Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Dec. 31, 2023

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	December 31, 2023		June 30, 2023
Real Estate Loans:
Residential	$	1,160,264	$	1,133,417
Construction		508,710		550,052
Commercial		1,558,600		1,562,379
Consumer loans		139,163		133,515
Commercial loans		629,899		599,030
		3,996,636		3,978,393
Loans in process		(264,483)		(359,196)
Deferred loan fees, net		(263)		(299)
Allowance for credit losses		(50,084)		(47,820)
Total loans	$	3,681,806	$	3,571,078

Schedule of PCD loans

(dollars in thousands)	January 20, 2023
PCD Loans – Citizens
Purchase price of PCD loans at acquisition	$	27,481
Allowance for credit losses at acquisition		(1,121)
Fair value of PCD loans at acquisition	$	26,360

(dollars in thousands)	February 25, 2022
PCD Loans – Fortune
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, 2023
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	15,641	$	2,664	$	22,838	$	909	$	5,768	$	47,820
Provision (benefit) charged to expense		(413)		489		2,817		132		467		3,492
Losses charged off		(132)		(289)		(496)		(215)		(184)		(1,316)
Recoveries		—		—		18		64		6		88
Balance, end of period	$	15,096	$	2,864	$	25,177	$	890	$	6,057	$	50,084

	At period end and for the three months ended December 31, 2023
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	14,846	$	2,856	$	25,022	$	855	$	5,543	$	49,122
Provision charged to expense		250		186		651		143		692		1,922
Losses charged off		—		(178)		(496)		(126)		(180)		(980)
Recoveries		—		—		—		18		2		20
Balance, end of period	$	15,096	$	2,864	$	25,177	$	890	$	6,057	$	50,084

	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 credit 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

Schedule of allowance for off-balance credit exposure

	At period end and for the six months ended December 31, 2023
	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	$	71	$	4,809	$	475	$	73	$	860	$	6,288
Provision (benefit) charged to expense		6		(1,726)		(6)		(5)		39		(1,692)
Balance, end of period	$	77	$	3,083	$	469	$	68	$	899	$	4,596

	At period end and for the three months ended December 31, 2023
	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	$	78	$	4,193	$	465	$	71	$	811	$	5,618
Provision (benefit) charged to expense		(1)		(1,110)		4		(3)		88		(1,022)
Balance, end of period	$	77	$	3,083	$	469	$	68	$	899	$	4,596

	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

Schedule of Gross charge-offs by loan class and year of origination

													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		loans		Total
Real Estate Loans:
Residential	$	—	$	—	$	—	$	97	$	—	$	35	$	—	$	132
Construction		—		100		78		111		—		—		—		289
Commercial		—		496		—		—		—		—		—		496
Consumer loans		6		98		85		20		—		6		—		215
Commercial loans		—		4		180		—		—		—		—		184
Total current-period gross charge-offs	$	6	$	698	$	343	$	228	$	—	$	41	$	—	$	1,316

