Loans (Tables)

12 Months Ended

Jun. 30, 2015

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consist of the following at the dates indicated:



	June 30, 2015			June 30, 2014
Retail consumer loans:
One-to-four family	$	650,750		$	660,630
HELOCs - originated	161,204			148,379
HELOCs - purchased	72,010			—
Construction and land/lots	45,931			59,249
Indirect auto finance	52,494			8,833
Consumer	3,708			6,331
Total retail consumer loans	986,097			883,422
Commercial loans:
Commercial real estate	441,620			377,769
Construction and development	64,573			56,457
Commercial and industrial	84,820			74,435
Municipal leases	108,574			106,215
Total commercial loans	699,587			614,876
Total loans	1,685,684			1,498,298
Deferred loan fees, net	23			(1,340		)
Total loans, net of deferred loan fees and discount	1,685,707			1,496,958
Allowance for loan and lease losses	(22,374		)	(23,429		)
Net loans	$	1,663,333		$	1,473,529

Financing Receivable Credit Quality Indicators

The Company’s total non-purchased and purchased performing loans by segment, class, and risk grade at the dates indicated follow:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2015
Retail consumer loans:
One-to-four family	$	598,417	$	11,563	$	28,656	$	1,772	$	12	$	640,420
HELOCs - originated	155,899		580		4,020		407		3		160,909
HELOCs - purchased	72,010		—		—		—		—		72,010
Construction and land/lots	42,689		650		1,754		124		—		45,217
Indirect auto finance	52,396		59		39		—		—		52,494
Consumer	3,610		16		32		—		39		3,697
Commercial loans:
Commercial real estate	384,525		12,762		13,972		182		—		411,441
Construction and development	50,815		3,567		5,413		—		—		59,795
Commercial and industrial	73,774		953		4,781		—		2		79,510
Municipal leases	106,260		1,733		581		—		—		108,574
Total loans	$	1,540,395	$	31,883	$	59,248	$	2,485	$	56	$	1,634,067



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2014
Retail consumer loans:
One-to-four family	$	602,839	$	17,639	$	28,974	$	2,907	$	10	$	652,369
HELOCs - originated	141,008		1,605		4,967		420		2		148,002
HELOCs - purchased	—		—		—		—		—		—
Construction and land/lots	55,374		1,878		807		113		—		58,172
Indirect auto finance	8,801		32		—		—		—		8,833
Consumer	6,115		62		97		13		3		6,290
Commercial loans:
Commercial real estate	313,437		16,931		19,746		1,944		—		352,058
Construction and development	41,336		2,927		5,972		570		—		50,805
Commercial and industrial	66,481		873		1,723		—		3		69,080
Municipal leases	104,404		1,811		—		—		—		106,215
Total loans	$	1,339,795	$	43,758	$	62,286	$	5,967	$	18	$	1,451,824

The Company’s total PCI loans by segment, class, and risk grade at the dates indicated follow:



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2015
Retail consumer loans:
One-to-four family	$	5,176	$	1,210	$	3,890	$	54	$	—	$	10,330
HELOCs - originated	259		—		36		—		—		295
Construction and land/lots	571		—		143		—		—		714
Consumer	11		—		—		—		—		11
Commercial loans:
Commercial real estate	21,550		3,454		5,175		—		—		30,179
Construction and development	2,292		146		2,340		—		—		4,778
Commercial and industrial	4,349		279		682		—		—		5,310
Municipal leases	—		—		—		—		—		—
Total loans	$	34,208	$	5,089	$	12,266	$	54	$	—	$	51,617



	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2014
Retail consumer loans:
One-to-four family	$	4,904	$	—	$	3,357	$	—	$	—	$	8,261
HELOCs - originated	7		—		370		—		—		377
Construction and land/lots	791		—		286		—		—		1,077
Consumer	41		—		—		—		—		41
Commercial loans:
Commercial real estate	20,853		—		4,858		—		—		25,711
Construction and development	2,443		2,169		1,040		—		—		5,652
Commercial and industrial	4,647		—		708		—		—		5,355
Municipal leases	—		—		—		—		—		—
Total loans	$	33,686	$	2,169	$	10,619	$	—	$	—	$	46,474

Past Due Financing Receivables

The Company’s total loans by segment, class, and delinquency status at the dates indicated follows:



	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2015
Retail consumer loans:
One-to-four family	$	5,548	$	8,261	$	13,809	$	636,941	$	650,750
HELOCs - originated	695		808		1,503		159,701		161,204
HELOCs - purchased	—		—		—		72,010		72,010
Construction and land/lots	102		307		409		45,522		45,931
Indirect auto finance	—		—		—		52,494		52,494
Consumer	23		2		25		3,683		3,708
Commercial loans:
Commercial real estate	2,758		4,636		7,394		434,226		441,620
Construction and development	166		2,992		3,158		61,415		64,573
Commercial and industrial	439		2,898		3,337		81,483		84,820
Municipal leases	202		—		202		108,372		108,574
Total loans	$	9,933	$	19,904	$	29,837	$	1,655,847	$	1,685,684



	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2014
Retail consumer loans:
One-to-four family	$	4,929	$	8,208	$	13,137	$	647,493	$	660,630
HELOCs - originated	400		939		1,339		147,040		148,379
HELOCs - purchased	—		—		—		—		—
Construction and land/lots	508		122		630		58,619		59,249
Indirect auto finance	—		—		—		8,833		8,833
Consumer	34		16		50		6,281		6,331
Commercial loans:
Commercial real estate	306		6,729		7,035		370,734		377,769
Construction and development	1,165		3,789		4,954		51,503		56,457
Commercial and industrial	183		576		759		73,676		74,435
Municipal leases	—		—		—		106,215		106,215
Total loans	$	7,525	$	20,379	$	27,904	$	1,470,394	$	1,498,298

Schedule of Past Due Loans Still Accruing and Nonaccruing Interest

The Company’s recorded investment in loans, by segment and class that are not accruing interest or are 90 days or more past due and still accruing interest at the dates indicated follow:



	June 30, 2015				June 30, 2014
	Nonaccruing		90 Days + & still accruing		Nonaccruing		90 Days + & still accruing
Retail consumer loans:
One-to-four family	$	10,523	$	—	$	14,917	$	—
HELOCs - originated	1,856		—		2,749		—
Construction and land/lots	465		—		443		—
Consumer	49		—		27		—
Commercial loans:
Commercial real estate	5,103		—		12,953		—
Construction and development	3,461		—		5,697		—
Commercial and industrial	3,081		—		1,134		—
Municipal leases	316		—		—		—
Total loans	$	24,854	$	—	$	37,920	$	—

Schedule of Troubled Debt Restructurings Performing and Excluded from Nonaccruing Loans

The Company’s loans that were performing under the payment terms of TDRs that were excluded from nonaccruing loans above at the dates indicated follow:



	June 30, 2015		June 30, 2014
Performing TDRs included in impaired loans	$	21,891	$	22,179

Allowance for Credit Losses on Financing Receivables

An analysis of the allowance for loan losses by segment for the periods shown is as follows:



	June 30, 2015
	PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	—		$	15,731		$	7,698		$	23,429
Provision for (recovery of) loan losses	1,053			(1,258		)	355			150
Charge-offs	(652		)	(3,107		)	(1,101		)	(4,860		)
Recoveries	—			1,209			2,446			3,655
Balance at end of period	$	401		$	12,575		$	9,398		$	22,374



	June 30, 2014
	Retail Consumer			Commercial			Total
Balance at beginning of period	$	21,952		$	10,121		$	32,073
Recovery of loan losses	(3,447		)	(2,853		)	(6,300		)
Charge-offs	(4,436		)	(901		)	(5,337		)
Recoveries	1,662			1,331			2,993
Balance at end of period	$	15,731		$	7,698		$	23,429



	June 30, 2013
	Retail Consumer			Commercial			Total
Balance at beginning of period	$	21,172		$	13,928		$	35,100
Provision for (recovery of) loan losses	3,641			(2,541		)	1,100
Charge-offs	(3,715		)	(3,276		)	(6,991		)
Recoveries	854			2,010			2,864
Balance at end of period	$	21,952		$	10,121		$	32,073

Schedule of Ending Balances of Loans and the Related Allowance by Segment and Class

The Company’s ending balances of loans and the related allowance, by segment and class, at the dates indicated follows:



	Allowance for Loan Losses								Total Loans Receivable
	PCI		Loans individually evaluated for impairment		Loans Collectively Evaluated		Total		PCI		Loans individually evaluated for impairment		Loans Collectively Evaluated		Total
June 30, 2015
Retail consumer loans:
One-to-four family	$	35	$	492	$	7,463	$	7,990	$	10,330	$	22,841	$	617,579	$	650,750
HELOCs - originated	3		275		1,499		1,777		295		2,608		158,301		161,204
HELOCs - purchased	—		—		432		432		—		—		72,010		72,010
Construction and land/lots	—		531		1,291		1,822		714		1,926		43,291		45,931
Indirect auto finance	—		—		464		464		—		—		52,494		52,494
Consumer	—		39		89		128		11		45		3,652		3,708
Commercial loans:
Commercial real estate	334		—		6,005		6,339		30,179		10,961		400,480		441,620
Construction and development	—		119		1,462		1,581		4,778		5,161		54,634		64,573
Commercial and industrial	29		400		675		1,104		5,310		4,537		74,973		84,820
Municipal leases	—		—		737		737		—		316		108,258		108,574
Total	$	401	$	1,856	$	20,117	$	22,374	$	51,617	$	48,395	$	1,585,672	$	1,685,684
June 30, 2014
Retail consumer loans:
One-to-four family	$	—	$	493	$	10,034	$	10,527	$	8,261	$	23,929	$	628,440	$	660,630
HELOCs - originated	—		134		2,353		2,487		377		3,014		144,988		148,379
HELOCs - purchased	—		—		—		—		—		—		—		—
Construction and land/lots	—		379		2,041		2,420		1,077		1,735		56,437		59,249
Indirect auto finance	—		—		113		113		—		—		8,833		8,833
Consumer	—		3		181		184		41		10		6,280		6,331
Commercial loans:
Commercial real estate	—		26		5,413		5,439		25,711		13,784		338,274		377,769
Construction and development	—		26		1,215		1,241		5,652		5,571		45,234		56,457
Commercial and industrial	—		3		246		249		5,355		2,378		66,702		74,435
Municipal leases	—		—		769		769		—		—		106,215		106,215
Total	$	—	$	1,064	$	22,365	$	23,429	$	46,474	$	50,421	$	1,401,403	$	1,498,298

Schedule of Impaired Loans and Related Allowance by Segment and Class

The Company’s impaired loans and the related allowance, by segment and class, at the dates indicated follows:



			Total Impaired Loans
	Unpaid Principal Balance		With a Recorded Allowance		With No Recorded Allowance		Total		Related Recorded Allowance
June 30, 2015
Retail consumer loans:
One-to-four family	$	31,590	$	10,340	$	19,164	$	29,504	$	598
HELOCs - originated	6,019		2,565		1,543		4,108		294
Construction and land/lots	3,303		1,225		758		1,983		533
Indirect auto finance	10		—		—		—		—
Consumer	1,966		13		45		58		39
Commercial loans:
Commercial real estate	13,829		696		10,971		11,667		412
Construction and development	6,615		1,268		4,241		5,509		64
Commercial and industrial	5,668		688		4,051		4,739		431
Municipal leases	316		—		316		316		—
Total impaired loans	$	69,316	$	16,795	$	41,089	$	57,884	$	2,371
June 30, 2014
Retail consumer loans:
One-to-four family	$	38,493	$	17,379	$	14,614	$	31,993	$	678
HELOCs - originated	6,539		2,445		2,305		4,750		166
Construction and land/lots	3,671		1,737		109		1,846		411
Consumer	364		16		11		27		3
Commercial loans:
Commercial real estate	23,458		6,228		9,114		15,342		166
Construction and development	9,780		1,043		5,088		6,131		54
Commercial and industrial	3,857		835		1,903		2,738		13
Municipal leases	—		—		—		—		—
Total impaired loans	$	86,162	$	29,683	$	33,144	$	62,827	$	1,491

Schedule of Average Recorded Investment in Loans, Unpaid Principal Balance and Interest Income Recognized

The Company’s average recorded investment in loans individually evaluated for impairment as of the dates indicated below, and interest income recognized on impaired loans for the year ended as follows:



	June 30, 2015				June 30, 2014				June 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Retail consumer loans:
One-to-four family	$	30,089	$	1,696	$	38,949	$	1,624	$	44,060	$	1,867
HELOCs - originated	4,373		238		5,549		274		5,869		194
Construction and land/lots	2,074		158		2,080		182		2,906		169
Consumer	46		24		34		8		67		3
Commercial loans:
Commercial real estate	14,718		243		22,116		640		25,501		1,014
Construction and development	5,654		167		7,885		169		12,161		425
Commercial and industrial	2,496		188		2,747		163		3,006		153
Municipal leases	303		24		—		—		—		—
Total loans	$	59,753	$	2,738	$	79,360	$	3,060	$	93,570	$	3,825

Schedule of Changes in Accretable Yield for Purchased Impaired Loans

A summary of changes in the accretable yield for PCI loans for the years ended June 30, 2015 and 2014 follows.



