10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒            QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

☐            TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ________

Commission file number:     001-35593

HOMETRUST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland	45-5055422
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)

10 Woodfin Street, Asheville, North Carolina 28801

(Address of principal executive offices; Zip Code)

(828) 259-3939

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	HTBI	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 and 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.        Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer   ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒

There were 16,246,903 shares of common stock, par value of $.01 per share, issued and outstanding as of February 2, 2022.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARIES

10-Q

TABLE OF CONTENTS

			Page Number
PART I FINANCIAL INFORMATION
Item 1.	Financial Statements
		Consolidated Balance Sheets (Unaudited) at December 31, 2021 and June 30, 2021	3
		Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended December 31, 2021 and 2020	4
		Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended December, 2021 and 2020	5
		Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Six Months Ended December 31, 2021 and 2020	6
		Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended December 31, 2021 and 2020	8
		Notes to Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		33
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		46
Item 4.	Controls and Procedures		47
PART II OTHER INFORMATION
Item 1.	Legal Proceedings		47
Item 1A.	Risk Factors		47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		47
Item 3.	Defaults Upon Senior Securities		48
Item 4.	Mine Safety Disclosures		48
Item 5	Other Information		48
Item 6.	Exhibits		48
SIGNATURES			50

1

Glossary of Defined Terms

The following items may be used throughout this Form 10-Q, including the Notes to Consolidated Financial Statements in Item 1 and Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Form 10-Q.

Term	Definition
ACL	Allowance for Credit Losses
AFS	Available-For-Sale
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BOLI	Bank Owned Life Insurance
CARES Act	Coronavirus Aid, Relief, and Economic Security Act of 2020
CD	Certificate of Deposit
CDA	Collateral Dependent Asset
CECL	Current Expected Credit Losses
CET1	Common Equity Tier 1
COVID-19	Coronavirus Disease 2019
CPI	Consumer Price Index
DCF	Discounted Cash Flow
ECL	Expected Credit Losses
EPS	Earnings Per Share
ESOP	Employee Stock Ownership Plan
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
FHLB	Federal Home Loan Bank
FRB	Federal Reserve Bank of Richmond
GAAP	Generally Accepted Accounting Principles in the United States
GSE	Government-Sponsored Enterprises
HELOC	Home Equity Line of Credit
LIBOR	London Interbank Offered Rate
MBS	Mortgage-Backed Securities
NCCOB	North Carolina Office of the Commissioner of Banks
OTTI	Other Than Temporary Impairment
PCD	Purchased Financial Assets with Credit Deterioration
PCI	Purchase Credit Impaired
PPP	Paycheck Protection Program
REO	Real Estate Owned
ROU	Right of Use
RSU	Restricted Stock Unit
SEC	Securities and Exchange Commission
SBA	U.S. Small Business Administration
SBIC	Small Business Investment Companies
TDR	Troubled Debt Restructuring

2

PART I.  FINANCIAL INFORMATION

Item 1.    Financial Statements

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

	(Unaudited)
	December 31, 2021		June 30, 2021
Assets
Cash	$	20,586	$	22,312
Interest-bearing deposits	14,240		28,678
Cash and cash equivalents	34,826		50,990
Commercial paper	254,157		189,596
Certificates of deposit in other banks	34,002		40,122
Debt securities available for sale, at fair value (amortized cost of $121,071 and $154,493 at December 31, 2021 and June 30, 2021, respectively)	121,851		156,459
Other investments, at cost	22,117		23,710
Loans held for sale	102,070		93,539
Total loans, net of deferred loan fees and costs	2,696,072		2,733,267
Allowance for credit losses on loans	(30,933)		(35,468)
Loans, net	2,665,139		2,697,799
Premises and equipment, net	69,461		70,909
Accrued interest receivable	8,200		7,933
REO	45		188
Deferred income taxes, net	12,019		16,901
BOLI	94,209		93,108
Goodwill	25,638		25,638
Core deposit intangibles, net	185		343
Other assets	58,900		57,488
Total Assets	$	3,502,819	$	3,524,723
Liabilities and stockholders' equity
Liabilities
Deposits	$	2,998,691	$	2,955,541
Borrowings	48,000		115,000
Other liabilities	54,382		57,663
Total liabilities	3,101,073		3,128,204
Commitments and Contingencies - See Note 9
Stockholders' equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding	—		—
Common stock, $0.01 par value, 60,000,000 shares authorized, 16,303,461 shares     issued and outstanding at December 31, 2021; 16,636,483 at June 30, 2021	163		167
Additional paid in capital	147,552		160,582
Retained earnings	258,986		240,075
Unearned ESOP shares	(5,555)		(5,819)
Accumulated other comprehensive income	600		1,514
Total stockholders' equity	401,746		396,519
Total liabilities and stockholders' equity	$	3,502,819	$	3,524,723

The accompanying notes are an integral part of these consolidated financial statements.

3

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Dollars in thousands, except per share data)

	(Unaudited)
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Interest and dividend income
Loans	$	26,929	$	28,343	$	54,824	$	56,935
Commercial paper and interest-bearing deposits	468		614		799		1,495
Debt securities available for sale	411		504		935		1,032
Other investments	680		696		1,235		1,144
Total interest and dividend income	28,488		30,157		57,793		60,606
Interest expense
Deposits	1,305		2,347		2,877		5,600
Borrowings	15		1,688		41		3,375
Total interest expense	1,320		4,035		2,918		8,975
Net interest income	27,168		26,122		54,875		51,631
Provision (benefit) for credit losses	(2,500)		(3,030)		(3,960)		(2,080)
Net interest income after provision (benefit) for credit losses	29,668		29,152		58,835		53,711
Noninterest income
Service charges and fees on deposit accounts	2,513		2,416		4,885		4,513
Loan income and fees	805		569		1,784		1,043
Gain on sale of loans held for sale	3,901		3,704		7,958		7,048
BOLI income	490		511		1,008		1,043
Operating lease income	1,718		1,349		3,258		2,675
Other	753		795		1,639		1,661
Total noninterest income	10,180		9,344		20,532		17,983
Noninterest expense
Salaries and employee benefits	14,872		15,700		30,152		30,907
Occupancy expense, net	2,401		2,261		4,718		4,554
Computer services	2,369		2,220		4,693		4,527
Telephone, postage, and supplies	735		871		1,447		1,533
Marketing and advertising	832		327		1,537		652
Deposit insurance premiums	302		487		868		998
Gain on sale of REO	—		—		(3)		(35)
REO related expense	116		165		261		413
Core deposit intangible amortization	65		202		158		440
Other	4,217		4,210		8,094		8,454
Total noninterest expense	25,909		26,443		51,925		52,443
Net income before income taxes	13,939		12,053		27,442		19,251
Income tax expense	2,861		2,592		5,837		4,037
Net income	$	11,078	$	9,461	$	21,605	$	15,214
Per share data:
Net income per common share:
Basic	$	0.70	$	0.58	$	1.36	$	0.93
Diluted	$	0.68	$	0.57	$	1.33	$	0.92
Average shares outstanding:
Basic	15,632,283		16,202,844		15,696,765		16,216,917
Diluted	15,989,606		16,563,359		16,057,607		16,514,831

The accompanying notes are an integral part of these consolidated financial statements.

4

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

	(Unaudited)
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Net income	$	11,078	$	9,461	$	21,605	$	15,214
Other comprehensive income (loss)
Unrealized holding gains (losses) on debt securities available for sale
Gains (losses) arising during the period	(882)		(84)		(1,187)		114
Deferred income tax benefit (expense)	203		19		273		(26)
Total other comprehensive income (loss)	$	(679)	$	(65)	(914)		88
Comprehensive income	$	10,399	$	9,396	$	20,691	$	15,302

The accompanying notes are an integral part of these consolidated financial statements.

5

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders' Equity

(Dollars in thousands)

	(Unaudited)
	Three Months Ended December 31, 2021
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at September 30, 2021	16,307,658	$	163	$	151,425	$	249,331	$	(5,687)	$	1,279	$	396,511
Net income	—	—		—		11,078		—		—		11,078
Cash dividends declared on common stock, $0.09/ common share	—	—		—		(1,423)		—		—		(1,423)
Common stock repurchased	(299,397)	(3)		(8,967)		—		—		—		(8,970)
Forfeited restricted stock	(6,400)	—		—		—		—		—		—
Exercised stock options	301,600	3		4,339		—		—		—		4,342
Share-based compensation expense	—	—		485		—		—		—		485
ESOP compensation expense	—	—		270		—		132		—		402
Other comprehensive loss	—	—		—		—		—		(679)		(679)
Balance at December 31, 2021	16,303,461	$	163	$	147,552	$	258,986	$	(5,555)	$	600	$	401,746
	(Unaudited)
	Six Months Ended December 31, 2021
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2021	16,636,483	$	167	$	160,582	$	240,075	$	(5,819)	$	1,514	$	396,519
Net income	—	—		—		21,605		—		—		21,605
Cash dividends declared on common stock, $0.17/common share	—	—		—		(2,694)		—		—		(2,694)
Common stock repurchased	(675,832)	(7)		(19,396)		—		—		—		(19,403)
Forfeited restricted stock	(9,400)	—		—		—		—		—		—
Retired stock	(2,708)	—		(75)		—		—		—		(75)
Stock issued for RSUs	7,118	—		—		—		—		—		—
Exercised stock options	347,800	3		5,039		—		—		—		5,042
Share-based compensation expense	—	—		900		—		—		—		900
ESOP compensation expense	—	—		502		—		264		—		766
Other comprehensive loss	—	—		—		—		—		(914)		(914)
Balance at December 31, 2021	16,303,461	$	163	$	147,552	$	258,986	$	(5,555)	$	600	$	401,746

6

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders' Equity

(Dollars in thousands)

	(Unaudited)
	Three Months Ended December 31, 2020
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at September 30, 2020	17,020,724	$	170	$	170,204	$	234,023	$	(6,216)	$	2,170	$	400,351
Net income	—	—		—		9,461		—		—		9,461
Cash dividends declared on common stock, $0.08/common share	—	—		—		(1,302)		—		—		(1,302)
Common stock repurchased	(277,122)	(3)		(5,176)		—		—		—		(5,179)
Forfeited restricted stock	(6,575)	—		—		—		—		—		—
Exercised stock options	54,000	1		775		—		—		—		776
Share-based compensation expense	—	—		454		—		—		—		454
ESOP compensation expense	—	—		95		—		133		—		228
Other comprehensive loss	—	—		—		—		—		(65)		(65)
Balance at December 31, 2020	16,791,027	$	168	$	166,352	$	242,182	$	(6,083)	$	2,105	$	404,724
	(Unaudited)
	Six Months Ended December 31, 2020
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2020	17,021,357	$	170	$	169,648	$	242,776	$	(6,348)	$	2,017	$	408,263
Net income	—	—		—		15,214		—		—		15,214
Cumulative-effect adjustment due to the adoption of ASU 2016-13	—	—		—		(13,358)		—		—		(13,358)
Cash dividends declared on common stock, $0.15/common share	—	—		—		(2,450)		—		—		(2,450)
Stock repurchased	(277,122)	(3)		(5,176)		—		—		—		(5,179)
Forfeited restricted stock	(6,575)	—		—		—		—		—		—
Retired stock	(633)	—		(9)		—		—		—		(9)
Exercised stock options	54,000	1		775		—		—		—		776
Share-based compensation expense	—	—		960		—		—		—		960
ESOP compensation expense	—	—		154		—		265		—		419
Other comprehensive income	—	—		—		—		—		88		88
Balance at December 31, 2020	16,791,027	$	168	$	166,352	$	242,182	$	(6,083)	$	2,105	$	404,724

The accompanying notes are an integral part of these consolidated financial statements.

7

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Dollars in thousands)

	(Unaudited)
	Six Months Ended December 31,
	2021		2020
Operating activities:
Net income	$	21,605	$	15,214
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision (benefit) for credit losses	(3,960)		(2,080)
Depreciation and amortization	4,782		3,885
Deferred income tax expense	5,154		1,671
Net accretion of purchase accounting adjustments on loans	(784)		(864)
Net amortization and accretion	1,586		522
Impairment on assets held for sale	87		—
Gain on sale of REO	(3)		(35)
BOLI income	(1,008)		(1,043)
Gain on sale of loans held for sale	(7,958)		(7,048)
Origination of loans held for sale	(301,898)		(312,627)
Proceeds from sale of loans held for sale	303,911		264,325
New deferred loan origination fees, net	(273)		(316)
Decrease (increase) in accrued interest receivable and other assets	(2,321)		4,328
Core deposit intangible amortization	158		440
ESOP compensation expense	766		419
Share-based compensation expense	900		960
Increase (decrease) in other liabilities	(3,391)		717
Net cash provided by (used in) operating activities	17,353		(31,532)
Investing activities:
Purchases of debt securities available for sale	(7,011)		(73,690)
Proceeds from maturities, calls and paydowns of debt securities available for sale	40,042		46,893
Purchases of commercial paper	(291,652)		(338,567)
Proceeds from maturities and calls of commercial paper	227,499		459,550
Purchases of CDs in other banks	(996)		(1,245)
Proceeds from maturities of CDs in other banks	7,116		8,297
Net redemptions (purchases) of other investments, cost	1,593		(626)
Net increase in loans	34,131		105,181
Purchase of BOLI	(93)		(96)
Purchase of equipment for operating leases	(1,677)		(6,940)
Payoff of equipment for operating leases	1,558		—
Purchase of premises and equipment	(4,886)		(13,382)
Proceeds from sale of assets held for sale	1,693		—
Proceeds from sale of REO	146		228
Net cash provided by investing activities	7,463		185,603
Financing activities:
Net increase (decrease) in deposits	43,150		(42,487)
Net decrease in short-term borrowings	(97,000)		—
Proceeds from long-term borrowings	30,000		—
Common stock repurchased	(19,403)		(5,179)
Cash dividends paid	(2,694)		(2,450)
Retired stock	(75)		(9)
Exercised stock options	5,042		776
Net cash used in financing activities	(40,980)		(49,349)
Net increase (decrease) in cash and cash equivalents	(16,164)		104,722
Cash and cash equivalents at beginning of period	50,990		121,622
Cash and cash equivalents at end of period	$	34,826	$	226,344

8

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows (continued)

(Dollars in thousands)

	(Unaudited)
	Six Months Ended December 31,
	2021		2020
Supplemental disclosures:
Cash paid during the period for:
Interest	$	2,929	$	5,404
Income taxes	192		1,686
Noncash transactions:
Unrealized gain (loss) in value of debt securities available for sale, net of income taxes	(914)		88
Transfer of loans to REO	—		108
Transfer of loans held for sale to loans held for investment	11,629		10,496
Transfer of loans held for investment to loans held for sale	12,827		—
ROU asset and lease liabilities for operating lease accounting	946		597
Transfer of premises and equipment to assets held for sale (included in other assets)	3,229		—

The accompanying notes are an integral part of these consolidated financial statements.

