Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40255 | |
Entity Registrant Name | WILLIAM PENN BANCORPORATION | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 85-3898797 | |
Entity Address, Address Line One | 10 Canal Street | |
Entity Address, Address Line Two | Suite 104 | |
Entity Address, City or Town | Bristol | |
Entity Address State Or Province | PA | |
Entity Address, Postal Zip Code | 19007 | |
City Area Code | 267 | |
Local Phone Number | 540-8500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | WMPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,068,641 | |
Entity Central Index Key | 0001828376 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
ASSETS | ||
Cash and due from banks | $ 7,236 | $ 7,652 |
Interest bearing deposits with other banks | 10,492 | 11,561 |
Federal funds sold | 239 | 1,580 |
Total cash and cash equivalents | 17,967 | 20,793 |
Interest-bearing time deposits | 100 | 600 |
Securities available for sale, at fair value | 165,127 | |
Securities available for sale, at fair value | 156,097 | |
Securities held to maturity, net of allowance for credit losses of $0 as of September 30, 2023 (fair value of $76,853 and $82,313, as of September 30, 2023 and June 30, 2023, respectively) | 99,690 | |
Securities held to maturity, net of allowance for credit losses of $0 as of September 30, 2023 (fair value of $76,853 and $82,313, as of September 30, 2023 and June 30, 2023, respectively) | 97,544 | |
Equity securities | 1,702 | 1,629 |
Loans receivable, net of allowance for credit losses of $3,587 and $3,313 as of September 30, 2023 and June 30, 2023, respectively | 472,052 | |
Loans receivable, net of allowance for credit losses of $3,587 and $3,313 as of September 30, 2023 and June 30, 2023, respectively | 477,543 | |
Premises and equipment, net | 7,668 | 9,054 |
Regulatory stock, at cost | 3,286 | 2,577 |
Deferred income taxes | 11,104 | 9,485 |
Bank-owned life insurance | 40,869 | 40,575 |
Goodwill | 4,858 | 4,858 |
Intangible assets | 478 | 519 |
Operating lease right-of-use assets | 8,775 | 8,931 |
Accrued interest receivable and other assets | 7,487 | 6,198 |
TOTAL ASSETS | 829,987 | 847,579 |
LIABILITIES | ||
Deposits | 626,507 | 635,260 |
Advances from Federal Home Loan Bank | 51,000 | 34,000 |
Advances from borrowers for taxes and insurance | 1,707 | 3,227 |
Operating lease liabilities | 8,972 | 9,107 |
Accrued interest payable and other liabilities | 5,407 | 5,240 |
TOTAL LIABILITIES | 693,593 | 686,834 |
Commitments and contingencies (note 12) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued | ||
Common stock, $0.01 par value, 150,000,000 shares authorized; 10,828,903 shares issued and outstanding at September 30, 2023 and 12,452,921 shares issued and outstanding at June 30, 2023 | 108 | 125 |
Additional paid-in capital | 114,934 | 134,387 |
Unearned common stock held by employee stock ownership plan | (9,093) | (9,194) |
Retained earnings | 58,410 | 58,805 |
Accumulated other comprehensive loss | (27,965) | (23,378) |
TOTAL STOCKHOLDERS' EQUITY | 136,394 | 160,745 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 829,987 | $ 847,579 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Allowance for credit losses | $ 0 | |
Fair value | 76,853,000 | $ 82,313,000 |
Allowance for loan losses | $ 3,313,000 | |
Allowance for loan losses | $ 3,587,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 10,828,903 | 12,452,921 |
Common stock, outstanding (in shares) | 10,828,903 | 12,452,921 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 6,139 | $ 5,297 |
Securities | 1,711 | 1,657 |
Other | 161 | 129 |
Total interest income | 8,011 | 7,083 |
INTEREST EXPENSE | ||
Deposits | 2,730 | 509 |
Borrowings | 537 | 333 |
Total interest expense | 3,267 | 842 |
Net interest income | 4,744 | 6,241 |
Provision for credit losses | 5 | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 4,739 | 6,241 |
OTHER INCOME | ||
Service fees | 215 | 211 |
Earnings on bank-owned life insurance | 294 | 273 |
Unrealized gain (loss) on equity securities | 73 | (273) |
Other | 68 | 71 |
Total other income | 650 | 282 |
OTHER EXPENSES | ||
Salaries and employee benefits | 2,935 | 3,241 |
Occupancy and equipment | 760 | 788 |
Data processing | 494 | 431 |
Professional fees | 210 | 263 |
Amortization of intangible assets | 41 | 48 |
Other | 785 | 792 |
Total other expense | 5,225 | 5,563 |
Income before income taxes | 164 | 960 |
Income tax benefit | (15) | (67) |
NET INCOME | $ 179 | $ 1,027 |
Basic earnings per share (in dollars per share) | $ 0.02 | $ 0.08 |
Diluted earnings per share (in dollars per share) | $ 0.02 | $ 0.08 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net income | $ 179 | $ 1,027 |
Other comprehensive loss: | ||
Changes in net unrealized loss on securities available for sale | (5,957) | (10,066) |
Tax effect | 1,370 | 2,316 |
Other comprehensive loss, net of tax | (4,587) | (7,750) |
Comprehensive loss | $ (4,408) | $ (6,723) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned Common Stock held by ESOP | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning balance at Jun. 30, 2022 | $ 149 | $ 159,546 | $ (9,599) | $ 57,587 | $ (15,357) | $ 192,326 | ||
Beginning balance (in shares) at Jun. 30, 2022 | 14,896,590 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 1,027 | 1,027 | ||||||
Other comprehensive loss | (7,750) | (7,750) | ||||||
Restricted stock expense | 289 | 289 | ||||||
Stock option expense | 201 | 201 | ||||||
Stock purchased and retired | $ (4) | (4,578) | (4,582) | |||||
Stock purchased and retired (in shares) | (397,352) | |||||||
ESOP shares committed to be released | 102 | 102 | ||||||
Regular cash dividends paid | (419) | (419) | ||||||
Ending balance at Sep. 30, 2022 | $ 145 | 155,458 | (9,497) | 58,195 | (23,107) | 181,194 | ||
Ending balance (in shares) at Sep. 30, 2022 | 14,499,238 | |||||||
Beginning balance at Jun. 30, 2023 | $ 125 | 134,387 | (9,194) | 58,805 | (23,378) | $ 160,745 | ||
Beginning balance (in shares) at Jun. 30, 2023 | 12,452,921 | 12,452,921 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 179 | $ 179 | ||||||
Other comprehensive loss | (4,587) | (4,587) | ||||||
Restricted stock expense | 282 | 282 | ||||||
Stock option expense | 195 | 195 | ||||||
Stock purchased and retired | $ (17) | (19,931) | (19,948) | |||||
Stock purchased and retired (in shares) | (1,624,018) | |||||||
ESOP shares committed to be released | 1 | 101 | 102 | |||||
Regular cash dividends paid | (348) | (348) | ||||||
Ending balance (Accounting Standards Update 2016-13) at Sep. 30, 2023 | $ (226) | $ (226) | ||||||
Ending balance at Sep. 30, 2023 | $ 108 | $ 114,934 | $ (9,093) | $ 58,410 | $ (27,965) | $ 136,394 | ||
Ending balance (in shares) at Sep. 30, 2023 | 10,828,903 | 10,828,903 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.03 | $ 0.03 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 179 | $ 1,027 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 5 | |
Depreciation expense | 197 | 265 |
Other accretion, net | (136) | (133) |
Amortization of core deposit intangibles | 41 | 48 |
Amortization of ESOP | 102 | 102 |
Unrealized (gain) loss on equity securities | (73) | 273 |
Earnings on bank-owned life insurance | (294) | (273) |
Stock based compensation expense | 477 | 490 |
Other, net | (96) | 800 |
Net cash provided by operating activities | 402 | 2,599 |
Securities available for sale: | ||
Purchases | (1,923) | |
Maturities, calls and principal paydowns | 3,000 | 3,637 |
Securities held to maturity: | ||
Purchases | (4,484) | |
Maturities, calls and principal paydowns | 2,153 | 2,243 |
Net decrease in loans receivable | 5,405 | 3,181 |
Interest bearing time deposits: | ||
Maturities and principal paydowns | 500 | |
Regulatory stock purchases | (2,109) | (1,487) |
Regulatory stock redemptions | 1,400 | 1,915 |
Purchases of premises and equipment, net | (48) | (122) |
Proceeds from the sale of premises and equipment | 123 | |
Net cash provided by investing activities | 10,301 | 3,083 |
Cash flows from financing activities | ||
Net decrease in deposits | (8,713) | (6,373) |
Net increase of short-term borrowed funds | 17,000 | |
Net repayment of short-term borrowed funds | (10,000) | |
Repurchase of common stock | (19,948) | (4,582) |
Decrease in advances from borrowers for taxes and insurance | (1,520) | (1,355) |
Cash dividends | (348) | (419) |
Net cash used in financing activities | (13,529) | (22,729) |
Net decrease in cash and cash equivalents | (2,826) | (17,047) |
Cash and cash equivalents - beginning | 20,793 | 36,170 |
Cash and cash equivalents - ending | 17,967 | 19,123 |
Supplementary cash flows information | ||
Interest paid | 3,221 | 877 |
Income tax payments (refunds) | 205 | $ (467) |
Premises transferred to held for sale | $ 1,237 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Sep. 30, 2023 | |
Nature of Operations | |
Nature of Operations | Note 1 - Nature of Operations William Penn Bancorporation (“the Company”) is a Maryland corporation that was incorporated in July 2020 to be the successor to William Penn Bancorp, Inc. (“William Penn Bancorp”) upon completion of the second-step conversion of William Penn Bank (the “Bank”) from the two-tier mutual holding company structure to the stock holding company structure. William Penn, MHC was the former mutual holding company for William Penn Bancorp prior to completion of the second-step conversion. In conjunction with the second-step conversion, each of William Penn, MHC and William Penn Bancorp ceased to exist. The second-step conversion was completed on March 24, 2021, at which time the Company sold, for gross proceeds of $126.4 million, a total of 12,640,035 shares of common stock at $10.00 per share. As part of the second-step conversion, each of the existing 776,647 outstanding shares of William Penn Bancorp common stock owned by persons other than William Penn, MHC was converted into 3.2585 shares of Company common stock. In addition, $5.4 million of cash held by William Penn, MHC was transferred to the Company and recorded as an increase to additional paid-in capital following the completion of the second-step conversion. In connection with the second-step conversion offering, the William Penn Bank Employee Stock Ownership Plan (“ESOP”) trustees subscribed for, and intended to purchase, on behalf of the ESOP, 8% of the shares of the Company common stock sold in the offering and to fund its stock purchase through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. As a result of the second-step conversion offering being oversubscribed in the first tier of subscription priorities, the ESOP trustees were unable to purchase shares of the Company’s common stock in the second-step conversion offering. Subsequent to the completion of the second-step conversion on March 24, 2021, the ESOP trustees purchased 881,130 shares, or $10.1 million, of the Company’s common stock in the open market. Such shares represent 6.97% of the shares of the Company common stock sold in the offering. The ESOP did not purchase any additional shares of Company common stock in connection with the second-step conversion and offering. The Company owns 100% of the outstanding common stock of the Bank, a Pennsylvania chartered stock savings bank. The Bank offers consumer and commercial banking services to individuals, businesses, and nonprofit organizations throughout the Delaware Valley area through twelve full-service branch offices in Bucks County and Philadelphia, Pennsylvania, and Burlington, Camden, and Mercer Counties in New Jersey. The Company is subject to regulation and supervision by the Board of Governors of the Federal Reserve System. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At September 30, 2023, WPSLA held $245.8 million of the Bank’s $255.3 million investment securities portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. 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 credit losses, goodwill, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions. The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing demand deposits. Revenue Recognition Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments, along with noninterest revenue resulting from investment security and loan gains (losses) and earnings on bank owned life insurances, are not within the scope of Accounting Standards Codification (“ASC”) 606. The main types of noninterest income within the scope of ASC 606 include service charges on deposit accounts. The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. These fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business, and government customers. Through its branch network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings, and demand deposits; the making of commercial and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Bank. As such, discrete financial information is not available and segment reporting would not be meaningful. Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) The impact of the change from the incurred loss model to the current expected credit loss model is included in the table below. July 1, 2023 Adoption (Dollars in thousands) Pre-adoption Impact As Reported Assets ACL on debt securities available for sale $ — $ — $ — ACL on debt securities held to maturity — — — ACL on loans Residential real estate: 1 - 4 family 486 (67) 419 Home equity and HELOCs 113 19 132 Construction -residential 214 (174) 40 Commercial real estate: 1 - 4 family investor 569 (241) 328 Multi-family (five or more) 89 (30) 59 Commercial non-residential 1,420 379 1,799 Construction and land 281 (93) 188 Commercial 82 254 336 Consumer loans 59 196 255 Liabilities ACL on unfunded commitments 101 50 151 $ 3,414 $ 293 $ 3,707 Recent Accounting Pronouncements Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Receivables—Troubled Debt Restructurings by Creditors Financial Instruments—Credit Losses—Measured at Amortized Cost In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. Allowance for Credit Losses on Loans The Company maintains its allowance for credit losses (“ACL”) at a level that management believes to be appropriate to absorb estimated credit losses as of the date of the Consolidated Statement of Financial Condition. The Company established its allowance in accordance with the guidance included in Accounting Standards Codification (“ASC”) 326, Financial Instruments – Credit Losses Historical credit loss experience is the basis for the estimate of expected credit losses. We apply our historical loss rates and the historical loss rates of a group of peer banks identified by management to pools of loans with similar risk characteristics using the Weighted-Average Remaining Maturity (“WARM”) method. The remaining contractual life of the pools of loans with similar risk characteristics is adjusted by expected scheduled payments and prepayments. After consideration of the historical loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information. Our reasonable and supportable forecast adjustment is based on a regional economic indicator obtained from the St. Louis Federal Reserve economic database. The Company selected eight qualitative metrics which were correlated with the Bank and its peer group’s historical loss patterns. The eight qualitative metrics include: changes in lending policies and procedures, changes in national and local economic conditions as well as business conditions, changes in the nature, complexity, and volume of the portfolio, changes in the experience, ability, and depth of lenders and lending management, changes in the volume and severity of past due and classified loans, changes in the quality of the Bank’s loan review system, changes in the value of collateral securing the loans, and changes in or the existence of credit concentrations. The adjustments are weighted for relevance before applying to each pool of loans. Each quarter, management reviews the recommended adjustment factors and applies any additional adjustments based on local and current conditions. The Company has elected to exclude $1.9 million of accrued interest receivable as of September 30, 2023 from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Accrued interest on loans is reported in the accrued interest receivable and other assets The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and, therefore, should be individually assessed. We evaluate all commercial loans that meet the following criteria: (1) when it is determined that foreclosure is probable, (2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, (3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Credit loss estimates are calculated based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A charge-off is recorded if the fair value of the loan is less than the loan balance. Allowance for Credit Losses on Unfunded Loan Commitments The Company estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on unfunded loan commitments is included in accrued interest payable and other liabilities in the Company’s Statement of Financial Condition and is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Allowance for Credit Losses on Held to Maturity Securities The Company accounts for its held to maturity securities in accordance with Accounting Standards Codification (ASC) 326-20, Financial Instruments – Credit Loss – Measured at Amortized Cost The Company classifies its held to maturity debt securities into the following major security types: mortgage-backed securities, U.S. government agency securities and municipal bonds. Generally, these securities are highly rated with a history of no credit losses. Credit ratings of held to maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, the Company determined that an allowance for credit losses on its’ held to maturity portfolio is not required. Accrued interest receivable on held to maturity debt securities totaled $142 thousand as of September 30, 2023 and is included within accrued interest receivable and other assets Allowance for Credit Losses on Available for Sale Securities The Company measures expected credit losses on available for sale debt securities when the Bank intends to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the amortized cost basis of the security is written down to fair value through income. For available for sale debt securities that do not meet the previously mentioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The ACL on available for sale debt securities is included within securities available for sale on the Consolidated Statements of Financial Condition. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Income. Losses are charged against the allowance when the Company believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities totaled $806 thousand as of September 30, 2023 and is included within accrued interest receivable and other assets |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 3 - Earnings Per Share The following table presents a calculation of basic and diluted earnings per share for the three months ended September 30, 2023 and 2022. Earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. The difference between common shares issued and basic average common shares outstanding, for purposes of calculating basic earnings per share, is a result of subtracting unallocated ESOP shares and unvested restricted stock shares. There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, the net income of $179 thousand and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, were used as the numerators. See Note 11 to these consolidated financial statements for further discussion of stock grants. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and diluted earnings per share computation. Three Months Ended September 30, (Dollars in thousands, except share and per share amounts) 2023 2022 Basic and diluted earnings per share: Net income $ 179 $ 1,027 Basic average common shares outstanding 10,600,522 13,435,273 Effect of dilutive securities 20,081 17,629 Dilutive average shares outstanding 10,620,603 13,452,902 Earnings per share: Basic $ 0.02 $ 0.08 Diluted $ 0.02 $ 0.08 Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the weighted average market value for the periods presented. There were 1,197,640 and 1,232,400 stock options that were anti-dilutive for the three months ended September 30, 2023 and 2022, respectively. |
