Loans

9 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans

Loans

Loans consist of the following at the dates indicated:

	March 31, 2019			June 30, 2018
Retail consumer loans:
One-to-four family	$	658,723		$	664,289
HELOCs - originated	133,203			137,564
HELOCs - purchased	128,832			166,276
Construction and land/lots	76,153			65,601
Indirect auto finance	162,127			173,095
Consumer	19,374			12,379
Total retail consumer loans	1,178,412			1,219,204
Commercial loans:
Commercial real estate	892,383			857,315
Construction and development	214,511			192,102
Commercial and industrial	263,646			148,823
Municipal leases	112,067			109,172
Total commercial loans	1,482,607			1,307,412
Total loans	2,661,019			2,526,616
Deferred loan fees, net	(372		)	(764		)
Total loans, net of deferred loan fees	2,660,647			2,525,852
Allowance for loan losses	(24,416		)	(21,060		)
Loans, net	$	2,636,231		$	2,504,792

All qualifying one-to-four family first mortgage loans, HELOCs, commercial real estate loans, and FHLB Stock are pledged as collateral by a blanket pledge to secure any outstanding FHLB advances.

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

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2019
Retail consumer loans:
One-to-four family	$	641,923	$	2,071	$	8,338	$	370	$	10	$	652,712
HELOCs - originated	131,675		111		1,024		164		6		132,980
HELOCs - purchased	128,352		—		480		—		—		128,832
Construction and land/lots	75,564		62		146		—		—		75,772
Indirect auto finance	161,447		—		680		—		—		162,127
Consumer	17,954		575		837		1		7		19,374
Commercial loans:
Commercial real estate	865,676		8,356		10,451		—		—		884,483
Construction and development	210,853		421		1,765		120		—		213,159
Commercial and industrial	257,210		1,637		666		2,352		1		261,866
Municipal leases	111,771		296		—		—		—		112,067
Total loans	$	2,602,425	$	13,529	$	24,387	$	3,007	$	24	$	2,643,372

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2018
Retail consumer loans:
One-to-four family	$	643,077	$	3,576	$	10,059	$	746	$	14	$	657,472
HELOCs - originated	135,336		113		1,735		150		6		137,340
HELOCs - purchased	166,089		—		187		—		—		166,276
Construction and land/lots	64,823		23		257		54		—		65,157
Indirect auto finance	172,675		—		420		—		—		173,095
Consumer	11,723		85		558		2		11		12,379
Commercial loans:
Commercial real estate	835,485		5,804		6,787		—		—		848,076
Construction and development	187,187		621		2,067		—		—		189,875
Commercial and industrial	145,177		1,279		414		—		—		146,870
Municipal leases	108,864		308		—		—		—		109,172
Total loans	$	2,470,436	$	11,809	$	22,484	$	952	$	31	$	2,505,712

The Company's total purchased credit impaired ("PCI") loans by segment, class, and risk grade at the dates indicated follows:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
March 31, 2019
Retail consumer loans:
One-to-four family	$	4,222	$	225	$	1,564	$	—	$	—	$	6,011
HELOCs - originated	223		—		—		—		—		223
Construction and land/lots	152		—		229		—		—		381
Commercial loans:
Commercial real estate	4,557		1,936		1,407		—		—		7,900
Construction and development	480		—		872		—		—		1,352
Commercial and industrial	1,777		—		—		—		3		1,780
Total loans	$	11,411	$	2,161	$	4,072	$	—	$	3	$	17,647

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
June 30, 2018
Retail consumer loans:
One-to-four family	$	4,620	$	388	$	1,809	$	—	$	—	$	6,817
HELOCs - originated	224		—		—		—		—		224
Construction and land/lots	444		—		—		—		—		444
Commercial loans:
Commercial real estate	4,718		2,162		2,359		—		—		9,239
Construction and development	547		—		1,680		—		—		2,227
Commercial and industrial	1,894		—		59		—		—		1,953
Total loans	$	12,447	$	2,550	$	5,907	$	—	$	—	$	20,904

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
March 31, 2019
Retail consumer loans:
One-to-four family	$	2,439	$	1,260	$	3,699	$	655,024	$	658,723
HELOCs - originated	44		430		474		132,729		133,203
HELOCs - purchased	230		298		528		128,304		128,832
Construction and land/lots	23		—		23		76,130		76,153
Indirect auto finance	545		81		626		161,501		162,127
Consumer	155		389		544		18,830		19,374
Commercial loans:
Commercial real estate	—		761		761		891,622		892,383
Construction and development	—		1,253		1,253		213,258		214,511
Commercial and industrial	445		53		498		263,148		263,646
Municipal leases	—		—		—		112,067		112,067
Total loans	$	3,881	$	4,525	$	8,406	$	2,652,613	$	2,661,019

