Loans (Tables)

12 Months Ended

Jun. 30, 2016

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consist of the following at the dates indicated:



	June 30, 2016			June 30, 2015
Retail consumer loans:
One-to-four family	$	623,701		$	650,750
HELOCs - originated	163,293			161,204
HELOCs - purchased	144,377			72,010
Construction and land/lots	38,102			45,931
Indirect auto finance	108,478			52,494
Consumer	4,635			3,708
Total retail consumer loans	1,082,586			986,097
Commercial loans:
Commercial real estate	486,561			441,620
Construction and development	86,840			64,573
Commercial and industrial	73,289			84,820
Municipal leases	103,183			108,574
Total commercial loans	749,873			699,587
Total loans	1,832,459			1,685,684
Deferred loan costs, net	372			23
Total loans, net of deferred loan fees and discount	1,832,831			1,685,707
Allowance for loan and lease losses	(21,292		)	(22,374		)
Net loans	$	1,811,539		$	1,663,333

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, 2016
Retail consumer loans:
One-to-four family	$	587,440	$	7,800	$	20,129	$	1,283	$	11	$	616,663
HELOCs - originated	159,275		678		2,997		55		10		163,015
HELOCs - purchased	144,377		—		—		—		—		144,377
Construction and land/lots	36,298		542		679		9		—		37,528
Indirect auto finance	108,432		14		21		11		—		108,478
Consumer	4,390		1		224		2		9		4,626
Commercial loans:
Commercial real estate	448,188		7,817		9,232		1		—		465,238
Construction and development	79,005		480		4,208		—		—		83,693
Commercial and industrial	63,299		1,032		5,361		—		2		69,694
Municipal leases	100,867		1,651		665		—		—		103,183
Total loans	$	1,731,571	$	20,015	$	43,516	$	1,361	$	32	$	1,796,495



	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

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, 2016
Retail consumer loans:
One-to-four family	$	5,039	$	377	$	1,593	$	14	$	15	$	7,038
HELOCs - originated	258		—		20		—		—		278
Construction and land/lots	522		—		52		—		—		574
Consumer	8		—		—		—		1		9
Commercial loans:
Commercial real estate	12,594		4,266		4,463		—		—		21,323
Construction and development	1,136		292		1,719		—		—		3,147
Commercial and industrial	3,234		194		167		—		—		3,595
Total loans	$	22,791	$	5,129	$	8,014	$	14	$	16	$	35,964



	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
Total loans	$	34,208	$	5,089	$	12,266	$	54	$	—	$	51,617

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, 2016
Retail consumer loans:
One-to-four family	$	3,514	$	5,476	$	8,990	$	614,711	$	623,701
HELOCs - originated	220		377		597		162,696		163,293
HELOCs - purchased	—		—		—		144,377		144,377
Construction and land/lots	100		119		219		37,883		38,102
Indirect auto finance	182		—		182		108,296		108,478
Consumer	4		4		8		4,627		4,635
Commercial loans:
Commercial real estate	1,436		3,353		4,789		481,772		486,561
Construction and development	371		1,296		1,667		85,173		86,840
Commercial and industrial	216		2,819		3,035		70,254		73,289
Municipal leases	—		—		—		103,183		103,183
Total loans	$	6,043	$	13,444	$	19,487	$	1,812,972	$	1,832,459



	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

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, 2016				June 30, 2015
	Nonaccruing		90 Days + & still accruing		Nonaccruing		90 Days + & still accruing
Retail consumer loans:
One-to-four family	$	9,192	$	—	$	10,523	$	—
HELOCs - originated	1,026		—		1,856		—
Construction and land/lots	188		—		465		—
Indirect auto finance	20		—		—		—
Consumer	15		—		49		—
Commercial loans:
Commercial real estate	3,222		—		5,103		—
Construction and development	1,417		—		3,461		—
Commercial and industrial	3,019		—		3,081		—
Municipal leases	419		—		316		—
Total loans	$	18,518	$	—	$	24,854	$	—

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, 2016		June 30, 2015
Performing TDRs included in impaired loans	$	28,263	$	21,891

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, 2016
	PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	401		$	12,575		$	9,398		$	22,374
Provision for (recovery of) loan losses	(40		)	(597		)	637			—
Charge-offs	—			(1,663		)	(2,041		)	(3,704		)
Recoveries	—			1,234			1,388			2,622
Balance at end of period	$	361		$	11,549		$	9,382		$	21,292