Changes in and Reclassification
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 30, 2023 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | Note 4 – Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present the changes in the balances of each component of accumulated other comprehensive loss (“AOCL”) for the three months ended September 30, 2023 and 2022. (Dollars in thousands) Unrealized Losses on Securities Available for Sale Accumulated Other Comprehensive Loss (1) 2023 2022 Balance at June 30, $ (23,378) $ (15,357) Other comprehensive loss before reclassifications (4,587) (7,750) Amounts reclassified from accumulated other comprehensive loss — — Period change (4,587) (7,750) Balance at September 30, $ (27,965) $ (23,107) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 23% for both 2023 and 2022. There were no reclassifications out of AOCL during the three months ended September 30, 2023 and 2022. |
Investment Securities
Investment Securities | 3 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Investment Securities | Note 5 – Investment Securities Debt Securities The amortized cost, gross unrealized gains and losses, and fair value of investments in debt securities are as follows: September 30, 2023 Gross Gross Allowance Amortized Unrealized Unrealized for Credit Fair (Dollars in thousands) Cost Gains Losses Losses Value Available For Sale: Mortgage-backed securities $ 121,608 $ — $ (22,631) $ — $ 98,977 U.S. agency collateralized mortgage obligations 9,903 — (2,083) — 7,820 U.S. government agency securities 3,643 142 (83) — 3,702 Municipal bonds 20,061 — (6,091) — 13,970 Corporate bonds 37,200 — (5,572) — 31,628 Total Available For Sale $ 192,415 $ 142 $ (36,460) $ — $ 156,097 September 30, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Credit (Dollars in thousands) Cost Gains Losses Value Losses Held To Maturity: Mortgage-backed securities $ 92,494 $ — $ (20,607) $ 71,887 $ — U.S. government agency securities 4,990 — (84) 4,906 — Municipal bonds 60 — — 60 — Total Held To Maturity $ 97,544 $ — $ (20,691) $ 76,853 $ — June 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 124,252 $ 21 $ (17,517) $ 106,756 U.S. agency collateralized mortgage obligations 10,074 — (1,782) 8,292 U.S. government agency securities 3,881 140 (89) 3,932 Municipal bonds 20,081 — (5,102) 14,979 Corporate bonds 37,200 — (6,032) 31,168 Total Available For Sale $ 195,488 $ 161 $ (30,522) $ 165,127 Held To Maturity: Mortgage-backed securities $ 94,648 $ — $ (17,275) $ 77,373 U.S. government agency securities 4,982 — (102) 4,880 Municipal bonds 60 — — 60 Total Held To Maturity $ 99,690 $ — $ (17,377) $ 82,313 The Company did not sell any investment securities during the three months ended September 30, 2023 and 2022. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without penalties. September 30, 2023 Available For Sale Held To Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 5,050 $ 4,966 Due after one year through five years 16 16 — — Due after five years through ten years 42,660 35,988 — — Due after ten years 149,739 120,093 92,494 71,887 $ 192,415 $ 156,097 $ 97,544 $ 76,853 The following tables provide information on the gross unrealized losses and fair market value of the Company's investments for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and June 30, 2023: September 30, 2023 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 $ 3,355 $ (95) $ 95,622 $ (22,536) $ 98,977 $ (22,631) U.S. agency collateralized mortgage obligations — — 7,820 (2,083) 7,820 (2,083) U.S. government agency securities — — 894 (83) 894 (83) Municipal bonds — — 13,970 (6,091) 13,970 (6,091) Corporate bonds 3,583 (567) 28,045 (5,005) 31,628 (5,572) 6,938 (662) 146,351 (35,798) 153,289 (36,460) Held To Maturity: Mortgage-backed securities — — 71,887 (20,607) 71,887 (20,607) U.S. government agency securities 497 (1) 4,409 (83) 4,906 (84) 497 (1) 76,296 (20,690) 76,793 (20,691) Total Temporarily Impaired Securities $ 7,435 $ (663) $ 222,647 $ (56,488) $ 230,082 $ (57,151) June 30, 2023 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 $ 16,794 $ (967) $ 86,371 $ (16,550) $ 103,165 $ (17,517) U.S. agency collateralized mortgage obligations — — 8,292 (1,782) 8,292 (1,782) U.S. government agency securities — — 943 (89) 943 (89) Municipal bonds — — 14,979 (5,102) 14,979 (5,102) Corporate bonds 10,715 (1,435) 20,453 (4,597) 31,168 (6,032) 27,509 (2,402) 131,038 (28,120) 158,547 (30,522) Held To Maturity: Mortgage-backed securities — — 77,373 (17,275) 77,373 (17,275) U.S. government agency securities 4,880 (102) — — 4,880 (102) 4,880 (102) 77,373 (17,275) 82,253 (17,377) Total Temporarily Impaired Securities $ 32,389 $ (2,504) $ 208,411 $ (45,395) $ 240,800 $ (47,899) At September 30, 2023, the Company had six securities in the less than 12 months loss position and 122 securities in the 12 month or greater loss position. The unrealized loss on securities is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider the unrealized losses to be credit losses at September 30, 2023 and the Company does not consider these investments to be other-than temporarily impaired at June 30, 2023. There were 126 investment securities that were temporarily impaired at June 30, 2023. The Company did not recognize any credit losses on these securities for the three months ended September 30, 2023, or other-than temporary impairment charges for the three months ended September 30, 2022. At September 30, 2023 and June 30, 2023, $2.4 million and $2.5 million, respectively, in the carrying value of investment securities were pledged to secure municipal deposits. Equity Securities The Company had one equity security with a fair value of $1.7 million as of September 30, 2023 and $1.6 million as of June 30, 2023. During the three months ended September 30, 2023 and 2022, the Company recorded $73 thousand of unrealized gains and $273 thousand of unrealized losses, respectively, which were recorded in Unrealized gain (loss) on equity securities |
Loans
Loans | 3 Months Ended |
Sep. 30, 2023 | |
Loans | |
Loans | Note 6 – Loans Major classifications of loans, net of deferred loan fees (costs) at September 30, 2023 and June 30, 2023 are summarized as follows: September 30, June 30, 2023 2023 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 131,305 27.61 % $ 135,046 28.08 % Home equity and HELOCs 32,497 6.83 32,684 6.79 Construction -residential 8,813 1.85 9,113 1.90 Commercial real estate: 1 - 4 family investor 96,337 20.25 98,160 20.41 Multi-family (five or more) 15,258 3.21 15,281 3.18 Commercial non-residential 155,399 32.67 157,555 32.77 Construction and land 19,343 4.07 15,584 3.24 Commercial 14,759 3.10 15,433 3.21 Consumer loans 1,928 0.41 2,000 0.42 Total Loans 475,639 100.00 % 480,856 100.00 % Allowance for credit losses (3,587) (3,313) Net Loans $ 472,052 $ 477,543 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 $12.2 million and $12.5 million at September 30, 2023 and June 30, 2023, respectively. The Bank retained the related servicing rights for the loans that were sold and receives a 25 basis point servicing fee from the purchasers of the loans. Custodial escrow balances maintained in connection with the foregoing loan servicing are included in advances from borrowers for taxes and insurance. Commercial non-residential loans include shared national credits, which are participations in loans or loan commitments of at least $20.0 million that are shared by three or more banks. As of September 30, 2023 and June 30, 2023, the Company had one shared national credit loan commitment for $12.5 million with no balance outstanding that is a purchased participation classified as pass rated and all payments are current and the loan is performing in accordance with its contractual terms. The Company’s accounting policies for shared national credits, including our charge off and reserve policy, are consistent with the significant accounting policies disclosed in our financial statements for the Company’s total loan portfolio. Shared national credits are subject to the same underwriting guidelines as loans originated by the Bank and are subject to annual reviews where the risk rating of the loan is evaluated. Additionally, the Bank obtains quarterly financial information and performs a financial analysis on a regular basis to ensure that the borrower can comply with the financial terms of the loan. The information used in the analysis is provided by the borrower through the agent bank. Allowance for Credit Losses. Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) The following tables set forth the allocation of the Bank’s allowance for credit losses by loan category at the dates indicated. The portion of the credit loss allowance allocated to each loan category does not represent the total available for future losses which may occur within the loan category since the total credit loss allowance is a valuation allocation applicable to the entire loan portfolio. The Company generally charges-off the collateral or discounted cash flow deficiency on all loans at 90 days past due and all loans rated substandard or worse that are 90 days past due. The following table presents, by loan portfolio segment, the changes in the allowance for credit losses for the three months ended September 30, 2023: September 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 486 $ 113 $ 214 $ 569 $ 89 $ 1,420 $ 281 $ 82 $ 59 $ 3,313 Impact of adopting ASU 2016-13 (67) 19 (174) (241) (30) 379 (93) 254 196 243 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — 26 26 Provision (recovery) (12) (1) (1) (3) (6) (32) 45 4 11 5 Ending Balance $ 407 $ 131 $ 39 $ 325 $ 53 $ 1,767 $ 233 $ 340 $ 292 $ 3,587 The following table presents, by loan portfolio segment, the changes in the allowance for loan losses for the three months ended September 30, 2022: September 30, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for loan losses: Beginning balance $ 506 $ 113 $ 386 $ 527 $ 110 $ 1,451 $ 166 $ 100 $ 50 $ 3,409 Charge-offs (79) — — — — — — — — (79) Recoveries — — — — — — — — 3 3 Provision (recovery) 66 3 (85) (32) 2 (20) 58 11 (3) — Ending Balance $ 493 $ 116 $ 301 $ 495 $ 112 $ 1,431 $ 224 $ 111 $ 50 $ 3,333 During the three months ended September 30, 2023 and exclusive of the impact of the adoption of ASU 2016-13, the changes in the provision for credit losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each portfolio of loans collectively evaluated for impairment. Specifically, we experienced significant growth in our commercial construction and land portfolio during the three months ended September 30, 2023 and a corresponding increase in the provision for credit losses for this portfolio. The overall increase in the allowance during the three months ended September 30, 2023 can be primarily attributed to the previously mentioned growth in our commercial construction and land portfolio, partially offset by improved asset quality metrics with continued low levels of net charge-offs and a decrease in non-performing assets. During the three months ended September 30, 2022, the changes in the provision for loan losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each portfolio of loans collectively evaluated for impairment. Specifically, we experienced significant growth in our commercial construction and land portfolio and a corresponding increase in the provision for loan losses for this portfolio. The overall decrease in the allowance during the three months ended September 30, 2022 can be primarily attributed to an improving asset quality and continued low levels of net charge-offs and non-performing assets. Under the provisions of ASU 2016-13, loan evaluated individually for impairment consist of non-accrual loans. Under the incurred loss model in effect prior to the adoption of ASU 2016-13, loans evaluated individually for impairment were referred to as impaired loans. The following table presents the allowance for credit losses and recorded investment by loan portfolio classification at September 30, 2023: September 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 407 131 39 325 53 1,767 233 340 292 3,587 Total allowance $ 407 $ 131 $ 39 $ 325 $ 53 $ 1,767 $ 233 $ 340 $ 292 $ 3,587 Loans receivable ending balance: Individually evaluated for impairment $ 2,033 $ — $ — $ 111 $ 236 $ 1,095 $ — $ — $ 81 $ 3,556 Collectively evaluated for impairment 129,272 32,497 8,813 96,226 15,022 154,304 19,343 14,759 1,847 472,083 Total portfolio $ 131,305 $ 32,497 $ 8,813 $ 96,337 $ 15,258 $ 155,399 $ 19,343 $ 14,759 $ 1,928 $ 475,639 The following table presents the allowance for loan losses and recorded investment by loan portfolio classification at June 30, 2023: June 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 486 113 214 569 89 1,420 281 82 59 3,313 Total allowance $ 486 $ 113 $ 214 $ 569 $ 89 $ 1,420 $ 281 $ 82 $ 59 $ 3,313 Loans receivable ending balance: Individually evaluated for impairment $ 1,209 $ 182 $ — $ 832 $ 251 $ 778 $ — $ — $ — $ 3,252 Collectively evaluated for impairment 78,237 19,689 9,113 84,891 14,781 142,098 15,584 14,976 643 380,012 Acquired non-credit impaired loans (1) 55,528 12,813 — 12,437 249 14,679 — 457 1,357 97,520 Acquired credit impaired loans (2) 72 — — — — — — — — 72 Total portfolio $ 135,046 $ 32,684 $ 9,113 $ 98,160 $ 15,281 $ 157,555 $ 15,584 $ 15,433 $ 2,000 $ 480,856 (1) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. (2) Acquired credit impaired loans are evaluated on an individual basis. Credit Quality Information The following tables represent credit exposures by internally assigned grades as of September 30, 2023 and June 30, 2023 that management uses to monitor the credit quality of the overall loan portfolio. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. All loans greater than 90 days past due are considered Substandard. 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 Bank has a structured loan rating process with several layers of internal and external oversight to help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed. Generally, consumer and residential mortgage loans are included in the Pass category unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Credit Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. The Credit Department also annually reviews commercial relationships of $500,000 or greater to assign or re-affirm risk ratings. The following tables set forth the amounts of the portfolio of classified asset categories for the commercial loan portfolios at September 30, 2023 and June 30, 2023: September 30, 2023 Term Loans Amortized Cost Basis by Origination Fiscal Year Revolving Loans Revolving Loans Amortized Converted 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total 1 - 4 family investor Pass $ 1,448 $ 12,185 $ 6,831 $ 17,783 $ 12,245 $ 42,376 $ 1,537 $ 719 $ 95,124 Special Mention — — — — — 1,102 — — 1,102 Substandard — — — — — 111 — — 111 Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1 - 4 family investor $ 1,448 $ 12,185 $ 6,831 $ 17,783 $ 12,245 $ 43,589 $ 1,537 $ 719 $ 96,337 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family (five or more) Pass $ 101 $ 1,181 $ 1,346 $ 4,173 $ 5,050 $ 3,171 $ — $ — $ 15,022 Special Mention — — — — — — — — — Substandard — — — — — 236 — — 236 Doubtful — — — — — — — — — Loss — — — — — — — — — Total Multi-family $ 101 $ 1,181 $ 1,346 $ 4,173 $ 5,050 $ 3,407 $ — $ — $ 15,258 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-residential Pass $ 553 $ 21,986 $ 62,611 $ 30,678 $ 16,490 $ 21,890 $ — $ 96 $ 154,304 Special Mention — — — — — — — — — Substandard — — — 320 477 298 — — 1,095 Doubtful — — — — — — — — — Loss — — — — — — — — — Total Commercial non-residential $ 553 $ 21,986 $ 62,611 $ 30,998 $ 16,967 $ 22,188 $ — $ 96 $ 155,399 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ 811 $ 4,742 $ 10,501 $ — $ 1,167 $ 2,122 $ — $ — $ 19,343 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total Construction and land $ 811 $ 4,742 $ 10,501 $ — $ 1,167 $ 2,122 $ — $ — $ 19,343 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ — $ 6,803 $ 7,378 $ — $ 53 $ 525 $ — $ — $ 14,759 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total Commercial $ — $ 6,803 $ 7,378 $ — $ 53 $ 525 $ — $ — $ 14,759 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents more comparable information from the prior period, including internal credit risk ratings by loan class segments. June 30, 2023 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 96,097 $ 15,030 $ 156,777 $ 15,584 $ 15,433 $ 298,921 Special Mention 1,231 — — — — 1,231 Substandard 832 251 778 — — 1,861 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 98,160 $ 15,281 $ 157,555 $ 15,584 $ 15,433 $ 302,013 The Company monitors the credit risk profile by payment activity for residential and consumer loans. Generally, residential and consumer loans on nonaccrual status and 90 or more days past due and accruing are considered non-performing and are reviewed monthly. The following tables set forth the amounts of the portfolio that are not rated by class of loans for the residential and consumer loan portfolios at September 30, 2023 and June 30, 2023: September 30, 2023 Term Loans Amortized Cost Basis by Origination Fiscal Year Revolving Loans Revolving Loans Amortized Converted 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total 1 - 4 family residential Performing $ 3,550 $ 8,007 $ 13,872 $ 15,786 $ 8,627 $ 79,430 $ — $ — $ 129,272 Non-performing — — — — 131 1,902 — — 2,033 Total 1 - 4 family residential $ 3,550 $ 8,007 $ 13,872 $ 15,786 $ 8,758 $ 81,332 $ — $ — $ 131,305 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity & HELOCs Performing $ 535 $ 2,422 $ 517 $ 988 $ 427 $ 4,677 $ 21,156 $ 1,775 $ 32,497 Non-performing — — — — — — — — — Total Home equity & HELOCs $ 535 $ 2,422 $ 517 $ 988 $ 427 $ 4,677 $ 21,156 $ 1,775 $ 32,497 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction residential Performing $ 1,728 $ 4,885 $ 645 $ 1,555 $ — $ — $ — $ — $ 8,813 Non-performing — — — — — — — — — Total construction residential $ 1,728 $ 4,885 $ 645 $ 1,555 $ — $ — $ — $ — $ 8,813 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ 116 $ 68 $ 25 $ 321 $ 1,317 $ — $ — $ 1,847 Non-performing — — — — — 81 — — 81 Total Consumer $ — $ 116 $ 68 $ 25 $ 321 $ 1,398 $ — $ — $ 1,928 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents more comparable information from the prior period, including a disclosure of performing and non-performing loans by loan class segments. June 30, 2023 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 132,956 $ 32,684 $ 9,113 $ 1,918 $ 176,671 