9

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

1.    Summary of Significant Accounting Policies

The consolidated financial statements presented in this report include the accounts of HomeTrust Bancshares, Inc., a Maryland corporation ("HomeTrust"), and its wholly-owned subsidiary, HomeTrust Bank (the "Bank"). As used throughout this report, the term the "Company" refers to HomeTrust and the Bank, its consolidated subsidiary, unless the context otherwise requires.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2021 ("2021 Form 10-K") filed with the SEC on September 10, 2021. The results of operations for the six months ended December 31, 2021 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2022.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company's accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments. In particular, management has identified the determination of the provision and the allowance for credit losses on loans as an accounting policy that, due to the judgments, estimates and assumptions inherent in this policy, is critical to an understanding of the Company's financial statements. This policy and the related judgments, estimates and assumptions is described in greater detail in the notes to the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in the 2021 Form 10-K. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to this critical accounting policy, the use of other judgments, estimates and assumptions could result in material differences in the Company's results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on this estimate and the Company's financial condition and operating results in future periods.

The COVID-19 pandemic has caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. The effects of the COVID-19 pandemic may meaningfully impact significant estimates such as the allowance for credit losses or certain loan concentrations in the hospitality and healthcare industries. See "Note 6 - Loans and Allowance for Credit Losses on Loans" for more information on loans that have been modified or are in deferral due to COVID-19.

Reclassifications and corrections. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or stockholders’ equity as previously reported.

2.    Recent Accounting Pronouncements

Adoption of New Accounting Standards

ASU 2020-01, "Investment—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." This ASU clarified the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2021 and early adoption was permitted. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.

Newly Issued but Not Yet Effective Accounting Standards

ASU 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments." This ASU amends the lease classification requirements for lessors to classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease that would result in the recognition of a day-one loss at lease commencement, provided that the lease includes variable lease payments that do not depend on an index or rate. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset and therefore, does not recognize a selling profit or loss. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

10

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

3.    Debt Securities

Debt securities available for sale consist of the following at the dates indicated:

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,984	$	85	$	(136)	$	18,933
MBS, residential	37,424		882		(121)		38,185
Municipal bonds	6,928		321		—		7,249
Corporate bonds	57,735		94		(345)		57,484
Total	$	121,071	$	1,382	$	(602)	$	121,851

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,975	$	135	$	(37)	$	19,073
MBS, residential	42,119		1,339		(54)		43,404
Municipal bonds	9,098		453		—		9,551
Corporate bonds	84,301		257		(127)		84,431
Total	$	154,493	$	2,184	$	(218)	$	156,459

Debt securities available for sale by contractual maturity at December 31, 2021 and June 30, 2021 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.

	December 31, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	36,079	$	36,230
Due after one year through five years	41,755		41,500
Due after five years through ten years	5,813		5,936
Due after ten years	—		—
MBS, residential	37,424		38,185
Total	$	121,071	$	121,851

	June 30, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	34,615	$	34,684
Due after one year through five years	73,249		73,633
Due after five years through ten years	4,510		4,738
Due after ten years	—		—
MBS, residential	42,119		43,404
Total	$	154,493	$	156,459

The Company had no sales of debt securities available for sale during the three and six months ended December 31, 2021 and 2020. There were no gross realized gains or losses for the three and six months ended December 31, 2021 and 2020.

Debt securities available for sale with amortized costs totaling $55,636 and $52,603 and market values of $56,267 and $53,897 at December 31, 2021 and June 30, 2021, respectively, were pledged as collateral to secure various public deposits and other borrowings.

11

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The gross unrealized losses and the fair value for debt securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and June 30, 2021 were as follows:

	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,864	$	(136)	$	—	$	—	$	14,864	$	(136)
MBS, residential	9,344		(100)		1,132		(21)		10,476		(121)
Corporate bonds	43,619		(345)		—		—		43,619		(345)
Total	$	67,827	$	(581)	$	1,132	$	(21)	$	68,959	$	(602)

	June 30, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,963	$	(37)	$	—	$	—	$	14,963	$	(37)
MBS, residential	5,212		(28)		1,205		(26)		6,417		(54)
Corporate bonds	19,873		(127)		—		—		19,873		(127)
Total	$	40,048	$	(192)	$	1,205	$	(26)	$	41,253	$	(218)

The total number of securities with unrealized losses at December 31, 2021 and June 30, 2021 were 39 and 28, respectively.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. All debt securities available for sale in an unrealized loss position as of December 31, 2021 continue to perform as scheduled and management does not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of management's evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, management considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. Management does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that securities will be required to be sold. See "Note 1 – Summary of Significant Account Policies" in our 2021 Form 10-K for further discussion.

Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that management will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.

Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on investment securities and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021, the accrued interest receivable for debt securities available for sale was $529.

4.    Other Investments

Other investments, at cost, consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
FHLB of Atlanta stock	$	2,965	$	6,153
FRB stock	7,403		7,386
SBIC investments	11,749		10,171
Total	$	22,117	$	23,710

As a requirement for membership, the Bank invests in the stock of both the FHLB of Atlanta and the FRB. No ready market exists for these securities so carrying value, or cost, approximates their fair value based on the redemption provisions of the FHLB of Atlanta and the FRB, respectively. SBIC investments are equity securities without a readily determinable fair value and are recorded at cost.

12

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

5.    Loans Held For Sale

Loans held for sale as of the dates indicated consist of the following:

	December 31, 2021		June 30, 2021
One-to-four family	$	19,246	$	31,873
SBA	8,220		4,160
HELOCs - originated	74,604		57,506
Total	$	102,070	$	93,539

13

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

6.    Loans and Allowance for Credit Losses on Loans

Loans consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
Commercial loans:
Commercial real estate	$	1,113,330	$	1,142,276
Construction and development	226,439		179,427
Commercial and industrial	162,396		141,341
Equipment finance	367,008		317,920
Municipal finance	131,078		140,421
PPP loans	19,044		46,650
Total commercial loans	2,019,295		1,968,035
Retail consumer loans:
One-to-four family	356,850		406,549
HELOCs - originated	128,189		130,225
HELOCs - purchased	30,795		38,976
Construction and land/lots	69,253		66,027
Indirect auto finance	84,581		115,093
Consumer	7,109		8,362
Total retail consumer loans	676,777		765,232
Total loans, net of deferred loan fees and costs	2,696,072		2,733,267
Allowance for credit losses on loans	(30,933)		(35,468)
Loans, net	$	2,665,139	$	2,697,799

_________________________________________________________________

(1) At December 31, 2021 and June 30, 2021 accrued interest receivable of $7,560 and $7,339 was accounted for separately from the amortized cost basis.

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

Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:

Pass—A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special Mention—A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard—A substandard asset is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful—An asset classified doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values.

Loss—Assets classified loss are considered uncollectible and of such little value that their continuing to be carried as an asset is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

14

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022		2021		2020		2019		2018		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	83,972	$	221,764	$	171,332	$	125,455	$	141,325	$	313,297	$	21,312	$	1,078,457
Special mention	741		—		—		—		15,442		13,248		—		29,431
Substandard	—		—		—		—		608		4,436		398		5,442
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	84,713	$	221,764	$	171,332	$	125,455	$	157,375	$	330,981	$	21,710	$	1,113,330
Construction and development
Risk rating:
Pass	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	7,606	$	163,684	$	221,094
Special mention	—		—		—		—		—		237		4,753		4,990
Substandard	—		—		—		—		—		355		—		355
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and development	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	8,198	$	168,437	$	226,439
Commercial and industrial
Risk rating:
Pass	$	35,007	$	24,658	$	14,293	$	12,733	$	7,932	$	22,767	$	38,283	$	155,673
Special mention	—		—		—		412		—		110		37		559
Substandard	—		670		350		860		—		54		4,230		6,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial and industrial	$	35,007	$	25,328	$	14,643	$	14,005	$	7,932	$	22,931	$	42,550	$	162,396
Equipment finance
Risk rating:
Pass	$	104,196	$	134,807	$	85,693	$	38,388	$	2,918	$	—	$	—	$	366,002
Special mention	—		84		364		277		—		—		—		725
Substandard	—		—		31		—		—		—		—		31
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	104,196	$	134,891	$	86,088	$	38,915	$	2,918	$	—	$	—	$	367,008
Municipal leases
Risk rating:
Pass	$	10,555	$	24,390	$	9,216	$	12,272	$	15,071	$	46,184	$	13,096	$	130,784
Special mention	—		—		—		—		—		257		—		257
Substandard	—		37		—		—		—		—		—		37
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	10,555	$	24,427	$	9,216	$	12,272	$	15,071	$	46,441	$	13,096	$	131,078
PPP loans
Risk rating:
Pass	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Total commercial loans
Risk rating:
Pass	$	252,343	$	436,004	$	292,964	$	191,695	$	171,819	$	389,854	$	236,375	$	1,971,054
Special mention	741		84		364		689		15,442		13,852		4,790		35,962
Substandard	—		707		381		860		608		4,845		4,628		12,029
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total commercial loans	$	253,084	$	436,795	$	293,709	$	193,494	$	187,869	$	408,551	$	245,793	$	2,019,295

15

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022			2021		2020		2019			2018		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	18,078		$	68,642	$	53,075	$	34,164		$	32,376	$	139,793	$	2,913	$	349,041
Special mention	—			—		—		—			—		987		—		987
Substandard	—			—		963		540			212		4,639		—		6,354
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		—			—		310		—		310
Total one-to-four family	$	18,078		$	68,642	$	54,038	$	34,704		$	32,588	$	145,887	$	2,913	$	356,850
HELOCs - originated
Risk rating:
Pass	$	941		$	1,400	$	373	$	1,602		$	147	$	8,662	$	113,937	$	127,062
Special mention	—			—		—		—			—		10		—		10
Substandard	—			—		—		158			—		908		51		1,117
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - originated	$	941		$	1,400	$	373	$	1,760		$	147	$	9,580	$	113,988	$	128,189
HELOCs - purchased
Risk rating:
Pass	$	—		$	—	$	—	$	—		$	—	$	—	$	30,342	$	30,342
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—		0	—		—		453		453
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - purchased	$	—		$	—	$	—	$	—		$	—	$	—	$	30,795	$	30,795
Construction and land/lots
Risk rating:
Pass	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,474	$	53,454	$	68,858
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—			—		395		—		395
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total construction and land/lots	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,869	$	53,454	$	69,253
Indirect auto finance
Risk rating:
Pass	$	9,174		$	24,932	$	20,364	$	11,420		$	12,664	$	5,146	$	—	$	83,700
Special mention	—		0	—		—		—			—		—		—		—
Substandard	—			52		327		126			243		133		—		881
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total indirect auto finance	$	9,174		$	24,984	$	20,691	$	11,546		$	12,907	$	5,279	$	—	$	84,581
Total consumer
Risk rating:
Pass	$	382		$	1,048	$	743	$	4,323		$	154	$	102	$	308	$	7,060
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		16			—		4		28		48
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		1			—		—		—		1
Total consumer	$	382		$	1,048	$	743	$	4,340		$	154	$	106	$	336	$	7,109
Total retail consumer loans
Risk rating:
Pass	$	29,581		$	105,170	$	77,278	$	51,562		$	45,341	$	156,177	$	200,954	$	666,063
Special mention	—			—		—		—			—		997		—		997
Substandard	—			52		1,290		840			455		6,079		532		9,248
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		1			—		310		—		311
Total retail consumer loans	$	29,581		$	105,222	$	78,568	$	52,403		$	45,796	$	163,721	$	201,486	$	676,777

16

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	227,850	$	177,691	$	142,407	$	158,147	$	158,525	$	220,834	$	25,860	$	1,111,314
Special mention	—		—		—		16,951		1,256		3,092		—		21,299
Substandard	—		—		—		630		4,993		3,642		398		9,663
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	227,850	$	177,691	$	142,407	$	175,728	$	164,774	$	227,568	$	26,258	$	1,142,276
Construction and development
Risk rating:
Pass	18,262		6,523		10,349		6,008		2,693		7,153		123,843		$	174,831
Special mention	—		—		—		—		—		286		3,827		4,113
Substandard	—		—		—		—		—		482		—		482
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total construction and development	$	18,262	$	6,523	$	10,349	$	6,008	$	2,693	$	7,922	$	127,670	$	179,427
Commercial and industrial
Risk rating:
Pass	29,606		14,010		18,826		10,759		15,346		10,589		36,165		$	135,301
Special mention	—		21		438		110		32		125		37		763
Substandard	31		33		300		—		—		83		4,829		5,276
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total commercial and industrial	$	29,637	$	14,064	$	19,564	$	10,869	$	15,378	$	10,798	$	41,031	$	141,341
Equipment finance
Risk rating:
Pass	154,685		104,681		53,178		4,773		—		—		—		$	317,317
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		323		—		—		—		—		323
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	154,685	$	104,681	$	53,781	$	4,773	$	—	$	—	$	—	$	317,920
Municipal leases
Risk rating:
Pass	23,358		19,240		14,005		17,979		9,738		47,144		8,700		$	140,164
Special mention	—		—		—		—		—		257		—		257
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	23,358	$	19,240	$	14,005	$	17,979	$	9,738	$	47,401	$	8,700	$	140,421
PPP loans
Risk rating:
Pass	29,667		16,983		—		—		—		—		—		$	46,650
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	29,667	$	16,983	$	—	$	—	$	—	$	—	$	—	$	46,650
Total commercial loans
Risk rating:
Pass	$	483,428	$	339,128	$	238,765	$	197,666	$	186,302	$	285,720	$	194,568	$	1,925,577
Special mention	—		21		438		17,061		1,288		3,760		3,864		26,432
Substandard	31		33		623		630		4,993		4,207		5,227		15,744
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		2		—		2
Total commercial loans	$	483,459	$	339,182	$	240,106	$	215,357	$	192,583	$	293,689	$	203,659	$	1,968,035

