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Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Jun. 30, 2021


(dollars in thousands)	June 30, 2021		June 30, 2020
Real Estate Loans:
Residential	$	721,216	$	627,357
Construction		208,824		185,924
Commercial		889,793		887,419
Consumer loans		77,674		80,767
Commercial loans		414,124		468,448
		2,311,631		2,249,915
Loans in process		(74,540)		(78,452)
Deferred loan fees, net		(3,625)		(4,395)
Allowance for loan losses		(33,222)		(25,139)
Total loans	$	2,200,244	$	2,141,929

Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods


(dollars in thousands)	Residential			Construction		Commercial
June 30, 2021	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	4,875	$	2,010	$	12,132	$	1,182	$	4,940	$	25,139
Impact of CECL adoption		3,521		(121)		3,856		1,065		1,012		9,333
Provision (benefit) charged to expense		2,973		281		(1,364)		(1,232)		(1,260)		(602)
Losses charged off		(180)		—		(90)		(146)		(318)		(734)
Recoveries		3		—		1		47		35		86
Balance, end of period	$	11,192	$	2,170	$	14,535	$	916	$	4,409	$	33,222


(dollars in thousands)	Residential		Construction		Commercial
June 30, 2020	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for loan losses:
Balance, beginning of period	$	3,706	$	1,365	$	9,399	$	1,046	$	4,387	$	19,903
Provision charged to expense		1,529		645		2,730		300		798		6,002
Losses charged off		(379)		—		(12)		(189)		(273)		(853)
Recoveries		19		—		15		25		28		87
Balance, end of period	$	4,875	$	2,010	$	12,132	$	1,182	$	4,940	$	25,139
Ending Balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending Balance: collectively evaluated for impairment	$	4,875	$	2,010	$	12,132	$	1,182	$	4,940	$	25,139
Ending Balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—	$	—	$	—	$	—

Loans:
Ending Balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending Balance: collectively evaluated for impairment	$	626,085	$	106,194	$	872,716	$	80,767	$	463,902	$	2,149,664
Ending Balance: loans acquired with deteriorated credit quality	$	1,272	$	1,278	$	14,703	$	—	$	4,546	$	21,799


(dollars in thousands)	Residential		Construction		Commercial
June 30, 2019	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for loan losses:
Balance, beginning of period	$	3,226	$	1,097	$	8,793	$	902	$	4,196	$	18,214
Provision charged to expense		487		268		765		231		281		2,032
Losses charged off		(30)		—		(164)		(103)		(92)		(389)
Recoveries		23		—		5		16		2		46
Balance, end of period	$	3,706	$	1,365	$	9,399	$	1,046	$	4,387	$	19,903

Schedule of Allowance for off-balance credit exposure


(dollars in thousands)	Residential			Construction		Commercial
June 30, 2021	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for off-balance sheet credit exposure:
Balance, beginning of period	$	19	$	769	$	172	$	153	$	846	$	1,959
Impact of CECL adoption		35		(167)		95		197		108		268
Provision (benefit) charged to expense		(17)		(100)		(79)		(132)		(94)		(422)
Balance, end of period	$	37	$	502	$	188	$	218	$	860	$	1,805

Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity


(dollars in thousands)													Revolving
June 30,	2021		2020		2019		2018		2017		Prior		loans		Total
Residential Real Estate
Pass	$	361,876	$	175,772	$	43,576	$	32,929	$	23,267	$	71,592	$	5,557	$	714,569
Watch		328		70		410		—		89		809		—		1,706
Special Mention		—		—		—		—		—		—		—		—
Substandard		4,288		89		—		92		—		472		—		4,941
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	366,492	$	175,931	$	43,986	$	33,021	$	23,356	$	72,873	$	5,557	$	721,216

Construction Real Estate
Pass	$	88,371	$	45,866	$	—	$	—	$	—	$	—	$	—	$	134,237
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		47		—		—		—		—		—		—		47
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	88,418	$	45,866	$	—	$	—	$	—	$	—	$	—	$	134,284

Commercial Real Estate
Pass	$	351,732	$	147,670	$	104,746	$	75,967	$	70,927	$	61,194	$	23,699	$	835,935
Watch		4,456		2,365		9,502		1,377		726		10		810		19,246
Special Mention		—		8,806		—		1,793		12,826		—		300		23,725
Substandard		8,191		1,137		505		31		5		99		69		10,037
Doubtful		—		—		850		—		—		—		—		850
Total Commercial Real Estate	$	364,379	$	159,978	$	115,603	$	79,168	$	84,484	$	61,303	$	24,878	$	889,793

Consumer
Pass	$	23,858	$	8,626	$	3,597	$	1,126	$	534	$	650	$	39,071	$	77,462
Watch		80		—		—		—		—		—		48		128
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		30		30		—		24		84
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	23,938	$	8,626	$	3,597	$	1,156	$	564	$	650	$	39,143	$	77,674

Commercial
Pass	$	189,280	$	42,549	$	17,960	$	5,591	$	7,265	$	9,120	$	136,603	$	408,368
Watch		1,551		262		1,323		22		—		—		463		3,621
Special Mention		—		—		—		—		—		—		—		—
Substandard		594		81		305		—		176		—		979		2,135
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	191,425	$	42,892	$	19,588	$	5,613	$	7,441	$	9,120	$	138,045	$	414,124