Non-performing 2,090 — — 82 2,172 $ 135,046 $ 32,684 $ 9,113 $ 2,000 $ 178,843 Loan Delinquencies and Non-accrual Loans Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a recorded payment is past due. The following are tables which include an aging analysis of the recorded investment of past due loans as of September 30, 2023 and June 30, 2023. All non-accrual loans included in the tables below do not have an associated allowance for credit losses because any impairment is charged-off at the time the loan moves to non-accrual status. As of September 30, 2023, $3.5 million of the non-accrual loans included in the table below are secured by real estate and $81 thousand are unsecured. Aged Analysis of Past Due and Non-accrual Loans As of September 30, 2023 Recorded Recorded Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 281 $ 654 $ 198 $ 1,133 $ 130,172 $ 131,305 $ — $ 2,033 Home equity and HELOCs 144 — — 144 32,353 32,497 — — Construction - residential — — — — 8,813 8,813 — — Commercial real estate: 1 - 4 family investor 89 960 39 1,088 95,249 96,337 — 111 Multi-family — — — — 15,258 15,258 — 236 Commercial non-residential — — 1,095 1,095 154,304 155,399 — 1,095 Construction and land — — — — 19,343 19,343 — — Commercial — — — — 14,759 14,759 — — Consumer — 31 13 44 1,884 1,928 — 81 Total $ 514 $ 1,645 $ 1,345 $ 3,504 $ 472,135 $ 475,639 $ — $ 3,556 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2023 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 $ 290 $ 457 $ 567 $ 1,314 $ 72 $ 133,660 $ 135,046 $ — $ 2,090 Home equity and HELOCs — — — — — 32,684 32,684 — — Construction - residential — — — — — 9,113 9,113 — — Commercial real estate: 1 - 4 family investor — 752 — 752 — 97,408 98,160 — 832 Multi-family 251 — — 251 — 15,030 15,281 — 251 Commercial non-residential — 322 778 1,100 — 156,455 157,555 — 778 Construction and land — — — — — 15,584 15,584 — — Commercial — — — — — 15,433 15,433 — — Consumer — 13 — 13 — 1,987 2,000 — 82 Total $ 541 $ 1,544 $ 1,345 $ 3,430 $ 72 $ 477,354 $ 480,856 $ — $ 4,033 Interest income on non-accrual loans that would have been recorded if these loans had performed in accordance with their terms was approximately $49 thousand and $75 thousand during the three months ended September 30, 2023 and 2022, respectively. Impaired Loans – Prior to the Adoption of ASU 2016-13 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 June 30, 2023. June 30, 2023 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 family residential real estate $ 1,209 $ 1,302 $ — Home equity and HELOCs 182 182 — Construction residential — — — 1 - 4 family investor commercial real estate 832 850 — Multi-family 251 283 — Commercial non-residential 778 783 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction residential — — — 1 - 4 family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 family residential real estate $ 1,209 $ 1,302 $ — Home equity and HELOCs 182 182 — Construction residential — — — 1 - 4 family investor commercial real estate 832 850 — Multi-family 251 283 — Commercial non-residential 778 783 — Construction and land — — — Commercial — — — Consumer — — — The impaired loans table above includes accruing loans with terms that have been modified to borrowers experiencing financial difficulty in the amount of $182 thousand that are performing in accordance with their modified terms. The Company recognized $10 thousand of interest income on accruing loans with terms that have been modified to borrowers experiencing financial difficulty during the three months ended September 30, 2022. The table above does not include $72 thousand of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. The following tables include the average recorded investment balances for impaired loans and the interest income recognized for the three months ended September 30, 2022. September 30, 2022 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — Generally, the Bank charged-off the collateral or discounted cash flow deficiency on all impaired loans. Interest income that would have been recorded for the three months ended September 30, 2022, had impaired loans been current according to their original terms, amounted to $47 thousand. Concentration of Credit Risk The Company’s primary business activity as of September 30, 2023 was with customers throughout the Delaware Valley through twelve full-service branch offices located in Bucks and Philadelphia Counties in Pennsylvania, as well as Burlington, Camden, and Mercer Counties in New Jersey. Accordingly, the Company has extended credit primarily to residential borrowers and commercial entities in this area whose ability to repay their loans is influenced by the region’s economy. As of September 30, 2023, the Company considered its concentration of credit risk to be acceptable. As of September 30, 2023, commercial real estate loans secured by retail space totaled approximately $53.2 million, or 11.2% of total loans, and were comprised of $41.8 million of non-owner-occupied properties and $11.4 million of owner-occupied properties. The Company’s non-owner occupied commercial real estate loans that are secured by retail space have high occupancy rates with longstanding tenants. Loans with Modified Terms to Borrowers Experiencing Financial Difficulty During the three months ended September 30, 2023, there were no loans modified to borrowers experiencing financial difficulty. During the three months ended September 30, 2022, there were no loans modified that were identified as a troubled debt restructuring (“TDR”) and there were no TDRs that subsequently defaulted within twelve months of modification. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Sep. 30, 2023 | |
Premises and Equipment | |
Premises and Equipment | Note 7 – Premises and Equipment The components of premises and equipment are as follows as of September 30, 2023 and June 30, 2023: September 30, June 30, (Dollars in thousands) 2023 2023 Land $ 1,441 $ 1,778 Office buildings and improvements 7,878 9,080 Furniture, fixtures and equipment 2,266 2,273 Automobiles 58 58 11,643 13,189 Accumulated depreciation (3,975) (4,135) $ 7,668 $ 9,054 Depreciation expense amounted to $197 thousand and $265 thousand for the three months ended September 30, 2023 and 2022, respectively. During the three months ended September 30, 2023, the Company transferred one property with a carrying value of $1.2 million to the held for sale classification. The Company intends to sell this property by June 30, 2024. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023, management included considerations of the current economic environment in its evaluation, and determined that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed at June 30, 2023. During the three months ended September 30, 2023, management considered the current economic environment in its evaluation, and determined based on the totality of its qualitative assessment that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed during the three months ended September 30, 2023. Goodwill and other intangibles are summarized as follows for the periods presented: Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2023 $ 4,858 $ 519 Adjustments: Additions — — Amortization — (41) Balance, September 30, 2023 $ 4,858 $ 478 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2022 $ 4,858 $ 712 Adjustments: Additions — — Amortization — (48) Balance, September 30, 2022 $ 4,858 $ 664 Aggregate amortization expense was $41 thousand and $48 thousand for the three months ended September 30, 2023 and 2022, respectively. |
Deposits
Deposits | 3 Months Ended |
Sep. 30, 2023 | |
Deposits. | |
Deposits | Note 9 – Deposits Deposits consist of the following major classifications as of September 30, 2023 and June 30, 2023: (Dollars in thousands) September 30, 2023 June 30, 2023 Non-interest bearing checking $ 55,685 $ 60,872 Interest bearing checking 125,478 116,700 Money market accounts 193,608 208,020 Savings and club accounts 85,833 90,291 Certificates of deposit 165,903 159,377 $ 626,507 $ 635,260 |
Borrowings
Borrowings | 3 Months Ended |
Sep. 30, 2023 | |
Borrowings | |
Borrowings | Note 10 – Borrowings The Bank is a member of the Federal Home Loan Bank (“FHLB”) system, which consists of 11 regional Federal Home Loan Banks. The FHLB provides a central credit facility primarily for member institutions. The Bank had a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $290.2 million and $295.0 million at September 30, 2023 and June 30, 2023, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $420.2 million and $427.2 million of loans pledged as collateral as of September 30, 2023 and June 30, 2023, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in the FHLB of Pittsburgh. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $3.0 million and $2.3 million at September 30, 2023 and June 30, 2023, respectively. Advances from the FHLB of Pittsburgh consisted of $51.0 million and $34.0 million of fixed rate short-term borrowings as of September 30, 2023 and June 30, 2023, respectively. As of September 30, 2023 and June 30, 2023, the Bank had $10.1 million and $10.2 million of loans pledged as collateral to secure a $3.8 million and $3.7 million overnight line of credit with the Federal Reserve Bank, respectively. There was no outstanding balance for the overnight line of credit with the Federal Reserve Bank as of September 30, 2023 and June 30, 2023. In addition, as of September 30, 2023 and June 30, 2023, the Bank had $10.0 million of available credit from Atlantic Community Bankers Bank to purchase federal funds. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Sep. 30, 2023 | |
Stock Based Compensation | |
Stock Based Compensation | Note 11 – Stock Based Compensation Stock-based compensation is accounted for in accordance with FASB ASC Topic 718 for Compensation — Stock Compensation. The Company establishes fair value for its equity awards to determine their cost. The Company recognizes the related expense for employees over the appropriate vesting period, or when applicable, service period, using the straight-line method. However, consistent with the guidance, the amount of stock-based compensation recognized at any date must at least equal the portion of the grant date value of the award that is vested at that date. As a result, it may be necessary to recognize the expense using a ratable method. On May 10, 2022, the shareholders of the Company approved the William Penn Bancorporation 2022 Equity Incentive Plan (the “Plan”). During the year ended June 30, 2022, the Company granted 492,960 shares of restricted stock, with a weighted average grant date fair value of $11.67 per share. To fund the grant of restricted common stock, the Company issued shares from authorized but unissued shares. Restricted shares granted under the Plan vest in equal installments over a five year period. Compensation expense related to the restricted shares is recognized ratably over the vesting period in an amount which totals the market price of the Company’s stock at the grant date. The expense recognized for the restricted shares for the three months ended September 30, 2023 and 2022 was $282 thousand and $289 thousand, respectively. The expected future compensation expense related to the 383,258 non-vested restricted shares outstanding at September 30, 2023 was $4.0 million over a weighted average period of 3.63 years. The expected future compensation expense related to the 492,960 non-vested restricted shares outstanding at September 30, 2022 was $5.3 million over a weighted average period of 4.63 years. The following is a summary of the Company's restricted stock activity during the three months ended September 30, 2023: Weighted Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2023 383,258 $ 11.66 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2023 383,258 $ 11.66 The following is a summary of the Company's restricted stock activity during the three months ended September 30, 2022: Weighted Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2022 492,960 $ 11.67 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2022 492,960 $ 11.67 During the year ended June 30, 2022, the Company granted 1,232,400 stock options, with a weighted average grant date fair value of $3.24 per share. Stock options granted under the Plan vest in equal installments over a five year period. Stock options were granted at a weighted average exercise price of $11.67, which represents the 1.03% . The following is a summary of the Company's stock option activity during the three months ended September 30, 2023: Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2023 1,197,640 $ 11.66 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2023 1,197,640 $ 11.66 The following is a summary of the Company's stock option activity during the three months ended September 30, 2022: Weighted Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2022 1,232,400 $ 11.67 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2022 1,232,400 $ 11.67 The weighted average remaining contractual term was approximately 8.63 years and the aggregate intrinsic value was $976 thousand for options outstanding as of September 30, 2023. As of September 30, 2023, exercisable options totaled 239,528 with a weighted average exercise of price of $11.66 per share, a weighted average remaining contractual term of approximately 8.63 years, and the aggregate intrinsic value was $195 thousand. The weighted average remaining contractual term was approximately 9.63 years and there was no aggregate intrinsic value for options outstanding as of September 30, 2022. There were no exercisable options as of September 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 12 – Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s Consolidated Statements of Financial Condition. A summary of the Company's loan commitments is as follows as of September 30, 2023 and June 30, 2023: September 30, June 30, (Dollars in thousands) 2023 2023 Commitments to extend credit $ 9,359 $ 6,877 Unfunded commitments under lines of credit 72,409 75,372 Standby letters of credit 117 86 Commitments to extend credit are agreements to lend to a customer if there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have 90-day fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies, but primarily includes residential and commercial real estate. Periodically, there have been other various claims and lawsuits against the Bank, such as claims to enforce liens, condemnation proceedings on properties in which it holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business. The Bank is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 13 - Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (described below) of tangible and core capital to total adjusted assets and of total capital to risk-weighted assets. As of September 30, 2023 and June 30, 2023, the most recent notification from the regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. Federal banking agencies have established an optional “community bank leverage ratio” of between 8% to 10% tangible equity to average total consolidated assets for qualifying institutions with assets of less than $10 billion of assets. Institutions with capital meeting the specified requirement and electing to follow the alternative framework would be deemed to comply with the applicable regulatory capital requirements, including the risk-based requirements and would be considered well-capitalized under the prompt corrective action framework. In April 2020, the Federal banking regulatory agencies modified the original Community Bank Leverage Ratio (CBLR) framework and provided that, as of the second quarter 2020, a banking organization with a leverage ratio of 8 percent or greater and that meets the other existing qualifying criteria may elect to use the community bank leverage ratio framework. The modified rule also states that the community bank leverage ratio requirement will be greater than 8 percent for the second through fourth quarters of calendar year 2020, greater than 8.5 percent for calendar year 2021, and greater than 9 percent thereafter. The transition rule also maintains a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 100 basis points below the applicable community bank leverage ratio requirement. CBLR Framework As of September 30, 2023 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 141,817 16.64 % $ 76,718 9.00 % CBLR Framework As of June 30, 2023 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 161,774 18.67 % $ 77,989 9.00 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 14 – Fair Value of Financial Instruments The Company follows authoritative guidance under FASB ASC Topic 820 for Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The definition of fair value under ASC 820 is the exchange price. The guidance clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability. The definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is based on quoted market prices, when available. If listed prices or quotes are not available, fair value is based on fair value models that use market participant or independently sourced market data which include: discount rate, interest rate yield curves, credit risk, default rates and expected cash flow assumptions. In addition, valuation adjustments may be made in the determination of fair value. These fair value adjustments may include amounts to reflect counter party credit quality, creditworthiness, liquidity, and other unobservable inputs that are applied consistently over time. These adjustments are estimated and, therefore, subject to significant management judgment, and at times, may be necessary to mitigate the possibility of error or revision in the model-based estimate of the fair value provided by the model. The methods described above may produce fair value calculations that may not be indicative of the net realizable value. While the Company believes its valuation methods are consistent with other financial institutions, the use of different methods or assumptions to determine fair values could result in different estimates of fair value. FASB ASC Topic 820 for Fair Value Measurements and Disclosures describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following table presents the assets required to be measured and reported on a recurring basis on the Company’s Consolidated Statements of Financial Condition at their fair value as of September 30, 2023 and June 30, 2023, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 98,977 $ — $ 98,977 U.S. agency collateralized mortgage obligations — 7,820 — 7,820 U.S. government agency securities — 3,702 — 3,702 Municipal bonds — 13,970 — 13,970 Corporate bonds — 31,628 — 31,628 Equity securities 1,702 — — 1,702 Total Assets $ 1,702 $ 156,097 $ — $ 157,799 June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 106,756 $ — $ 106,756 U.S. agency collateralized mortgage obligations — 8,292 — 8,292 U.S. government agency securities — 3,932 — 3,932 Municipal bonds — 14,979 — 14,979 Corporate bonds — 31,168 — 31,168 Equity securities 1,629 — — 1,629 Total Assets $ 1,629 $ 165,127 $ — $ 166,756 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. Loan individually evaluated for impairment are generally measured for impairment using the fair value of the collateral supporting the loan. Evaluating the collateral for these loans is based on Level 3 inputs utilizing outside appraisals adjusted by management for sales costs and other assumptions regarding market conditions to arrive at fair value. As of September 30, 2023 and June 30, 2023, the Company charged-off the collateral deficiency on loans evaluated individually for impairment. As a result, there were no specific reserves on loans evaluated individually for impairment as of September 30, 2023 and June 30, 2023. Other real estate owned (OREO) is measured at fair value, based on appraisals less cost to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. As of September 30, 2023 and June 30, 2023, there were no assets required to be measured and reported at fair value on a non-recurring basis. Management uses its best judgment in estimating the fair value of the Company's financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been reevaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The following information should not be interpreted as an estimate of the fair value of the entire company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments. Cash and Due from Banks and Interest-Bearing Time Deposits The carrying amounts of cash and amounts due from banks and interest-bearing time deposits approximate their fair value due to the relatively short time between origination of the instrument and its expected realization. Securities Available for Sale and Held to Maturity The fair value of investment and mortgage-backed securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Equity Securities The fair value of equity securities is equal to the available quoted market price. Loans Receivable The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms are adjusted for liquidity and credit risk. Regulatory Stock The carrying amount of Federal Home Loan Bank stock approximates fair value because Federal Home Loan Bank stock can only be redeemed or sold at par value and only to the respective issuing government supported institution or to another member institution. Bank-Owned Life Insurance The Company reports bank-owned life insurance on its Consolidated Statements of Financial Condition at the cash surrender value. The carrying amount of bank-owned life insurance approximates fair value because the fair value of bank-owned life insurance is equal to the cash surrender value of the life insurance policies. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and payable approximates fair value. Deposits Fair values for demand deposits, NOW accounts, savings and club accounts, and money market deposits are, by definition, equal to the amount payable on demand at the reporting date as these products have no stated maturity. Fair values of fixed-maturity certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on similar instruments with similar maturities. Advances from Federal Home Loan Bank Fair value of advances from Federal Home Loan Bank is estimated using discounted cash flow analyses, based on rates currently available to the Company for advances from Federal Home Loan Bank with similar terms and remaining maturities. Off-Balance Sheet Financial Instruments Fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, considering market interest rates, the remaining terms and present credit worthiness of the counterparties. In accordance with FASB ASC Topic 825 for Financial Instruments, Disclosures about Fair Value of Financial Instruments The following tables set forth the carrying value of financial assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Statements of Financial Condition for the periods indicated. The tables below exclude financial instruments for which the carrying amount approximates fair value. Fair Value Measurements at September 30, 2023 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 472,052 $ 439,471 $ — $ — $ 439,471 Securities held to maturity 97,544 76,853 — 76,853 — Financial instruments - liabilities: Certificates of deposit 165,903 163,421 — — 163,421 Advances from Federal Home Loan Bank 51,000 51,000 — — 51,000 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2023 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 477,543 $ 436,636 $ — $ — $ 436,636 Securities held to maturity 99,690 82,313 — 82,313 — Financial instruments - liabilities: Certificates of deposit 159,377 155,426 — — 155,426 Advances from Federal Home Loan Bank 34,000 34,000 — — 34,000 Off-balance sheet financial instruments — — — — — |
Leases
Leases | 3 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 15 – Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Substantially all of the leases in which the Company is the lessee include real estate property for branches and office space with terms extending through 2043. Topic 842 requires the Company to recognize a right-of-use (“ROU”) asset and corresponding lease liability for each of its operating leases. The operating lease ROU asset was $8.8 million and $8.9 million as of September 30, 2023 and June 30, 2023, respectively, and the operating lease liability was $9.0 million and $9.1 million as of September 30, 2023 and June 30, 2023, respectively. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months of less), or equipment leases (deemed immaterial) on the Consolidated Statements of Financial Condition. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. September 30, 2023 Weighted average remaining lease term Operating leases 16.2 years Weighted average discount rate Operating leases 2.90 % June 30, 2023 Weighted average remaining lease term Operating leases 16.4 years Weighted average discount rate Operating leases 2.89 % The Company recorded $223 thousand and $162 thousand of net lease costs during the three months ended September 30, 2023 and 2022, respectively. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023 were as follows: September 30, 2023 Operating (in thousands) Leases Twelve months ended September 30, 2024 $ 814 2025 775 2026 624 2027 640 2028 651 Thereafter 7,873 Total future minimum lease payments $ 11,377 Amounts representing interest (2,405) Present value of net future minimum lease payments $ 8,972 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events | |
Subsequent Events | Note 16 – Subsequent Events On October 18, 2023, the Company declared a cash dividend of $0.03 per share, payable on November 9, 2023, to common shareholders of record at the close of business on October 30, 2023. As of November 2, 2023, the Company had repurchased a total of 5,564,751 shares at a total cost of $64.9 million, or $11.66 per share under the Company’s stock repurchase programs. On October 18, 2023, the Company announced its seventh stock repurchase program that authorized the purchase of up to 1,046,610 shares, or approximately 10.0%, of the Company's then issued and outstanding common stock, which commenced upon the completion of the Company’s existing stock repurchase program on October 30, 2023. As of November 2, 2023, there were 869,018 shares remaining to be repurchased under the Company’s seventh stock repurchase program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, the Bank, as well as the Bank’s wholly owned subsidiary, WPSLA Investment Corporation (“WPSLA”). WPSLA is a Delaware corporation organized in April 2000 to hold certain investment securities for the Bank. At September 30, 2023, WPSLA held $245.8 million of the Bank’s $255.3 million investment securities portfolio. All significant intercompany accounts and transactions have been eliminated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. |
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 credit losses, goodwill, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions. The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. |
Presentation of Cash Flows | Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing demand deposits. |
Revenue Recognition | Revenue Recognition Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments, along with noninterest revenue resulting from investment security and loan gains (losses) and earnings on bank owned life insurances, are not within the scope of Accounting Standards Codification (“ASC”) 606. The main types of noninterest income within the scope of ASC 606 include service charges on deposit accounts. The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. These fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. |
Segment Reporting | Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business, and government customers. Through its branch network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings, and demand deposits; the making of commercial and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Bank. As such, discrete financial information is not available and segment reporting would not be meaningful. |
Recent Accounting Pronouncements Adopted and Not Yet Adopted | Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) The impact of the change from the incurred loss model to the current expected credit loss model is included in the table below. July 1, 2023 Adoption (Dollars in thousands) Pre-adoption Impact As Reported Assets ACL on debt securities available for sale $ — $ — $ — ACL on debt securities held to maturity — — — ACL on loans Residential real estate: 1 - 4 family 486 (67) 419 Home equity and HELOCs 113 19 132 Construction -residential 214 (174) 40 Commercial real estate: 1 - 4 family investor 569 (241) 328 Multi-family (five or more) 89 (30) 59 Commercial non-residential 1,420 379 1,799 Construction and land 281 (93) 188 Commercial 82 254 336 Consumer loans 59 196 255 Liabilities ACL on unfunded commitments 101 50 151 $ 3,414 $ 293 $ 3,707 Recent Accounting Pronouncements Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Receivables—Troubled Debt Restructurings by Creditors Financial Instruments—Credit Losses—Measured at Amortized Cost In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The Company maintains its allowance for credit losses (“ACL”) at a level that management believes to be appropriate to absorb estimated credit losses as of the date of the Consolidated Statement of Financial Condition. The Company established its allowance in accordance with the guidance included in Accounting Standards Codification (“ASC”) 326, Financial Instruments – Credit Losses Historical credit loss experience is the basis for the estimate of expected credit losses. We apply our historical loss rates and the historical loss rates of a group of peer banks identified by management to pools of loans with similar risk characteristics using the Weighted-Average Remaining Maturity (“WARM”) method. The remaining contractual life of the pools of loans with similar risk characteristics is adjusted by expected scheduled payments and prepayments. After consideration of the historical loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information. Our reasonable and supportable forecast adjustment is based on a regional economic indicator obtained from the St. Louis Federal Reserve economic database. The Company selected eight qualitative metrics which were correlated with the Bank and its peer group’s historical loss patterns. The eight qualitative metrics include: changes in lending policies and procedures, changes in national and local economic conditions as well as business conditions, changes in the nature, complexity, and volume of the portfolio, changes in the experience, ability, and depth of lenders and lending management, changes in the volume and severity of past due and classified loans, changes in the quality of the Bank’s loan review system, changes in the value of collateral securing the loans, and changes in or the existence of credit concentrations. The adjustments are weighted for relevance before applying to each pool of loans. Each quarter, management reviews the recommended adjustment factors and applies any additional adjustments based on local and current conditions. The Company has elected to exclude $1.9 million of accrued interest receivable as of September 30, 2023 from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Accrued interest on loans is reported in the accrued interest receivable and other assets The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and, therefore, should be individually assessed. We evaluate all commercial loans that meet the following criteria: (1) when it is determined that foreclosure is probable, (2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, (3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Credit loss estimates are calculated based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A charge-off is recorded if the fair value of the loan is less than the loan balance. |
Allowance for Credit Losses on Unfunded Loan Commitments | Allowance for Credit Losses on Unfunded Loan Commitments The Company estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on unfunded loan commitments is included in accrued interest payable and other liabilities in the Company’s Statement of Financial Condition and is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Allowance for Credit Losses on Held to Maturity Securities | Allowance for Credit Losses on Held to Maturity Securities The Company accounts for its held to maturity securities in accordance with Accounting Standards Codification (ASC) 326-20, Financial Instruments – Credit Loss – Measured at Amortized Cost The Company classifies its held to maturity debt securities into the following major security types: mortgage-backed securities, U.S. government agency securities and municipal bonds. Generally, these securities are highly rated with a history of no credit losses. Credit ratings of held to maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, the Company determined that an allowance for credit losses on its’ held to maturity portfolio is not required. Accrued interest receivable on held to maturity debt securities totaled $142 thousand as of September 30, 2023 and is included within accrued interest receivable and other assets |
Allowance for Credit Losses on Available for Sale Securities | Allowance for Credit Losses on Available for Sale Securities The Company measures expected credit losses on available for sale debt securities when the Bank intends to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the amortized cost basis of the security is written down to fair value through income. For available for sale debt securities that do not meet the previously mentioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The ACL on available for sale debt securities is included within securities available for sale on the Consolidated Statements of Financial Condition. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Income. Losses are charged against the allowance when the Company believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities totaled $806 thousand as of September 30, 2023 and is included within accrued interest receivable and other assets |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of impact of the change from the incurred loss model to the current expected credit loss model | July 1, 2023 Adoption (Dollars in thousands) Pre-adoption Impact As Reported Assets ACL on debt securities available for sale $ — $ — $ — ACL on debt securities held to maturity — — — ACL on loans Residential real estate: 1 - 4 family 486 (67) 419 Home equity and HELOCs 113 19 132 Construction -residential 214 (174) 40 Commercial real estate: 1 - 4 family investor 569 (241) 328 Multi-family (five or more) 89 (30) 59 Commercial non-residential 1,420 379 1,799 Construction and land 281 (93) 188 Commercial 82 254 336 Consumer loans 59 196 255 Liabilities ACL on unfunded commitments 101 50 151 $ 3,414 $ 293 $ 3,707 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Schedule of composition of the weighted average common shares used in the basic and diluted earnings per share computation | Three Months Ended September 30, (Dollars in thousands, except share and per share amounts) 2023 2022 Basic and diluted earnings per share: Net income $ 179 $ 1,027 Basic average common shares outstanding 10,600,522 13,435,273 Effect of dilutive securities 20,081 17,629 Dilutive average shares outstanding 10,620,603 13,452,902 Earnings per share: Basic $ 0.02 $ 0.08 Diluted $ 0.02 $ 0.08 |
Changes in and Reclassificati_2
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | |
Schedule of changes in the balances of each component of accumulated other comprehensive loss ("AOCL") | (Dollars in thousands) Unrealized Losses on Securities Available for Sale Accumulated Other Comprehensive Loss (1) 2023 2022 Balance at June 30, $ (23,378) $ (15,357) Other comprehensive loss before reclassifications (4,587) (7,750) Amounts reclassified from accumulated other comprehensive loss — — Period change (4,587) (7,750) Balance at September 30, $ (27,965) $ (23,107) (1) All amounts are net of tax. Related income tax expense is calculated using an income tax rate approximating 23% for both 2023 and 2022. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Schedule of amortized cost, gross unrealized gains and losses, and estimated fair value of investments in debt securities | September 30, 2023 Gross Gross Allowance Amortized Unrealized Unrealized for Credit Fair (Dollars in thousands) Cost Gains Losses Losses Value Available For Sale: Mortgage-backed securities $ 121,608 $ — $ (22,631) $ — $ 98,977 U.S. agency collateralized mortgage obligations 9,903 — (2,083) — 7,820 U.S. government agency securities 3,643 142 (83) — 3,702 Municipal bonds 20,061 — (6,091) — 13,970 Corporate bonds 37,200 — (5,572) — 31,628 Total Available For Sale $ 192,415 $ 142 $ (36,460) $ — $ 156,097 September 30, 2023 Gross Gross Allowance Amortized Unrealized Unrealized Fair for Credit (Dollars in thousands) Cost Gains Losses Value Losses Held To Maturity: Mortgage-backed securities $ 92,494 $ — $ (20,607) $ 71,887 $ — U.S. government agency securities 4,990 — (84) 4,906 — Municipal bonds 60 — — 60 — Total Held To Maturity $ 97,544 $ — $ (20,691) $ 76,853 $ — June 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available For Sale: Mortgage-backed securities $ 124,252 $ 21 $ (17,517) $ 106,756 U.S. agency collateralized mortgage obligations 10,074 — (1,782) 8,292 U.S. government agency securities 3,881 140 (89) 3,932 Municipal bonds 20,081 — (5,102) 14,979 Corporate bonds 37,200 — (6,032) 31,168 Total Available For Sale $ 195,488 $ 161 $ (30,522) $ 165,127 Held To Maturity: Mortgage-backed securities $ 94,648 $ — $ (17,275) $ 77,373 U.S. government agency securities 4,982 — (102) 4,880 Municipal bonds 60 — — 60 Total Held To Maturity $ 99,690 $ — $ (17,377) $ 82,313 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2023 Available For Sale Held To Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 5,050 $ 4,966 Due after one year through five years 16 16 — — Due after five years through ten years 42,660 35,988 — — Due after ten years 149,739 120,093 92,494 71,887 $ 192,415 $ 156,097 $ 97,544 $ 76,853 |
