Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Jun. 30, 2024

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	June 30, 2024		June 30, 2023
Real Estate Loans:
Residential	$	1,185,692	$	1,133,417
Construction		438,134		550,052
Commercial		1,622,365		1,562,379
Consumer loans		144,598		133,515
Commercial loans		668,292		599,030
		4,059,081		3,978,393
Unfunded commitments on construction loans		(209,046)		(359,196)
Deferred loan fees, net		(232)		(299)
Allowance for credit losses		(52,516)		(47,820)
Net loans	$	3,797,287	$	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

(dollars in thousands)	Residential			Construction		Commercial
June 30, 2024	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		713		(174)		4,100		482		1,504		6,625
Losses charged off		(515)		(289)		(496)		(360)		(395)		(2,055)
Recoveries		—		—		18		71		37		126
Balance, end of period	$	15,839	$	2,201	$	26,460	$	1,102	$	6,914	$	52,516

(dollars in thousands)	Residential		Construction		Commercial
June 30, 2023	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
Initial ACL on PCD loans		96		12		628		164		221		1,121
Provision (benefit) charged to expense		6,655		432		5,605		334		1,105		14,131
Losses charged off		(19)		—		(245)		(327)		(82)		(673)
Recoveries		1		—		12		28		8		49
Balance, end of period	$	15,641	$	2,664	$	22,838	$	909	$	5,768	$	47,820

(dollars in thousands)	Residential		Construction		Commercial
June 30, 2022	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
Impact of CECL adoption		23		4		52		—		41		120
Provision (benefit) charged to expense		(2,238)		46		2,251		(205)		80		(66)
Losses charged off		(72)		—		—		(65)		(16)		(153)
Recoveries		3		—		—		64		2		69
Balance, end of period	$	8,908	$	2,220	$	16,838	$	710	$	4,516	$	33,192

Schedule of allowance for off-balance credit exposure

(dollars in thousands)	Residential			Construction		Commercial
June 30, 2024	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		16		(2,917)		(105)		3		(22)		(3,025)
Balance, end of period	$	87	$	1,892	$	370	$	76	$	838	$	3,263

(dollars in thousands)	Residential			Construction		Commercial
June 30, 2023	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		13		2,631		54		12		220		2,930
Balance, end of period	$	71	$	4,809	$	475	$	73	$	860	$	6,288

(dollars in thousands)	Residential			Construction		Commercial
June 30, 2022	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		21		1,676		233		(157)		(220)		1,553
Balance, end of period	$	58	$	2,178	$	421	$	61	$	640	$	3,358

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	$	191,083	$	308,691	$	275,456	$	217,361	$	86,265	$	93,234	$	10,706	$	1,182,796
Watch		814		247		87		396		98		23		—		1,665
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		797		—		183		—		251		—		1,231
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	191,897	$	309,735	$	275,543	$	217,940	$	86,363	$	93,508	$	10,706	$	1,185,692
Construction Real Estate
Pass	$	76,007	$	131,981	$	18,130	$	—	$	—	$	—	$	—	$	226,118
Watch		64		2,906		—		—		—		—		—		2,970
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	76,071	$	134,887	$	18,130	$	—	$	—	$	—	$	—	$	229,088
Commercial Real Estate
Pass	$	251,759	$	389,523	$	449,298	$	243,066	$	73,189	$	91,232	$	47,322	$	1,545,389
Watch		6,762		22,825		1,715		1,667		4,702		2,585		519		40,775
Special Mention		—		—		—		—		—		—		—		—
Substandard		6,660		360		27,882		283		—		428		588		36,201
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	265,181	$	412,708	$	478,895	$	245,016	$	77,891	$	94,245	$	48,429	$	1,622,365
Consumer
Pass	$	33,371	$	18,309	$	6,829	$	2,944	$	829	$	1,348	$	80,852	$	144,482
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		2		59		3		30		—		22		116
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	33,371	$	18,311	$	6,888	$	2,947	$	859	$	1,348	$	80,874	$	144,598
Commercial
Pass	$	168,459	$	77,654	$	52,879	$	52,486	$	6,256	$	10,448	$	293,963	$	662,145
Watch		1,281		328		247		—		—		355		622		2,833
Special Mention		—		—		—		—		—		—		—		—
Substandard		930		299		1,063		17		116		839		50		3,314
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	170,670	$	78,281	$	54,189	$	52,503	$	6,372	$	11,642	$	294,635	$	668,292
Total Loans
Pass	$	720,679	$	926,158	$	802,592	$	515,857	$	166,539	$	196,262	$	432,843	$	3,760,930
Watch		8,921		26,306		2,049		2,063		4,800		2,963		1,141		48,243
Special Mention		—		—		—		—		—		—		—		—
Substandard		7,590		1,458		29,004		486		146		1,518		660		40,862
Doubtful		—		—		—		—		—		—		—		—
Total	$	737,190	$	953,922	$	833,645	$	518,406	$	171,485	$	200,743	$	434,644	$	3,850,035

													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

					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
June 30, 2024
Real Estate Loans:
Residential	$	520	$	1,848	$	478	$	2,846	$	1,182,846	$	1,185,692	$	—
Construction		213		376		—		589		228,499		229,088		—
Commercial		1,042		1		1,095		2,138		1,620,227		1,622,365		—
Consumer loans		476		311		130		917		143,681		144,598		—
Commercial loans		877		85		1,749		2,711		665,581		668,292		—
Total loans	$	3,128	$	2,621	$	3,452	$	9,201	$	3,840,834	$	3,850,035	$	—

					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
June 30, 2023
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

									Allowance on
(dollars in thousands)	Commercial		Residential						Collateral
June 30, 2024	Real Estate		Real Estate		Other		Total		Dependent Loans
Real estate loans
1- to 4-family residential real estate	$	—	$	797	$	—	$	797	$	116
Commercial real estate		23,457		—		—		23,457		10,175
Commercial		—		—		2,705		2,705		635
Total loans	$	23,457	$	797	$	2,705	$	26,959	$	10,926

									Allowance on
(dollars in thousands)	Commercial		Residential		Construction				Collateral
June 30, 2023	Real Estate		Real Estate		Real Estate		Total		Dependent Loans
Real estate loans
1- to 4-family residential	$	—	$	837	$	—	$	837	$	156
Construction real estate		—		—		642		642		79
Commercial real estate		4,897		—		—		4,897		666
Total loans	$	4,897	$	837	$	642	$	6,376	$	901

Schedule of company's nonaccrual loans

	June 30,
(dollars in thousands)	2024		2023
Residential real estate	$	798	$	934
Construction real estate		—		698
Commercial real estate		3,106		4,564
Consumer loans		135		256
Commercial loans		2,641		1,091
Total loans	$	6,680	$	7,543

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

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

	June 30,
(dollars in thousands)	2024		2023
Beginning Balance	$	10,547	$	10,614
Additions		6,465		6,374
Repayments		(5,911)		(7,223)
Change in related party		—		782
Ending Balance	$	11,101	$	10,547