Loans (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans held for sale as of the dates indicated consist of the following:



	June 30, 2020		June 30, 2019
One-to-four family	$	28,152	$	8,196
SBA	1,240		3,746
HELOCs	47,785		6,233
Total	$	77,177	$	18,175

Loans consist of the following at the dates indicated:



	June 30, 2020			June 30, 2019
Retail consumer loans:
One-to-four family	$	473,693		$	660,591
HELOCs - originated	137,447			139,435
HELOCs - purchased	71,781			116,972
Construction and land/lots	81,859			80,602
Indirect auto finance	132,303			153,448
Consumer	10,259			11,416
Total retail consumer loans	907,342			1,162,464
Commercial loans:
Commercial real estate	1,052,906			927,261
Construction and development	215,934			210,916
Commercial and industrial	154,825			160,471
Equipment finance	229,239			132,058
Municipal leases	127,987			112,016
Paycheck Protection Program	80,697			—
Total commercial loans	1,861,588			1,542,722
Total loans	2,768,930			2,705,186
Deferred loan costs, net	189			4
Total loans, net of deferred loan costs	2,769,119			2,705,190
Allowance for loan and lease losses	(28,072		)	(21,429		)
Net loans	$	2,741,047		$	2,683,761

Financing Receivable Credit Quality Indicators

The Company’s total non-purchased and purchased performing loans by segment, class, and risk grade at the dates indicated follows:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2020
Retail consumer loans:
One-to-four family	$	458,248	$	1,724	$	9,042	$	206	$	—	$	469,220
HELOCs - originated	134,697		902		1,848		—		—		137,447
HELOCs - purchased	71,119		—		662		—		—		71,781
Construction and land/lots	81,112		—		402		—		—		81,514
Indirect auto finance	130,975		—		1,328				—		132,303
Consumer	9,894		4		361		—		—		10,259
Commercial loans:
Commercial real estate	1,028,709		7,580		10,779		—		16		1,047,084
Construction and development	212,370		2,723		250		1		—		215,344
Commercial and industrial	130,202		20,439		2,622		—		—		153,263
Equipment finance	228,288		150		801		—		—		229,239
Municipal leases	127,706		281		—		—		—		127,987
Paycheck Protection Program	80,697		—		—		—		—		80,697
Total loans	$	2,694,017	$	33,803	$	28,095	$	207	$	16	$	2,756,138



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2019
Retail consumer loans:
One-to-four family	$	644,159	$	2,089	$	8,072	$	384	$	19	$	654,723
HELOCs - originated	137,001		766		1,434		—		9		139,210
HELOCs - purchased	116,306		—		666		—		—		116,972
Construction and land/lots	79,995		71		164		—		—		80,230
Indirect auto finance	152,393		13		1,042				—		153,448
Consumer	11,375		1		33		3		4		11,416
Commercial loans:
Commercial real estate	901,214		8,066		10,306		—		—		919,586
Construction and development	207,827		790		1,357		1		—		209,975
Commercial and industrial	157,325		877		600		—		—		158,802
Equipment finance	131,674		—		384		—		—		132,058
Municipal leases	111,721		295		—		—		—		112,016
Total loans	$	2,650,990	$	12,968	$	24,058	$	388	$	32	$	2,688,436

The Company’s total PCI loans by segment, class, and risk grade at the dates indicated follows:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2020
Retail consumer loans:
One-to-four family	$	2,994	$	465	$	1,014	$	—	$	—	$	4,473
Construction and land/lots	108		—		237		—		—		345
Commercial loans:
Commercial real estate	3,181		1,742		899		—		—		5,822
Construction and development	271		—		319		—		—		590
Commercial and industrial	1,556		—		3		—		3		1,562
Total loans	$	8,110	$	2,207	$	2,472	$	—	$	3	$	12,792



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2019
Retail consumer loans:
One-to-four family	$	4,124	$	248	$	1,496	$	—	$	—	$	5,868
HELOCs - originated	225		—		—		—		—		225
Construction and land/lots	142		—		230		—		—		372
Commercial loans:
Commercial real estate	4,503		1,903		1,300		—		—		7,706
Construction and development	453		—		488		—		—		941
Commercial and industrial	1,666		—		—		—		3		1,669
Total loans	$	11,113	$	2,151	$	3,514	$	—	$	3	$	16,781

Past Due Financing Receivables

The Company’s total loans by segment, class, and delinquency status at the dates indicated follows:



	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2020
Retail consumer loans:
One-to-four family	$	1,679	$	3,147	$	4,826	$	468,867	$	473,693
HELOCs - originated	442		310		752		136,695		137,447
HELOCs - purchased	214		47		261		71,520		71,781
Construction and land/lots	—		252		252		81,607		81,859
Indirect auto finance	756		285		1,041		131,262		132,303
Consumer	30		25		55		10,204		10,259
Commercial loans:
Commercial real estate	4,528		2,892		7,420		1,045,486		1,052,906
Construction and development	293		341		634		215,300		215,934
Commercial and industrial	—		91		91		154,734		154,825
Equipment finance	303		498		801		228,438		229,239
Municipal leases	—		—		—		127,987		127,987
Paycheck Protection Program	—		—		—		80,697		80,697
Total loans	$	8,245	$	7,888	$	16,133	$	2,752,797	$	2,768,930



	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2019
Retail consumer loans:
One-to-four family	$	1,615	$	1,389	$	3,004	$	657,587	$	660,591
HELOCs - originated	226		231		457		138,978		139,435
HELOCs - purchased	—		485		485		116,487		116,972
Construction and land/lots	138		6		144		80,458		80,602
Indirect auto finance	459		237		696		152,752		153,448
Consumer	6		8		14		11,402		11,416
Commercial loans:
Commercial real estate	2,279		516		2,795		924,466		927,261
Construction and development	—		1,133		1,133		209,783		210,916
Commercial and industrial	207		99		306		160,165		160,471
Equipment finance	649		384		1,033		131,025		132,058
Municipal leases	—		—		—		112,016		112,016
Total loans	$	5,579	$	4,488	$	10,067	$	2,695,119	$	2,705,186

Schedule of Past Due Loans Still Accruing and Nonaccruing Interest

The Company’s recorded investment in loans, by segment and class that are not accruing interest or are 90 days or more past due and still accruing interest at the dates indicated follows:



	June 30, 2020				June 30, 2019
	Nonaccruing		90 Days + & still accruing		Nonaccruing		90 Days + & still accruing
Retail consumer loans:
One-to-four family	$	3,582	$	—	$	3,223	$	—
HELOCs - originated	531		—		372		—
HELOCs - purchased	662		—		666		—
Construction and land/lots	37		—		6		—
Indirect auto finance	668		—		463		—
Consumer	49		—		21		—
Commercial loans:
Commercial real estate	8,869		—		3,559		—
Construction and development	465		—		1,357		—
Commercial and industrial	259		—		307		—
Equipment finance	801		—		384		—
Total loans	$	15,923	$	—	$	10,358	$	—

Schedule of Troubled Debt Restructurings Performing and Excluded from Nonaccruing Loans

The Company’s loans that were performing under the payment terms of TDRs that were excluded from nonaccruing loans above at the dates indicated follows:



	June 30, 2020		June 30, 2019
Performing TDRs included in impaired loans	$	13,153	$	23,116

Allowance for Credit Losses on Financing Receivables

An analysis of the allowance for loan losses by segment for the periods shown is as follows:



	June 30, 2020
	PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	201		$	6,419		$	14,809		$	21,429
Provision for (recovery of) loan losses	(19		)	(137		)	8,656			8,500
Charge-offs	—			(855		)	(2,961		)	(3,816		)
Recoveries	—			1,479			480			1,959
Balance at end of period	$	182		$	6,906		$	20,984		$	28,072



	June 30, 2019
	PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	483		$	7,527		$	13,050		$	21,060
Provision for (recovery of) loan losses	(282		)	(1,244		)	7,226			5,700
Charge-offs	—			(1,136		)	(6,273		)	(7,409		)
Recoveries	—			1,272			806			2,078
Balance at end of period	$	201		$	6,419		$	14,809		$	21,429



	June 30, 2018
	PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	727		$	8,585		$	11,839		$	21,151
Provision for (recovery of) loan losses	228			(906		)	678			—
Charge-offs	(472		)	(1,142		)	(1,033		)	(2,647		)
Recoveries	—			990			1,566			2,556
Balance at end of period	$	483		$	7,527		$	13,050		$	21,060

Schedule of Ending Balances of Loans and the Related Allowance by Segment and Class

The Company’s ending balances of loans and the related allowance, by segment and class, at the dates indicated follows:



	Allowance for Loan Losses								Total Loans Receivable
	PCI		Loans individually evaluated for impairment		Loans Collectively Evaluated		Total		PCI		Loans individually evaluated for impairment		Loans Collectively Evaluated		Total
June 30, 2020
Retail consumer loans:
One-to-four family	$	17	$	52	$	2,400	$	2,469	$	4,473	$	4,304	$	464,916	$	473,693
HELOCs - originated	—		—		1,344		1,344		—		—		137,447		137,447
HELOCs - purchased	—		—		430		430		—		—		71,781		71,781
Construction and land/lots	33		—		1,409		1,442		345		296		81,218		81,859
Indirect auto finance	—		—		1,136		1,136		—		10		132,293		132,303
Consumer	—		—		135		135		—		—		10,259		10,259
Commercial loans:
Commercial real estate	113		961		10,731		11,805		5,822		7,924		1,039,160		1,052,906
Construction and development	4		5		3,599		3,608		590		299		215,045		215,934
Commercial and industrial	15		31		2,153		2,199		1,562		852		152,411		154,825
Equipment finance	—		209		2,598		2,807		—		801		228,438		229,239
Municipal leases	—		—		697		697		—		—		127,987		127,987
Paycheck Protection Program	—		—		—		—		—		—		80,697		80,697
Total	$	182	$	1,258	$	26,632	$	28,072	$	12,792	$	14,486	$	2,741,652	$	2,768,930
June 30, 2019
Retail consumer loans:
One-to-four family	$	62	$	74	$	2,375	$	2,511	$	5,868	$	5,318	$	649,405	$	660,591
HELOCs - originated	—		7		1,023		1,030		225		7		139,203		139,435
HELOCs - purchased	—		—		518		518		—		—		116,972		116,972
Construction and land/lots	—		—		1,265		1,265		372		323		79,907		80,602
Indirect auto finance	—		—		927		927		—		—		153,448		153,448
Consumer	—		4		226		230		—		4		11,412		11,416
Commercial loans:
Commercial real estate	118		28		7,890		8,036		7,706		8,692		910,863		927,261
Construction and development	4		5		3,187		3,196		941		1,397		208,578		210,916
Commercial and industrial	17		2		1,957		1,976		1,669		2		158,800		160,471
Equipment finance	—		—		1,305		1,305		—		—		132,058		132,058
Municipal leases	—		—		435		435		—		—		112,016		112,016
Total	$	201	$	120	$	21,108	$	21,429	$	16,781	$	15,743	$	2,672,662	$	2,705,186

Schedule of Impaired Loans and Related Allowance by Segment and Class

The Company’s impaired loans and the related allowance, by segment and class, excluding PCI loans that were not individually evaluated for impairment, at the dates indicated follows:



	Total Impaired Loans
	Unpaid Principal Balance		Recorded Investment						Related Recorded Allowance
	Unpaid Principal Balance		With a Recorded Allowance		With No Recorded Allowance		Total		Related Recorded Allowance
June 30, 2020
Retail consumer loans:
One-to-four family	$	16,560	$	10,805	$	3,374	$	14,179	$	412
HELOCs - originated	2,087		1,585		53		1,638		43
HELOCs - purchased	662		662		—		662		3
Construction and land/lots	1,585		749		296		1,045		13
Indirect auto finance	1,075		486		241		727		5
Consumer	297		38		27		65		2
Commercial loans:
Commercial real estate	10,401		8,062		1,068		9,130		976
Construction and development	1,785		818		80		898		11
Commercial and industrial	9,782		1,058		26		1,084		34
Equipment finance	2,631		303		498		801		209
Total impaired loans	$	46,865	$	24,566	$	5,663	$	30,229	$	1,708
June 30, 2019
Retail consumer loans:
One-to-four family	$	18,302	$	12,461	$	3,152	$	15,613	$	472
HELOCs - originated	2,410		564		1,219		1,783		46
HELOCs - purchased	666		—		666		666		—
Construction and land/lots	1,917		957		323		1,280		26
Indirect auto finance	601		353		137		490		2
Consumer	379		7		41		48		6
Commercial loans:
Commercial real estate	10,127		6,434		3,404		9,838		36
Construction and development	2,574		940		791		1,731		7
Commercial and industrial	10,173		354		768		1,122		6
Equipment finance	462		—		384		384		—
Total impaired loans	$	47,611	$	22,070	$	10,885	$	32,955	$	601

Schedule of Average Recorded Investment in Loans, Unpaid Principal Balance and Interest Income Recognized

The Company’s average recorded investment and interest income recognized on impaired loans as of the dates indicated follows:



	Year Ended
	June 30, 2020				June 30, 2019				June 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Retail consumer loans:
One-to-four family	$	14,796	$	687	$	17,319	$	950	$	23,257	$	1,170
HELOCs - originated	1,698		99		1,005		63		2,304		104
HELOCs - purchased	533		41		320		13		189		15
Construction and land/lots	1,149		83		1,441		94		1,575		109
Indirect auto finance	547		53		373		29		256		23
Consumer	194		7		1,328		67		43		17
Commercial loans:
Commercial real estate	8,661		336		5,026		466		6,496		209
Construction and development	1,218		54		1,779		65		2,703		56
Commercial and industrial	868		236		315		249		1,205		60
Equipment finance	652		29		192		37		—		—
Municipal leases	—		—		—		—		75		—
Total loans	$	30,316	$	1,625	$	29,098	$	2,033	$	38,103	$	1,763