	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

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, 2016
Retail consumer loans:
One-to-four family	$	23	$	187	$	6,385	$	6,595	$	7,038	$	12,411	$	604,252	$	623,701
HELOCs - originated	—		288		1,709		1,997		278		1,145		161,870		163,293
HELOCs - purchased	—		—		558		558		—		—		144,377		144,377
Construction and land/lots	—		198		1,146		1,344		574		392		37,136		38,102
Indirect auto finance	—		—		1,016		1,016		—		—		108,478		108,478
Consumer	—		10		51		61		9		—		4,626		4,635
Commercial loans:
Commercial real estate	288		—		6,142		6,430		21,323		5,376		459,862		486,561
Construction and development	17		—		1,891		1,908		3,147		1,789		81,904		86,840
Commercial and industrial	33		3		685		721		3,595		2,927		66,767		73,289
Municipal leases	—		—		662		662		—		305		102,878		103,183
Total	$	361	$	686	$	20,245	$	21,292	$	35,964	$	24,345	$	1,772,150	$	1,832,459
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

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, 2016
Retail consumer loans:
One-to-four family	$	29,053	$	12,348	$	13,375	$	25,723	$	281
HELOCs - originated	4,486		1,999		1,178		3,177		305
Construction and land/lots	2,890		764		693		1,457		209
Indirect auto finance	45		20		—		20		—
Consumer	514		9		13		22		10
Commercial loans:
Commercial real estate	7,433		857		5,776		6,633		13
Construction and development	3,556		600		1,929		2,529		14
Commercial and industrial	9,710		1,197		2,930		4,127		17
Municipal leases	419		114		305		419		1
Total impaired loans	$	58,106	$	17,908	$	26,199	$	44,107	$	850
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

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, 2016				June 30, 2015				June 30, 2014
	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	$	28,479	$	1,477	$	30,089	$	1,696	$	38,949	$	1,624
HELOCs - originated	3,593		200		4,373		238		5,549		274
Construction and land/lots	1,787		135		2,074		158		2,080		182
Indirect auto finance	7		2		—		—		—		—
Consumer	55		23		46		24		34		8
Commercial loans:
Commercial real estate	8,506		440		14,718		243		22,116		640
Construction and development	3,469		84		5,654		167		7,885		169
Commercial and industrial	4,379		155		2,496		188		2,747		163
Municipal leases	452		22		303		24		—		—
Total loans	$	50,727	$	2,538	$	59,753	$	2,738	$	79,360	$	3,060

Impaired Financing Receivable

A summary of changes in the accretable yield for PCI loans for the years ended June 30, 2016 and 2015 follows.



	Year Ended June 30, 2016			Year Ended June 30, 2015
Accretable yield, beginning of period	$	11,096		$	6,151
Addition from Bank of Commerce acquisition	—			7,315
Reclass from nonaccretable yield ⁽¹⁾	1,452			3,047
Other changes, net ⁽²⁾	1,436			438
Interest income	(4,452		)	(5,855		)
Accretable yield, end of period	$	9,532		$	11,096

______________________________


(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.

Impaired Financing Receivables

The following table presents carrying values and unpaid principal balances for PCI loans as June 30, 2016 and 2015:



	June 30, 2016		June 30, 2015
Carrying value of PCI loans	$	35,964	$	51,617
Unpaid principal balance of PCI loans	$	43,398	$	61,451

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, 2016					Year Ended June 30, 2015
	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	5	$	234	$	238	4	$	449	$	447
Construction and land/lots	—	—		—		1	110		99
Commercial:
Commercial real estate	1	$	590	$	578	—	$	—	—
Total	6	$	824	$	816	5	$	559	$	546
Extended payment terms:
Retail consumer:
One-to-four family	5	$	142	$	147	5	$	566	$	579
HELOCs - originated	2	28		25		3	91		85
Consumer	—	—		—		2	10		8
Commercial:
Commercial real estate	1	286		284		1	426		467
Construction and development	1	128		128		—	—		—
Commercial and industrial	2	164		155		—	—		$	—
Total	11	$	748	$	739	11	$	1,093	$	1,139
Other TDRs:
Retail consumer:
One-to-four family	30	$	2,890	$	2,498	21	$	4,166	$	4,027
HELOCs - originated	4	228		227		4	155		119
Construction and land/lots	—	—		—		2	138		134
Consumer	1	2		1		2	58		1
Commercial:
Construction and development	2	386		371		1	173		169
Commercial and industrial	1	$	997	$	957	—	$	—	$	—
Total	38	$	4,503	$	4,054	30	$	4,690	$	4,450
Total	55	$	6,075	$	5,609	46	$	6,342	$	6,135

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, 2016 and 2015.



	Year Ended June 30, 2016			Year Ended June 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Below market interest rate:
Retail consumer:
One-to-four family	2	$	63	2	$	379
Total	2	$	63	2	$	379
Extended payment terms:
Retail consumer:
One-to-four family	2	$	43	4	$	574
Total	2	$	43	4	$	574
Other TDRs:
Retail consumer:
One-to-four family	11	$	529	12	$	1,422
HELOCs - originated	1	8		2	8
Construction and land/lots	—	—		1	32
Consumer	—	—		1	1
Commercial:
Construction and development	2	371		1	170
Total	14	$	908	17	$	1,633
Total	18	$	1,014	23	$	2,586