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2018
Retail consumer loans:
One-to-four family	$	3,001	$	1,756	$	4,757	$	659,532	$	664,289
HELOCs - originated	98		268		366		137,198		137,564
HELOCs - purchased	—		—		—		166,276		166,276
Construction and land/lots	44		54		98		65,503		65,601
Indirect auto finance	335		127		462		172,633		173,095
Consumer	238		39		277		12,102		12,379
Commercial loans:
Commercial real estate	169		1,412		1,581		855,734		857,315
Construction and development	260		1,928		2,188		189,914		192,102
Commercial and industrial	15		69		84		148,739		148,823
Municipal leases	—		—		—		109,172		109,172
Total loans	$	4,160	$	5,653	$	9,813	$	2,516,803	$	2,526,616

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 follows:

	March 31, 2019				June 30, 2018
	Nonaccruing		90 Days + & still accruing		Nonaccruing		90 Days + & still accruing
Retail consumer loans:
One-to-four family	$	3,275	$	—	$	4,308	$	—
HELOCs - originated	586		—		656		—
HELOCs - purchased	481		—		187		—
Construction and land/lots	—		—		165		—
Indirect auto finance	421		—		255		—
Consumer	400		—		321		—
Commercial loans:
Commercial real estate	1,744		—		2,863		—
Construction and development	1,502		—		2,045		—
Commercial and industrial	2,923		—		114		—
Municipal leases	—		—		—		—
Total loans	$	11,332	$	—	$	10,914	$	—

PCI loans totaling $1,928 at March 31, 2019 and $3,353 at June 30, 2018 are excluded from nonaccruing loans due to the accretion of discounts established in accordance with the acquisition method of accounting for business combinations.

Troubled debt restructurings ("TDRs") are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, or a longer term to maturity. Additionally, all TDRs are considered impaired. The Company had no commitments to lend additional funds on these TDR loans at March 31, 2019.

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

	March 31, 2019		June 30, 2018
Performing TDRs included in impaired loans	$	24,590	$	21,251

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

	Three Months Ended March 31, 2019											Three Months Ended March 31, 2018
	PCI		Retail Consumer			Commercial			Total			PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	199	$	7,236		$	13,984		$	21,419		$	566		$	8,191		$	12,333		$	21,090
Provision for (recovery of) loan losses	2		(818		)	6,316			5,500			239			(172		)	(67		)	—
Charge-offs	—		(288		)	(2,648		)	(2,936		)	(345		)	(240		)	(31		)	(616		)
Recoveries	—		331			102			433			—			393			605			998
Balance at end of period	$	201	$	6,461		$	17,754		$	24,416		$	460		$	8,172		$	12,840		$	21,472

	Nine Months Ended March 31, 2019												Nine Months Ended March 31, 2018
	PCI			Retail Consumer			Commercial			Total			PCI			Retail Consumer			Commercial			Total
Balance at beginning of period	$	483		$	7,527		$	13,050		$	21,060		$	727		$	8,585		$	11,839		$	21,151
Provision for (recovery of) loan losses	(282		)	(1,223		)	7,005			5,500			78			(423		)	345			—
Charge-offs	—			(881		)	(2,728		)	(3,609		)	(345		)	(767		)	(739		)	(1,851		)
Recoveries	—			1,038			427			1,465			—			777			1,395			2,172
Balance at end of period	$	201		$	6,461		$	17,754		$	24,416		$	460		$	8,172		$	12,840		$	21,472