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

													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		loans		Total
Residential Real Estate
Pass	$	107,789	$	308,760	$	299,089	$	234,225	$	90,643	$	104,976	$	11,005	$	1,156,487
Watch		715		249		416		562		104		217		—		2,263
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		814		—		198		—		502		—		1,514
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	108,504	$	309,823	$	299,505	$	234,985	$	90,747	$	105,695	$	11,005	$	1,160,264
Construction Real Estate
Pass	$	42,047	$	155,663	$	32,518	$	13,059	$	—	$	—	$	940	$	244,227
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	42,047	$	155,663	$	32,518	$	13,059	$	—	$	—	$	940	$	244,227
Commercial Real Estate
Pass	$	107,362	$	403,559	$	467,990	$	264,588	$	82,406	$	119,031	$	41,984	$	1,486,920
Watch		4,865		22,004		3,117		158		4,126		78		20		34,368
Special Mention		—		2,920		—		—		—		—		—		2,920
Substandard		4,341		2,153		25,899		—		1		1,070		928		34,392
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	116,568	$	430,636	$	497,006	$	264,746	$	86,533	$	120,179	$	42,932	$	1,558,600
Consumer
Pass	$	18,143	$	25,520	$	10,244	$	3,986	$	1,184	$	1,528	$	78,450	$	139,055
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5		25		—		21		7		50		108
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	18,143	$	25,525	$	10,269	$	3,986	$	1,205	$	1,535	$	78,500	$	139,163
Commercial
Pass	$	114,849	$	101,038	$	66,276	$	61,085	$	8,415	$	14,115	$	248,115	$	613,893
Watch		250		4,426		113		286		72		19		7,527		12,693
Special Mention		—		—		—		—		—		—		—		—
Substandard		482		503		1,006		71		201		787		263		3,313
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	115,581	$	105,967	$	67,395	$	61,442	$	8,688	$	14,921	$	255,905	$	629,899
Total Loans
Pass	$	390,190	$	994,540	$	876,117	$	576,943	$	182,648	$	239,650	$	380,494	$	3,640,582
Watch		5,830		26,679		3,646		1,006		4,302		314		7,547		49,324
Special Mention		—		2,920		—		—		—		—		—		2,920
Substandard		4,823		3,475		26,930		269		223		2,366		1,241		39,327
Doubtful		—		—		—		—		—		—		—		—
Total	$	400,843	$	1,027,614	$	906,693	$	578,218	$	187,173	$	242,330	$	389,282	$	3,732,153

													Revolving
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		loans		Total
Residential Real Estate
Pass	$	328,142	$	312,853	$	252,077	$	103,735	$	25,651	$	96,035	$	9,100	$	1,127,593
Watch		1,214		1,136		616		108		198		27		5		3,304
Special Mention		—		—		—		—		—		—		—		—
Substandard		837		316		510		—		—		857		—		2,520
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	330,193	$	314,305	$	253,203	$	103,843	$	25,849	$	96,919	$	9,105	$	1,133,417
Construction Real Estate
Pass	$	124,479	$	50,011	$	10,946	$	3,190	$	—	$	—	$	941	$	189,567
Watch		280		—		—		—		—		—		—		280
Special Mention		—		—		—		—		—		—		—		—
Substandard		330		679		—		—		—		—		—		1,009
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	125,089	$	50,690	$	10,946	$	3,190	$	—	$	—	$	941	$	190,856
Commercial Real Estate
Pass	$	462,643	$	474,140	$	279,921	$	89,272	$	74,653	$	83,871	$	37,443	$	1,501,943
Watch		8,122		5,382		163		3,879		—		117		—		17,663
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		7,690		26,465		2,425		288		473		1,735		757		39,833
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	481,395	$	505,987	$	282,509	$	93,439	$	75,126	$	85,723	$	38,200	$	1,562,379
Consumer
Pass	$	36,003	$	14,530	$	5,446	$	1,692	$	717	$	1,379	$	73,225	$	132,992
Watch		71		—		62		—		—		—		—		133
Special Mention		—		—		—		—		—		—		—		—
Substandard		33		2		1		—		—		41		313		390
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	36,107	$	14,532	$	5,509	$	1,692	$	717	$	1,420	$	73,538	$	133,515
Commercial
Pass	$	138,500	$	83,011	$	71,054	$	10,723	$	6,239	$	10,657	$	272,710	$	592,894
Watch		698		211		91		3		—		—		2,549		3,552
Special Mention		—		—		—		—		—		—		—		—
Substandard		860		329		128		184		175		574		334		2,584
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	140,058	$	83,551	$	71,273	$	10,910	$	6,414	$	11,231	$	275,593	$	599,030
Total Loans
Pass	$	1,089,767	$	934,545	$	619,444	$	208,612	$	107,260	$	191,942	$	393,419	$	3,544,989
Watch		10,385		6,729		932		3,990		198		144		2,554		24,932
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		9,750		27,791		3,064		472		648		3,207		1,404		46,336
Doubtful		—		—		—		—		—		—		—		—
Total	$	1,112,842	$	969,065	$	623,440	$	213,074	$	108,106	$	195,293	$	397,377	$	3,619,197