17

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	72,723	$	52,987	$	46,958	$	40,461	$	37,361	$	143,531	$	4,345	$	398,366
Special mention	—		—		—		—		27		1,084		—		1,111
Substandard	246		981		—		216		86		5,037		—		6,566
Doubtful	—		—		—		—		—		191		—		191
Loss	—		—		—		—		—		315		—		315
Total one-to-four family	$	72,969	$	53,968	$	46,958	$	40,677	$	37,474	$	150,158	$	4,345	$	406,549
HELOCs - originated
Risk rating:
Pass	2,767		465		1,294		217		716		9,469		114,048		$	128,976
Special mention	—		—		—		—		—		12		—		12
Substandard	—		—		159		—		38		935		105		1,237
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - originated	$	2,767	$	465	$	1,453	$	217	$	754	$	10,416	$	114,153	$	130,225
HELOCs - purchased
Risk rating:
Pass	—		—		—		—		—		—		38,523		$	38,523
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		453		453
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	38,976	$	38,976
Construction and land/lots
Risk rating:
Pass	4,244		12,133		2,357		956		—		3,558		42,267		$	65,515
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		96		—		416		—		512
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and land/lots	$	4,244	$	12,133	$	2,357	$	1,052	$	—	$	3,974	$	42,267	$	66,027
Indirect auto finance
Risk rating:
Pass	42,128		27,134		16,224		18,853		7,561		2,061		—		$	113,961
Special mention	—		—		—		—		—		—		—		—
Substandard	29		415		195		273		143		75		—		1,130
Doubtful	—		—		—		—		—		—		—		—
Loss	2		—		—		—		—		—		—		2
Total indirect auto finance	$	42,159	$	27,549	$	16,419	$	19,126	$	7,704	$	2,136	$	—	$	115,093
Consumer
Risk rating:
Pass	1,344		1,019		5,204		252		90		91		288		$	8,288
Special mention	—		—		—		14		—		—		—		14
Substandard	—		3		19		11		4		10		11		58
Doubtful	—		—		—		—		—		—		—		—
Loss	—		1		1		—		—		—		—		2
Total consumer	$	1,344	$	1,023	$	5,224	$	277	$	94	$	101	$	299	$	8,362
Total retail consumer loans
Risk rating:
Pass	$	123,206	$	93,738	$	72,037	$	60,739	$	45,728	$	158,710	$	199,471	$	753,629
Special mention	—		—		—		14		27		1,096		—		1,137
Substandard	275		1,399		373		596		271		6,473		569		9,956
Doubtful	—		—		—		—		—		191		—		191
Loss	2		1		1		—		—		315		—		319
Total retail consumer loans	$	123,483	$	95,138	$	72,411	$	61,349	$	46,026	$	166,785	$	200,040	$	765,232

18

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following tables present aging analysis of past due loans (includes nonaccrual loans) by segment and class for the periods indicated below:

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
December 31, 2021
Commercial loans:
Commercial real estate	$	56	$	242	$	298	$	1,113,032	$	1,113,330
Construction and development	—		253		253		226,186		226,439
Commercial and industrial	345		560		905		161,491		162,396
Equipment finance	90		93		183		366,825		367,008
Municipal finance	—		—		—		131,078		131,078
PPP loans	20		—		20		19,024		19,044
Retail consumer loans:
One-to-four family	1,007		1,493		2,500		354,350		356,850
HELOCs - originated	86		272		358		127,831		128,189
HELOCs - purchased	346		—		346		30,449		30,795
Construction and land/lots	123		22		145		69,108		69,253
Indirect auto finance	346		110		456		84,125		84,581
Consumer	337		41		378		6,731		7,109
Total loans	$	2,756	$	3,086	$	5,842	$	2,690,230	$	2,696,072

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2021
Commercial loans:
Commercial real estate	$	396	$	1,680	$	2,076	$	1,140,200	$	1,142,276
Construction and development	—		37		37		179,390		179,427
Commercial and industrial	634		19		653		140,688		141,341
Equipment finance	—		347		347		317,573		317,920
Municipal finance	—		—		—		140,421		140,421
PPP loans	—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	1,112		1,124		2,236		404,313		406,549
HELOCs - originated	290		186		476		129,749		130,225
HELOCs - purchased	198		79		277		38,699		38,976
Construction and land/lots	6		35		41		65,986		66,027
Indirect auto finance	299		259		558		114,535		115,093
Consumer	378		36		414		7,948		8,362
Total loans	$	3,313	$	3,802	$	7,115	$	2,726,152	$	2,733,267

19

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table presents recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the six months ended December 31, 2021.

	December 31, 2021		June 30, 2021		90 Days + & still accruing as of December 31, 2021		Nonaccrual with no allowance as of December 31, 2021		Interest income recognized
Commercial loans:
Commercial real estate	$	1,244	$	7,015	$	—	$	—	$	24
Construction and development	355		482		—		—		4
Commercial and industrial	923		49		—		67		17
Equipment finance	328		630		—		—		1
Municipal finance	38		—		—		—		2
Retail consumer loans:
One-to-four family	2,127		2,625		—		540		27
HELOCs - originated	352		476		—		—		3
HELOCs - purchased	452		453		—		359		11
Construction and land/lots	22		22		—		—		—
Indirect auto finance	272		438		—		—		5
Consumer	45		416		—		—		2
Total loans	$	6,158	$	12,606	$	—	$	966	$	96

The decrease in the nonaccrual balance in the above schedule, compared to June 30, 2021, is mainly due to the payoff of two commercial real estate loan relationships totaling $5.1 million.

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. The above table excludes $11,048 and $11,088 of TDRs that were performing under their restructured payment terms as of December 31, 2021 and June 30, 2021, respectively.

The following table presents a breakdown of the provision (benefit) for credit losses included in our Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Provision (benefit) for credit losses:
Loans	$	(2,440)	$	(3,350)	$	(3,775)	$	(2,400)
Off-balance-sheet credit exposure	(110)		140		(235)		140
Commercial paper	50		180		50		180
Total provision (benefit) for credit losses	$	(2,500)	$	(3,030)	$	(3,960)	$	(2,080)

The following tables present analysis of the ACL on loans by segment for the periods indicated below:

	Three Months Ended						Six Months Ended
	December 31, 2021						December 31, 2021
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	24,204	$	10,202	$	34,406	$	24,746	$	10,722	$	35,468
Benefit for credit losses	(140)		(2,300)		(2,440)		(763)		(3,012)		(3,775)
Charge-offs	(1,131)		(16)		(1,147)		(1,750)		(106)		(1,856)
Recoveries	35		79		114		735		361		1,096
Net (charge-offs) recoveries	(1,096)		63		(1,033)		(1,015)		255		(760)
Balance at end of period	$	22,968	$	7,965	$	30,933	$	22,968	$	7,965	$	30,933

20

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	Three Months Ended						Six Months Ended
	December 31, 2020						December 31, 2020
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	25,199	$	17,933	$	43,132	$	21,116	$	6,956	$	28,072
Impact of adoption ASU 2016-13	—		—		—		4,073		10,736		14,809
Provision (benefit) for credit losses	(292)		(3,058)		(3,350)		—		(2,400)		(2,400)
Charge-offs	(308)		(253)		(561)		(1,403)		(935)		(2,338)
Recoveries	300		323		623		1,113		588		1,701
Net (charge-offs) recoveries	(8)		70		62		(290)		(347)		(637)
Balance at end of period	$	24,899	$	14,945	39,844		$	24,899	$	14,945	$	39,844

The following tables present ending balances of loans and the related ACL, by segment and class for the periods indicated below:

	Allowance for Credit Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
December 31, 2021
Commercial loans:
Commercial real estate	$	2	$	11,065	$	11,067	$	580	$	1,112,750	$	1,113,330
Construction and development	—		1,684		1,684		—		226,439		226,439
Commercial and industrial	674		2,566		3,240		2,172		160,224		162,396
Equipment finance	—		6,520		6,520		—		367,008		367,008
Municipal finance	—		457		457		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	2		3,632		3,634		2,500		354,350		356,850
HELOCs - originated	—		1,272		1,272		—		128,189		128,189
HELOCs - purchased	—		306		306		—		30,795		30,795
Construction and land/lots	—		705		705		—		69,253		69,253
Indirect auto finance	—		1,929		1,929		—		84,581		84,581
Consumer	—		119		119		—		7,109		7,109
Total	$	678	$	30,255	$	30,933	$	5,252	$	2,690,820	$	2,696,072

21

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	Allowance for Loan Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
June 30, 2021
Commercial loans:
Commercial real estate	$	456	$	12,826	$	13,282	$	5,729	$	1,136,547	$	1,142,276
Construction and development	—		1,801		1,801		80		179,347		179,427
Commercial and industrial	9		2,583		2,592		760		140,581		141,341
Equipment finance	—		6,537		6,537		275		317,645		317,920
Municipal finance	—		534		534		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	2		5,407		5,409		1,977		404,572		406,549
HELOCs - originated	—		1,512		1,512		—		130,225		130,225
HELOCs - purchased	—		452		452		—		38,976		38,976
Construction and land/lots	—		812		812		—		66,027		66,027
Indirect auto finance	—		2,367		2,367		—		115,093		115,093
Consumer	—		170		170		—		8,362		8,362
Total	$	467	$	35,001	$	35,468	$	8,821	$	2,724,446	$	2,733,267

In estimating ECL, ASC 326 prescribes that if foreclosure is probable, a CDA is required to be measured at the fair value of collateral, but as a practical expedient, if foreclosure is not probable, fair value measurement is optional. For those CDA loans measured at the fair value of collateral, a credit loss expense is recorded for loan amounts in excess of fair value. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, and securing collateral, as well as collateral coverage for those loans for the periods indicated below:

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
December 31, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	—	$	578	$	—	$	1,112,752	$	1,113,330
Construction and development	—		—		—		—		226,439		226,439
Commercial and industrial	—		—		—		650		161,746		162,396
Equipment finance	—		—		—		—		367,008		367,008
Municipal finance	—		—		—		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	1,335		—		—		—		355,515		356,850
HELOCs - originated	—		—		—		—		128,189		128,189
HELOCs - purchased	—		—		—		—		30,795		30,795
Construction and land/lots	—		—		—		—		69,253		69,253
Indirect auto finance	—		—		—		—		84,581		84,581
Consumer	—		—		—		—		7,109		7,109
Total	$	1,335	$	—	$	578	$	650	$	2,693,509	$	2,696,072
Total Collateral Value	$	1,825	$	—	$	1,044	$	—

22

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
June 30, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	3,421	$	2,308	$	—	$	1,136,547	$	1,142,276
Construction and development	—		80		—		—		179,347		179,427
Commercial and industrial	—		—		—		25		141,316		141,341
Equipment finance	—		—		—		—		317,920		317,920
Municipal finance	—		—		—		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	807		—		—		—		405,742		406,549
HELOCs - originated	—		—		—		—		130,225		130,225
HELOCs - purchased	—		—		—		—		38,976		38,976
Construction and land/lots	—		—		—		—		66,027		66,027
Indirect auto finance	—		—		—		—		115,093		115,093
Consumer	—		—		—		—		8,362		8,362
Total	$	807	$	3,501	$	2,308	$	25	$	2,726,626	$	2,733,267
Total Collateral Value	$	1,160	$	3,602	$	2,723	$	26

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

	Three Months Ended December 31,
	2021					2020
	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
Other TDRs:
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	1	51		51		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	—	—		—		3	45		43
Total	4	$	266	$	263	5	$	289	$	282

	Six Months Ended December 31,
	2021					2020
	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
Other TDRs:
Commercial:
Commercial real estate	—	—		—		1	4,408		3,800
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	2	68		70		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	5	84		80		9	141		109
Total	10	$	367	$	362	12	$	4,793	$	4,148

23

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

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 periods indicated below:

	Three Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	—	$	—	1	$	1
Total	—	$	—	1	$	1

	Six Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	2	44		2	$	12
Total	2	$	44	2	$	12

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 determining the ACL, management considers TDRs for all loan classes, and the subsequent nonperformance in accordance with their modified terms, by measuring a reserve on a loan-by-loan basis 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.

Off-Balance-Sheet Credit Exposure

The Company maintains a separate reserve for credit losses on off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At December 31, 2021, the allowance for credit losses on off-balance-sheet credit exposures included in other liabilities was $2,088.

Modifications in Response to COVID-19

Beginning in March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. The CARES Act along with a joint agency statement issued by banking agencies and confirmed by FASB staff that short-term modifications made in response to COVID-19 were not considered TDRs; however, the relief offered by the CARES Act ended December 31, 2021.

The Bank offered payment and financial relief programs for borrowers impacted by COVID-19. These programs included loan payment deferrals for up to 90 days (which could be renewed for another 90 days under certain circumstances), waived late fees, and suspension of foreclosure proceedings and repossessions. Since March 2020, the Company received numerous requests from borrowers for some type of payment relief; however, the majority of these payment deferrals have ended and borrowers are again making regular loan payments.

As of December 31, 2021, the Company had $652 in loans with full principal and interest payment deferrals related to COVID-19 compared to $107 at June 30, 2021. Substantially all loans placed on full payment deferral during the pandemic have come out of deferral and borrowers are either making regular loan payments or interest-only payments. As of December 31, 2021, the Company had $15,604 in commercial loan deferrals on interest-only payments compared to $78,850 at June 30, 2021.

24

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

7.    Net Income per Share

The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock as of the dates indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Numerator:
Net income	$	11,078	$	9,461	$	21,605	$	15,214
Allocation of earnings to participating securities	(94)		(77)		(182)		(124)
Numerator for basic EPS - Net income available to common stockholders	$	10,984	$	9,384	$	21,423	$	15,090
Effect of dilutive securities:
Dilutive effect of participating securities	2		1		4		2
Numerator for diluted EPS	$	10,986	$	9,385	$	21,427	$	15,092
Denominator:
Weighted-average common shares outstanding - basic	15,632,283		16,202,844		15,696,765		16,216,917
Dilutive effect of assumed exercises of stock options	357,323		360,515		360,842		297,914
Weighted-average common shares outstanding - diluted	15,989,606		16,563,359		16,057,607		16,514,831
Net income per share - basic	$	0.70	$	0.58	$	1.36	$	0.93
Net income per share - diluted	$	0.68	$	0.57	$	1.33	$	0.92

Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. There were 41,000 and 56,000 stock options that were anti-dilutive for the three and six months ended December 31, 2021, respectively. There were 512,200 and 547,200 stock options that were anti-dilutive for the three and six months ended December 31, 2020, respectively.

