate | Construction and Land | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 6,172 | 6,172 | 6,690 | ||
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | 4,416 | 4,416 | 6,438 | ||
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total Loans | $ 3,427 | $ 3,427 | $ 3,900 |
Premises and Equipment - Compon
Premises and Equipment - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 17,858 | $ 20,605 |
Accumulated depreciation | (4,324) | (3,872) |
Net book value | 13,534 | 16,733 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,581 | 4,144 |
Office buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 12,811 | 14,493 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,417 | 1,918 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 50 | $ 50 |
Premises and Equipment (Details
Premises and Equipment (Details) $ in Thousands | Dec. 30, 2020property | Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)propertyitem | Mar. 31, 2020USD ($) |
Premises and Equipment | |||||
Depreciation expense | $ | $ 229 | $ 124 | $ 757 | $ 334 | |
Number of properties transferred | property | 6 | ||||
Carrying value of property held for sale | $ | 3,200 | $ 3,200 | |||
Number of properties sold | property | 5 | ||||
Number of properties under active marketing | property | 1 | ||||
Net (loss) gain on disposition of premises and equipment | $ | $ (34) | $ 0 | $ 435 | $ 0 | |
Number of branches consolidated into one branch | item | 3 | 3 | |||
Number of consolidating branches close geographic proximity | item | 3 | 3 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill | ||||||||
Beginning Balance | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 |
Ending Balance | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 |
Core Deposit Intangibles | ||||||||
Beginning Balance | 1,064 | 1,128 | 1,192 | 1,054 | 1,113 | 1,172 | 1,192 | 1,172 |
Amortization | (64) | (64) | (64) | (58) | (59) | (59) | (192) | (176) |
Ending Balance | $ 1,000 | $ 1,064 | $ 1,128 | $ 996 | $ 1,054 | $ 1,113 | $ 1,000 | $ 996 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 |
Core deposit intangibles | 1,000 | 996 | $ 1,000 | 996 | 1,192 | $ 1,064 | $ 1,128 | $ 1,054 | $ 1,113 | $ 1,172 |
Estimated useful life | 10 years | |||||||||
Goodwill impairment | $ 0 | $ 0 | ||||||||
Aggregate amortization expense | 64 | $ 58 | 192 | $ 176 | ||||||
Audubon Savings Bank | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | 4,900 | 4,900 | ||||||||
Core deposit intangibles | 1,400 | 1,400 | ||||||||
Fidelity | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Core deposit intangibles | 65 | 65 | ||||||||
Washington | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Core deposit intangibles | $ 197 | $ 197 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Deposits. | ||
Non-interest bearing checking | $ 45,687 | $ 43,395 |
Interest bearing checking | 101,888 | 98,828 |
Money market accounts | 131,037 | 129,048 |
Savings and club accounts | 100,581 | 94,097 |
Certificates of deposit | 169,123 | 194,480 |
Total deposits | $ 548,316 | $ 559,848 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 41,000 | $ 64,892 |
Convertible | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | 20,000 | 20,000 |
Fixed | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | 14,000 | 21,767 |
Mid-term | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total FHLB advances | $ 7,000 | $ 23,125 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank (Details) $ in Thousands | Aug. 24, 2020USD ($) | Mar. 31, 2021USD ($)item | Jun. 30, 2020USD ($) |
Advances from Federal Home Loan Bank | |||
FHLB number of regional banks | item | 11 | ||
Maximum borrowing capacity with FHLB | $ 296,200 | $ 223,000 | |
Loans pledged as collateral | 429,600 | 322,000 | |
Investments | 2,800 | $ 3,900 | |
Repayment of FHLB advances | $ 23,200 | $ 23,197 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Other Commitments [Line Items] | ||
Commitments fixed expiration period | 90 days | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 17,552 | $ 18,602 |
Unfunded commitments under lines of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | 49,150 | $ 52,432 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 2,000 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) |
Tier One Leverage, Amount | ||
Leverage capital, actual amount | $ 151,251 | $ 86,822 |
Capital adequacy, amount | 31,393 | 25,397 |
Well capitalized, amount | $ 39,242 | $ 31,746 |
Tier One Leverage, Ratio | ||
Leverage capital, actual ratio | 19.27 | 13.67 |
Capital adequacy, ratio | 4 | 4 |
Well capitalized, ratio | 5 | 5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Investments available for sale: | ||
Fair value of securities | $ 109,184 | $ 89,998 |
Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value of securities | 33,721 | 51,738 |
U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value of securities | 18,567 | 3,215 |
U.S. government agency securities | ||
Investments available for sale: | ||
Fair value of securities | 10,309 | 6,155 |