Schedule of debt securities with unrealized loss position | September 30, 2023 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 $ 3,355 $ (95) $ 95,622 $ (22,536) $ 98,977 $ (22,631) U.S. agency collateralized mortgage obligations — — 7,820 (2,083) 7,820 (2,083) U.S. government agency securities — — 894 (83) 894 (83) Municipal bonds — — 13,970 (6,091) 13,970 (6,091) Corporate bonds 3,583 (567) 28,045 (5,005) 31,628 (5,572) 6,938 (662) 146,351 (35,798) 153,289 (36,460) Held To Maturity: Mortgage-backed securities — — 71,887 (20,607) 71,887 (20,607) U.S. government agency securities 497 (1) 4,409 (83) 4,906 (84) 497 (1) 76,296 (20,690) 76,793 (20,691) Total Temporarily Impaired Securities $ 7,435 $ (663) $ 222,647 $ (56,488) $ 230,082 $ (57,151) June 30, 2023 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 $ 16,794 $ (967) $ 86,371 $ (16,550) $ 103,165 $ (17,517) U.S. agency collateralized mortgage obligations — — 8,292 (1,782) 8,292 (1,782) U.S. government agency securities — — 943 (89) 943 (89) Municipal bonds — — 14,979 (5,102) 14,979 (5,102) Corporate bonds 10,715 (1,435) 20,453 (4,597) 31,168 (6,032) 27,509 (2,402) 131,038 (28,120) 158,547 (30,522) Held To Maturity: Mortgage-backed securities — — 77,373 (17,275) 77,373 (17,275) U.S. government agency securities 4,880 (102) — — 4,880 (102) 4,880 (102) 77,373 (17,275) 82,253 (17,377) Total Temporarily Impaired Securities $ 32,389 $ (2,504) $ 208,411 $ (45,395) $ 240,800 $ (47,899) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Loans | |
Schedule of major classifications of loans | September 30, June 30, 2023 2023 (Dollars in thousands) Amount Percent Amount Percent Residential real estate: 1 - 4 family $ 131,305 27.61 % $ 135,046 28.08 % Home equity and HELOCs 32,497 6.83 32,684 6.79 Construction -residential 8,813 1.85 9,113 1.90 Commercial real estate: 1 - 4 family investor 96,337 20.25 98,160 20.41 Multi-family (five or more) 15,258 3.21 15,281 3.18 Commercial non-residential 155,399 32.67 157,555 32.77 Construction and land 19,343 4.07 15,584 3.24 Commercial 14,759 3.10 15,433 3.21 Consumer loans 1,928 0.41 2,000 0.42 Total Loans 475,639 100.00 % 480,856 100.00 % Allowance for credit losses (3,587) (3,313) Net Loans $ 472,052 $ 477,543 |
Schedule for changes in the allowance for loan losses | September 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for credit losses: Beginning balance $ 486 $ 113 $ 214 $ 569 $ 89 $ 1,420 $ 281 $ 82 $ 59 $ 3,313 Impact of adopting ASU 2016-13 (67) 19 (174) (241) (30) 379 (93) 254 196 243 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — 26 26 Provision (recovery) (12) (1) (1) (3) (6) (32) 45 4 11 5 Ending Balance $ 407 $ 131 $ 39 $ 325 $ 53 $ 1,767 $ 233 $ 340 $ 292 $ 3,587 September 30, 2022 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1-4 family and HELOCs residential investor (five or more) non-residential and Land Commercial Consumer Total Allowance for loan losses: Beginning balance $ 506 $ 113 $ 386 $ 527 $ 110 $ 1,451 $ 166 $ 100 $ 50 $ 3,409 Charge-offs (79) — — — — — — — — (79) Recoveries — — — — — — — — 3 3 Provision (recovery) 66 3 (85) (32) 2 (20) 58 11 (3) — Ending Balance $ 493 $ 116 $ 301 $ 495 $ 112 $ 1,431 $ 224 $ 111 $ 50 $ 3,333 September 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 407 131 39 325 53 1,767 233 340 292 3,587 Total allowance $ 407 $ 131 $ 39 $ 325 $ 53 $ 1,767 $ 233 $ 340 $ 292 $ 3,587 Loans receivable ending balance: Individually evaluated for impairment $ 2,033 $ — $ — $ 111 $ 236 $ 1,095 $ — $ — $ 81 $ 3,556 Collectively evaluated for impairment 129,272 32,497 8,813 96,226 15,022 154,304 19,343 14,759 1,847 472,083 Total portfolio $ 131,305 $ 32,497 $ 8,813 $ 96,337 $ 15,258 $ 155,399 $ 19,343 $ 14,759 $ 1,928 $ 475,639 June 30, 2023 Residential real estate: Commercial real estate: Home Equity Construction- 1 - 4 family Multi-family Commercial Construction (Dollar amounts in thousands) 1 - 4 family and HELOCs residential investor (five or more) non-residential and land Commercial Consumer Total Allowance ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 486 113 214 569 89 1,420 281 82 59 3,313 Total allowance $ 486 $ 113 $ 214 $ 569 $ 89 $ 1,420 $ 281 $ 82 $ 59 $ 3,313 Loans receivable ending balance: Individually evaluated for impairment $ 1,209 $ 182 $ — $ 832 $ 251 $ 778 $ — $ — $ — $ 3,252 Collectively evaluated for impairment 78,237 19,689 9,113 84,891 14,781 142,098 15,584 14,976 643 380,012 Acquired non-credit impaired loans (1) 55,528 12,813 — 12,437 249 14,679 — 457 1,357 97,520 Acquired credit impaired loans (2) 72 — — — — — — — — 72 Total portfolio $ 135,046 $ 32,684 $ 9,113 $ 98,160 $ 15,281 $ 157,555 $ 15,584 $ 15,433 $ 2,000 $ 480,856 (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 | September 30, 2023 Term Loans Amortized Cost Basis by Origination Fiscal Year Revolving Loans Revolving Loans Amortized Converted 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total 1 - 4 family investor Pass $ 1,448 $ 12,185 $ 6,831 $ 17,783 $ 12,245 $ 42,376 $ 1,537 $ 719 $ 95,124 Special Mention — — — — — 1,102 — — 1,102 Substandard — — — — — 111 — — 111 Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1 - 4 family investor $ 1,448 $ 12,185 $ 6,831 $ 17,783 $ 12,245 $ 43,589 $ 1,537 $ 719 $ 96,337 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family (five or more) Pass $ 101 $ 1,181 $ 1,346 $ 4,173 $ 5,050 $ 3,171 $ — $ — $ 15,022 Special Mention — — — — — — — — — Substandard — — — — — 236 — — 236 Doubtful — — — — — — — — — Loss — — — — — — — — — Total Multi-family $ 101 $ 1,181 $ 1,346 $ 4,173 $ 5,050 $ 3,407 $ — $ — $ 15,258 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-residential Pass $ 553 $ 21,986 $ 62,611 $ 30,678 $ 16,490 $ 21,890 $ — $ 96 $ 154,304 Special Mention — — — — — — — — — Substandard — — — 320 477 298 — — 1,095 Doubtful — — — — — — — — — Loss — — — — — — — — — Total Commercial non-residential $ 553 $ 21,986 $ 62,611 $ 30,998 $ 16,967 $ 22,188 $ — $ 96 $ 155,399 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ 811 $ 4,742 $ 10,501 $ — $ 1,167 $ 2,122 $ — $ — $ 19,343 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total Construction and land $ 811 $ 4,742 $ 10,501 $ — $ 1,167 $ 2,122 $ — $ — $ 19,343 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ — $ 6,803 $ 7,378 $ — $ 53 $ 525 $ — $ — $ 14,759 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total Commercial $ — $ 6,803 $ 7,378 $ — $ 53 $ 525 $ — $ — $ 14,759 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2023 Commercial Real Estate 1 - 4 family Construction investor Multi-family Non-residential and land Commercial Total Pass $ 96,097 $ 15,030 $ 156,777 $ 15,584 $ 15,433 $ 298,921 Special Mention 1,231 — — — — 1,231 Substandard 832 251 778 — — 1,861 Doubtful — — — — — — Loss — — — — — — Ending Balance $ 98,160 $ 15,281 $ 157,555 $ 15,584 $ 15,433 $ 302,013 September 30, 2023 Term Loans Amortized Cost Basis by Origination Fiscal Year Revolving Loans Revolving Loans Amortized Converted 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total 1 - 4 family residential Performing $ 3,550 $ 8,007 $ 13,872 $ 15,786 $ 8,627 $ 79,430 $ — $ — $ 129,272 Non-performing — — — — 131 1,902 — — 2,033 Total 1 - 4 family residential $ 3,550 $ 8,007 $ 13,872 $ 15,786 $ 8,758 $ 81,332 $ — $ — $ 131,305 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity & HELOCs Performing $ 535 $ 2,422 $ 517 $ 988 $ 427 $ 4,677 $ 21,156 $ 1,775 $ 32,497 Non-performing — — — — — — — — — Total Home equity & HELOCs $ 535 $ 2,422 $ 517 $ 988 $ 427 $ 4,677 $ 21,156 $ 1,775 $ 32,497 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction residential Performing $ 1,728 $ 4,885 $ 645 $ 1,555 $ — $ — $ — $ — $ 8,813 Non-performing — — — — — — — — — Total construction residential $ 1,728 $ 4,885 $ 645 $ 1,555 $ — $ — $ — $ — $ 8,813 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ 116 $ 68 $ 25 $ 321 $ 1,317 $ — $ — $ 1,847 Non-performing — — — — — 81 — — 81 Total Consumer $ — $ 116 $ 68 $ 25 $ 321 $ 1,398 $ — $ — $ 1,928 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2023 Residential Real Estate Home equity & 1 - 4 family HELOCs Construction Consumer Total Performing $ 132,956 $ 32,684 $ 9,113 $ 1,918 $ 176,671 Non-performing 2,090 — — 82 2,172 $ 135,046 $ 32,684 $ 9,113 $ 2,000 $ 178,843 |
Schedule of aging analysis of past due loans | Aged Analysis of Past Due and Non-accrual Loans As of September 30, 2023 Recorded Recorded Investment Investment 30 - 59 Days 60 - 89 Days 90 Days Total Past Total Loans >90 Days and Loans on (Dollar amounts in thousands) Past Due Past Due Or Greater Due Current Receivable Accruing Non-Accrual Residential real estate: 1 - 4 family $ 281 $ 654 $ 198 $ 1,133 $ 130,172 $ 131,305 $ — $ 2,033 Home equity and HELOCs 144 — — 144 32,353 32,497 — — Construction - residential — — — — 8,813 8,813 — — Commercial real estate: 1 - 4 family investor 89 960 39 1,088 95,249 96,337 — 111 Multi-family — — — — 15,258 15,258 — 236 Commercial non-residential — — 1,095 1,095 154,304 155,399 — 1,095 Construction and land — — — — 19,343 19,343 — — Commercial — — — — 14,759 14,759 — — Consumer — 31 13 44 1,884 1,928 — 81 Total $ 514 $ 1,645 $ 1,345 $ 3,504 $ 472,135 $ 475,639 $ — $ 3,556 Aged Analysis of Past Due and Non-accrual Loans As of June 30, 2023 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 $ 290 $ 457 $ 567 $ 1,314 $ 72 $ 133,660 $ 135,046 $ — $ 2,090 Home equity and HELOCs — — — — — 32,684 32,684 — — Construction - residential — — — — — 9,113 9,113 — — Commercial real estate: 1 - 4 family investor — 752 — 752 — 97,408 98,160 — 832 Multi-family 251 — — 251 — 15,030 15,281 — 251 Commercial non-residential — 322 778 1,100 — 156,455 157,555 — 778 Construction and land — — — — — 15,584 15,584 — — Commercial — — — — — 15,433 15,433 — — Consumer — 13 — 13 — 1,987 2,000 — 82 Total $ 541 $ 1,544 $ 1,345 $ 3,430 $ 72 $ 477,354 $ 480,856 $ — $ 4,033 |
Summary of recorded investment and unpaid principal balances for impaired loans | June 30, 2023 Unpaid Recorded Principal Related (Dollars in thousands) Investment Balance Allowance With no related allowance recorded: 1-4 family residential real estate $ 1,209 $ 1,302 $ — Home equity and HELOCs 182 182 — Construction residential — — — 1 - 4 family investor commercial real estate 832 850 — Multi-family 251 283 — Commercial non-residential 778 783 — Construction and land — — — Commercial — — — Consumer — — — With an allowance recorded: 1-4 family residential real estate $ — $ — $ — Home equity and HELOCs — — — Construction residential — — — 1 - 4 family investor commercial real estate — — — Multi-family — — — Commercial non-residential — — — Construction and land — — — Commercial — — — Consumer — — — Total: 1-4 family residential real estate $ 1,209 $ 1,302 $ — Home equity and HELOCs 182 182 — Construction residential — — — 1 - 4 family investor commercial real estate 832 850 — Multi-family 251 283 — Commercial non-residential 778 783 — Construction and land — — — Commercial — — — Consumer — — — September 30, 2022 Three Months Ended Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — With an allowance recorded: 1-4 family residential real estate $ — $ — Home equity and HELOCs — — Construction residential — — 1-4 family investor commercial real estate Multi-family — — Commercial non-residential — — Construction and land — — Commercial — — Consumer — — Total: 1-4 family residential real estate $ 2,476 $ — Home equity and HELOCs 385 4 Construction residential — — 1-4 family investor commercial real estate 121 1 Multi-family 291 — Commercial non-residential 1,348 5 Construction and land — — Commercial — — Consumer — — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Premises and Equipment | |
Schedule of components of premises and equipment | September 30, June 30, (Dollars in thousands) 2023 2023 Land $ 1,441 $ 1,778 Office buildings and improvements 7,878 9,080 Furniture, fixtures and equipment 2,266 2,273 Automobiles 58 58 11,643 13,189 Accumulated depreciation (3,975) (4,135) $ 7,668 $ 9,054 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangibles | |
Schedule of goodwill and other intangibles | Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2023 $ 4,858 $ 519 Adjustments: Additions — — Amortization — (41) Balance, September 30, 2023 $ 4,858 $ 478 Core Deposit (Dollars in thousands) Goodwill Intangibles Balance, June 30, 2022 $ 4,858 $ 712 Adjustments: Additions — — Amortization — (48) Balance, September 30, 2022 $ 4,858 $ 664 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Deposits. | |
Schedule of classification of deposits | (Dollars in thousands) September 30, 2023 June 30, 2023 Non-interest bearing checking $ 55,685 $ 60,872 Interest bearing checking 125,478 116,700 Money market accounts 193,608 208,020 Savings and club accounts 85,833 90,291 Certificates of deposit 165,903 159,377 $ 626,507 $ 635,260 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Stock Based Compensation | |
Schedule of restricted stock activity | Weighted Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2023 383,258 $ 11.66 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2023 383,258 $ 11.66 Weighted Number of Average Summary of Non-vested Restricted Stock Award Activity Shares Grant Price Non-vested Restricted Stock Awards outstanding July 1, 2022 492,960 $ 11.67 Issued — — Vested — — Forfeited — — Non-vested Restricted Stock Awards outstanding September 30, 2022 492,960 $ 11.67 |
Schedule of stock option activity | Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2023 1,197,640 $ 11.66 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2023 1,197,640 $ 11.66 Weighted Number of Exercise Price Summary of Stock Option Activity Options per Shares Beginning balance July 1, 2022 1,232,400 $ 11.67 Granted — — Exercised — — Forfeited — — Expired — — Ending balance September 30, 2022 1,232,400 $ 11.67 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies. | |
Schedule of company's loan commitments | September 30, June 30, (Dollars in thousands) 2023 2023 Commitments to extend credit $ 9,359 $ 6,877 Unfunded commitments under lines of credit 72,409 75,372 Standby letters of credit 117 86 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements | |
Schedule of leverage ratios | CBLR Framework As of September 30, 2023 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 141,817 16.64 % $ 76,718 9.00 % CBLR Framework As of June 30, 2023 Actual Requirement (Dollars in thousands except for ratios) Amount Ratio Amount Ratio William Penn Bank: Tier 1 leverage $ 161,774 18.67 % $ 77,989 9.00 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments | |
Schedule of assets measured at fair value on recurring basis | September 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 98,977 $ — $ 98,977 U.S. agency collateralized mortgage obligations — 7,820 — 7,820 U.S. government agency securities — 3,702 — 3,702 Municipal bonds — 13,970 — 13,970 Corporate bonds — 31,628 — 31,628 Equity securities 1,702 — — 1,702 Total Assets $ 1,702 $ 156,097 $ — $ 157,799 June 30, 2023 (Dollars in thousands) Level I Level II Level III Total Assets: Investments available for sale: Mortgage-backed securities $ — $ 106,756 $ — $ 106,756 U.S. agency collateralized mortgage obligations — 8,292 — 8,292 U.S. government agency securities — 3,932 — 3,932 Municipal bonds — 14,979 — 14,979 Corporate bonds — 31,168 — 31,168 Equity securities 1,629 — — 1,629 Total Assets $ 1,629 $ 165,127 $ — $ 166,756 |
Schedule of carrying amount and fair value of financial assets and liabilities | Fair Value Measurements at September 30, 2023 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 472,052 $ 439,471 $ — $ — $ 439,471 Securities held to maturity 97,544 76,853 — 76,853 — Financial instruments - liabilities: Certificates of deposit 165,903 163,421 — — 163,421 Advances from Federal Home Loan Bank 51,000 51,000 — — 51,000 Off-balance sheet financial instruments — — — — — Fair Value Measurements at June 30, 2023 Quoted Prices Significant Significant in Active Markets Other Observable Unobservable Carrying Fair for Identical Assets Inputs Inputs (Dollars in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial instruments - assets: Loans receivable, net $ 477,543 $ 436,636 $ — $ — $ 436,636 Securities held to maturity 99,690 82,313 — 82,313 — Financial instruments - liabilities: Certificates of deposit 159,377 155,426 — — 155,426 Advances from Federal Home Loan Bank 34,000 34,000 — — 34,000 Off-balance sheet financial instruments — — — — — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of weighted average remaining lease term and discount rate | September 30, 2023 Weighted average remaining lease term Operating leases 16.2 years Weighted average discount rate Operating leases 2.90 % June 30, 2023 Weighted average remaining lease term Operating leases 16.4 years Weighted average discount rate Operating leases 2.89 % |
Summary of maturities of the Company's lease liabilities | September 30, 2023 Operating (in thousands) Leases Twelve months ended September 30, 2024 $ 814 2025 775 2026 624 2027 640 2028 651 Thereafter 7,873 Total future minimum lease payments $ 11,377 Amounts representing interest (2,405) Present value of net future minimum lease payments $ 8,972 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 24, 2021 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) Office | Sep. 30, 2022 USD ($) | |
Nature of Operations | |||
ESOP shares committed to be released | $ 102 | $ 102 | |
Percentage of shares of the outstanding stock sold | 6.97% | ||
Number of full service branch offices | Office | 12 | ||
Additional Paid-in Capital | |||
Nature of Operations | |||
Cash Acquired from Acquisition | $ 5,400 | ||
William Penn Bank | |||
Nature of Operations | |||
Gross proceeds | $ 126,400 | ||
William Penn, MHC shares sold in public offering, net of offering costs (in shares) | shares | 12,640,035 | ||
Share price | $ / shares | $ 10 | ||
Shares outstanding | shares | 776,647 | ||
Conversion of existing shares at 3.2585 exchange ratio | 3.2585 | ||
Percentage of shares sold in offering | 8% | ||
Percentage of aggregate purchase price of common stock | 100% | ||
ESOP shares issued | shares | 881,130 | ||
ESOP shares committed to be released | $ 10,100 | ||
Ownership percentage held by parent (as a percent) | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Summary of Significant Accounting Policies | |
Accrued interest receivable on loans | $ 1,900 |
Accrued interest receivable on loans, extensible list | Accrued interest receivable and other assets |
Accrued interest receivable on held to maturity debt securities | $ 142 |
Accrued interest receivable on held to maturity debt securities, extensible list | Accrued interest receivable and other assets |
Accrued interest receivable on available for sale debt securities | $ 806 |
Accrued interest receivable on available for sale debt securities, extensible list | Accrued interest receivable and other assets |
WPSLA Investment Corporation | |
Summary of Significant Accounting Policies | |
Loans held in portfolio | $ 245,800 |
Investment securities portfolio | $ 255,300 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jul. 01, 2023 | Jun. 30, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 58,410 | $ 58,805 | |
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (187) | ||
Unfunded commitments | $ 39 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of change from the incurred loss model to the current expected credit loss model (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Accounting Policies [Line items] | |||
ACL on debt securities held to maturity | $ 0 | ||
ACL on loans | 3,587,000 | $ 3,587,000 | |
ACL on debt securities and loans | $ 3,707,000 | ||
Unfunded Loan Commitment | |||
Accounting Policies [Line items] | |||
ACL on loans | 151,000 | ||
Residential real estate | 1-4 Family | |||
Accounting Policies [Line items] | |||
ACL on loans | 407,000 | 419,000 | 407,000 |
Residential real estate | Home equity and HELOCs | |||
Accounting Policies [Line items] | |||
ACL on loans | 131,000 | 132,000 | 131,000 |
Residential real estate | Construction Residential | |||