8.    Equity Incentive Plan

The Company provides stock-based awards through the 2013 Omnibus Incentive Plan, which provides for awards of restricted stock, restricted stock units, stock options, stock appreciation rights and cash awards to directors, directors emeritus, officers, employees and advisory directors. The cost of equity-based awards under the 2013 Omnibus Incentive Plan generally is based on the fair value of the awards on their grant date. The maximum number of shares that may be utilized for awards under the plan is 2,962,400, including 2,116,000 for stock options and stock appreciation rights and 846,400 for awards of restricted stock and restricted stock units. Shares of common stock issued under the plan would be issued out of authorized but unissued shares, some or all of which may be repurchased shares. The Company repurchased a number of shares on the open market sufficient to cover awards of restricted stock and restricted stock units available to be granted under the 2013 Omnibus Incentive Plan, for $13,297, at an average cost of $15.71 per share during the year ended June 30, 2013.

The table below presents share-based compensation expense and the estimated related tax benefit for stock options and restricted stock for the three and six months ended December 31, 2021 and 2020, respectively:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Share-based compensation expense	$	485	$	454	$	900	$	960
Tax benefit	114		107		212		226

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HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The table below presents stock option activity and related information for the six months ended December 31, 2021 and 2020:

	Options	Weighted- Average Exercise Price		Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options outstanding at June 30, 2020	1,615,500	$	18.12	4.4	$	1,711
Exercised	54,000	14.37		—	—
Forfeited	26,900	25.77		—	—
Options outstanding at December 31, 2020	1,534,600	$	18.12	3.8	$	5,070
Exercisable at December 31, 2020	1,243,700	$	16.35	3.0	$	5,027
Non-vested at December 31, 2020	290,900	$	25.67	7.3	$	42
Options outstanding at June 30, 2021	1,319,456	$	19.07	3.9	$	11,657
Exercised	347,800	14.50		—	—
Forfeited	18,600	23.06		—	—
Options outstanding at December 31, 2021	953,056	$	20.65	4.1	$	9,840
Exercisable at December 31, 2021	727,506	$	19.12	3.2	$	8,631
Non-vested at December 31, 2021	225,550	$	25.62	6.9	$	1,210

There were no options granted during the six months ended December 31, 2021 and 2020.

At December 31, 2021, the Company had $894 of unrecognized compensation expense related to 225,550 stock options originally scheduled to vest over a five-year vesting period. The weighted average period over which compensation cost related to non-vested awards expected to be recognized was 1.1 years at December 31, 2021. At December 31, 2020, the Company had $1,297 of unrecognized compensation expense related to 290,900 stock options originally scheduled to vest over a five-year vesting period. The weighted average period over which compensation cost related to non-vested awards expected to be recognized was 1.3 years at December 31, 2020.

The table below presents restricted stock award activity and related information:

	Restricted Stock Awards	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested at June 30, 2020	144,046	$	25.89	$	2,305
Vested	2,600	25.37		—
Forfeited	7,650	25.65		—
Non-vested at December 31, 2020	133,796	$	25.91	$	2,584
Non-vested at June 30, 2021	151,575	$	25.06	$	4,229
Vested	8,918	26.93		—
Forfeited	9,400	24.57		—
Non-vested at December 31, 2021	133,257	$	25.06	$	4,128

The table above includes non-vested performance-based restricted stock units totaling 23,662 and 15,565 at December 31, 2021 and 2020, respectively. Each issuance of these stock units is scheduled to vest over 3.0 years assuming the applicable dilutive EPS goals are met.

At December 31, 2021, unrecognized compensation expense was $2,043 related to 133,257 shares of restricted stock originally scheduled to vest over three- and five-year vesting periods. The weighted average period over which compensation cost related to non-vested awards is expected to be recognized was 1.3 years at December 31, 2021. At December 31, 2020, unrecognized compensation expense was $2,250 related to 133,796 shares of restricted stock originally scheduled to vest over three- and five-year vesting periods. The weighted average period over which compensation cost related to non-vested awards is expected to be recognized was 1.4 years at December 31, 2020.

26

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

9.    Commitments and Contingencies

Loan Commitments – Legally binding commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. In the normal course of business, there are various outstanding commitments to extend credit that are not reflected in the consolidated financial statements. At December 31, 2021 and June 30, 2021, respectively, loan commitments (excluding $201,032 and $277,600 of undisbursed portions of construction loans) totaled $78,875 and $123,463 of which $22,199 and $45,270 were variable rate commitments and $56,676 and $78,193 were fixed rate commitments. The fixed rate loans had interest rates ranging from 1.08% to 8.56% at December 31, 2021 and 2.50% to 8.36% at June 30, 2021, and terms ranging from three to 30 years. Pre-approved but unused lines of credit (principally second mortgage home equity loans and overdraft protection loans) totaled $539,778 and $530,505 at December 31, 2021 and June 30, 2021, respectively. These amounts represent the Company's exposure to credit risk, and in the opinion of management have no more than the normal lending risk that the Company commits to its borrowers. The Company has two types of commitments related to certain one-to-four family loans held for sale: rate lock commitments and forward loan commitments. Rate lock commitments are commitments to extend credit to a customer that has an interest rate lock and are considered derivative instruments. The rate lock commitments do not qualify for hedge accounting. In order to mitigate the risk from interest rate fluctuations, the Company enters into forward loan sale commitments on a “best efforts” basis, which do not meet the definition of a derivative instrument. The fair value of these interest rate lock commitments was not material at December 31, 2021 or June 30, 2021.

The Company grants construction and permanent loans collateralized primarily by residential and commercial real estate to customers throughout its primary market areas. In addition, the Company grants equipment financing throughout the United States and municipal financing to customers throughout North and South Carolina. The Company’s loan portfolio can be affected by the general economic conditions within these market areas. Management believes that the Company has no significant concentration of credit in the loan portfolio.

Restrictions on Cash – In response to COVID-19, the FRB reduced the reserve requirements to zero on March 15, 2020. Prior to this change the Bank was required by regulation to maintain a varying cash reserve balance with the FRB. 

Guarantees – Standby letters of credit obligate the Company to meet certain financial obligations of its customers, if, under the contractual terms of the agreement, the customers are unable to do so. The financial standby letters of credit issued by the Company are irrevocable and payment is only guaranteed upon the borrower's failure to perform its obligations to the beneficiary. Total commitments under standby letters of credit as of December 31, 2021 and June 30, 2021 were $9,496 and $8,681, respectively. There was no liability recorded for these letters of credit at December 31, 2021 or June 30, 2021, respectively.

Litigation – From time to time, the Company is involved in litigation matters in the ordinary course of business. These proceedings and the associated legal claims are often contested, and the outcome of individual matters is not always predictable. These claims and counter claims typically arise during the course of collection efforts on problem loans or with respect to actions to enforce liens on properties in which the Company holds a security interest. The Company is not a party to any pending legal proceedings that management believes would have a material adverse effect on the Company’s financial condition or results of operations.

10.    Fair Value of Financial Instruments

The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Debt securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. The Company measures the fair value of loans receivable under the exit price notion. The fair value of nonperforming loans is based on the underlying value of the collateral.

Fair Value Hierarchy

The Company groups assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1:    Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2:    Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3:    Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

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HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 20 of the 2021 Form 10-K.

Financial Assets Recorded at Fair Value

The following table presents financial assets measured at fair value on a recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	18,933	$	—	$	18,933	$	—
MBS, residential	38,185		—		38,185		—
Municipal bonds	7,249		—		7,249		—
Corporate bonds	57,484		—		57,484		—
Total	$	121,851	$	—	$	121,851	$	—

	June 30, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	19,073	$	—	$	19,073	$	—
MBS, residential	43,404		—		43,404		—
Municipal bonds	9,551		—		9,551		—
Corporate bonds	84,431		—		84,431		—
Total	$	156,459	$	—	$	156,459	$	—

There were no transfers between levels during the six months ended December 31, 2021 and 2020.

The following table presents financial assets measured at fair value on a non-recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	288	$	—	$	—	$	288
Commercial and industrial	—		—		—		—
Total	$	288	$	—	$	—	$	288

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	4,841	$	—	$	—	$	4,841
Equipment finance	275		—		—		275
Total	$	5,116	$	—	$	—	$	5,116

A loan is considered to be collateral dependent when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. For real estate loans, the fair value of the loan's collateral is determined by a third party appraisal, which is then adjusted for the estimated selling and closing costs related to liquidation of the collateral (typically ranging from 8% to 12% of the appraised value). For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. Additional discounts of 5% to 15% may be applied depending on the age of the appraisals. The unobservable inputs may vary depending on the individual asset with no one of the three methods being the predominant approach. For non-real estate loans, the fair value of the loan's collateral may be determined using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the customer and customer's business.

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HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The stated carrying value and estimated fair value amounts of financial instruments as of December 31, 2021 and June 30, 2021, are summarized below:

	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	34,826	$	34,826	$	34,826	$	—	$	—
Commercial paper	254,157		254,157		254,157		—		—
Certificates of deposit in other banks	34,002		34,002		—		34,002		—
Debt securities available for sale	121,851		121,851		—		121,851		—
Loans held for sale	102,070		103,317		—		—		103,317
Loans, net	2,665,139		2,625,236		—		—		2,625,236
FHLB stock	2,965		N/A		N/A		N/A		N/A
FRB stock	7,403		N/A		N/A		N/A		N/A
SBIC investments	11,749		11,749		—		—		11,749
Accrued interest receivable	8,200		8,200		—		640		7,560
Liabilities:
Noninterest-bearing and NOW accounts	1,321,502		1,321,502		—		1,321,502		—
Money market accounts	1,010,901		1,010,901		—		1,010,901		—
Savings accounts	224,474		224,474		—		224,474		—
Certificates of deposit	441,814		441,568		—		441,568		—
Borrowings	48,000		47,998		—		47,998		—
Accrued interest payable	42		42		—		42		—

	June 30, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	50,990	$	50,990	$	50,990	$	—	$	—
Commercial paper	189,596		189,596		189,596		—		—
Certificates of deposit in other banks	40,122		40,122		—		40,122		—
Debt securities available for sale	156,459		156,459		—		156,459		—
Loans held for sale	93,539		94,779		—		—		94,779
Loans, net	2,697,799		2,668,570		—		—		2,668,570
FHLB stock	6,153		N/A		N/A		N/A		N/A
FRB stock	7,386		N/A		N/A		N/A		N/A
SBIC investments	10,171		10,171		—		—		10,171
Accrued interest receivable	7,933		7,933		52		542		7,339
Liabilities:
Noninterest-bearing and NOW accounts	1,281,372		1,281,372		—		1,281,372		—
Money market accounts	975,001		975,001		—		975,001		—
Savings accounts	226,391		226,391		—		226,391		—
Certificates of deposit	472,777		474,397		—		474,397		—
Borrowings	115,000		115,000		—		115,000		—
Accrued interest payable	52		52		—		52		—

The Company had off-balance sheet financial commitments, which included approximately $829,181 and $940,249 of commitments to originate loans, undisbursed portions of interim construction loans, unused lines of credit, and standby letters of credit at December 31, 2021 and June 30, 2021, respectively (see "Note 9 – Commitments and Contingencies"). Since these commitments are based on current rates, the carrying amount approximates the fair value.

29

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

11.    Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at December 31, 2021 and June 30, 2021 and is included in other assets. The corresponding lease liability totaled $1,783 and $1,804 at December 31, 2021 and June 30, 2021, respectively, and is included in other liabilities. For the three and six months ended December 31, 2021 and 2020, interest expense on the lease liability totaled $24 and $48, respectively. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

30

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, medical, and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to five years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $23,869 and $25,932 with a residual value of $14,800 and $15,330 as of December 31, 2021 and June 30, 2021, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

31

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

As Lessor - Direct Financing Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $753 and $570, respectively. For the six months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,512 and $1,099, respectively.

The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.9 million and $63.3 million at December 31 and June 30, 2021, respectively.

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

32

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain matters in this Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions and are generally identified by use of the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements.

The factors that could result in material differentiation include, but are not limited to:

•the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity;

•the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write offs and changes in our allowance for credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets;

•changes in general economic conditions, either nationally or in our market areas;

•changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources;

•uncertainty regarding the limited future of LIBOR, and the expected transition toward new interest rate benchmarks;

•fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas;

•decreases in the secondary market for the sale of loans that we originate;

•results of examinations of us by the Board of Governors of the Federal Reserve System (“Federal Reserve”), the NCCOB, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings;

•legislative or regulatory changes that adversely affect our business including the effect of Dodd-Frank Wall Street Reform and Consumer Protection Act, changes in laws or regulations, changes in regulatory policies and principles or the application or interpretation of laws and regulations by regulatory agencies and tax authorities, including changes in deferred tax asset and liability activity, or the interpretation of regulatory capital or other rules, including as a result of Basel III;

•our ability to attract and retain deposits;

•management's assumptions in determining the adequacy of the allowance for credit losses;

•our ability to control operating costs and expenses, especially costs associated with our operation as a public company;

•the use of estimates in determining fair value of certain assets, which estimates may prove to be incorrect and result in significant declines in valuation;

•difficulties in reducing risks associated with the loans on our balance sheet;

•staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges;

•disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions;

•our ability to retain key members of our senior management team;

•costs and effects of litigation, including settlements and judgments;

•our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto;

•increased competitive pressures among financial services companies;

•changes in consumer spending, borrowing and savings habits;

•the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions;

•adverse changes in the securities markets;

•inability of key third-party providers to perform their obligations to us;

33

•changes in accounting principles, policies or guidelines and practices, as may be adopted by the financial institution regulatory agencies, the Public Company Accounting Oversight Board or the Financial Accounting Standards Board;

•other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services including the CARES Act; and

•other risks detailed from time to time in our filings with the SEC, including our 2021 Form 10-K.

Many of the forward-looking statements are based upon management's beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this report or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this report might not occur and you should not put undue reliance on any forward-looking statements.

As used throughout this report, the terms "we", "our", "us", "HomeTrust Bancshares" and the "Company" refer to HomeTrust Bancshares, Inc. and its consolidated subsidiary, HomeTrust Bank (the "Bank"), unless the context indicates otherwise.

Overview

HomeTrust Bancshares, Inc., a Maryland corporation, was formed for the purpose of becoming the holding company for HomeTrust Bank in connection with the Bank’s conversion from mutual to stock form, which was completed on July 10, 2012 (the “Conversion”). As a bank holding company and financial holding company, we are regulated by the Federal Reserve. As a North Carolina state-chartered bank, and member of the FRB, the Bank's primary regulators are the NCCOB and the Federal Reserve. The Bank's deposits are federally insured up to applicable limits by the FDIC. The Bank is a member of the FHLB of Atlanta, which is one of the 12 regional banks in the FHLB System. Our headquarters is located in Asheville, North Carolina.