	Year Ended June 30, 2015			Year Ended June 30, 2014
Accretable yield, beginning of period	$	6,151		$	—
Addition from the BankGreenville acquisition	—			1,835
Addition from the Jefferson acquisition	—			4,949
Addition from Bank of Commerce acquisition	7,315			—
Reclass from Nonaccretable yield ⁽¹⁾	3,047			—
Other changes, net ⁽²⁾	438			—
Interest income	(5,855		)	(633		)
Accretable yield, end of period	$	11,096		$	6,151

______________________________


(1)	Represents changes attributable to expected losses assumptions.


(2)	Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, and changes in interest rates.

Schedule of Loans Acquired

The following table presents the purchased performing loans receivable for Bank of Commerce at July 31, 2014 (the acquisition date):



	July 31, 2014
Contractually required principal payments receivable	$	47,388
Adjustment for credit, interest rate, and liquidity	1,159
Balance of purchased loans receivable	$	46,229

The following table presents the PCI loans for Bank of Commerce at July 31, 2014 (the acquisition date):



	July 31, 2014
Contractually required principal and interest payments receivable	$	49,870
Amounts not expected to be collected – nonaccretable difference	2,300
Estimated payments expected to be received	47,570
Accretable yield	7,315
Fair value of purchased impaired loans	$	40,255

Impaired Financing Receivables

The following table presents carrying values and unpaid principal balances for PCI loans as June 30, 2015 and 2014:



	June 30, 2015		June 30, 2014
Carrying value of PCI loans	$	51,617	$	46,474
Unpaid principal balance of PCI loans	$	61,451	$	54,128

Troubled Debt Restructurings on Financing Receivables

The following table presents a breakdown of the types of concessions made on TDRs by loan class:



	Year Ended June 30, 2015					Year Ended June 30, 2014
	Number of Loans	Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment		Number of Loans	Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment
Below market interest rate:
Retail consumer:
One-to-four family	4	$	449	$	447	8	$	417	$	424
HELOCs - originated	—	—		—		4	371		367
Construction and land/lots	1	110		99		—	—		—
Total	5	$	559	$	546	12	$	788	$	791
Extended payment terms:
Retail consumer:
One-to-four family	5	$	566	$	579	4	$	379	$	355
HELOCs - originated	3	91		85		—	—		—
Consumer	2	10		8		—	—		—
Commercial:
Commercial real estate	1	426		467		—	—		—
Total	11	$	1,093	$	1,139	4	$	379	$	355
Other TDRs:
Retail consumer:
One-to-four family	21	$	4,166	$	4,027	17	$	1,257	$	1,272
HELOCs - originated	4	155		119		2	42		4
Construction and land/lots	2	138		134		2	787		767
Consumer	2	58		1		—	—		—
Commercial:
Construction and development	1	173		169		—	—		—
Commercial and industrial	30	$	4,690	$	4,450	21	$	2,086	$	2,043
Total	46	$	6,342	$	6,135	37	$	3,253	$	3,189

Schedule of Trouble Debt Restructurings With Payment Default

The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default during the years ended June 30, 2015 and 2014.



	Year Ended June 30, 2015			Year Ended June 30, 2014
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Below market interest rate:
Retail consumer:
One-to-four family	2	$	379	1	$	71
HELOCs - originated	—	—		2	274
Total	2	$	379	3	$	345
Extended payment terms:
Retail consumer:
One-to-four family	4	$	574	1	$	278
Total	4	$	574	1	$	278
Other TDRs:
Retail consumer:
One-to-four family	12	$	1,422	4	$	322
HELOCs - originated	2	8		—	—
Construction and land/lots	1	32		—	—
Consumer	1	1		—	—
Commercial:
Construction and development	1	170		—	—
Total	17	$	1,633	4	$	322
Total	23	$	2,586	8	$	945