Impaired Financing Receivable

A summary of changes in the accretable yield for PCI loans for the periods indicated follows:



	Year Ended June 30, 2020			Year Ended June 30, 2019
Accretable yield, beginning of period	$	5,259		$	5,734
Reclass from nonaccretable yield ⁽¹⁾	458			576
Other changes, net ⁽²⁾	(316		)	1,018
Interest income	(1,496		)	(2,069		)
Accretable yield, end of period	$	3,905		$	5,259

______________________________


(1)	Represents changes attributable to expected losses assumptions.


(2)	Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, and changes in interest rates.

Impaired Financing Receivables

The following table presents carrying values and unpaid principal balances for PCI loans at the dates indicated below:



	June 30, 2020		June 30, 2019
Carrying value of PCI loans	$	12,792	$	16,750
Unpaid principal balance of PCI loans	$	15,581	$	20,141

Troubled Debt Restructurings on Financing Receivables

The following table presents a breakdown of the types of concessions made on TDRs by loan class for the periods indicated below:



	Year Ended June 30, 2020					Year Ended June 30, 2019					Year Ended June 30, 2018
	Number of Loans	Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment		Number of Loans	Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment		Number of Loans	Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment
Below market interest rate:
Retail consumer:
One-to-four family	—	$	—	$	—	1	$	85	$	84	—	$	—	$	—
Commercial:
Commercial real estate	1	$	88	$	86	—	$	—	—		—	$	—	—
Total	1	$	88	$	86	1	$	85	$	84	—	$	—	$	—
Extended payment terms:
Retail consumer:
One-to-four family	2	$	70	$	61	1	$	34	$	34	4	$	514	$	502
Construction and land/lots	—	—		—		—	—		—		1	36		32
Consumer	—	—		—		2	34		33		—	—		—
Commercial:
Commercial and industrial	1	826		826		—	—		$	—	—	—		$	—
Total	3	$	896	$	887	3	$	68	$	67	5	$	550	$	534
Other TDRs:
Retail consumer:
One-to-four family	5	$	511	$	502	18	$	1,452	$	1,433	25	$	3,646	$	3,747
HELOCs - originated	1	27		27		—	—		—		—	—		—
Construction and land/lots	—	—		—		1	29		28		—	—		—
Indirect auto finance	3	63		49		1	33		26		—	—		—
Consumer	—	—		—		1	2		2		1	2		2
Commercial:
Commercial real estate	1	30		21		3	5,440		5,427		—	—		—
Construction and development	1	182		79		1	182		182		—	—		—
Total	11	$	813	$	678	25	$	7,138	$	7,098	26	$	3,648	$	3,749
Total	15	$	1,797	$	1,651	29	$	7,291	$	7,249	31	$	4,198	$	4,283

Schedule of Trouble Debt Restructurings With Payment Default

The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default during the periods indicated below:



	Year Ended June 30, 2020			Year Ended June 30, 2019			Year Ended June 30, 2018
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
One-to-four family	—	$	—	1	$	72	5	$	277
Consumer	—	—		1	2		—	—
Commercial:
Construction and development	1	79		—	—		—	—
Total Other TDRs	1	$	79	2	$	74	5	$	277
Total	1	$	79	2	$	74	5	$	277

Financing Receivable, Payment Deferral

We have received numerous requests from borrowers for some type of payment relief. The breakout by loan type is as follows:



Payment Deferrals by Loan Types⁽¹⁾
	March 31, 2020				June 30, 2020				August 31, 2020
	$ Deferral		Percent of Total Loan Portfolio		$ Deferral		Percent of Total Loan Portfolio		$ Deferral		Percent of Total Loan Portfolio
Lodging	26,815		1.0	%	108,171		4.0	%	64,686		2.4	%
Other commercial real estate, construction and development, and commercial and industrial	116,198		4.4		367,443		13.7		43,056		1.6
Equipment finance	19,443		0.7		33,693		1.3		4,547		0.2
One-to-four family	10,802		0.4		36,821		1.4		2,360		0.1
Other consumer loans	3,546		0.1		5,203		0.2		589		—
Total	$	176,804	6.6	%	$	551,331	20.5	%	$	115,238	4.3	%

(1) Modified loans are not included in classified assets or nonperforming asset.