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
March 31, 2019
Retail consumer loans:
One-to-four family	$	61	$	66	$	2,402	$	2,529	$	6,011	$	5,396	$	647,316	$	658,723
HELOCs - originated	—		5		1,041		1,046		223		5		132,975		133,203
HELOCs - purchased	—		—		596		596		—		—		128,832		128,832
Construction and land/lots	—		—		1,198		1,198		381		327		75,445		76,153
Indirect auto finance	—		—		926		926		—		—		162,127		162,127
Consumer	—		7		220		227		—		7		19,367		19,374
Commercial loans:
Commercial real estate	118		11		7,981		8,110		7,900		8,091		876,392		892,383
Construction and development	6		5		3,236		3,247		1,352		1,529		211,630		214,511
Commercial and industrial	16		2,354		3,728		6,098		1,780		2,370		259,496		263,646
Municipal leases	—		—		439		439		—		—		112,067		112,067
Total	$	201	$	2,448	$	21,767	$	24,416	$	17,647	$	17,725	$	2,625,647	$	2,661,019
June 30, 2018
Retail consumer loans:
One-to-four family	$	98	$	125	$	3,137	$	3,360	$	6,817	$	7,104	$	650,368	$	664,289
HELOCs - originated	—		6		1,117		1,123		224		452		136,888		137,564
HELOCs - purchased	—		—		795		795		—		—		166,276		166,276
Construction and land/lots	—		19		1,134		1,153		444		583		64,574		65,601
Indirect auto finance	—		—		1,126		1,126		—		—		173,095		173,095
Consumer	—		11		57		68		—		11		12,368		12,379
Commercial loans:
Commercial real estate	138		28		8,029		8,195		9,239		3,511		844,565		857,315
Construction and development	229		8		3,109		3,346		2,227		2,223		187,652		192,102
Commercial and industrial	18		—		1,458		1,476		1,953		—		146,870		148,823
Municipal leases	—		—		418		418		—		—		109,172		109,172
Total	$	483	$	197	$	20,380	$	21,060	$	20,904	$	13,884	$	2,491,828	$	2,526,616

Loans acquired from acquisitions are initially excluded from the allowance for loan losses in accordance with the acquisition method of accounting for business combinations. The Company records these loans at fair value, which includes a credit discount, therefore, no allowance for loan losses is established for these acquired loans at acquisition. A provision for loan losses is recorded for any further deterioration in these acquired loans subsequent to the acquisition.

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

	Total Impaired Loans
	Unpaid Principal Balance		Recorded Investment With a Recorded Allowance		Recorded Investment With No Recorded Allowance		Total		Related Recorded Allowance
March 31, 2019
Retail consumer loans:
One-to-four family	$	18,463	$	12,501	$	3,169	$	15,670	$	479
HELOCs - originated	1,597		657		292		949		7
HELOCs - purchased	481		—		481		481		—
Construction and land/lots	1,940		976		328		1,304		26
Indirect auto finance	523		348		101		449		2
Consumer	1,976		358		1,121		1,479		5
Commercial loans:
Commercial real estate	9,457		1,303		7,857		9,160		19
Construction and development	3,056		973		909		1,882		7
Commercial and industrial	8,689		3,006		2		3,008		2,362
Municipal leases	—		—		—		—		—
Total impaired loans	$	46,182	$	20,122	$	14,260	$	34,382	$	2,907
June 30, 2018
Retail consumer loans:
One-to-four family	$	23,295	$	16,035	$	4,140	$	20,175	$	554
HELOCs - originated	2,544		1,017		737		1,754		9
HELOCs - purchased	187		—		187		187		—
Construction and land/lots	2,348		1,098		446		1,544		53
Indirect auto finance	395		122		133		255		1
Consumer	501		12		46		58		11
Commercial loans:
Commercial real estate	5,343		2,862		2,246		5,108		42
Construction and development	3,166		828		1,217		2,045		14
Commercial and industrial	4,898		235		—		235		3
Municipal leases	—		—		—		—		—
Total impaired loans	$	42,677	$	22,209	$	9,152	$	31,361	$	687

The table above includes $16,657 and $19,926, of impaired loans that were not individually evaluated at March 31, 2019 and June 30, 2018, respectively, because these loans did not meet the Company's threshold for individual impairment evaluation. The recorded allowance above includes $459 and $490 related to these loans that were not individually evaluated at March 31, 2019 and June 30, 2018, respectively.