Accounting Policies [Line items] | |||
ACL on loans | 39,000 | 40,000 | 39,000 |
Commercial real estate | 1-4 Family | |||
Accounting Policies [Line items] | |||
ACL on loans | 325,000 | ||
Commercial real estate | 1 - 4 family investor | |||
Accounting Policies [Line items] | |||
ACL on loans | 325,000 | 328,000 | |
Commercial real estate | Multi-family (five or more) | |||
Accounting Policies [Line items] | |||
ACL on loans | 53,000 | 59,000 | 53,000 |
Commercial real estate | Commercial non-residential | |||
Accounting Policies [Line items] | |||
ACL on loans | 1,767,000 | 1,799,000 | 1,767,000 |
Commercial real estate | Construction and land | |||
Accounting Policies [Line items] | |||
ACL on loans | 233,000 | 188,000 | 233,000 |
Commercial | |||
Accounting Policies [Line items] | |||
ACL on loans | 340,000 | 336,000 | 340,000 |
Consumer loans | |||
Accounting Policies [Line items] | |||
ACL on loans | $ 292,000 | 255,000 | $ 292,000 |
Previously Reported | |||
Accounting Policies [Line items] | |||
ACL on debt securities and loans | 3,414,000 | ||
Previously Reported | Unfunded Loan Commitment | |||
Accounting Policies [Line items] | |||
ACL on loans | 101,000 | ||
Previously Reported | Residential real estate | 1-4 Family | |||
Accounting Policies [Line items] | |||
ACL on loans | 486,000 | ||
Previously Reported | Residential real estate | Home equity and HELOCs | |||
Accounting Policies [Line items] | |||
ACL on loans | 113,000 | ||
Previously Reported | Residential real estate | Construction Residential | |||
Accounting Policies [Line items] | |||
ACL on loans | 214,000 | ||
Previously Reported | Commercial real estate | 1 - 4 family investor | |||
Accounting Policies [Line items] | |||
ACL on loans | 569,000 | ||
Previously Reported | Commercial real estate | Multi-family (five or more) | |||
Accounting Policies [Line items] | |||
ACL on loans | 89,000 | ||
Previously Reported | Commercial real estate | Commercial non-residential | |||
Accounting Policies [Line items] | |||
ACL on loans | 1,420,000 | ||
Previously Reported | Commercial real estate | Construction and land | |||
Accounting Policies [Line items] | |||
ACL on loans | 281,000 | ||
Previously Reported | Commercial | |||
Accounting Policies [Line items] | |||
ACL on loans | 82,000 | ||
Previously Reported | Consumer loans | |||
Accounting Policies [Line items] | |||
ACL on loans | 59,000 | ||
Revision of Prior Period, Adjustment | |||
Accounting Policies [Line items] | |||
ACL on debt securities and loans | 293,000 | ||
Revision of Prior Period, Adjustment | Unfunded Loan Commitment | |||
Accounting Policies [Line items] | |||
ACL on loans | 50,000 | ||
Revision of Prior Period, Adjustment | Residential real estate | 1-4 Family | |||
Accounting Policies [Line items] | |||
ACL on loans | (67,000) | ||
Revision of Prior Period, Adjustment | Residential real estate | Home equity and HELOCs | |||
Accounting Policies [Line items] | |||
ACL on loans | 19,000 | ||
Revision of Prior Period, Adjustment | Residential real estate | Construction Residential | |||
Accounting Policies [Line items] | |||
ACL on loans | (174,000) | ||
Revision of Prior Period, Adjustment | Commercial real estate | 1 - 4 family investor | |||
Accounting Policies [Line items] | |||
ACL on loans | (241,000) | ||
Revision of Prior Period, Adjustment | Commercial real estate | Multi-family (five or more) | |||
Accounting Policies [Line items] | |||
ACL on loans | (30,000) | ||
Revision of Prior Period, Adjustment | Commercial real estate | Commercial non-residential | |||
Accounting Policies [Line items] | |||
ACL on loans | 379,000 | ||
Revision of Prior Period, Adjustment | Commercial real estate | Construction and land | |||
Accounting Policies [Line items] | |||
ACL on loans | (93,000) | ||
Revision of Prior Period, Adjustment | Commercial | |||
Accounting Policies [Line items] | |||
ACL on loans | 254,000 | ||
Revision of Prior Period, Adjustment | Consumer loans | |||
Accounting Policies [Line items] | |||
ACL on loans | $ 196,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Composition of the weighted average common shares used in the basic and diluted earnings per share computation | ||
Net income | $ 179 | $ 1,027 |
Basic average common shares outstanding | 10,600,522 | 13,435,273 |
Effect of dilutive securities | 20,081 | 17,629 |
Dilutive average shares outstanding | 10,620,603 | 13,452,902 |
Basic earnings per share | $ 0.02 | $ 0.08 |
Diluted earnings per share | $ 0.02 | $ 0.08 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Antidilutive securities | 0 | 0 |
Net income | $ 179 | $ 1,027 |
Stock options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Antidilutive securities | 1,197,640 | 1,232,400 |
Changes in and Reclassificati_3
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss - Changes in AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 160,745 | $ 192,326 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Period change | (4,587) | (7,750) |
Ending balance | $ 136,394 | $ 181,194 |
Income tax rate | 23% | 23% |
Unrealized Losses on Securities Available for Sale | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ (23,378) | $ (15,357) |
Other comprehensive loss before reclassifications | (4,587) | (7,750) |
Period change | (4,587) | (7,750) |
Ending balance | $ (27,965) | $ (23,107) |
Changes in and Reclassificati_4
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss- Reclassifications out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in and Reclassifications Out of Accumulated Other Comprehensive Loss | ||
Related income tax expense | $ 15 | $ 67 |
NET INCOME | $ 179 | $ 1,027 |
Investment Securities - Debt Se
Investment Securities - Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Before Adoption | ||
Amortized Cost | $ 195,488 | |
Gross Unrealized Gains | $ 142 | 161 |
Gross Unrealized Losses | (36,460) | (30,522) |
Fair value | 165,127 | |
After adoption | ||
Amortized Cost | 192,415 | |
Gross Unrealized Gains | 142 | 161 |
Gross Unrealized Losses | (36,460) | (30,522) |
Fair value | 156,097 | |
Before adoption | ||
Securities held to maturity | 99,690 | |
Gross Unrealized Losses | (20,691) | (17,377) |
Fair value | 76,853 | 82,313 |
After adoption | ||
Securities held to maturity | 97,544 | |
Gross Unrealized Losses | (20,691) | (17,377) |
Fair value | 76,853 | 82,313 |
Allowance for credit losses | 0 | |
Mortgage-backed securities | ||
Before Adoption | ||
Amortized Cost | 124,252 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (22,631) | (17,517) |
Fair value | 106,756 | |
After adoption | ||
Amortized Cost | 121,608 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (22,631) | (17,517) |
Fair value | 98,977 | |
Before adoption | ||
Securities held to maturity | 94,648 | |
Gross Unrealized Losses | (20,607) | (17,275) |
Fair value | 71,887 | 77,373 |
After adoption | ||
Securities held to maturity | 92,494 | |
Gross Unrealized Losses | (20,607) | (17,275) |
Fair value | 71,887 | 77,373 |
U.S. agency collateralized mortgage obligations | ||
Before Adoption | ||
Amortized Cost | 10,074 | |
Gross Unrealized Losses | (2,083) | (1,782) |
Fair value | 8,292 | |
After adoption | ||
Amortized Cost | 9,903 | |
Gross Unrealized Losses | (2,083) | (1,782) |
Fair value | 7,820 | |
U.S. government agency securities | ||
Before Adoption | ||
Amortized Cost | 3,881 | |
Gross Unrealized Gains | 142 | 140 |
Gross Unrealized Losses | (83) | (89) |
Fair value | 3,932 | |
After adoption | ||
Amortized Cost | 3,643 | |
Gross Unrealized Gains | 142 | 140 |
Gross Unrealized Losses | (83) | (89) |
Fair value | 3,702 | |
Before adoption | ||
Securities held to maturity | 4,982 | |
Gross Unrealized Losses | (84) | (102) |
Fair value | 4,906 | 4,880 |
After adoption | ||
Securities held to maturity | 4,990 | |
Gross Unrealized Losses | (84) | (102) |
Fair value | 4,906 | 4,880 |
Municipal bonds | ||
Before Adoption | ||
Amortized Cost | 20,081 | |
Gross Unrealized Losses | (6,091) | (5,102) |
Fair value | 14,979 | |
After adoption | ||
Amortized Cost | 20,061 | |
Gross Unrealized Losses | (6,091) | (5,102) |
Fair value | 13,970 | |
Before adoption | ||
Securities held to maturity | 60 | |
Fair value | 60 | 60 |
After adoption | ||
Securities held to maturity | 60 | |
Fair value | 60 | 60 |
Corporate bonds | ||
Before Adoption | ||
Amortized Cost | 37,200 | |
Gross Unrealized Losses | (5,572) | (6,032) |
Fair value | 31,168 | |
After adoption | ||
Amortized Cost | 37,200 | |
Gross Unrealized Losses | (5,572) | $ (6,032) |
Fair value | $ 31,628 |
Investment Securities - Securit
Investment Securities - Securities by contractual maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Available for sale, Amortized Cost | |
Due after one year through five years | $ 16 |
Due after five years through ten years | 42,660 |
Due after ten years | 149,739 |
Amortized Cost | 192,415 |
Available for sale, Fair Value | |
Due after one year through five years | 16 |
Due after five years through ten years | 35,988 |
Due after ten years | 120,093 |
Fair Value | 156,097 |
Held to maturity, Amortized Cost | |
Due in one year or less | 5,050 |
Due after ten years | 92,494 |
Amortized Cost | 97,544 |
Held to maturity, Fair Value | |
Due in one year or less | 4,966 |
Due after ten years | 71,887 |
Fair Value | $ 76,853 |
Investment Securities - Investm
Investment Securities - Investments with unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Fair Value | ||
Less than 12 Months | $ 6,938 | $ 27,509 |
12 Months or More | 146,351 | 131,038 |
Total Fair Value | 153,289 | 158,547 |
Unrealized Losses | ||
Less than 12 Months | (662) | (2,402) |
12 Months or More | (35,798) | (28,120) |
Total Unrealized Losses | (36,460) | (30,522) |
Fair Value | ||
Less than 12 Months | 497 | 4,880 |
12 Months or More | 76,296 | 77,373 |
Total Fair Value | 76,793 | 82,253 |
Unrealized Losses | ||
Less than 12 Months | (1) | (102) |
12 Months or More | (20,690) | (17,275) |
Total Unrealized Losses | (20,691) | (17,377) |
Less than 12 Months Fair Value | 7,435 | 32,389 |
12 Months or More Fair Value | 222,647 | 208,411 |
Total Fair Value | 230,082 | 240,800 |
Less than 12 Months Unrealized Losses | (663) | (2,504) |
12 Months or More Unrealized Losses | (56,488) | (45,395) |
Total Unrealized Losses | (57,151) | (47,899) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 3,355 | 16,794 |
12 Months or More | 95,622 | 86,371 |
Total Fair Value | 98,977 | 103,165 |
Unrealized Losses | ||
Less than 12 Months | (95) | (967) |
12 Months or More | (22,536) | (16,550) |
Total Unrealized Losses | (22,631) | (17,517) |
Fair Value | ||
12 Months or More | 71,887 | 77,373 |
Total Fair Value | 71,887 | 77,373 |
Unrealized Losses | ||
12 Months or More | (20,607) | (17,275) |
Total Unrealized Losses | (20,607) | (17,275) |
U.S. agency collateralized mortgage obligations | ||
Fair Value | ||
12 Months or More | 7,820 | 8,292 |
Total Fair Value | 7,820 | 8,292 |
Unrealized Losses | ||
12 Months or More | (2,083) | (1,782) |
Total Unrealized Losses | (2,083) | (1,782) |
U.S. government agency securities | ||
Fair Value | ||
12 Months or More | 894 | 943 |
Total Fair Value | 894 | 943 |
Unrealized Losses | ||
12 Months or More | (83) | (89) |
Total Unrealized Losses | (83) | (89) |
Fair Value | ||
Less than 12 Months | 497 | 4,880 |
12 Months or More | 4,409 | |
Total Fair Value | 4,906 | 4,880 |
Unrealized Losses | ||
Less than 12 Months | (1) | (102) |
12 Months or More | (83) | |
Total Unrealized Losses | (84) | (102) |
Municipal bonds | ||
Fair Value | ||
12 Months or More | 13,970 | 14,979 |
Total Fair Value | 13,970 | 14,979 |
Unrealized Losses | ||
12 Months or More | (6,091) | (5,102) |
Total Unrealized Losses | (6,091) | (5,102) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 3,583 | 10,715 |
12 Months or More | 28,045 | 20,453 |
Total Fair Value | 31,628 | 31,168 |
Unrealized Losses | ||
Less than 12 Months | (567) | (1,435) |
12 Months or More | (5,005) | (4,597) |
Total Unrealized Losses | $ (5,572) | $ (6,032) |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) item | |
Variable Interest Entity [Line Items] | |||
Proceeds from sale of securities | $ 0 | $ 0 | |
Number of securities held for less than 12 months | security | 6 | ||
Number of securities held for greater than 12 months | 122 | 126 | |
Number of securities temporarily impaired | 122 | 126 | |
Number of equity securities | security | 1 | ||
Equity securities | $ 1,702 | $ 1,629 | |
Unrealized gain (loss) on equity securities | $ 73 | $ (273) | |
Financial Instrument, Owned, Pledged Status | Asset Pledged as Collateral without Right [Member] | Asset Pledged as Collateral without Right [Member] | |
Asset Pledged as Collateral | |||
Variable Interest Entity [Line Items] | |||
Pledged investment securities | $ 2,400 | $ 2,500 | |
Asset Pledged as Collateral without Right [Member] | |||
Variable Interest Entity [Line Items] | |||
Financial Instrument, Owned, Pledging Purpose | wmpn:MunicipalDeposits | wmpn:MunicipalDeposits |
Loans - Major classifications o
Loans - Major classifications of loans (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 480,856,000 | |||
Allowance for credit losses | (3,313,000) | $ (3,333,000) | $ (3,409,000) | |
Net Loans | $ 477,543,000 | |||
Total Loans | $ 475,639,000 | 475,639,000 | ||
Allowance for credit losses | (3,587,000) | (3,587,000) | ||
Net Loans | $ 472,052,000 | |||
Percentage of loans | 100% | 100% | ||
Residential real estate | 1-4 Family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 135,046,000 | |||
Allowance for credit losses | (486,000) | (493,000) | (506,000) | |
Total Loans | $ 131,305,000 | 131,305,000 | ||
Allowance for credit losses | $ (407,000) | $ (419,000) | (407,000) | |
Percentage of loans | 27.61% | 28.08% | ||
Residential real estate | Home equity and HELOCs | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 32,684,000 | |||
Allowance for credit losses | (113,000) | (116,000) | (113,000) | |
Total Loans | $ 32,497,000 | 32,497,000 | ||
Allowance for credit losses | $ (131,000) | $ (132,000) | (131,000) | |
Percentage of loans | 6.83% | 6.79% | ||
Residential real estate | Construction -residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 9,113,000 | |||
Allowance for credit losses | (214,000) | (301,000) | (386,000) | |
Total Loans | $ 8,813,000 | 8,813,000 | ||
Allowance for credit losses | $ (39,000) | $ (40,000) | (39,000) | |
Percentage of loans | 1.85% | 1.90% | ||
Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 53,200,000 | |||
Commercial real estate | 1-4 Family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | 96,337,000 | |||
Allowance for credit losses | (325,000) | |||
Commercial real estate | 1 - 4 family investor | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 98,160,000 | |||
Allowance for credit losses | (569,000) | (495,000) | (527,000) | |
Total Loans | 96,337,000 | |||
Allowance for credit losses | $ (325,000) | $ (328,000) | ||
Percentage of loans | 20.25% | 20.41% | ||
Commercial real estate | Multi-family (five or more) | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 15,281,000 | |||
Allowance for credit losses | (89,000) | (112,000) | (110,000) | |
Total Loans | $ 15,258,000 | 15,258,000 | ||
Allowance for credit losses | $ (53,000) | $ (59,000) | (53,000) | |
Percentage of loans | 3.21% | 3.18% | ||
Commercial real estate | Commercial non-residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 157,555,000 | |||
Allowance for credit losses | (1,420,000) | (1,431,000) | (1,451,000) | |
Total Loans | $ 155,399,000 | 155,399,000 | ||
Allowance for credit losses | $ (1,767,000) | $ (1,799,000) | (1,767,000) | |
Percentage of loans | 32.67% | 32.77% | ||
Commercial real estate | Construction and land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 15,584,000 | |||
Allowance for credit losses | (281,000) | (224,000) | (166,000) | |
Total Loans | $ 19,343,000 | 19,343,000 | ||
Allowance for credit losses | $ (233,000) | $ (188,000) | (233,000) | |
Percentage of loans | 4.07% | 3.24% | ||
Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 15,433,000 | |||
Allowance for credit losses | (82,000) | (111,000) | (100,000) | |
Total Loans | $ 14,759,000 | 14,759,000 | ||
Allowance for credit losses | $ (340,000) | $ (336,000) | (340,000) | |
Percentage of loans | 3.10% | 3.21% | ||
Consumer loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Loans | $ 2,000,000 | |||
Allowance for credit losses | (59,000) | (50,000) | $ (50,000) | |
Total Loans | $ 1,928,000 | 1,928,000 | ||
Allowance for credit losses | $ (292,000) | $ (255,000) | $ (292,000) | |
Percentage of loans | 0.41% | 0.42% |
Loans - PPP (Details)
Loans - PPP (Details) | 3 Months Ended | ||
Sep. 30, 2023 USD ($) loan item | Jun. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 475,639,000 | $ 475,639,000 | |
Total Loans | $ 480,856,000 | ||
Threshold loan commitment | $ 20,000,000 | ||
Number of banks sharing national credits | item | 3 | ||
Number of national credit | loan | 1 | 1 | |
Credit loan commitment | $ 12,500,000 | $ 12,500,000 | |
Loan commitment | 0 | 0 | |
Mortgage Loan Serviced To Others | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Loans | $ 12,200,000 | ||
Total Loans | $ 12,500,000 | ||
Servicing rights basis points received | 25% |
Loans - Allowance for loan loss
Loans - Allowance for loan losses (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Allowance for credit losses: | |||
Beginning balance | $ 3,313,000 | $ 3,409,000 | |
Charge-offs | (79,000) | ||
Recoveries | 26,000 | ||
Recoveries | 3,000 | ||
Provision (recovery) | 5,000 | ||
Ending balance | 3,587,000 | 3,587,000 | |
Ending Balance | 3,333,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 3,587,000 | ||
Collectively evaluated for impairment | $ 3,313,000 | ||
Allowance for loan losses | 3,587,000 | 3,587,000 | |
Allowance for loan losses | 3,333,000 | 3,313,000 | |
Loans receivable ,Individually evaluated for impairment | 3,556,000 | 3,252,000 | |
Loans receivable, Collectively evaluated for impairment | 472,083,000 | 380,012,000 | |
Total Loans | 475,639,000 | 475,639,000 | |
Total Loans | 480,856,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | 243,000 | ||
Allowance ending balance: | |||
Allowance for loan losses | 243,000 | ||
Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 72,000 | ||
Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 97,520,000 | ||
Residential real estate | 1-4 Family | |||
Allowance for credit losses: | |||
Beginning balance | 486,000 | 506,000 | |
Beginning balance | 419,000 | ||
Charge-offs | (79,000) | ||
Provision (recovery) | (12,000) | ||
Provision (recovery) | 66,000 | ||
Ending balance | 407,000 | 407,000 | |
Ending Balance | 493,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 407,000 | ||
Collectively evaluated for impairment | 486,000 | ||
Allowance for loan losses | 407,000 | 407,000 | 419,000 |
Allowance for loan losses | 493,000 | 486,000 | |
Loans receivable ,Individually evaluated for impairment | 2,033,000 | 1,209,000 | |
Loans receivable, Collectively evaluated for impairment | 129,272,000 | 78,237,000 | |
Total Loans | 131,305,000 | 131,305,000 | |
Total Loans | 135,046,000 | ||
Residential real estate | 1-4 Family | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | (67,000) | ||
Allowance ending balance: | |||
Allowance for loan losses | (67,000) | ||
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 72,000 | ||
Residential real estate | 1-4 Family | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 55,528,000 | ||