Our principal business consists of attracting deposits from the general public and investing those funds, along with borrowed funds, in commercial real estate loans, construction and development loans, commercial and industrial loans, equipment finance leases, municipal leases, loans secured by first and second mortgages on one-to-four family residences including home equity loans, construction and land/lot loans, indirect automobile loans, and other consumer loans. We also originate one-to-four family loans, SBA loans, and HELOCs to sell to third parties. In addition, we invest in debt securities issued by United States Government agencies and GSEs, corporate bonds, commercial paper and certificates of deposit in other banks insured by the FDIC.

We offer a variety of deposit accounts for individuals, businesses, and nonprofit organizations. Deposits and borrowings are our primary source of funds for our lending and investing activities.

We are significantly affected by prevailing economic conditions, as well as government policies and regulations concerning, among other things, monetary and fiscal affairs, housing and financial institutions. Deposit flows are influenced by a number of factors, including interest rates paid on competing time deposits, other investments, account maturities, and the overall level of personal income and savings. Lending activities are influenced by the demand for funds, the number and quality of lenders, and regional economic cycles.

Our primary source of pre-tax income is net interest income. Net interest income is the difference between interest income, which is the income that we earn on our loans and investments, and interest expense, which is the interest that is paid on our deposits and borrowings. Changes in levels of interest rates affect our net interest income. Because the length of the COVID-19 pandemic and the efficacy of the extraordinary measures put in place to address its economic consequences are unknown, including the 150 basis point reduction in the targeted federal funds rate during 2020, until the pandemic subsides, we expect our net interest income and net interest margin to be adversely affected throughout fiscal 2022 and possibly longer.

A secondary source of income is noninterest income, which includes revenue we receive from providing products and services, including service charges and fees on deposit accounts, loan income and fees, lease income, gain on the sale of loans held for sale, and gains and losses from sales of debt securities.

An offset to net interest income is the provision for credit losses which is required to establish and maintain the ACL. All financial assets measured at amortized cost and off balance sheet credit exposures, including loans, investment securities and unfunded commitments are evaluated for credit losses. See "Note 1 – Summary of Significant Accounting Policies" in Item 1 of our 2021 Form 10-K for further discussion.

Our noninterest expenses consist primarily of salaries and employee benefits, occupancy expense, and computer services. Salaries and benefits consist primarily of the salaries and wages paid to our employees, payroll taxes, expenses for retirement and other employee benefits. Occupancy expenses, which are the fixed and variable costs of buildings and equipment, consist primarily of lease payments, property taxes, depreciation charges, maintenance and costs of utilities.

Our geographic footprint includes seven markets obtained through numerous strategic acquisitions as well as two de novo commercial loan offices. Looking forward, we believe opportunities currently exist within our market areas to grow our franchise. While COVID-19 has dampened our growth activities, we believe as the local and global economies return to normalcy the Company remains in a position to create growth. We may also seek to expand our franchise through the selective acquisition of individual branches, loan purchases and, to a lesser degree, whole bank transactions that meet our investment and market objectives. We will continue to be disciplined as it pertains to future expansion focusing primarily on growth in our current market areas.

34

At December 31, 2021, we had over 30 locations in North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). During the quarter ended September 30, 2021, we closed nine branches located in North Carolina, Tennessee, and Virginia.

Critical Accounting Policies and Estimates

Certain of our accounting policies are important to the portrayal of our financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances which could include, but are not limited to, changes in interest rates, changes in the performance of the economy and changes in the financial condition of borrowers.

The following represents our critical accounting policy:

Allowance for Credit Losses, or ACL, on Loans.  The ACL reflects our estimate of credit losses that will result from the inability of our borrowers to make required loan payments. We charge off loans against the ACL and subsequent recoveries, if any, increase the ACL when they are recognized. We use a systematic methodology to determine our ACL for loans held for investment and certain off-balance-sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. We consider the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The estimate of our ACL involves a high degree of judgment; therefore, our process for determining expected credit losses may result in a range of expected credit losses. Our ACL recorded in the balance sheet reflects our best estimate within the range of expected credit losses. We recognize in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses. Our ACL is calculated using collectively evaluated and individually evaluated loans.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this report contains certain non-GAAP financial measures, which include: tangible book value; tangible book value per share, tangible equity to tangible assets ratio; and the ratio of the ACL to total loans excluding PPP loans. Management has presented the non-GAAP financial measures in this discussion and analysis because it believes including these items provides useful and comparative information to assess trends in our core operations while facilitating the comparison of the quality and composition of our earnings over time and in comparison to our competitors. However, these non-GAAP financial measures are supplemental, are not audited and are not a substitute for operating results or any analysis determined in accordance with GAAP. Where applicable, we have also presented comparable earnings information using GAAP financial measures. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. See “Comparison of Results of Operations" for more detailed information about our financial performance for the three and six months ended December 31, 2021 and 2020.

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

	As of
(Dollars in thousands, except per share data)	December 31,		September 30,		December 31,
	2021		2021		2020
Total stockholders' equity	$	401,746	$	396,511	$	404,724
Less: goodwill, core deposit intangibles, net of taxes	25,780		25,830		26,130
Tangible book value	$	375,966	$	370,681	$	378,594
Common shares outstanding	16,303,461		16,307,658		16,791,027
Tangible book value per share	$	23.06	$	22.73	$	22.55
Book value per share	$	24.64	$	24.31	$	24.10

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

	As of
(Dollars in thousands)	December 31,			September 30,			December 31,
	2021			2021			2020
Tangible equity (1)	$	375,966		$	370,681		$	378,594
Total assets	3,502,819			3,481,360			3,679,971
Less: goodwill, core deposit intangibles, net of taxes	25,780			25,830			26,130
Total tangible assets	$	3,477,039		$	3,455,530		$	3,653,841
Tangible equity to tangible assets	10.81		%	10.73		%	10.36		%

_________________________________________________________________

(1)    Tangible equity (or tangible book value) is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.

35

Set forth below is a reconciliation to GAAP of the ACL to total loans and the ACL as adjusted to exclude PPP loans:

(Dollars in thousands)	December 31,			September 30,			December 31,
	2021			2021			2020
Total gross loans receivable	$	2,696,072		$	2,719,642		$	2,678,624
Less: PPP loans	19,044			28,762			64,845
Adjusted loans	$	2,677,028		$	2,690,880		$	2,613,779
ACL	$	30,933		$	34,406		$	39,844
ACL / Adjusted loans	1.16		%	1.28		%	1.52		%

Comparison of Financial Condition at December 31, 2021 and June 30, 2021

General.  Total assets and liabilities decreased by $21.9 million and $27.1 million down to $3.5 billion and $3.1 billion, respectively, at December 31, 2021 as compared to June 30, 2021. The decrease in assets was primarily driven by a combined decrease of $56.9 million, or 23.0%, in cash and cash equivalents, certificates of deposit in other banks, and debt securities available for sale, and a $37.2 million, or 1.4%, decrease in loans receivable as the Company redirected its excess liquidity to continue paying down borrowings during the period. These decreases were partially offset by a $64.6 million, or 34.1%, increase in commercial paper and a $8.5 million, or 9.1%, increase in loans held for sale.

Cash and cash equivalents and commercial paper.  Total cash and cash equivalents decreased $16.2 million, or 31.7%, to $34.8 million at December 31, 2021 from $51.0 million at June 30, 2021. Commercial paper increased $64.6 million, or 34.1%, to $254.2 million at December 31, 2021 from $189.6 million at June 30, 2021 which was funded by excess interest-earning deposits and a decrease in debt securities available for sale.

Debt securities available for sale and other investments.  Debt securities available for sale decreased $34.6 million, or 22.1%, to $121.9 million at December 31, 2021 from $156.5 million at June 30, 2021. At December 31, 2021, certificates of deposit in other banks decreased $6.1 million, or 15.3%, to $34.0 million compared to $40.1 million at June 30, 2021. The decrease in certificates of deposit in other banks was due to $7.1 million in maturities partially offset by $1.0 million in purchases. All certificates of deposit in other banks are fully insured by the FDIC. Other investments at cost decreased $1.6 million, or 6.7%, to $22.1 million at December 31, 2021 from $23.7 million at June 30, 2021. Other investments at cost included SBIC investments, FRB stock, and FHLB stock totaling $11.7 million, $7.4 million, and $3.0 million, respectively. The overall decrease was driven by a $3.2 million, or 51.8%, reduction in FHLB stock as a result of the paydowns in borrowings during the current period.

Loans held for sale. Loans held for sale increased $8.6 million, or 9.1%, to $102.1 million at December 31, 2021 from $93.5 million at June 30, 2021. The increase was primarily driven by a $17.1 million, or 29.7%, increase in HELOCs originated for sale, a $12.6 million, or 39.6%, decrease in mortgage loans held for sale, and a $4.1 million, or 97.6%, increase in SBA loans held for sale.

Loans, net of deferred loan fees and costs.  Total loans decreased $37.2 million, or 1.4%, to $2.7 billion at December 31, 2021 from the balance at June 30, 2021. The decrease was driven by a $88.5 million, or 11.6%, decrease in retail consumer loans resulting from a reduction in one-to-four family loans and indirect auto finance loans, partially as a result of the sale of $11.5 million of these loans in November 2021. This decrease was partially offset by a $78.9 million, or 4.1%, increase in commercial loans (excluding PPP loans) as the Company continues its focus on the growth of this loan segment.

36

Commercial and retail consumer loans consist of the following at the dates indicated:

	As of								Percent of total
(Dollars in thousands)	December 31,		June 30,		Change				December 31,		June 30,
	2021		2021		$		%		2021		2021
Commercial loans:
Commercial real estate	$	1,113,330	$	1,142,276	$	(28,946)	(2.5)	%	41.3	%	41.8	%
Construction and development	226,439		179,427		47,012		26.2		8.4		6.6
Commercial and industrial	162,396		141,341		21,055		14.9		6.0		5.2
Equipment finance	367,008		317,920		49,088		15.4		13.6		11.6
Municipal leases	131,078		140,421		(9,343)		(6.7)		4.9		5.1
PPP loans	19,044		46,650		(27,606)		(59.2)		0.7		1.7
Total commercial loans	2,019,295		1,968,035		51,260		2.6		74.9		72.0
Retail consumer loans:
One-to-four family	356,850		406,549		(49,699)		(12.2)		13.2		14.9
HELOCs - originated	128,189		130,225		(2,036)		(1.6)		4.8		4.8
HELOCs - purchased	30,795		38,976		(8,181)		(21.0)		1.1		1.4
Construction and land/lots	69,253		66,027		3,226		4.9		2.6		2.4
Indirect auto finance	84,581		115,093		(30,512)		(26.5)		3.1		4.2
Consumer	7,109		8,362		(1,253)		(15.0)		0.3		0.3
Total retail consumer loans	676,777		765,232		(88,455)		(11.6)		25.1		28.0
Total loans	$	2,696,072	$	2,733,267	$	(37,195)	(1.4)	%	100.0	%	100.0	%

Asset quality. Nonperforming assets decreased by $6.6 million, or 51.4%, to $6.2 million, or 0.18%, of total assets at December 31, 2021 compared to $12.8 million, or 0.36% of total assets at June 30, 2021. The significant decrease from June 30, 2021 was primarily a result of the payoff of two commercial real estate loan relationships totaling $5.1 million in the prior quarter. Nonperforming assets included $6.2 million in nonaccruing loans and $45,000 in REO at December 31, 2021, compared to $12.6 million and $188,000 in nonaccruing loans and REO, respectively, at June 30, 2021. Nonperforming loans to total loans was 0.23% at December 31, 2021 and 0.46% at June 30, 2021.

As of December 31, 2021, we had $652,000 in loans with full principal and interest payment deferrals related to COVID-19 compared to $107,000 at June 30, 2021. Substantially all loans placed on full payment deferral during the pandemic have come out of deferral and borrowers are either making regular loan payments or interest-only payments. As of December 31, 2021, we had $15.6 million in commercial loan deferrals on interest-only payments compared to $78.9 million at June 30, 2021.

We believe the steps we have taken and continue to take are necessary to effectively manage our portfolio and assist our customers through the ongoing uncertainty surrounding the duration, impact and government response to the COVID-19 pandemic. In addition, we will continue to work with our customers to determine the best option for repayment of accrued interest on the deferred payments.

The ratio of classified assets to total assets decreased to 0.65% at December 31, 2021 from 0.76% at June 30, 2021. Classified assets decreased $3.8 million, or 14.2%, to $22.9 million at December 31, 2021 compared to $26.7 million at June 30, 2021 primarily due to the payoff of two commercial real estate loan relationships discussed above. The Company's overall asset quality metrics continue to demonstrate its commitment to growing and maintaining a loan portfolio with a moderate risk profile; however, the Company will remain diligent in its monitoring of the portfolio during these uncertain times.

Our individually evaluated loans include loans on nonaccrual status and all TDRs, whether performing or on nonaccrual status under their restructured terms. Individually evaluated loans may be evaluated for reserve purposes using either the discounted cash flow or the collateral valuation method. As of December 31, 2021, there were $5.3 million in loans individually evaluated. For more information on these individually evaluated loans, see "Note 6 - Loans and Allowance for Credit Losses on Loans" in this Quarterly Report on Form 10-Q.

Allowance for credit losses.  The ACL on loans was $30.9 million, or 1.15%, of total loans at December 31, 2021 compared to $35.5 million, or 1.30%, of total loans at June 30, 2021. The overall decrease was driven by lower expected credit losses estimated by management based on an improving economic outlook.

There was a net benefit for credit losses of $4.0 million for the six months ended December 31, 2021, compared to a $2.1 million net benefit for the corresponding period in fiscal year 2021. Net loan charge-offs totaled $760,000 for the six months ended December 31, 2021, compared to net charge-offs of $637,000 for the same period last year. Net charge-offs as a percentage of average loans were 0.05% for the six months ended December 31, 2021 compared to net charge-offs of 0.04% for the corresponding period last year.

The allowance as a percentage of nonaccruing loans increased to 500.70% at December 31, 2021 from 281.38% at June 30, 2021.

37

Deferred income taxes. Deferred income taxes decreased $4.9 million, or 28.9%, to $12.0 million at December 31, 2021 from $16.9 million at June 30, 2021. The decrease was primarily a result of a release and reduction of the ACL, depreciation on new equipment finance leases, and bonus tax depreciation on new premises.

