Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2022

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	September 30, 2022		June 30, 2022
Real Estate Loans:
Residential	$	1,006,925	$	904,160
Construction		316,930		258,072
Commercial		1,232,331		1,146,673
Consumer loans		100,170		92,996
Commercial loans		482,734		441,598
		3,139,090		2,843,499
Loans in process		(162,101)		(123,656)
Deferred loan fees, net		(380)		(453)
Allowance for credit losses		(37,418)		(33,192)
Total loans	$	2,939,191	$	2,686,198

Loans that the Company acquired from Fortune, PCD loans

(dollars in thousands)	February 25, 2022
PCD Loans:
Purchase price of PCD loans at acquisition	$	15,055
Allowance for credit losses at acquisition		(120)
Fair value of PCD loans at acquisition	$	14,935

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

	At period end and for the three months ended September 30, 2022
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	8,908	$	2,220	$	16,838	$	710	$	4,516	$	33,192
Provision (benefit) charged to expense		3,030		283		1,048		12		(123)		4,250
Losses charged off		(2)		—		—		(35)		—		(37)
Recoveries		1		—		—		6		6		13
Balance, end of period	$	11,937	$	2,503	$	17,886	$	693	$	4,399	$	37,418

	At period end and for the three months ended September 30, 2021
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	11,192	$	2,170	$	14,535	$	916	$	4,409	$	33,222
Provision (benefit) charged to expense		(528)		(125)		348		(72)		(302)		(679)
Losses charged off		(31)		—		—		(13)		—		(44)
Recoveries		1		—		—		42		1		44
Balance, end of period	$	10,634	$	2,045	$	14,883	$	873	$	4,108	$	32,543

Schedule of Allowance for off-balance credit exposure

	At period end and for the three months ended September 30, 2022
	Residential			Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for off-balance sheet credit exposure:
Balance, beginning of period	$	58	$	2,178	$	421	$	61	$	640	$	3,358
Provision (benefit) charged to expense		135		719		107		—		(155)		806
Balance, end of period	$	193	$	2,897	$	528	$	61	$	485	$	4,164

	At period end and for the three months ended September 30, 2021
	Residential			Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for off-balance sheet credit exposure:
Balance, beginning of period	$	37	$	502	$	188	$	218	$	860	$	1,805
Provision (benefit) charged to expense		(3)		1,171		(18)		(160)		(616)		374
Balance, end of period	$	34	$	1,673	$	170	$	58	$	244	$	2,179

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

(dollars in thousands)													Revolving
September 30,	2023		2022		2021		2020		2019		Prior		loans		Total
Residential Real Estate
Pass	$	166,308	$	351,070	$	272,287	$	114,507	$	17,250	$	75,367	$	5,124	$	1,001,913
Watch		209		340		472		1,145		122		28		—		2,316
Special Mention		—		—		—		—		—		—		—		—
Substandard		856		304		428		183		268		657		—		2,696
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	167,373	$	351,714	$	273,187	$	115,835	$	17,640	$	76,052	$	5,124	$	1,006,925
Construction Real Estate
Pass	$	39,956	$	83,638	$	31,023	$	—	$	—	$	—	$	212	$	154,829
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	39,956	$	83,638	$	31,023	$	—	$	—	$	—	$	212	$	154,829
Commercial Real Estate
Pass	$	118,727	$	468,641	$	273,143	$	107,591	$	68,911	$	121,716	$	25,504	$	1,184,233
Watch		6,736		3,616		762		1,803		—		2,029		50		14,996
Special Mention		—		9,263		—		—		—		—		—		9,263
Substandard		827		22,006		384		3		13		91		515		23,839
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	126,290	$	503,526	$	274,289	$	109,397	$	68,924	$	123,836	$	26,069	$	1,232,331
Consumer
Pass	$	11,641	$	24,138	$	9,048	$	3,008	$	1,166	$	1,486	$	49,449	$	99,936
Watch		58		—		69		—		—		—		—		127
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		22		12		—		—		31		42		107
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	11,699	$	24,160	$	9,129	$	3,008	$	1,166	$	1,517	$	49,491	$	100,170
Commercial
Pass	$	38,167	$	103,245	$	80,770	$	14,476	$	9,239	$	9,673	$	221,558	$	477,128
Watch		734		1,347		117		37		6		—		2,310		4,551
Special Mention		—		—		—		—		—		—		—		—
Substandard		159		466		39		—		31		2		358		1,055
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	39,060	$	105,058	$	80,926	$	14,513	$	9,276	$	9,675	$	224,226	$	482,734
Total Loans
Pass	$	374,799	$	1,030,732	$	666,271	$	239,582	$	96,566	$	208,242	$	301,847	$	2,918,039
Watch		7,737		5,303		1,420		2,985		128		2,057		2,360		21,990
Special Mention		—		9,263		—		—		—		—		—		9,263
Substandard		1,842		22,798		863		186		312		781		915		27,697
Doubtful		—		—		—		—		—		—		—		—
Total	$	384,378	$	1,068,096	$	668,554	$	242,753	$	97,006	$	211,080	$	305,122	$	2,976,989