The Company's average recorded investment in impaired loans and interest income recognized on impaired loans for the three and nine months ended March 31, 2019 and 2018 follows:

	Three Months Ended
	March 31, 2019				March 31, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Retail consumer loans:
One-to-four family	$	16,499	$	237	$	23,988	$	325
HELOCs - originated	957		18		2,280		36
HELOC - purchased	333		3		189		4
Construction and land/lots	1,356		24		1,594		28
Indirect auto finance	361		6		295		4
Consumer	1,580		17		39		4
Commercial loans:
Commercial real estate	4,116		123		6,818		54
Construction and development	1,696		16		3,050		18
Commercial and industrial	188		80		1,264		22
Municipal leases	—		—		98		—
Total loans	$	27,086	$	524	$	39,615	$	495

	Nine Months Ended
	March 31, 2019				March 31, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Retail consumer loans:
One-to-four family	$	17,878	$	699	$	24,495	$	916
HELOCs - originated	1,067		52		2,566		83
HELOCs - purchased	235		10		190		10
Construction and land/lots	1,491		75		1,633		82
Indirect auto finance	341		19		192		17
Consumer	1,335		58		39		12
Commercial loans:
Commercial real estate	4,376		313		7,196		161
Construction and development	1,800		51		2,852		71
Commercial and industrial	201		222		1,665		68
Municipal leases	—		—		176		6
Total loans	$	28,724	$	1,499	$	41,004	$	1,426

A summary of changes in the accretable yield for PCI loans for the three and nine months ended March 31, 2019 and 2018 follows:

	Three Months Ended
	March 31, 2019			March 31, 2018
Accretable yield, beginning of period	$	5,232		$	6,221
Reclass from nonaccretable yield (1)	118			163
Other changes, net (2)	528			222
Interest income	(412		)	(501		)
Accretable yield, end of period	$	5,466		$	6,105

	Nine Months Ended
	March 31, 2019			March 31, 2018
Accretable yield, beginning of period	$	5,734		$	7,080
Reclass from nonaccretable yield (1)	542			441
Other changes, net (2)	863			329
Interest income	(1,673		)	(1,745		)
Accretable yield, end of period	$	5,466		$	6,105

______________________________________

(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.

For the three and nine months ended March 31, 2019 and 2018, the following tables present a breakdown of the types of concessions made on TDRs by loan class:

	Three Months Ended March 31, 2019					Three Months Ended March 31, 2018
	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
Extended payment terms:
Retail consumer:
One-to-four family	2	$	212	$	212	—	$	—	$	—
HELOCs - originated	1	15		15		—	—		—
Total	3	$	227	$	227	—	$	—	$	—
Other TDRs:
Retail consumer:
One-to-four family	2	$	335	$	334	5	$	470	$	465
Construction and land/lots	1	29		28		—	—		—
Commercial:
Commercial real estate	2	5,424		5,423		—	—		—
Construction and development	1	182		182		—	—		—
Total	6	$	5,970	$	5,967	5	$	470	$	465
Total	9	$	6,197	$	6,194	5	$	470	$	465

	Nine Months Ended March 31, 2019					Nine Months Ended March 31, 2018
	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	1	$	85	$	84	—	$	—	$	—
Total	1	$	85	$	84	—	$	—	$	—
Extended payment terms:
Retail consumer:
One-to-four family	2	$	212	$	212	4	$	462	$	450
HELOCs - originated	1	15		15		—	—		—
Construction and land/lots	—	—		—		1	36		34
Total	3	$	227	$	227	5	$	498	$	484
Other TDRs:
Retail consumer:
One-to-four family	10	$	841	$	829	19	$	1,583	$	1,559
Construction and land/lots	1	29		28		—	—		—
Indirect auto finance	1	33		29		—	—		—
Consumer	1	2		2		—	—		—
Commercial:
Commercial real estate	2	5,424		5,423		—	—		—
Construction and development	1	182		182		—	—		—
Total	16	$	6,511	$	6,493	19	$	1,583	$	1,559
Total	20	$	6,823	$	6,804	24	$	2,081	$	2,043

The following tables present loans that were modified as TDRs within the previous 12 months and for which there was a payment default during the three and nine months ended March 31, 2019 and 2018:

	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
One-to-four family	2	$	184	2	$	145
Consumer	1	2		—	—
Total	3	$	186	2	$	145
Total	3	$	186	2	$	145

	Nine Months Ended March 31, 2019			Nine Months Ended March 31, 2018
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
One-to-four family	2	$	184	2	$	145
Consumer	1	2		—	—
Total	3	$	186	2	$	145
Total	3	$	186	2	$	145

Other TDRs include TDRs that have a below market interest rate and extended payment terms. The Company does not typically forgive principal when restructuring troubled debt.

In the determination of the allowance for loan losses, management considers TDRs for all loan classes, and the subsequent nonperformance in accordance with their modified terms, by measuring impairment based on either the value of the loan's expected future cash flows discounted at the loan's original effective interest rate or on the collateral value, net of the estimated costs of disposal, if the loan is collateral dependent.