Total Loans
Pass	$	1,015,117	$	420,483	$	169,879	$	115,613	$	101,993	$	142,556	$	204,930	$	2,170,571
Watch		6,415		2,697		11,235		1,399		815		819		1,321		24,701
Special Mention		—		8,806		—		1,793		12,826		—		300		23,725
Substandard		13,120		1,307		810		153		211		571		1,072		17,244
Doubtful		—		—		850		—		—		—		—		850
Total	$	1,034,652	$	433,293	$	182,774	$	118,958	$	115,845	$	143,946	$	207,623	$	2,237,091

Schedule of company's loan portfolio aging analysis


					Greater Than								Greater Than 90
(dollars in thousands)	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
June 30, 2021	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
Real Estate Loans:
Residential	$	312	$	364	$	613	$	1,289	$	719,927	$	721,216	$	—
Construction		—		—		30		30		134,254		134,284		—
Commercial		363		—		374		737		889,056		889,793		—
Consumer loans		195		66		84		345		77,329		77,674		—
Commercial loans		368		939		110		1,417		412,707		414,124		—
Total loans	$	1,238	$	1,369	$	1,211	$	3,818	$	2,233,273	$	2,237,091	$	—


					Greater Than								Greater Than 90
(dollars in thousands)	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
June 30, 2020	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
Real Estate Loans:
Residential	$	772	$	378	$	654	$	1,804	$	625,553	$	627,357	$	—
Construction		—		—		—		—		107,472		107,472		—
Commercial		641		327		1,073		2,041		885,378		887,419		—
Consumer loans		180		53		193		426		80,341		80,767		—
Commercial loans		93		1,219		810		2,122		466,326		468,448		—
Total loans	$	1,686	$	1,977	$	2,730	$	6,393	$	2,165,070	$	2,171,463	$	—

Schedule of company's collateral dependent loans and related ACL


	Amortized cost basis of
	loans determined to be		Related allowance
	collateral dependent		for credit losses
(dollars in thousands)
Residential real estate loans
1- to 4-family residential loans	$	895	$	223
Total loans	$	895	$	223

Schedule of impaired loans


(dollars in thousands)	Recorded		Unpaid Principal		Specific
June 30, 2020	Balance		Balance		Allowance
Loans without a specific valuation allowance:
Residential real estate	$	3,811	$	4,047	$	—
Construction real estate		1,278		1,312		—
Commercial real estate		19,271		23,676		—
Consumer loans		—		—		—
Commercial loans		5,040		6,065		—
Loans with a specific valuation allowance:
Residential real estate	$	—	$	—	$	—
Construction real estate		—		—		—
Commercial real estate		—		—		—
Consumer loans		—		—		—
Commercial loans		—		—		—
Total:
Residential real estate	$	3,811	$	4,047	$	—
Construction real estate	$	1,278	$	1,312	$	—
Commercial real estate	$	19,271	$	23,676	$	—
Consumer loans	$	—	$	—	$	—
Commercial loans	$	5,040	$	6,065	$	—

Schedule of interest income recognized on impaired loans


	Fiscal 2020
	Average
	Investment in		Interest Income
(dollars in thousands)	Impaired Loans		Recognized
Residential Real Estate	$	1,440	$	89
Construction Real Estate		1,295		134
Commercial Real Estate		16,175		1,276
Consumer Loans		—		—
Commercial Loans		5,597		419
Total Loans	$	24,507	$	1,918


	Fiscal 2019
	Average
	Investment in		Interest Income
(dollars in thousands)	Impaired Loans		Recognized
Residential Real Estate	$	2,081	$	112
Construction Real Estate		1,297		246
Commercial Real Estate		14,547		1,570
Consumer Loans		—		—
Commercial Loans		4,212		926
Total Loans	$	22,137	$	2,854

Schedule of Company's nonaccrual loans


	June 30,
(dollars in thousands)	2021		2020
Residential real estate	$	3,235	$	4,010
Construction real estate		30		—
Commercial real estate		1,914		3,106
Consumer loans		100		196
Commercial loans		589		1,345
Total loans	$	5,868	$	8,657

Schedule of Performing loans classified as troubled debt restructuring loans


	June 30, 2021			June 30, 2020
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	1	$	895	3	$	791
Construction real estate	—		—	—		—
Commercial real estate	4		949	10		4,544
Consumer loans	—		—	—		—
Commercial loans	7		1,397	7		3,245
Total	12	$	3,241	20	$	8,580

Schedule of loans to executive officers, directors, significant shareholders and their affiliates held by the Company


	June 30,
(dollars in thousands)	2021		2020
Beginning Balance	$	8,603	$	9,132
Additions		8,474		5,179
Repayments		(6,453)		(5,708)
Ending Balance	$	10,624	$	8,603

Purchase Credit Impaired

Schedule of credit risk profile of the company's loan portfolio


(dollars in thousands)	Residential		Construction		Commercial
June 30, 2020	Real Estate		Real Estate		Real Estate		Consumer		Commercial
Pass	$	620,004	$	103,105	$	829,276	$	80,517	$	457,385
Watch		1,900		4,367		45,262		45		4,708
Special Mention		—		—		403		25		—
Substandard		5,453		—		11,590		180		6,355
Doubtful		—		—		888		—		—
Total	$	627,357	$	107,472	$	887,419	$	80,767	$	468,448