(dollars in thousands)													Revolving
June 30,	2022		2021		2020		2019		2018		Prior		loans		Total
Residential Real Estate
Pass	$	380,502	$	295,260	$	118,464	$	19,383	$	22,143	$	58,545	$	6,074	$	900,371
Watch		44		242		1,083		56		—		30		—		1,455
Special Mention		—		—		—		—		—		—		—		—
Substandard		266		918		87		440		18		605		—		2,334
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	380,812	$	296,420	$	119,634	$	19,879	$	22,161	$	59,180	$	6,074	$	904,160
Construction Real Estate
Pass	$	100,114	$	34,082	$	—	$	—	$	—	$	—	$	220	$	134,416
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	100,114	$	34,082	$	—	$	—	$	—	$	—	$	220	$	134,416
Commercial Real Estate
Pass	$	487,486	$	284,736	$	105,893	$	71,380	$	51,804	$	78,115	$	23,669	$	1,103,083
Watch		4,763		769		1,818		—		668		2,000		548		10,566
Special Mention		9,297		—		—		—		—		—		—		9,297
Substandard		22,086		481		140		13		22		93		65		22,900
Doubtful		827		—		—		—		—		—		—		827
Total Commercial Real Estate	$	524,459	$	285,986	$	107,851	$	71,393	$	52,494	$	80,208	$	24,282	$	1,146,673
Consumer
Pass	$	28,519	$	10,989	$	3,662	$	1,524	$	916	$	676	$	46,521	$	92,807
Watch		21		71		—		—		—		—		—		92
Special Mention		—		—		—		—		—		—		—		—
Substandard		23		6		4		—		10		31		23		97
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	28,563	$	11,066	$	3,666	$	1,524	$	926	$	707	$	46,544	$	92,996
Commercial
Pass	$	111,370	$	93,906	$	20,795	$	10,496	$	3,253	$	7,612	$	190,235	$	437,667
Watch		1,319		194		38		6		—		186		1,206		2,949
Special Mention		—		—		—		—		—		—		—		—
Substandard		295		11		—		186		—		167		323		982
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	112,984	$	94,111	$	20,833	$	10,688	$	3,253	$	7,965	$	191,764	$	441,598
Total Loans
Pass	$	1,107,991	$	718,973	$	248,814	$	102,783	$	78,116	$	144,948	$	266,719	$	2,668,344
Watch		6,147		1,276		2,939		62		668		2,216		1,754		15,062
Special Mention		9,297		—		—		—		—		—		—		9,297
Substandard		22,670		1,416		231		639		50		896		411		26,313
Doubtful		827		—		—		—		—		—		—		827
Total	$	1,146,932	$	721,665	$	251,984	$	103,484	$	78,834	$	148,060	$	268,884	$	2,719,843

Schedule of company's loan portfolio aging analysis

	September 30, 2022
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
(dollars in thousands)
Real Estate Loans:
Residential	$	1,448	$	88	$	1,219	$	2,755	$	1,004,170	$	1,006,925	$	301
Construction		140		—		—		140		154,689		154,829		—
Commercial		1,071		583		84		1,738		1,230,593		1,232,331		—
Consumer loans		439		204		73		716		99,454		100,170		—
Commercial loans		781		102		40		923		481,811		482,734		—
Total loans	$	3,879	$	977	$	1,416	$	6,272	$	2,970,717	$	2,976,989	$	301

	June 30, 2022
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
(dollars in thousands)
Real Estate Loans:
Residential	$	1,402	$	—	$	1,064	$	2,466	$	901,694	$	904,160	$	—
Construction		—		—		—		—		134,416		134,416		—
Commercial		416		615		288		1,319		1,145,354		1,146,673		—
Consumer loans		340		45		57		442		92,554		92,996		—
Commercial loans		274		72		13		359		441,239		441,598		—
Total loans	$	2,432	$	732	$	1,422	$	4,586	$	2,715,257	$	2,719,843	$	—

Schedule of company's collateral dependent loans and related ACL

	September 30, 2022
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Residential real estate loans
1- to 4-family residential loans	$	857	$	185
Total loans	$	857	$	185

	June 30, 2022
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Residential real estate loans
1- to 4-family residential loans	$	864	$	193
Total loans	$	864	$	193

Schedule of Company's nonaccrual loans

(dollars in thousands)	September 30, 2022		June 30, 2022
Residential real estate	$	1,222	$	1,647
Construction real estate		—		—
Commercial real estate		1,901		2,259
Consumer loans		86		73
Commercial loans		389		139
Total loans	$	3,598	$	4,118

Certain loans modified classified as TDRs

	For the three-month periods ended
	September 30, 2022			September 30, 2021
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	—	$	—	1	$	151
Construction real estate	—		—	—		—
Commercial real estate	—		—	—		—
Consumer loans	—		—	—		—
Commercial loans	—		—	—		—
Total	—	$	—	1	$	151

Performing loans classified as TDRs and outstanding , segregated by class

	September 30, 2022			June 30, 2022
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	10	$	3,291	11	$	3,625
Construction real estate	—		—	—		—
Commercial real estate	8		24,943	8		25,132
Consumer loans	—		—	—		—
Commercial loans	7		1,986	8		1,849
Total	25	$	30,220	27	$	30,606