Other assets. Other assets increased $1.4 million, or 2.5%, to $58.9 million at December 31, 2021 from $57.5 million at June 30, 2021. The increase was primarily driven by a reclassification of assets held for sale from premises and equipment related to the nine branch closures, partially offset by lower net operating lease assets and lower current taxes receivable.

Deposits.  Deposits increased $43.2 million, or 1.5%, during the six months ended December 31, 2021 to $3.0 billion, driven by our successful efforts to increase core deposits which increased $74.1 million, or 3.0%. Partially offsetting this deposit increase was a decrease of $31.0 million, or 6.5%, in certificates of deposit as part of our managed runoff of the portfolio.

The following table sets forth our deposits by type of deposit account as of the dates indicated:

	As of								Percent of total
(Dollars in thousands)	December 31,		June 30,		Change				December 31,		June 30,
	2021		2021		$		%		2021		2021
Core deposits:
Noninterest-bearing accounts	$	677,159	$	636,414	$	40,745	6.4	%	22.6	%	21.5	%
NOW accounts	644,343		644,958		(615)		(0.1)		21.5		21.8
Money market accounts	1,010,901		975,001		35,900		3.7		33.7		33.0
Savings accounts	224,474		226,391		(1,917)		(0.8)		7.5		7.7
Core deposits	2,556,877		2,482,764		74,113		3.0		85.3		84.0
Certificates of deposit	441,814		472,777		(30,963)		(6.5)		14.7		16.0
Total	$	2,998,691	$	2,955,541	$	43,150	1.5	%	100.0	%	100.0	%

Borrowings.  Borrowings decreased $67.0 million, or 58.3%, to $48.0 million at December 31, 2021 compared to $115.0 million at June 30, 2021 as excess liquidity was used to pay down borrowings.

Other liabilities.  Other liabilities decreased $3.3 million, or 5.7%, to $54.4 million at December 31, 2021 compared to $57.7 million at June 30, 2021. The decrease was primarily a result of a $1.7 million, or 48.3%, reduction in accrued profit sharing expenses and a $902,000, or 99.1% decrease in commercial loan suspense.

Average Balances, Interest and Average Yield/Cost

Our operating results depend primarily on our net interest income, which is the difference between interest income on interest-earning assets, including loans and securities, and interest expense incurred on interest-bearing liabilities, including deposits and other borrowed funds. Interest rate fluctuations, as well as changes in the amount and type of interest-earning assets and interest-bearing liabilities, combine to affect net interest income. Our net interest income is affected by changes in the amount and mix of interest-earning assets and interest-bearing liabilities, referred to as a "volume change". It is also affected by changes in yields earned on interest-earning assets and rates paid on interest-bearing liabilities, referred to as a "rate change".

The following table presents the distribution of average assets, liabilities and equity, as well as interest income on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

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The following table presents the distribution of average assets, liabilities and equity, as well as interest income and fees on average interest-earning assets and interest expense and interest-bearing liabilities:

	For the Three Months Ended December 31,
	2021							2020
(Dollars in thousands)	Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate		Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate
Assets:
Interest-earning assets:
Loans receivable(1)(2)	$	2,819,262		$	27,236	3.83	%	$	2,826,133		$	28,648	4.02	%
Commercial paper and deposits in other banks	313,882			468		0.59		417,401			614		0.58
Debt securities available for sale	121,987			411		1.34		133,856			504		1.50
Other interest-earning assets(3)	22,327			680		12.09		39,290			696		7.03
Total interest-earning assets	3,277,458			28,795		3.49		3,416,680			30,462		3.54
Other assets	259,591							257,572
Total assets	$	3,537,049						$	3,674,252
Liabilities and equity:
Interest-bearing deposits:
Interest-bearing checking accounts	$	635,268		$	331	0.21	%	$	584,530		$	353	0.24	%
Money market accounts	998,297			349		0.14		848,760			414		0.19
Savings accounts	222,464			40		0.07		206,205			38		0.07
Certificate accounts	443,546			585		0.52		576,078			1,542		1.06
Total interest-bearing deposits	2,299,575			1,305		0.23		2,215,573			2,347		0.42
Borrowings	57,248			15		0.11		475,000			1,688		1.41
Total interest-bearing liabilities	2,356,823			1,320		0.22		2,690,573			4,035		0.59
Noninterest-bearing deposits	736,271							523,488
Other liabilities	44,974							57,813
Total liabilities	3,138,068							3,271,874
Stockholders' equity	398,981							402,378
Total liabilities and stockholders' equity	$	3,537,049						$	3,674,252
Net earning assets	$	920,635						$	726,107
Average interest-earning assets to
average interest-bearing liabilities	139.06		%					126.99		%
Tax-equivalent:
Net interest income				$	27,475						$	26,427
Interest rate spread						3.27	%						2.95	%
Net interest margin(4)						3.33	%						3.07	%
Non-tax-equivalent:
Net interest income				$	27,168						$	26,122
Interest rate spread						3.23	%						2.91	%
Net interest margin(4)						3.29	%						3.03	%

_________________________________________________________________

(1)The average loans receivable balances include loans held for sale and nonaccruing loans.

(2)Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $307 and $305 for the three months ended December 31, 2021 and 2020, respectively, calculated based on a combined federal and state tax rate of 24%.

(3)The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.

(4)Net interest income divided by average interest-earning assets.

39

	For the Six Months Ended December 31,
	2021							2020
(Dollars in thousands)	Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate		Average Balance Outstanding			Interest Earned/ Paid		Yield/ Rate
Assets:
Interest-earning assets:
Loans receivable(1)(2)	$	2,819,482		$	55,441	3.90	%	$	2,850,783		$	57,550	4.00	%
Commercial paper and deposits in other banks	295,746			799		0.54		420,785			1,495		0.70
Debt securities available for sale	130,143			935		1.43		120,062			1,032		1.71
Other interest-earning assets(3)	22,020			1,235		11.13		39,118			1,144		5.80
Total interest-earning assets	3,267,391			58,410		3.55		3,430,748			61,221		3.54
Other assets	260,288							254,610
Total assets	$	3,527,679						$	3,685,358
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts	$	635,362		728		0.23	%	$	572,505		750		0.26	%
Money market accounts	993,643			716		0.14		837,153			964		0.23
Savings accounts	223,061			81		0.07		203,374			75		0.07
Certificate accounts	450,706			1,352		0.60		632,894			3,811		1.19
Total interest-bearing deposits	2,302,772			2,877		0.25		2,245,926			5,600		0.49
Borrowings	56,356			41		0.15		475,000			3,375		1.41
Total interest-bearing liabilities	2,359,128			2,918		0.25		2,720,926			8,975		0.65
Noninterest-bearing deposits	722,432							507,087
Other liabilities	48,393							55,699
Total liabilities	3,129,953							3,283,712
Stockholders' equity	397,726							401,646
Total liabilities and stockholders' equity	$	3,527,679						$	3,685,358
Net earning assets	$	908,263						$	709,822
Average interest-earning assets to
average interest-bearing liabilities	138.50		%					126.09		%
Tax-equivalent:
Net interest income				$	55,492						$	52,246
Interest rate spread						3.30	%						2.89	%
Net interest margin(4)						3.37	%						3.02	%
Non-tax-equivalent:
Net interest income				$	54,875						$	51,631
Interest rate spread						3.26	%						2.85	%
Net interest margin(4)						3.33	%						2.99	%

_________________________________________________________________

(1)The average loans receivable balances include loans held for sale and nonaccruing loans.

(2)Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $617 and $615 for the six months ended December 31, 2021 and 2020, respectively, calculated based on a combined federal and state tax rate of 24%.

(3)The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.

(4)Net interest income divided by average interest-earning assets.

40

Rate/Volume Analysis

The following table shows the effects that changes in average balances (volume) and average interest rates (rate) had on the interest earned on our interest-earning assets and interest-bearing liabilities:

	Three Months Ended December 31, 2021
	Compared to
	Three Months Ended December 31, 2020
(Dollars in thousands)	Increase/ (Decrease) due to				Total Increase/(Decrease)
	Volume		Rate
Interest-earning assets:
Loans receivable(1)	$	(70)	$	(1,342)	$	(1,412)
Commercial paper and deposits in other banks	(152)		6		(146)
Debt securities available for sale	(45)		(48)		(93)
Other interest-earning assets	(300)		284		(16)
Total interest-earning assets	(567)		(1,100)		(1,667)
Interest-bearing liabilities:
Interest-bearing checking accounts	31		(53)		(22)
Money market accounts	73		(138)		(65)
Savings accounts	3		(1)		2
Certificate accounts	(355)		(602)		(957)
Total interest-bearing deposits	(248)		(794)		(1,042)
Borrowings	(1,484)		(189)		(1,673)
Total interest-bearing liabilities	(1,732)		(983)		(2,715)
Net increase (decrease) in tax equivalent interest income	$	1,165	$	(117)	$	1,048

	Six Months Ended December 31, 2021
	Compared to
	Six Months Ended December 31, 2020
(Dollars in thousands)	Increase/ (Decrease) due to				Total Increase/(Decrease)
	Volume		Rate
Interest-earning assets:
Loans receivable(1)	$	(632)	$	(1,477)	$	(2,109)
Commercial paper and deposits in other banks	(444)		(252)		(696)
Debt securities available for sale	87		(184)		(97)
Other interest-earning assets	(500)		591		91
Total interest-earning assets	(1,489)		(1,322)		(2,811)
Interest-bearing liabilities:
Interest-bearing checking accounts	82		(104)		(22)
Money market accounts	180		(428)		(248)
Savings accounts	7		(1)		6
Certificate accounts	(1,097)		(1,362)		(2,459)
Total interest-bearing deposits	(828)		(1,895)		(2,723)
Borrowings	(2,974)		(360)		(3,334)
Total interest-bearing liabilities	(3,802)		(2,255)		(6,057)
Net increase (decrease) in tax equivalent interest income	$	2,313	$	933	$	3,246

_________________________________________________________________

(1) Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $307 and $305 for the three months ended December 31, 2021 and 2020, respectively, calculated based on a combined federal and state income tax rate of 24%. Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $617 and $615 for the six months ended December 31, 2021 and 2020, respectively, calculated based on a combined federal and state income tax rate of 24%.

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Comparison of Results of Operations for the Three Months Ended December 31, 2021 and 2020

General.  During the three months ended December 31, 2021, net income increased $1.6 million, or 17.1% to $11.1 million compared to $9.5 million for the three months ended December 31, 2020, while our diluted earnings per share increased to $0.68 compared to $0.57 for the same period in fiscal 2021. Second quarter of fiscal 2022 earnings were positively impacted by a $2.5 million net benefit for credit losses, a $1.0 million increase in net interest income driven by lower borrowing costs, and a $0.8 million increase in noninterest income.

Net Interest Income. Net interest income increased $1.1 million, or 4.0%, to $27.2 million for the quarter ended December 31, 2021, compared to $26.1 million for the comparative quarter in fiscal 2021. Interest and dividend income decreased by $1.7 million, or 5.5%, primarily driven by lower average balances on interest-bearing assets combined with lower loan yields. This decrease was partially offset by a $2.7 million, or 67.3%, decrease in interest expense.

Average interest-earning assets decreased $139.2 million, or 4.1%, to $3.3 billion for the quarter ended December 31, 2021. The main drivers of the change were decreases of $103.5 million, or 24.8%, in the average balance of commercial paper and deposits in other banks and $11.9 million, or 8.9%, in debt securities available for sale as the Company continues to use excess liquidity to reduce borrowings, which declined by $417.8 million, or 88.0%, when compared to the prior period. Net interest margin (on a fully taxable-equivalent basis) for the three months ended December 31, 2021 increased to 3.33% from 3.07% for the same period a year ago as all higher rate long-term borrowings were repaid during the quarter ended June 30, 2021.

Total interest and dividend income decreased $1.7 million, or 5.5%, for the quarter ended December 31, 2021 as compared to the same quarter last year, which was primarily a result of a $1.4 million, or 5.0%, decrease in loan interest income, and a $146,000, or 23.8%, decrease in interest income from commercial paper and deposits in other banks. The lower interest income in each category was mainly driven by the overall decrease in average balances as discussed above, in addition to declines in the average yields on loans of 19 basis points, from 4.02% to 3.83%, and debt securities available for sale of 16 basis points, from 1.50% to 1.34%. Loan interest income for the quarter included the amortization of $286,000 of PPP loan origination fees, a decline of $202,000 when compared to the $488,000 recognized in the prior year period. The overall average yield on interest-earning assets decreased 5 basis points to 3.49% for the current quarter compared to 3.54% in the same quarter last year primarily due to the change in mix of interest-earning assets, as excess liquidity was used to repay long-term borrowings and reduce short-term interest-earning assets with lower yields.

Total interest expense decreased $2.7 million, or 67.3%, for the quarter ended December 31, 2021 compared to the same period last year. The decrease was driven by a $1.7 million, or 99.1%, decrease in interest expense on borrowings as discussed above and a $1.0 million, or 44.4%, decrease in interest expense on deposits. The average balance of total deposits increased by $296.8 million, or 10.8%, with noninterest-bearing deposits and interest-bearing deposits increasing $212.8 million and $84.0 million, respectively. The increase in interest-bearing deposits was driven by a $149.5 million, or 17.6% increase in money market accounts, partially offset by a $132.5 million, or 23.0%, decrease in certificates of deposit. As stated above, average borrowings for the quarter ended December 31, 2021 decreased $417.8 million, or 88.0%, along with a 130 basis point decrease in the average cost of borrowings compared to the same period last year. The increase in average deposits (interest and noninterest-bearing) was due to successful deposit gathering campaigns and the effect of government stimulus. The decrease in the average cost of borrowings was primarily driven by the early retirement of long-term borrowings reducing the average balance and partially driven by a shift to short-term borrowings at lower rates. The overall average cost of funds decreased 37 basis points to 0.22% for the current quarter compared to 0.59% in the same quarter last year.

Provision (Benefit) for Credit Losses. During the three months ended December 31, 2021, there was a $2.5 million net benefit for credit losses compared to a $3.0 million net benefit for the corresponding quarter of fiscal 2021. Net loan charge-offs totaled $1.0 million for the three months ended December 31, 2021, compared to net recoveries of $62,000 for the same period last year. Annualized net charge-offs as a percentage of average loans were 0.15% for the quarter ended December 31, 2021 compared to recoveries of 0.01% for the corresponding quarter last year. See "Comparison of Financial Condition - Asset Quality" for additional details.