U.S treasury securities | ||
Investments available for sale: | ||
Fair value of securities | 1,000 | |
Municipal bonds | ||
Investments available for sale: | ||
Fair value of securities | 21,077 | 10,508 |
Corporate bonds | ||
Investments available for sale: | ||
Fair value of securities | 25,510 | 17,382 |
Recurring | ||
Investments available for sale: | ||
Fair value of securities | 109,184 | 89,998 |
Recurring | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value of securities | 33,721 | 51,738 |
Recurring | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value of securities | 18,567 | 3,215 |
Recurring | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value of securities | 10,309 | 6,155 |
Recurring | U.S treasury securities | ||
Investments available for sale: | ||
Fair value of securities | 1,000 | |
Recurring | Municipal bonds | ||
Investments available for sale: | ||
Fair value of securities | 21,077 | 10,508 |
Recurring | Corporate bonds | ||
Investments available for sale: | ||
Fair value of securities | 25,510 | 17,382 |
Recurring | Level 2 | ||
Investments available for sale: | ||
Fair value of securities | 109,184 | 89,998 |
Recurring | Level 2 | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value of securities | 33,721 | 51,738 |
Recurring | Level 2 | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value of securities | 18,567 | 3,215 |
Recurring | Level 2 | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value of securities | 10,309 | 6,155 |
Recurring | Level 2 | U.S treasury securities | ||
Investments available for sale: | ||
Fair value of securities | 1,000 | |
Recurring | Level 2 | Municipal bonds | ||
Investments available for sale: | ||
Fair value of securities | 21,077 | 10,508 |
Recurring | Level 2 | Corporate bonds | ||
Investments available for sale: | ||
Fair value of securities | $ 25,510 | $ 17,382 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Non-Recurring Basis (Details) - Non-recurring basis - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Assets at fair value | ||
Total assets at fair value | $ 0 | $ 290 |
Impaired loans | ||
Assets at fair value | ||
Total assets at fair value | 190 | |
Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | 100 | |
Level 3 | ||
Assets at fair value | ||
Total assets at fair value | 290 | |
Level 3 | Impaired loans | ||
Assets at fair value | ||
Total assets at fair value | 190 | |
Level 3 | Other real estate owned | ||
Assets at fair value | ||
Total assets at fair value | $ 100 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information (Details) - Non-recurring basis $ in Thousands | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) |
Assets at fair value | ||
Fair value estimate | $ 0 | $ 290 |
Level 3 | ||
Assets at fair value | ||
Fair value estimate | 290 | |
Impaired loans | ||
Assets at fair value | ||
Fair value estimate | 190 | |
Impaired loans | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 190 | |
Impaired loans | Level 3 | Appraisal adjustments | ||
Assets at fair value | ||
Fair value estimate | $ 190 | |
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 | 28 | |
Other real estate owned | ||
Assets at fair value | ||
Fair value estimate | $ 100 | |
Other real estate owned | Level 3 | ||
Assets at fair value | ||
Fair value estimate | 100 | |
Other real estate owned | Level 3 | Liquidation expenses | ||
Assets at fair value | ||
Fair value estimate | $ 100 | |
Measurement input | 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying value and fair value of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financial assets: | ||
Loans receivable, net | $ 475,730 | $ 508,605 |
Financial liabilities: | ||
Certificates of deposit | 169,123 | 194,480 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Level 3 | ||
Financial assets: | ||
Loans receivable, net | 475,377 | 541,779 |
Financial liabilities: | ||
Certificates of deposit | 170,411 | 198,268 |
Advances from Federal Home Loan Bank | 42,038 | 67,520 |
Carrying Value | ||
Financial assets: | ||
Loans receivable, net | 475,730 | 508,605 |
Financial liabilities: | ||
Certificates of deposit | 169,123 | 194,480 |
Advances from Federal Home Loan Bank | 41,000 | 64,892 |
Fair Value | ||
Financial assets: | ||
Loans receivable, net | 475,377 | 541,779 |
Financial liabilities: | ||
Certificates of deposit | 170,411 | 198,268 |
Advances from Federal Home Loan Bank | $ 42,038 | $ 67,520 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | Mar. 24, 2021 | Mar. 31, 2021 | Mar. 31, 2021 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
ESOP shares committed to be released | $ 8 | ||
ESOP Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Percentage of shares sold in offering | 8.00% | ||
Percentage of aggregate purchase price of common stock | 100.00% | ||
ESOP issued | 881,130 | ||
ESOP shares committed to be released | $ 10,100 | ||
Loan to trustees for ESOP | $ 10,100 | ||
Interest percentage | 3.25% | ||
Debt term | P25Y | ||
ESOP expenses | $ 8 |