Residential real estate | Home equity and HELOCs | |||
Allowance for credit losses: | |||
Beginning balance | 113,000 | 113,000 | |
Beginning balance | 132,000 | ||
Provision (recovery) | (1,000) | ||
Provision (recovery) | 3,000 | ||
Ending balance | 131,000 | 131,000 | |
Ending Balance | 116,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 131,000 | ||
Collectively evaluated for impairment | 113,000 | ||
Allowance for loan losses | 131,000 | 131,000 | 132,000 |
Allowance for loan losses | 116,000 | 113,000 | |
Loans receivable ,Individually evaluated for impairment | 182,000 | ||
Loans receivable, Collectively evaluated for impairment | 32,497,000 | 19,689,000 | |
Total Loans | 32,497,000 | 32,497,000 | |
Total Loans | 32,684,000 | ||
Residential real estate | Home equity and HELOCs | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | 19,000 | ||
Allowance ending balance: | |||
Allowance for loan losses | 19,000 | ||
Residential real estate | Home equity and HELOCs | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 12,813,000 | ||
Residential real estate | Construction Residential | |||
Allowance for credit losses: | |||
Beginning balance | 214,000 | 386,000 | |
Beginning balance | 40,000 | ||
Provision (recovery) | (1,000) | ||
Provision (recovery) | (85,000) | ||
Ending balance | 39,000 | 39,000 | |
Ending Balance | 301,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 39,000 | ||
Collectively evaluated for impairment | 214,000 | ||
Allowance for loan losses | 39,000 | 39,000 | 40,000 |
Allowance for loan losses | 301,000 | 214,000 | |
Loans receivable, Collectively evaluated for impairment | 8,813,000 | 9,113,000 | |
Total Loans | 8,813,000 | 8,813,000 | |
Total Loans | 9,113,000 | ||
Residential real estate | Construction Residential | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | (174,000) | ||
Allowance ending balance: | |||
Allowance for loan losses | (174,000) | ||
Commercial real estate | |||
Allowance ending balance: | |||
Total Loans | 53,200,000 | ||
Commercial real estate | 1-4 Family | |||
Allowance for credit losses: | |||
Ending balance | 325,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 325,000 | ||
Allowance for loan losses | 325,000 | ||
Loans receivable ,Individually evaluated for impairment | 111,000 | ||
Loans receivable, Collectively evaluated for impairment | 96,226,000 | ||
Total Loans | 96,337,000 | ||
Commercial real estate | 1 - 4 family investor | |||
Allowance for credit losses: | |||
Beginning balance | 569,000 | 527,000 | |
Beginning balance | 328,000 | ||
Provision (recovery) | (3,000) | ||
Provision (recovery) | (32,000) | ||
Ending balance | 325,000 | ||
Ending Balance | 495,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 569,000 | ||
Allowance for loan losses | 325,000 | 328,000 | |
Allowance for loan losses | 495,000 | 569,000 | |
Loans receivable ,Individually evaluated for impairment | 832,000 | ||
Loans receivable, Collectively evaluated for impairment | 84,891,000 | ||
Total Loans | 96,337,000 | ||
Total Loans | 98,160,000 | ||
Commercial real estate | 1 - 4 family investor | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | (241,000) | ||
Allowance ending balance: | |||
Allowance for loan losses | (241,000) | ||
Commercial real estate | 1 - 4 family investor | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 12,437,000 | ||
Commercial real estate | Multi-family (five or more) | |||
Allowance for credit losses: | |||
Beginning balance | 89,000 | 110,000 | |
Beginning balance | 59,000 | ||
Provision (recovery) | (6,000) | ||
Provision (recovery) | 2,000 | ||
Ending balance | 53,000 | 53,000 | |
Ending Balance | 112,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 53,000 | ||
Collectively evaluated for impairment | 89,000 | ||
Allowance for loan losses | 53,000 | 53,000 | 59,000 |
Allowance for loan losses | 112,000 | 89,000 | |
Loans receivable ,Individually evaluated for impairment | 236,000 | 251,000 | |
Loans receivable, Collectively evaluated for impairment | 15,022,000 | 14,781,000 | |
Total Loans | 15,258,000 | 15,258,000 | |
Total Loans | 15,281,000 | ||
Commercial real estate | Multi-family (five or more) | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | (30,000) | ||
Allowance ending balance: | |||
Allowance for loan losses | (30,000) | ||
Commercial real estate | Multi-family (five or more) | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 249,000 | ||
Commercial real estate | Commercial non-residential | |||
Allowance for credit losses: | |||
Beginning balance | 1,420,000 | 1,451,000 | |
Beginning balance | 1,799,000 | ||
Provision (recovery) | (32,000) | ||
Provision (recovery) | (20,000) | ||
Ending balance | 1,767,000 | 1,767,000 | |
Ending Balance | 1,431,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 1,767,000 | ||
Collectively evaluated for impairment | 1,420,000 | ||
Allowance for loan losses | 1,767,000 | 1,767,000 | 1,799,000 |
Allowance for loan losses | 1,431,000 | 1,420,000 | |
Loans receivable ,Individually evaluated for impairment | 1,095,000 | 778,000 | |
Loans receivable, Collectively evaluated for impairment | 154,304,000 | 142,098,000 | |
Total Loans | 155,399,000 | 155,399,000 | |
Total Loans | 157,555,000 | ||
Commercial real estate | Commercial non-residential | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | 379,000 | ||
Allowance ending balance: | |||
Allowance for loan losses | 379,000 | ||
Commercial real estate | Commercial non-residential | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 14,679,000 | ||
Commercial real estate | Construction and land | |||
Allowance for credit losses: | |||
Beginning balance | 281,000 | 166,000 | |
Beginning balance | 188,000 | ||
Provision (recovery) | 45,000 | ||
Provision (recovery) | 58,000 | ||
Ending balance | 233,000 | 233,000 | |
Ending Balance | 224,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 233,000 | ||
Collectively evaluated for impairment | 281,000 | ||
Allowance for loan losses | 233,000 | 233,000 | 188,000 |
Allowance for loan losses | 224,000 | 281,000 | |
Loans receivable, Collectively evaluated for impairment | 19,343,000 | 15,584,000 | |
Total Loans | 19,343,000 | 19,343,000 | |
Total Loans | 15,584,000 | ||
Commercial real estate | Construction and land | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | (93,000) | ||
Allowance ending balance: | |||
Allowance for loan losses | (93,000) | ||
Commercial | |||
Allowance for credit losses: | |||
Beginning balance | 82,000 | 100,000 | |
Beginning balance | 336,000 | ||
Provision (recovery) | 4,000 | ||
Provision (recovery) | 11,000 | ||
Ending balance | 340,000 | 340,000 | |
Ending Balance | 111,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 340,000 | ||
Collectively evaluated for impairment | 82,000 | ||
Allowance for loan losses | 340,000 | 340,000 | 336,000 |
Allowance for loan losses | 111,000 | 82,000 | |
Loans receivable, Collectively evaluated for impairment | 14,759,000 | 14,976,000 | |
Total Loans | 14,759,000 | 14,759,000 | |
Total Loans | 15,433,000 | ||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | 254,000 | ||
Allowance ending balance: | |||
Allowance for loan losses | 254,000 | ||
Commercial | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | 457,000 | ||
Consumer | |||
Allowance for credit losses: | |||
Beginning balance | 59,000 | 50,000 | |
Beginning balance | 255,000 | ||
Recoveries | 26,000 | ||
Recoveries | 3,000 | ||
Provision (recovery) | 11,000 | ||
Provision (recovery) | (3,000) | ||
Ending balance | 292,000 | 292,000 | |
Ending Balance | 50,000 | ||
Allowance ending balance: | |||
Collectively evaluated for impairment | 292,000 | ||
Collectively evaluated for impairment | 59,000 | ||
Allowance for loan losses | 292,000 | 292,000 | 255,000 |
Allowance for loan losses | 50,000 | 59,000 | |
Loans receivable ,Individually evaluated for impairment | 81,000 | ||
Loans receivable, Collectively evaluated for impairment | 1,847,000 | 643,000 | |
Total Loans | 1,928,000 | $ 1,928,000 | |
Total Loans | 2,000,000 | ||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for credit losses: | |||
Beginning balance | $ 196,000 | ||
Allowance ending balance: | |||
Allowance for loan losses | 196,000 | ||
Consumer | Acquired non-credit impaired | |||
Allowance ending balance: | |||
Loans receivable, Collectively evaluated for impairment | $ 1,357,000 |
Loans - Credit quality indicato
Loans - Credit quality indicators (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 |
Term Loans Amortized Cost Basis by Origination Year | |||
Total | $ 475,639,000 | $ 475,639,000 | |
Total Loans | $ 480,856,000 | ||
Residential and Consumer Loan | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 178,843,000 | ||
Residential and Consumer Loan | Performing | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 176,671,000 | ||
Residential and Consumer Loan | Nonperforming | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 2,172,000 | ||
Commercial Loan Total | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 302,013,000 | ||
Commercial Loan Total | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 298,921,000 | ||
Commercial Loan Total | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 1,231,000 | ||
Commercial Loan Total | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total Loans | 1,861,000 | ||
Residential real estate | 1-4 Family | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 3,550,000 | ||
2023 | 8,007,000 | ||
2022 | 13,872,000 | ||
2021 | 15,786,000 | ||
2020 | 8,758,000 | ||
Prior | 81,332,000 | ||
Total | 131,305,000 | 131,305,000 | |
Total Loans | 135,046,000 | ||
Residential real estate | 1-4 Family | Performing | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 3,550,000 | ||
2023 | 8,007,000 | ||
2022 | 13,872,000 | ||
2021 | 15,786,000 | ||
2020 | 8,627,000 | ||
Prior | 79,430,000 | ||
Total | 129,272,000 | ||
Total Loans | 132,956,000 | ||
Residential real estate | 1-4 Family | Nonperforming | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2020 | 131,000 | ||
Prior | 1,902,000 | ||
Total | 2,033,000 | ||
Total Loans | 2,090,000 | ||
Residential real estate | Home equity and HELOCs | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 535,000 | ||
2023 | 2,422,000 | ||
2022 | 517,000 | ||
2021 | 988,000 | ||
2020 | 427,000 | ||
Prior | 4,677,000 | ||
Revolving Loans Amortized Cost Basis | 21,156,000 | ||
Revolving Loans Converted to Term | 1,775,000 | ||
Total | 32,497,000 | 32,497,000 | |
Total Loans | 32,684,000 | ||
Residential real estate | Home equity and HELOCs | Performing | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 535,000 | ||
2023 | 2,422,000 | ||
2022 | 517,000 | ||
2021 | 988,000 | ||
2020 | 427,000 | ||
Prior | 4,677,000 | ||
Revolving Loans Amortized Cost Basis | 21,156,000 | ||
Revolving Loans Converted to Term | 1,775,000 | ||
Total | 32,497,000 | ||
Total Loans | 32,684,000 | ||
Residential real estate | Construction Residential | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 1,728,000 | ||
2023 | 4,885,000 | ||
2022 | 645,000 | ||
2021 | 1,555,000 | ||
Total | 8,813,000 | 8,813,000 | |
Total Loans | 9,113,000 | ||
Residential real estate | Construction Residential | Performing | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 1,728,000 | ||
2023 | 4,885,000 | ||
2022 | 645,000 | ||
2021 | 1,555,000 | ||
Total | 8,813,000 | ||
Total Loans | 9,113,000 | ||
Commercial real estate | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total | 53,200,000 | ||
Commercial real estate | 1-4 Family | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Total | 96,337,000 | ||
Commercial real estate | 1 - 4 family investor | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 1,448,000 | ||
2023 | 12,185,000 | ||
2022 | 6,831,000 | ||
2021 | 17,783,000 | ||
2020 | 12,245,000 | ||
Prior | 43,589,000 | ||
Revolving Loans Amortized Cost Basis | 1,537,000 | ||
Revolving Loans Converted to Term | 719,000 | ||
Total | 96,337,000 | ||
Total Loans | 98,160,000 | ||
Commercial real estate | 1 - 4 family investor | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 1,448,000 | ||
2023 | 12,185,000 | ||
2022 | 6,831,000 | ||
2021 | 17,783,000 | ||
2020 | 12,245,000 | ||
Prior | 42,376,000 | ||
Revolving Loans Amortized Cost Basis | 1,537,000 | ||
Revolving Loans Converted to Term | 719,000 | ||
Total | 95,124,000 | ||
Total Loans | 96,097,000 | ||
Commercial real estate | 1 - 4 family investor | Special Mention | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 1,102,000 | ||
Total | 1,102,000 | ||
Total Loans | 1,231,000 | ||
Commercial real estate | 1 - 4 family investor | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 111,000 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 111,000 | ||
Total Loans | 832,000 | ||
Commercial real estate | Multi-family (five or more) | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 101,000 | ||
2023 | 1,181,000 | ||
2022 | 1,346,000 | ||
2021 | 4,173,000 | ||
2020 | 5,050,000 | ||
Prior | 3,407,000 | ||
Total | 15,258,000 | 15,258,000 | |
Total Loans | 15,281,000 | ||
Commercial real estate | Multi-family (five or more) | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 101,000 | ||
2023 | 1,181,000 | ||
2022 | 1,346,000 | ||
2021 | 4,173,000 | ||
2020 | 5,050,000 | ||
Prior | 3,171,000 | ||
Total | 15,022,000 | ||
Total Loans | 15,030,000 | ||
Commercial real estate | Multi-family (five or more) | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 236,000 | ||
Total | 236,000 | ||
Total Loans | 251,000 | ||
Commercial real estate | Commercial non-residential | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 553,000 | ||
2023 | 21,986,000 | ||
2022 | 62,611,000 | ||
2021 | 30,998,000 | ||
2020 | 16,967,000 | ||
Prior | 22,188,000 | ||
Revolving Loans Converted to Term | 96,000 | ||
Total | 155,399,000 | 155,399,000 | |
Total Loans | 157,555,000 | ||
Commercial real estate | Commercial non-residential | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 553,000 | ||
2023 | 21,986,000 | ||
2022 | 62,611,000 | ||
2021 | 30,678,000 | ||
2020 | 16,490,000 | ||
Prior | 21,890,000 | ||
Revolving Loans Converted to Term | 96,000 | ||
Total | 154,304,000 | ||
Total Loans | 156,777,000 | ||
Commercial real estate | Commercial non-residential | Substandard | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2021 | 320,000 | ||
2020 | 477,000 | ||
Prior | 298,000 | ||
Total | 1,095,000 | ||
Total Loans | 778,000 | ||
Commercial real estate | Construction and land | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 811,000 | ||
2023 | 4,742,000 | ||
2022 | 10,501,000 | ||
2020 | 1,167,000 | ||
Prior | 2,122,000 | ||
Total | 19,343,000 | 19,343,000 | |
Total Loans | 15,584,000 | ||
Commercial real estate | Construction and land | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2024 | 811,000 | ||
2023 | 4,742,000 | ||
2022 | 10,501,000 | ||
2020 | 1,167,000 | ||
Prior | 2,122,000 | ||
Total | 19,343,000 | ||
Total Loans | 15,584,000 | ||
Commercial | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 | 6,803,000 | ||
2022 | 7,378,000 | ||
2020 | 53,000 | ||
Prior | 525,000 | ||
Total | 14,759,000 | 14,759,000 | |
Total Loans | 15,433,000 | ||
Commercial | Pass | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 | 6,803,000 | ||
2022 | 7,378,000 | ||
2020 | 53,000 | ||
Prior | 525,000 | ||
Total | 14,759,000 | ||
Total Loans | 15,433,000 | ||
Consumer | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 | 116,000 | ||
2022 | 68,000 | ||
2021 | 25,000 | ||
2020 | 321,000 | ||
Prior | 1,398,000 | ||
Total | 1,928,000 | $ 1,928,000 | |
Total Loans | 2,000,000 | ||
Consumer | Performing | |||
Term Loans Amortized Cost Basis by Origination Year | |||
2023 | 116,000 | ||
2022 | 68,000 | ||
2021 | 25,000 | ||
2020 | 321,000 | ||
Prior | 1,317,000 | ||
Total | 1,847,000 | ||
Total Loans | 1,918,000 | ||
Consumer | Nonperforming | |||
Term Loans Amortized Cost Basis by Origination Year | |||
Prior | 81,000 | ||
Total | $ 81,000 | ||
Total Loans | $ 82,000 |
Loans - Loan Delinquencies and
Loans - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Financing Receivable, Past Due [Line Items] | |||
Non-accrual loans secured | $ 3,500,000 | ||
Non-accrual loans unsecured | 81,000 | ||
Total Loans | 475,639,000 | $ 475,639,000 | |
Recorded Investment Loans on Non-Accrual | 3,556,000 | ||
Total Loans | $ 480,856,000 | ||
Recorded Investment Loans on Non-Accrual | 4,033,000 | ||
Interest income | 49,000 | ||
Interest income | 75,000 | ||
30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 514,000 | ||
Total Past Due | 541,000 | ||
60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,645,000 | ||
Total Past Due | 1,544,000 | ||
90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,345,000 | ||
Total Past Due | 1,345,000 | ||
Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 3,504,000 | ||
Total Past Due | 3,430,000 | ||
Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 472,135,000 | ||
Current | 477,354,000 | ||
Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 72,000 | ||
Residential real estate | 1-4 Family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 131,305,000 | 131,305,000 | |
Recorded Investment Loans on Non-Accrual | 2,033,000 | ||
Total Loans | 135,046,000 | ||
Recorded Investment Loans on Non-Accrual | 2,090,000 | ||
Residential real estate | 1-4 Family | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 281,000 | ||
Total Past Due | 290,000 | ||
Residential real estate | 1-4 Family | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 654,000 | ||
Total Past Due | 457,000 | ||
Residential real estate | 1-4 Family | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 198,000 | ||
Total Past Due | 567,000 | ||
Residential real estate | 1-4 Family | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,133,000 | ||
Total Past Due | 1,314,000 | ||
Residential real estate | 1-4 Family | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 130,172,000 | ||
Current | 133,660,000 | ||
Residential real estate | 1-4 Family | Acquired credit impaired | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 72,000 | ||
Residential real estate | Home equity and HELOCs | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 32,497,000 | 32,497,000 | |
Total Loans | 32,684,000 | ||
Residential real estate | Home equity and HELOCs | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 144,000 | ||
Residential real estate | Home equity and HELOCs | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 144,000 | ||
Residential real estate | Home equity and HELOCs | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 32,353,000 | ||
Current | 32,684,000 | ||
Residential real estate | Construction Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 8,813,000 | 8,813,000 | |
Total Loans | 9,113,000 | ||
Residential real estate | Construction Residential | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 8,813,000 | ||
Current | 9,113,000 | ||
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 53,200,000 | ||
Commercial real estate | 1-4 Family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 96,337,000 | ||
Commercial real estate | 1 - 4 family investor | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 96,337,000 | ||
Recorded Investment Loans on Non-Accrual | 111,000 | ||
Total Loans | 98,160,000 | ||
Recorded Investment Loans on Non-Accrual | 832,000 | ||
Commercial real estate | 1 - 4 family investor | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 89,000 | ||
