Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Dec. 31, 2022

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	December 31, 2022		June 30, 2022
Real Estate Loans:
Residential	$	1,029,793	$	904,160
Construction		365,398		258,072
Commercial		1,246,447		1,146,673
Consumer loans		103,756		92,996
Commercial loans		460,220		441,598
		3,205,614		2,843,499
Loans in process		(210,250)		(123,656)
Deferred loan fees, net		(345)		(453)
Allowance for credit losses		(37,483)		(33,192)
Total loans	$	2,957,536	$	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 six months ended December 31, 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 charged to expense		3,592		534		213		118		158		4,615
Losses charged off		(2)		—		(245)		(76)		(17)		(340)
Recoveries		1		—		—		9		6		16
Balance, end of period	$	12,499	$	2,754	$	16,806	$	761	$	4,663	$	37,483

	At period end and for the three months ended December 31, 2022
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for loan losses:
Balance, beginning of period	$	11,937	$	2,503	$	17,886	$	693	$	4,399	$	37,418
Provision (benefit) charged to expense		562		251		(835)		106		281		365
Losses charged off		—		—		(245)		(41)		(17)		(303)
Recoveries		—		—		—		3		—		3
Balance, end of period	$	12,499	$	2,754	$	16,806	$	761	$	4,663	$	37,483

	At period end and for the six months ended December 31, 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		(404)		(44)		192		(112)		(311)		(679)
Losses charged off		(32)		—		—		(25)		(11)		(68)
Recoveries		1		—		—		51		2		54
Balance, end of period	$	10,757	$	2,126	$	14,727	$	830	$	4,089	$	32,529

	At period end and for the three months ended December 31, 2021
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	10,634	$	2,045	$	14,883	$	873	$	4,108	$	32,543
Provision (benefit) charged to expense		123		81		(156)		(40)		(8)		—
Losses charged off		—		—		—		(13)		(11)		(24)
Recoveries		—		—		—		10		—		10
Balance, end of period	$	10,757	$	2,126	$	14,727	$	830	$	4,089	$	32,529

Schedule of Allowance for off-balance credit exposure

	At period end and for the six months ended December 31, 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		12		1,451		59		(5)		62		1,579
Balance, end of period	$	70	$	3,629	$	480	$	56	$	702	$	4,937

	At period end and for the three months ended December 31, 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	$	193	$	2,897	$	528	$	61	$	485	$	4,164
Provision (benefit) charged to expense		(123)		732		(48)		(5)		217		773
Balance, end of period	$	70	$	3,629	$	480	$	56	$	702	$	4,937

	At period end and for the six months ended December 31, 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

	At period end and for the three months ended December 31, 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	$	34	$	1,673	$	170	$	58	$	244	$	2,179
Provision (benefit) charged to expense		—		—		—		—		—		—
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
December 31,	2023		2022		2021		2020		2019		Prior		loans		Total
Residential Real Estate
Pass	$	219,153	$	341,034	$	262,113	$	110,057	$	16,329	$	69,239	$	5,602	$	1,023,527
Watch		—		338		467		2,348		120		28		49		3,350
Special Mention		—		—		—		—		—		—		—		—
Substandard		848		329		544		489		268		438		—		2,916
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	220,001	$	341,701	$	263,124	$	112,894	$	16,717	$	69,705	$	5,651	$	1,029,793
Construction Real Estate
Pass	$	69,674	$	65,207	$	17,427	$	—	$	—	$	—	$	2,840	$	155,148
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	69,674	$	65,207	$	17,427	$	—	$	—	$	—	$	2,840	$	155,148
Commercial Real Estate
Pass	$	209,157	$	450,360	$	262,027	$	86,418	$	61,274	$	95,839	$	27,775	$	1,192,850
Watch		6,525		7,309		167		4,378		—		2,014		720		21,113
Special Mention		—		—		—		—		—		—		—		—
Substandard		888		30,977		—		3		12		89		515		32,484
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	216,570	$	488,646	$	262,194	$	90,799	$	61,286	$	97,942	$	29,010	$	1,246,447
Consumer
Pass	$	19,088	$	20,649	$	7,613	$	2,421	$	985	$	1,320	$	51,433	$	103,509
Watch		56		—		66		12		—		—		—		134
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		14		59		9		—		31		—		113
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	19,144	$	20,663	$	7,738	$	2,442	$	985	$	1,351	$	51,433	$	103,756
Commercial
Pass	$	71,947	$	84,200	$	74,375	$	12,712	$	8,560	$	9,020	$	192,625	$	453,439
Watch		688		1,412		115		76		6		—		2,421		4,718
Special Mention		—		—		—		—		—		—		—		—
Substandard		172		1,332		39		—		31		—		489		2,063
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	72,807	$	86,944	$	74,529	$	12,788	$	8,597	$	9,020	$	195,535	$	460,220
Total Loans
Pass	$	589,019	$	961,450	$	623,555	$	211,608	$	87,148	$	175,418	$	280,275	$	2,928,473
Watch		7,269		9,059		815		6,814		126		2,042		3,190		29,315
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,908		32,652		642		501		311		558		1,004		37,576
Doubtful		—		—		—		—		—		—		—		—
Total	$	598,196	$	1,003,161	$	625,012	$	218,923	$	87,585	$	178,018	$	284,469	$	2,995,364

(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

	December 31, 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	$	1,727	$	862	$	868	$	3,457	$	1,026,336	$	1,029,793	$	331
Construction		—		—		—		—		155,148		155,148		—
Commercial		1,868		1,075		198		3,141		1,243,306		1,246,447		—
Consumer loans		693		130		257		1,080		102,676		103,756		—
Commercial loans		189		731		253		1,173		459,047		460,220		—
Total loans	$	4,477	$	2,798	$	1,576	$	8,851	$	2,986,513	$	2,995,364	$	331

	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

	December 31, 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	$	848	$	176
Total loans	$	848	$	176

	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)	December 31, 2022		June 30, 2022
Residential real estate	$	1,771	$	1,647
Construction real estate		—		—
Commercial real estate		1,706		2,259
Consumer loans		257		73
Commercial loans		725		139
Total loans	$	4,459	$	4,118

Certain loans modified classified as TDRs

	For the six-month periods ended
	December 31, 2022			December 31, 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

	December 31, 2022			June 30, 2022
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	10	$	3,337	11	$	3,625
Construction real estate	—		—	—		—
Commercial real estate	8		24,681	8		25,132
Consumer loans	—		—	—		—
Commercial loans	6		2,232	8		1,849
Total	24	$	30,250	27	$	30,606