Noninterest Income. Noninterest income increased $836,000, or 8.9%, to $10.2 million for the quarter ended December 31, 2021 from $9.3 million for the same period in the previous year. This change was primarily due to a $369,000, or 27.3%, increase in operating lease income, a $236,000, or 41.5%, increase in loan income and fees, and a $197,000, or 5.3%, increase in gain on sale of loans. The increase in operating lease income was driven by increases in loan originations and higher outstanding lease balances during the period. The increase in loan income and fees was largely a result of transitioning SBA loan servicing processes in-house, which began July 1, 2021. During the quarter ended December 31, 2021, $86.9 million of residential mortgage loans originated for sale were sold with gains of $2.2 million compared to $108.9 million sold and gains of $2.8 million in the corresponding period in the prior year. There were $12.6 million of sales of the guaranteed portion of SBA commercial loans with gains of $1.3 million in the current quarter compared to $9.3 million sold and gains of $778,000 for the same period last year. The Company sold $24.8 million of home equity lines of credit (HELOC) during the quarter for a gain of $159,000 compared to $23.2 million sold and gains of $158,000 in the corresponding period last year. Lastly, $11.5 million of indirect auto finance loans were sold in the current quarter out of the held for investment portfolio for a gain of $205,000. No such sales occurred in the same period in the prior year.

Noninterest Expense.  Noninterest expense decreased $534,000, or 2.0%, for the quarter ended December 31, 2021 as compared to the same period last year, which was primarily a result of a decrease of $828,000, or 5.3%, in salaries and benefits expense due to branch closures and lower mortgage banking incentive pay in the period, partially offset by an increase of $505,000, or 154.4%, in marketing and advertising expense driven by reduced media advertising in the prior period as a result of the pandemic.

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Income Taxes. Our income tax expense for the three months ended December 31, 2021 increased $269,000, or 10.4%, to $2.9 million from $2.6 million for the three months ended December 31, 2020 as a result of higher taxable income. The effective tax rates for the quarters ended December 31, 2021 and 2020 were 20.5% and 21.5%, respectively.

Comparison of Results of Operations for the Six Months Ended December 31, 2021 and 2020

General.  During the six months ended December 31, 2021, net income increased by $6.4 million, or 42.0%, to $21.6 million from $15.2 million for the six months ended December 31, 2020, while our diluted earnings per share increased to $1.33 for the six months ended December 31, 2021 compared to $0.92 in the same period in fiscal 2021. Year-to-date earnings were positively impacted by a $4.0 million net benefit in the provision for credit losses and a $6.1 million, or 67.5%, decrease in interest expense.

Net Interest Income. Net interest income increased by $3.2 million, or 6.3%, to $54.9 million for the six months ended December 31, 2021, compared to the same period last year. Interest and dividend income decreased by $2.8 million, or 4.6%, primarily driven by lower average balances on interest-bearing assets combined with lower loan yields.

Average interest-earning assets decreased $163.4 million, or 4.8%, to $3.3 billion for the six months ended December 31, 2021. The biggest reason for the change was a decrease of $125.0 million, or 29.7%, in commercial paper and deposits in other banks, as the Company used excess liquidity to reduce borrowings, where the average balance declined from $475.0 million to $56.4 million. Net interest margin (on a fully taxable-equivalent basis) for the six months ended December 31, 2021 increased to 3.37% from 3.02% for the same period a year ago as all higher rate long-term borrowings were repaid during the quarter ended June 30, 2021.

Total interest and dividend income decreased $2.8 million, or 4.6%, for the six months ended December 31, 2021 as compared to the same period last year, which was primarily a result of a $2.1 million, or 3.7%, decrease in loan interest income and a $696,000, or 46.6%, decrease in interest income from commercial paper and deposits in other banks. The lower interest income in each category was mainly driven by the decrease in average balances as discussed above. In addition, average loan yields decreased 10 basis points to 3.90% for the quarter ended December 31, 2021 from 4.00% in the corresponding quarter last year, average yields on debt securities available for sale decreased 28 basis points to 1.43% from 1.71%, and average yields on commercial paper and deposits in other banks decreased 16 basis points to 0.54% from 0.70%. Loan interest income for the six months included the amortization of $710,000 of PPP loan origination fees, a decline of $32,000 when compared to the $742,000 recognized in the prior year period. Despite the decrease in yield on loans and other assets discussed above, the overall average yield on interest-earning assets increased one basis point to 3.55% for the six months compared to 3.54% in the same period last year primarily due to the use of low yielding excess liquidity to repay long-term borrowings.

Total interest expense decreased $6.1 million, or 67.5%, for the six months ended December 31, 2021 compared to the same period last year. The decrease was driven by a $3.3 million, or 98.8%, decrease in interest expense on borrowings as discussed above and a $2.7 million, or 48.6%, decrease in interest expense on deposits. The average balance of total deposits increased by $272.2 million, or 9.9%, with noninterest-bearing deposits and interest-bearing deposits increasing $215.4 million and $56.8 million, respectively. The increase in interest-bearing deposits was driven by a $62.9 million, or 11.0%, increase in interest-bearing checking accounts and a $156.5 million, or 18.7%, increase in money market accounts, partially offset by a $182.2 million, or 28.8%, decrease in certificates of deposit. The increase in average deposits (interest and noninterest-bearing) was due to successful deposit gathering campaigns and the effect of government stimulus. As stated above, average borrowings for the six months ended December 31, 2021 decreased $418.6 million, or 88.1%, along with a 126 basis point decrease in the average cost of borrowings compared to the same period last year. The decrease in the average cost of borrowings was primarily driven by the early retirement of long-term borrowings reducing the average balance and partially driven by a shift to short-term borrowings at lower rates. The overall average cost of funds decreased 40 basis points to 0.25% for the six months compared to 0.65% in the same period last year.

Provision (Benefit) for Loan Losses.  During the six months ended December 31, 2021 there was a $4.0 million net benefit for credit losses compared to a $2.1 million net benefit for credit losses for the corresponding period of fiscal 2021. Net loan charge-offs totaled $760,000 for the six months ended December 31, 2021, compared to net loan charge-offs of $637,000 for the same period last year. Annualized net charge-offs as a percentage of average loans were 0.05% for the six months ended December 31, 2021 compared to 0.04% for the prior year period. See "Comparison of Financial Condition - Asset Quality" for additional details.

Noninterest Income.  Noninterest income increased $2.5 million, or 14.2%, to $20.5 million for the six months ended December 31, 2021 from $18.0 million for the same period in the previous year. This change was due to a $910,000, or 12.9%, increase in the gain on sale of loans, a $741,000, or 71.0%, increase in loan income and fees, a $583,000, or 21.8%, increase in operating lease income, and a $372,000, or 8.2%, increase in service charges and fees on deposit accounts. During the six months ended December 31, 2021, $150.7 million of residential mortgage loans originated for sale were sold with gains of $4.3 million compared to $190.7 million sold and gains of $5.0 million in the corresponding period in the prior year. There were $27.0 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.1 million in the six months compared to $24.5 million sold and gains of $1.8 million for the same period last year. The Company sold $72.2 million of HELOCs during the six months ended December 31, 2021 for a gain of $426,000 compared to $42.1 million sold and gains of $258,000 in the corresponding period last year. Lastly, $11.5 million of indirect auto finance loans were sold out of the held for investment portfolio during the current period for a gain of $205,000. No such sales occurred in the same period in the prior year. The $741,000, or 71.0%, increase in loan income and fees was primarily a result of $536,000 in additional loan servicing fees as a result of bringing the Company's SBA loan servicing process in-house, which began July 1, 2021, and $279,000 in additional prepayment fee income from our equipment finance line of business. The increase in operating lease income was primarily driven by increases in loan originations and higher outstanding lease balances during the period. Lastly, the increase in service charges on deposit accounts was the result of a $290,000 increase in interchange income driven by higher debit card usage.

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Noninterest Expense.  Noninterest expense decreased $518,000, or 1.0%, for the six months ended December 31, 2021 as compared to the same period last year, which was primarily a result of a decrease of $755,000, or 2.4%, in salaries and benefits expense due to branch closures and lower incentive pay in the period and a reduction of core deposit amortization expense of $282,000, or 64.1%, partially offset by an increase of $885,000, or 135.7%, in marketing and advertising expense driven by reduced media advertising in the prior year period as a result of the pandemic.

Income Taxes.  For the six months ended December 31, 2021, the Company's income tax expense increased $1.8 million, or 44.6%, to $5.8 million from $4.0 million as a result of higher taxable income. The effective tax rates for the six months ended December 31, 2021 and 2020 were 21.3% and 21.0%, respectively.

Liquidity

Management maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit run-off that may occur in the normal course of business. We rely on a number of different sources in order to meet our potential liquidity demands. The primary sources are increases in deposit accounts, cash flows from loan payments, commercial paper, and the securities portfolio.

In addition to these primary sources of funds, management has several secondary sources available to meet potential funding requirements. As of December 31, 2021, the Bank had an available borrowing capacity of $285.1 million with the FHLB of Atlanta, a $59.4 million line of credit with the FRB and a line of credit with three unaffiliated banks totaling $100.0 million. At December 31, 2021, we had $30.0 million in FHLB advances outstanding, $18.0 million in FRB borrowings outstanding, and nothing outstanding under our other lines of credit. Additionally, we classify our securities portfolio as available for sale, providing an additional source of liquidity. Management believes that our securities portfolio is of high quality and the securities would therefore be marketable. We have historically sold longer term fixed-rate mortgage loans in the secondary market to reduce interest rate risk and to create still another source of liquidity. From time to time we also utilize brokered time deposits to supplement our other sources of funds. Brokered time deposits are obtained by utilizing an outside broker that is paid a fee. This funding requires advance notification to structure the type of deposit desired by us. Brokered deposits can vary in term from one month to several years and have the benefit of being a source of longer-term funding. We also may utilize brokered deposits to help manage interest rate risk by extending the term to repricing of our liabilities, enhance our liquidity and fund asset growth. Brokered deposits are typically from outside our primary market areas, and our brokered deposit levels may vary from time to time depending on competitive interest rate conditions and other factors. At December 31, 2021 brokered deposits totaled $2.3 million, or 0.1%, of total deposits, compared to $4.3 million, or 0.2%, of total deposits, at June 30, 2021.

Liquidity management is both a daily and long-term function of business management. Excess liquidity is generally invested in short-term investments, such as overnight deposits, federal funds, and commercial paper. On a longer term basis, we maintain a strategy of investing in various lending products and investment securities, including MBS. HomeTrust Bancshares on a stand-alone level is a separate legal entity from the Bank and we must provide for our own liquidity and pay our own operating expenses. We have the ability to receive dividends or capital distributions from the Bank, although there are regulatory restrictions on the ability of the Bank to pay dividends. At December 31, 2021, HomeTrust Bancshares on a stand-alone basis had liquid assets of $4.4 million.

We use our sources of funds primarily to meet our ongoing commitments, pay maturing deposits and fund withdrawals, and to fund loan commitments. At December 31, 2021, the total approved loan commitments and unused lines of credit outstanding amounted to $279.9 million and $539.8 million, respectively, as compared to $401.1 million and $530.5 million, respectively, as of June 30, 2021. Certificates of deposit scheduled to mature in one year or less at December 31, 2021, totaled $381.3 million. It is management's policy to manage deposit rates that are competitive with other local financial institutions. Based on this management strategy, we believe a majority of our maturing deposits will continue to remain with us.

During the first six months of fiscal 2022, cash and cash equivalents decreased $16.2 million, or 31.7%, to $34.8 million as of December 31, 2021 from $51.0 million as of June 30, 2021 as excess liquidity was used to pay down borrowings.

Off-Balance Sheet Activities

In the normal course of operations, we engage in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks. These transactions are used primarily to manage customers' requests for funding and take the form of loan commitments and lines of credit. For the six months ended December 31, 2021, we did not engage in any off-balance sheet transactions likely to have a material effect on our financial condition, results of operations or cash flows.

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A summary of our off-balance sheet commitments to extend credit at December 31, 2021, is as follows:

(Dollars in thousands)
Undisbursed portion of construction loans	$	201,032
Commitments to make loans	78,875
Unused lines of credit	539,778
Standby letters of credit	9,496
Total loan commitments	$	829,181

Capital Resources

At December 31, 2021, stockholders' equity totaled $401.7 million. HomeTrust Bancshares, Inc. is a bank holding company and a financial holding company subject to regulation by the Federal Reserve. As a bank holding company, we are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended and the regulations of the Federal Reserve. Our subsidiary, the Bank, an FDIC-insured, North Carolina state-chartered bank and a member of the Federal Reserve, is supervised and regulated by the Federal Reserve and the NCCOB and is subject to minimum capital requirements applicable to state member banks established by the Federal Reserve that are calculated in a manner similar to those applicable to bank holding companies.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

HomeTrust Bancshares, Inc. and the Bank each exceeded all regulatory capital requirements as of December 31, 2021. Consistent with our goals to operate a sound and profitable organization, our policy is for the Bank to maintain a “well-capitalized” status under the regulatory capital categories of the Federal Reserve. The Bank was categorized as "well-capitalized" at December 31, 2021 under applicable regulatory requirements.