Schedule of company's loan portfolio aging analysis

	December 31, 2023
					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	$	1,970	$	348	$	617	$	2,935	$	1,157,329	$	1,160,264	$	—
Construction		240		—		—		240		243,987		244,227		—
Commercial		2,208		275		36		2,519		1,556,081		1,558,600		—
Consumer loans		857		171		173		1,201		137,962		139,163		—
Commercial loans		599		364		449		1,412		628,487		629,899		—
Total loans	$	5,874	$	1,158	$	1,275	$	8,307	$	3,723,846	$	3,732,153	$	—

	June 30, 2023
					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	$	1,984	$	401	$	483	$	2,868	$	1,130,549	$	1,133,417	$	109
Construction		443		311		698		1,452		189,404		190,856		—
Commercial		616		1,854		1,580		4,050		1,558,329		1,562,379		—
Consumer loans		456		124		212		792		132,723		133,515		—
Commercial loans		713		77		789		1,579		597,451		599,030		—
Total loans	$	4,212	$	2,767	$	3,762	$	10,741	$	3,608,456	$	3,619,197	$	109

Schedule of company's collateral dependent loans and related ACL

	December 31, 2023
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Real estate loans
1- to 4-family residential real estate	$	814	$	133
Commercial real estate		25,142		7,250
Commercial		868		370
Total loans	$	26,824	$	7,753

The increase in commercial real estate collateral dependent loans is due primarily to two metropolitan area hotel relationships being individually analyzed as of December 31, 2023; the Company was previously evaluating its non-owner occupied commercial real estate pool for qualitative adjustments related to similar loans.

	June 30, 2023
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Real estate loans
1- to 4-family residential	$	837	$	156
Construction real estate		642		79
Commercial real estate		4,897		666
Total loans	$	6,376	$	901

Schedule of company's nonaccrual loans

(dollars in thousands)	December 31, 2023		June 30, 2023
Residential real estate	$	809	$	934
Construction real estate		—		698
Commercial real estate		3,274		4,564
Consumer loans		205		256
Commercial loans		1,634		1,091
Total loans	$	5,922	$	7,543

Schedule of performing loans classified as TDRs and outstanding, segregated by class

	For the three-month periods ended
	December 31, 2023
	Number of	Recorded
(dollars in thousands)	modifications	Investment
Residential real estate	—	$	—
Construction real estate	—		—
Commercial real estate	—		—
Consumer loans	—		—
Commercial loans	2		867
Total	2	$	867

	For the six-month periods ended
	December 31, 2023
	Number of	Recorded
(dollars in thousands)	modifications	Investment
Residential real estate	—	$	—
Construction real estate	—		—
Commercial real estate	—		—
Consumer loans	—		—
Commercial loans	2		867
Total	2	$	867

	June 30, 2023
	Number of	Recorded
(dollars in thousands)	modifications	Investment
Residential real estate	10	$	3,438
Construction real estate	—		—
Commercial real estate	6		24,017
Consumer loans	—		—
Commercial loans	6		2,310
Total	22	$	29,765

Schedule of performing loans classified as modifications to borrowers experiencing financial difficulty

	December 31, 2023
					Term		Interest		Total Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
Residential real estate	$	—	$	—	$	814	$	—	0.02	%
Construction real estate		—		—		—		—	—	%
Commercial real estate		—		—		23,010		—	0.62	%
Consumer loans		—		—		—		—	—	%
Commercial loans		—		239		174		—	0.01	%
Total	$	—	$	239	$	23,998	$	—	0.65	%