Commercial real estate | 1 - 4 family investor | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 960,000 | ||
Total Past Due | 752,000 | ||
Commercial real estate | 1 - 4 family investor | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 39,000 | ||
Commercial real estate | 1 - 4 family investor | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,088,000 | ||
Total Past Due | 752,000 | ||
Commercial real estate | 1 - 4 family investor | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 95,249,000 | ||
Current | 97,408,000 | ||
Commercial real estate | Multi-family (five or more) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 15,258,000 | 15,258,000 | |
Recorded Investment Loans on Non-Accrual | 236,000 | ||
Total Loans | 15,281,000 | ||
Recorded Investment Loans on Non-Accrual | 251,000 | ||
Commercial real estate | Multi-family (five or more) | 30 - 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 251,000 | ||
Commercial real estate | Multi-family (five or more) | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 251,000 | ||
Commercial real estate | Multi-family (five or more) | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 15,258,000 | ||
Current | 15,030,000 | ||
Commercial real estate | Commercial non-residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 155,399,000 | 155,399,000 | |
Recorded Investment Loans on Non-Accrual | 1,095,000 | ||
Total Loans | 157,555,000 | ||
Recorded Investment Loans on Non-Accrual | 778,000 | ||
Commercial real estate | Commercial non-residential | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 322,000 | ||
Commercial real estate | Commercial non-residential | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,095,000 | ||
Total Past Due | 778,000 | ||
Commercial real estate | Commercial non-residential | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,095,000 | ||
Total Past Due | 1,100,000 | ||
Commercial real estate | Commercial non-residential | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 154,304,000 | ||
Current | 156,455,000 | ||
Commercial real estate | Construction and land | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 19,343,000 | 19,343,000 | |
Total Loans | 15,584,000 | ||
Commercial real estate | Construction and land | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 19,343,000 | ||
Current | 15,584,000 | ||
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 14,759,000 | 14,759,000 | |
Total Loans | 15,433,000 | ||
Commercial | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 14,759,000 | ||
Current | 15,433,000 | ||
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,928,000 | $ 1,928,000 | |
Recorded Investment Loans on Non-Accrual | 81,000 | ||
Total Loans | 2,000,000 | ||
Recorded Investment Loans on Non-Accrual | 82,000 | ||
Consumer | 60 - 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 31,000 | ||
Total Past Due | 13,000 | ||
Consumer | 90 Days Or Greater | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 13,000 | ||
Consumer | Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 44,000 | ||
Total Past Due | 13,000 | ||
Consumer | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 1,884,000 | ||
Current | $ 1,987,000 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2023 | |
Residential real estate | 1-4 Family | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | $ 1,209 | |
Recorded Investment | 1,209 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 1,302 | |
Unpaid Principal Balance | 1,302 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | $ 2,476 | |
Average Recorded Investment | 2,476 | |
Residential real estate | Home equity and HELOCs | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 182 | |
Recorded Investment | 182 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 182 | |
Unpaid Principal Balance | 182 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 385 | |
Average Recorded Investment | 385 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 4 | |
Interest Income Recognized | 4 | |
Commercial real estate | 1 - 4 family investor | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 832 | |
Recorded Investment | 832 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 850 | |
Unpaid Principal Balance | 850 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 121 | |
Average Recorded Investment | 121 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 1 | |
Interest Income Recognized | 1 | |
Commercial real estate | Multi-family (five or more) | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 251 | |
Recorded Investment | 251 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 283 | |
Unpaid Principal Balance | 283 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 291 | |
Average Recorded Investment | 291 | |
Commercial real estate | Commercial non-residential | ||
Recorded Investment | ||
Recorded Investment, With no related allowance recorded | 778 | |
Recorded Investment | 778 | |
Unpaid Principal Balance | ||
Unpaid Principal Balance, With no related allowance recorded | 783 | |
Unpaid Principal Balance | $ 783 | |
Average Recorded Investment | ||
Average Recorded Investment, With no related allowance recorded | 1,348 | |
Average Recorded Investment | 1,348 | |
Interest Income Recognized | ||
Interest Income Recognized, With no related allowance recorded | 5 | |
Interest Income Recognized | $ 5 |
Loans - Concentration of Credit
Loans - Concentration of Credit Risk and Loan Modifications (Details) | 3 Months Ended | ||
Sep. 30, 2023 USD ($) loan Office | Sep. 30, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Troubled debt restructuring | $ 182,000 | ||
Interest income on accruing TDR | $ 10,000 | ||
Impairment on TDR | 47,000 | ||
Number of full service branch offices | Office | 12 | ||
Total Loans | $ 475,639,000 | $ 475,639,000 | |
Number of contracts that have been modified by troubled debt restructurings | loan | 0 | 0 | |
Number of contracts that have been modified by troubled debt restructurings | loan | 0 | ||
Number of financing receivable contracts modified as troubled debt restructuring within previous 12 months, with subsequent payment default | loan | 0 | ||
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Total Loans | $ 53,200,000 | ||
Percentage of total loans secured by retail space | 11.20% | ||
Commercial real estate | Non-Owner Occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Total Loans | $ 41,800,000 | ||
Commercial real estate | Owner Occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Total Loans | $ 11,400,000 | ||
Acquired credit impaired | |||
Financing Receivable, Impaired [Line Items] | |||
Loans acquired | $ 72,000 |
Premises and Equipment - Compon
Premises and Equipment - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 11,643 | $ 13,189 |
Accumulated depreciation | (3,975) | (4,135) |
Net book value | 7,668 | 9,054 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 1,441 | 1,778 |
Office buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 7,878 | 9,080 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | 2,266 | 2,273 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Gross value | $ 58 | $ 58 |
Premises and Equipment (Details
Premises and Equipment (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | |
Premises and Equipment | ||
Depreciation expense | $ 197 | $ 265 |
Number of properties transferred | property | 1 | |
Carrying value of property held for sale | $ 1,200 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 4,858 | $ 4,858 | $ 4,858 | $ 4,858 |
Core deposit intangibles | $ 478 | 664 | 519 | $ 712 |
Estimated useful life | 10 years | |||
Goodwill impairment | $ 0 | $ 0 | ||
Aggregate amortization expense | 41 | $ 48 | ||
Audubon Savings Bank | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 4,900 | |||
Core deposit intangibles | 1,400 | |||
Fidelity Savings and Loan Association | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangibles | 65 | |||
Washington Savings Bank | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangibles | $ 197 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill | ||
Beginning Balance | $ 4,858 | $ 4,858 |
Ending Balance | 4,858 | 4,858 |
Core Deposit Intangibles | ||
Beginning Balance | 519 | 712 |
Amortization | (41) | (48) |
Ending Balance | $ 478 | $ 664 |
Deposits - Weighted-average int
Deposits - Weighted-average interest rates (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Deposits. | ||
Non-interest bearing checking | $ 55,685 | $ 60,872 |
Interest bearing checking | 125,478 | 116,700 |
Money market accounts | 193,608 | 208,020 |
Savings and club accounts | 85,833 | 90,291 |
Certificates of deposit | 165,903 | 159,377 |
Total deposits | $ 626,507 | $ 635,260 |
Borrowings (Details)
Borrowings (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) item | Jun. 30, 2023 USD ($) | |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB number of regional banks | item | 11 | |
Maximum borrowing capacity with FHLB | $ 290.2 | $ 295 |
Fixed rate short-term borrowings | 51 | 34 |
Loans pledged as collateral | 420.2 | 427.2 |
Investments | 3 | 2.3 |
Collateral pledged in support of federal reserve bank advances outstanding | 10.1 | 10.2 |
Maximum advances or credit lines available from the Federal Reserve Bank | 3.8 | 3.7 |
Balance for the overnight line of credit | 0 | 0 |
Atlantic Community Bankers Bank | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Available credit to purchase federal funds | $ 10 | $ 10 |
Stock Based Compensation - Plan
Stock Based Compensation - Plan and Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | May 10, 2022 | |
Stock Based Compensation | |||||
Stock based compensation expense | $ 477 | $ 490 | |||
Restricted stock | |||||
Stock Based Compensation | |||||
Number of shares granted | 492,960 | ||||
Fair value of awards granted (in dollars per shares) | $ 11.67 | ||||
Vesting period | 5 years | ||||
Stock based compensation expense | $ 282 | $ 289 | |||
Non-vested Restricted Stock Awards outstanding (in shares) | 383,258 | 492,960 | 492,960 | 383,258 | |
Unrecognized compensation expense | $ 4,000 | $ 5,300 | |||
Unrecognized compensation expense recognition period | 3 years 7 months 17 days | 4 years 7 months 17 days | |||
Stock options | |||||
Stock Based Compensation | |||||
Vesting period | 5 years | ||||
Stock based compensation expense | $ 195 | $ 201 | |||
Unrecognized compensation expense recognition period | 3 years 7 months 17 days | 4 years 7 months 17 days | |||
2022 Equity incentive plan | |||||
Stock Based Compensation | |||||
Shares authorized | 1,769,604 | ||||
2022 Equity incentive plan | Restricted stock | |||||
Stock Based Compensation | |||||
Shares authorized | 505,601 | ||||
2022 Equity incentive plan | Stock options | |||||
Stock Based Compensation | |||||
Shares authorized | 1,264,003 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock activity (Details) - Restricted stock - $ / shares | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Number of Shares | |||
Non-vested Restricted Stock Awards outstanding (Beginning balance) | 383,258 | 492,960 | |
Issued | 492,960 | ||
Vested | |||
Forfeited | |||
Non-vested Restricted Stock Awards outstanding (Ending balance) | 383,258 | 492,960 | 492,960 |
Average Grant Price | |||
Non-vested Restricted Stock Awards outstanding (Beginning balance) (in dollars per share) | $ 11.66 | $ 11.67 | |
Issued (in dollars per share) | $ 11.67 | ||
Vested (in dollars per share) | |||
Forfeited (in dollars per share) | |||
Non-vested Restricted Stock Awards outstanding (Ending balance) (in dollars per share) | $ 11.66 | $ 11.67 | $ 11.67 |
Stock Based Compensation - Opti
Stock Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Fair value assumptions | ||||
Stock based compensation expense | $ 477 | $ 490 | ||
Stock options | ||||
Stock Based Compensation | ||||
Number of options granted | 1,232,400 | |||
Fair value of options granted | $ 3.24 | |||
Vesting period | 5 years | |||
Exercise price of options granted (in dollars per share) | $ 11.67 | |||
Term of award | 10 years | |||
Fair value assumptions | ||||
Expected life | 6 years 6 months | |||
Risk free rate of return | 2.92% | |||
Volatility | 24.85% | |||
Dividend yield | 1.03% | |||
Stock based compensation expense | $ 195 | $ 201 | ||
Options outstanding | 1,197,640 | 1,232,400 | 1,232,400 | 1,197,640 |
Unrecognized compensation expense | $ 2,800 | $ 3,700 | ||
Unrecognized compensation expense recognition period | 3 years 7 months 17 days | 4 years 7 months 17 days | ||
Remaining contractual term | 8 years 7 months 17 days | 9 years 7 months 17 days | ||
Exercisable options | 239,528 | 0 | ||
Weighted average exercise price | $ 11.66 | |||
Remaining contractual term exercisable | 8 years 7 months 17 days | |||
Aggregate intrinsic value exercisable | $ 195 | |||
Aggregate intrinsic value | $ 976 | $ 0 | ||
Restricted stock | ||||
Stock Based Compensation | ||||
Fair value of Vested (in shares) | ||||
Vesting period | 5 years | |||
Fair value assumptions | ||||
Stock based compensation expense | $ 282 | $ 289 | ||
Unrecognized compensation expense recognition period | 3 years 7 months 17 days | 4 years 7 months 17 days |
Stock Based Compensation - Op_2
Stock Based Compensation - Options activity (Details) - Stock options - $ / shares | 12 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |
Number of Options | ||||
Granted | 1,232,400 | |||
Ending balance | 1,232,400 | |||
Exercise Price per Shares | ||||
Exercise price per share (in dollars per share) | $ 11.67 | $ 11.66 | $ 11.66 | $ 11.67 |
Granted (in dollars per share) | $ 11.67 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Other Commitments [Line Items] | ||
Commitments fixed expiration period | 90 days | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 9,359 | $ 6,877 |
Unfunded commitments under lines of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | 72,409 | 75,372 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 117 | $ 86 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) |
Tier One Leverage, Amount | ||
Leverage capital, actual amount | $ 141,817 | $ 161,774 |
CBLR Framework Requirement, amount | $ 76,718 | $ 77,989 |
Tier One Leverage, Ratio | ||
Leverage capital, actual ratio | 0.1664 | 0.1867 |
CBLR Framework Requirement, ratio | 0.0900 | 0.0900 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Investments available for sale: | ||
Equity securities | $ 1,702 | $ 1,629 |
Fair value | 165,127 | |
Fair value | 156,097 | |
Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 106,756 | |
Fair value | 98,977 | |
U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,292 | |
Fair value | 7,820 | |
U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 3,932 | |
Fair value | 3,702 | |
Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,979 | |
Fair value | 13,970 | |
Corporate bonds | ||
Investments available for sale: | ||
Fair value | 31,168 | |
Fair value | 31,628 | |
Recurring | ||
Investments available for sale: | ||
Equity securities | 1,702 | 1,629 |
Fair value | 157,799 | 166,756 |
Recurring | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 106,756 | |
Fair value | 98,977 | |
Recurring | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,292 | |
Fair value | 7,820 | |
Recurring | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 3,932 | |
Fair value | 3,702 | |
Recurring | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,979 | |
Fair value | 13,970 | |
Recurring | Corporate bonds | ||
Investments available for sale: | ||
Fair value | 31,168 | |
Fair value | 31,628 | |
Recurring | Level 1 | ||
Investments available for sale: | ||
Equity securities | 1,702 | 1,629 |
Fair value | 1,702 | 1,629 |
Recurring | Level 2 | ||
Investments available for sale: | ||
Fair value | 156,097 | 165,127 |
Recurring | Level 2 | Mortgage-backed securities | ||
Investments available for sale: | ||
Fair value | 106,756 | |
Fair value | 98,977 | |
Recurring | Level 2 | U.S. agency collateralized mortgage obligations | ||
Investments available for sale: | ||
Fair value | 8,292 | |
Fair value | 7,820 | |
Recurring | Level 2 | U.S. government agency securities | ||
Investments available for sale: | ||
Fair value | 3,932 | |
Fair value | 3,702 | |
Recurring | Level 2 | Municipal bonds | ||
Investments available for sale: | ||
Fair value | 14,979 | |
Fair value | 13,970 | |
Recurring | Level 2 | Corporate bonds | ||
Investments available for sale: | ||
Fair value | $ 31,168 | |
Fair value | $ 31,628 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Non-Recurring Basis (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Assets at fair value | ||
Reserves on impaired loans individually evaluated | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Carrying value and fair value of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Financial assets: | ||
Loans receivable, net | $ 472,052 | |
Loans receivable, net | $ 477,543 | |
Securities held to maturity | 99,690 | |
Securities held to maturity | 97,544 | |
Financial liabilities: | ||
Certificates of deposit | 165,903 | 159,377 |
Advances from Federal Home Loan Bank | 51,000 | 34,000 |
Level 2 | ||
Financial assets: | ||
Securities held to maturity | 82,313 | |
Securities held to maturity | 76,853 | |
Level 3 | ||
Financial assets: | ||
Loans receivable, net | 439,471 | |
Loans receivable, net | 436,636 | |
Financial liabilities: | ||
Certificates of deposit | 163,421 | 155,426 |
Advances from Federal Home Loan Bank | 51,000 | 34,000 |
Carrying Value | ||
Financial assets: | ||
Loans receivable, net | 472,052 | |
Loans receivable, net | 477,543 | |
Securities held to maturity | 99,690 | |
Securities held to maturity | 97,544 | |
Financial liabilities: | ||
Certificates of deposit | 165,903 | 159,377 |
Advances from Federal Home Loan Bank | 51,000 | 34,000 |
Fair Value | ||
Financial assets: | ||
Loans receivable, net | 439,471 | |
Loans receivable, net | 436,636 | |
Securities held to maturity | 82,313 | |
Securities held to maturity | 76,853 | |
Financial liabilities: | ||
Certificates of deposit | 163,421 | 155,426 |
Advances from Federal Home Loan Bank | $ 51,000 | $ 34,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease right-of-use assets | $ 8,775 | $ 8,931 | |
Operating Lease, Liability [Abstract] | |||
Operating lease liabilities | $ 8,972 | $ 9,107 | |
Weighted average remaining lease term - Operating leases | 16 years 2 months 12 days | 16 years 4 months 24 days | |
Weighted average discount rate - Operating leases | 2.90% | 2.89% | |
Net lease costs | $ 223 | $ 162 |
Leases - Summary of maturities
Leases - Summary of maturities of the Company's lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2024 | $ 814 | |
2025 | 775 | |
2026 | 624 | |
2027 | 640 | |
2028 | 651 | |
Thereafter | 7,873 | |
Total future minimum lease payments | 11,377 | |
Amounts representing interest | (2,405) | |
Present value of net future minimum lease payments | $ 8,972 | $ 9,107 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Events. - USD ($) $ / shares in Units, $ in Millions | Nov. 02, 2023 | Oct. 18, 2023 |
Subsequent Events | ||
Dividends declared (in dollars per share) | $ 0.03 | |
Value of stocks repurchased | $ 64.9 | |
Number of shares repurchased | 5,564,751 | |
Average price per share | $ 11.66 | |
Seventh Stock Repurchase Program | ||
Subsequent Events | ||
Number of Stock repurchase | 1,046,610 | |
Stock repurchase (Percent) | 10% | |
Remaining shares to be repurchased | 869,018 |