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HomeTrust Bancshares, Inc. and the Bank's actual and required minimum capital amounts and ratios are as follows:

					Regulatory Requirements
(Dollars in thousands)	Actual				Minimum for Capital Adequacy Purposes				Minimum to Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
HomeTrust Bancshares, Inc.
December 31, 2021
CTE1 Capital (to risk-weighted assets)	$	380,835	11.16	%	$	153,538	4.50	%	$	221,777	6.50	%
Tier I Capital (to total adjusted assets)	380,835		10.83	%	140,618		4.00	%	175,773		5.00	%
Tier I Capital (to risk-weighted assets)	380,835		11.16	%	204,718		6.00	%	272,957		8.00	%
Total Risk-based Capital (to risk-weighted assets)	402,633		11.80	%	272,957		8.00	%	341,196		10.00	%
June 30, 2021
CTE1 Capital (to risk-weighted assets)	$	375,320	11.26	%	$	149,943	4.50	%	$	216,584	6.50	%
Tier I Capital (to total adjusted assets)	375,320		10.29	%	145,915		4.00	%	182,393		5.00	%
Tier I Capital (to risk-weighted assets)	375,320		11.26	%	199,924		6.00	%	266,565		8.00	%
Total Risk-based Capital (to risk-weighted assets)	398,408		11.96	%	266,565		8.00	%	333,206		10.00	%
HomeTrust Bank:
December 31, 2021
CTE1 Capital (to risk-weighted assets)	$	368,790	10.81	%	$	153,535	4.50	%	$	221,772	6.50	%
Tier I Capital (to total adjusted assets)	368,790		10.49	%	140,589		4.00	%	175,737		5.00	%
Tier I Capital (to risk-weighted assets)	368,790		10.81	%	204,713		6.00	%	272,951		8.00	%
Total Risk-based Capital (to risk-weighted assets)	390,588		11.45	%	272,951		8.00	%	341,188		10.00	%
June 30, 2021
CTE1 capital (to risk-weighted assets)	$	357,767	10.74	%	$	149,936	4.50	%	$	216,575	6.50	%
Tier I Capital (to total adjusted assets)	357,767		9.81	%	145,933		4.00	%	182,417		5.00	%
Tier I Capital (to risk-weighted assets)	357,767		10.74	%	199,915		6.00	%	266,553		8.00	%
Total Risk-based Capital (to risk-weighted assets)	380,855		11.43	%	266,553		8.00	%	333,192		10.00	%

In addition to the minimum CET1, Tier 1 and total risk-based capital ratios, both HomeTrust Bancshares, Inc. and the Bank have to maintain a capital conservation buffer consisting of additional CET1 capital of more than 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. At December 31, 2021, the conservation buffer was 3.80% and 3.45% for HomeTrust Bancshares, Inc. and the Bank, respectively.

Impact of Inflation

The effects of price changes and inflation can vary substantially for most financial institutions. While management believes that inflation affects the growth of total assets, it believes that it is difficult to assess the overall impact. Management believes this to be the case due to the fact that generally neither the timing nor the magnitude of the inflationary changes in the CPI coincides with changes in interest rates. The price of one or more of the components of the CPI may fluctuate considerably and thereby influence the overall CPI without having a corresponding effect on interest rates or upon the cost of those goods and services normally purchased by us. In years of high inflation and high interest rates, intermediate and long-term interest rates tend to increase, thereby adversely impacting the market values of investment securities, mortgage loans and other long-term fixed rate loans. In addition, higher short-term interest rates caused by inflation tend to increase the cost of funds. In other years, the opposite may occur.

Item 3.      Quantitative and Qualitative Disclosure About Market Risk

There has not been any material change in the market risk disclosures contained in our 2021 Form 10-K.

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Item 4.      Controls and Procedures

An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the "Act")) as of December 31, 2021, was carried out under the supervision and with the participation of the Company's Chief Executive Officer, Chief Financial Officer and several other members of the Company's senior management. The Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures in effect as of December 31, 2021, were effective in ensuring that the information required to be disclosed by the Company in the reports it files or submits under the Act is: (i) accumulated and communicated to the Company's management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.

The Company does not expect that its disclosure controls and procedures and internal control over financial reporting will prevent all errors and all fraud. A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met. Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls may be circumvented by the individual acts of some persons, by collusion of two or more people, or by override of the control. The design of any control procedure also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected.

PART II.  OTHER INFORMATION

Item 1.    Legal Proceedings

The "Litigation" section of "Note 9 - Commitments and Contingencies" to the Consolidated Financial Statements included in Part I, Item 1 is incorporated herein by reference.

Item 1A.    Risk Factors

There have been no material changes in the Risk Factors previously disclosed in Item 1A of the 2021 Form 10-K.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable

(b) Not applicable

(c) Not applicable

	Total Number Of Shares Purchased	Average Price Paid per Share		Total Number Of Shares Purchased as Part of Publicly Announced Plans	Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans
October 1 - October 31, 2021	52,648	$	28.61	52,648	514,515
November 1 - November 30, 2021	19,400	30.70		19,400	495,115
December 1 - December 31, 2021	227,349	30.21		227,349	267,766
Total	299,397	$	29.96	299,397	267,766

On April 2, 2020, the Company's Board of Directors authorized the repurchase of up to 851,004 shares of the Company's common stock, representing 5% of its outstanding shares at the time of the announcement. This repurchase plan was completed on July 26, 2021. On July 28, 2021, an additional 825,941 shares of common stock were authorized for repurchase representing 5% of the Company's outstanding shares at the time of the announcement. For the six months ended December 31, 2021, 675,832 shares were repurchased at an average price of $28.71 per share. The shares may be purchased in the open market or in privately negotiated transactions, from time to time depending upon market conditions and other factors.

Item 3.     Defaults Upon Senior Securities

Nothing to report.

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Item 4.     Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

Nothing to report.

Item 6.     Exhibits

Regulation S-K Exhibit Number	Document	Reference to Prior Filing or Exhibit Number Attached Hereto
3.1	Charter of HomeTrust Bancshares, Inc.	(a)
3.2	Articles Supplementary to the Charter of HomeTrust Bancshares, Inc. for HomeTrust Bancshares, Inc.'s Junior Participating Preferred Stock, Series A	(b)
3.3	Amended and Restated Bylaws of HomeTrust Bancshares, Inc.	(f)
4.1	Tax Benefits Preservation Plan, dated as of September 25, 2012, between HomeTrust Bancshares, Inc. and Registrar and Transfer Company, as Rights Agent	(b)
4.2	Amendment No. 1, dated as of August 31, 2015, to Tax Benefit Preservation Plan, dated as of September 25, 2012, between HomeTrust Bancshares, Inc. and Computershare Trust Company, N.A., as successor rights agent to Registrar and Transfer Company	(d)
4.3	Amendment No. 2, dated as of August 21, 2018, to Tax Benefits Preservation Plan, dated as of September 25, 2012, between HomeTrust Bancshares, Inc. and Computershare Trust Company,N.A., as successor rights agent to Registrar and Transfer Company	(e)
10.1	HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Plan	(p)
10.2	Amended and Restated Employment Agreement entered into between HomeTrust Bancshares, Inc. and Dana L. Stonestreet	(g)
10.3	Amended and Restated Employment Agreement entered into between HomeTrust Bancshares, Inc. and C. Hunter Westbrook	(g)
10.3A	Amendment No. One to Amended and Restated Employment Agreement entered into between HomeTrust Bancshares, Inc. and C. Hunter Westbrook	(h)
10.3B	Amendment No. Two dated as of October 27, 2020, to Amended and Restated Employment Agreement, dated as of September 11, 2018, by and between the Company and C. Hunter Westbrook	(i)
10.3C	Amendment No. Three dated as of July 26, 2021, to Amended and Restated Employment Agreement, dated as of September 11, 2018, by and between the Company and C. Hunter Westbrook	(c)
10.4	Amended and Restated Employment Agreement entered into between HomeTrust Bancshares,Inc. and Tony J. VunCannon	(g)
10.5	Reserved
10.6	Reserved
10.7	HomeTrust Bank Executive Supplemental Retirement Income Master Agreement ("SERP")	(a)
10.7A	SERP Joinder Agreement for F. Edward Broadwell, Jr.	(a)
10.7B	SERP Joinder Agreement for Dana L. Stonestreet	(a)
10.7C	SERP Joinder Agreement for Tony J. VunCannon	(a)
10.7D	SERP Joinder Agreement for Howard L. Sellinger	(a)
10.7E	SERP Joinder Agreement for Stan Allen	(a)
10.7F	SERP Joinder Agreement for Sidney A. Biesecker	(a)
10.7G	SERP Joinder Agreement for Peggy C. Melville	(a)
10.7H	SERP Joinder Agreement for William T. Flynt	(a)
10.7I	Amended and Restated Supplemental Income Agreement between HomeTrust Bank, as successor to Industrial Federal Savings Bank, and Sidney Biesecker	(j)
10.8	HomeTrust Bank Director Emeritus Plan ("Director Emeritus Plan")	(a)
10.8A	Director Emeritus Plan Joinder Agreement for William T. Flynt	(a)
10.8B	Director Emeritus Plan Joinder Agreement for J. Steven Goforth	(a)

48

10.8C	Director Emeritus Plan Joinder Agreement for Craig C. Koontz	(a)
10.8D	Director Emeritus Plan Joinder Agreement for Larry S. McDevitt	(a)
10.8E	Director Emeritus Plan Joinder Agreement for F.K. McFarland, III	(a)
10.8F	Director Emeritus Plan Joinder Agreement for Peggy C. Melville	(a)
10.8G	Director Emeritus Plan Joinder Agreement for Robert E. Shepherd, Sr.	(a)
10.9	HomeTrust Bank Defined Contribution Executive Medical Care Plan	(a)
10.10	HomeTrust Bank 2005 Deferred Compensation Plan	(a)
10.11	HomeTrust Bank Pre-2005 Deferred Compensation Plan	(a)
10.12	HomeTrust Bancshares, Inc. 2013 Omnibus Incentive Plan ("Omnibus Incentive Plan")	(k)
10.13	Form of Incentive Stock Option Award Agreement under Omnibus Incentive Plan	(l)
10.14	Form of Non-Qualified Stock Option Award Agreement under Omnibus Incentive Plan	(l)
10.15	Form of Stock Appreciation Right Award Agreement under Omnibus Incentive Plan	(l)
10.16	Form of Restricted Stock Award Agreement under Omnibus Incentive Plan	(l)
10.17	Form of Restricted Stock Unit Award Agreement under Omnibus Incentive Plan	(l)
10.18	Agreement and General Release between HomeTrust Bancshares, Inc. and Paula Labian	(f)
10.19	Retirement Payment Agreement, dated as of September 1, 1987, between HomeTrust Bank and Larry S. McDevitt, as amended	(m)
10.20	Change in Control Severance Agreement between HomeTrust Bancshares, Inc. and Marty Caywood	(n)
10.21	Amended and Restated Change in Control Severance Agreement between HomeTrust Bancshares, Inc. and Keith J. Houghton	(g)
10.22	Amended and Restated Change in Control Severance Agreement between HomeTrust Bancshares, Inc. and R. Parrish Little	(o)
31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	31.1
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	31.2
32	Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	32.0
101	The following materials from HomeTrust Bancshares' Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Changes in Stockholders' Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements.	101

(a)Filed as an exhibit to HomeTrust Bancshares's Registration Statement on Form S-1 (File No. 333-178817) filed on December 29, 2011.

(b)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on September 25, 2012 (File No. 001-35593).

(c)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on July 26, 2021 (File No. 001-35593).

(d)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on August 31, 2015 (File No. 001-35593).

(e)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on August 21, 2018 (File No. 001-35593).

(f)Filed as an exhibit to HomeTrust Bancshares's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (File No. 001-35593).

(g)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on September 11, 2018 (File No. 001-35593).

(h)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on September 25, 2018 (File No. 001-35593.

(i)Filed as an exhibit to HomeTrust Bancshares's Current Report on Form 8-K filed on October 28, 2020 (File No. 001-35593).

(j)Filed as an exhibit to Amendment No. One to HomeTrust Bancshares's Registration Statement on Form S-1 (File No. 333-178817) filed on March 9, 2012.

(k)Attached as Appendix A to HomeTrust Bancshares's definitive proxy statement filed on December 5, 2012 (File No. 001-35593).

(l)Filed as an exhibit to HomeTrust Bancshares's Registration Statement on Form S-8 (File No. 333-186666) filed on February 13, 2013.

(m)Filed as an exhibit to HomeTrust Bancshares's Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (File No. 001-35593).

(n)Filed as an exhibit to HomeTrust Bancshares's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (File No. 001-35593).

(o)Filed as an exhibit to HomeTrust Bancshares's Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (File No. 001-35593).

(p)Filed as an exhibit to HomeTrust Bancshares's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (File No. 001-35593).

49

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HomeTrust Bancshares, Inc.
Date: February 7, 2022	By:	/s/ Dana L. Stonestreet
		Dana L. Stonestreet
		Chairman and CEO
		(Duly Authorized Officer)
Date: February 7, 2022	By:	/s/ Tony J. VunCannon
		Tony J. VunCannon
		Executive Vice President, CFO, Corporate Secretary and Treasurer
		(Principal Financial and Accounting Officer)

50

EX-31.1

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION

I, Dana L. Stonestreet, certify that:

1.I have reviewed this quarterly report on Form 10-Q of HomeTrust Bancshares, Inc. (the "Company");

2.Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4.The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluations; and

(d)disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5.The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

February 7, 2022	By:	/s/ Dana L. Stonestreet
		Dana L. Stonestreet
		Chairman and CEO

EX-31.2

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION

I, Tony J. VunCannon, certify that:

1.I have reviewed this quarterly report on Form 10-Q of HomeTrust Bancshares, Inc. (the "Company");

2.Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4.The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluations; and

(d)disclosed in this report any change in the Company's internal control over financial reporting that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5.The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

February 7, 2022	By:	/s/ Tony J. VunCannon
		Tony J. VunCannon
		Executive Vice President, CFO, and Treasurer

EX-32

Exhibit 32

SECTION 1350 CERTIFICATION

Each of the undersigned hereby certifies in his capacity as an officer of HomeTrust Bancshares, Inc. (the "Company") that the Quarterly Report of the Company on Form 10-Q for the period ended December 31, 2021, fully complies with the requirements of Section 13(a) of the Securities and Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and periods presented in the financial statements included in such report.

February 7, 2022	By:	/s/ Dana L. Stonestreet
		Dana L. Stonestreet
		Chairman and CEO
February 7, 2022	By:	/s/ Tony J. VunCannon
		Tony J. VunCannon
		Executive Vice President, CFO, and Treasurer

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2021	Feb. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Entity File Number	001-35593
Entity Registrant Name	HOMETRUST BANCSHARES, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-5055422
Entity Address, Address Line One	10 Woodfin Street
Entity Address, City or Town	Asheville
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28801
City Area Code	828
Local Phone Number	259-3939
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	HTBI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,246,903
Entity Central Index Key	0001538263
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Assets
Cash	$ 20,586	$ 22,312
Interest-bearing deposits	14,240	28,678
Cash and cash equivalents	34,826	50,990
Commercial paper	254,157	189,596
Certificates of deposit in other banks	34,002	40,122
Debt securities available for sale, at fair value (amortized cost of $121,071 and $154,493 at December 31, 2021 and June 30, 2021, respectively)	121,851	156,459
Other investments, at cost	22,117	23,710
Loans held for sale	102,070	93,539
Total loans, net of deferred loan fees and costs	2,696,072	2,733,267
Allowance for credit losses on loans	(30,933)	(35,468)
Loans, net	2,665,139	2,697,799
Premises and equipment, net	69,461	70,909
Accrued interest receivable	8,200	7,933
REO	45	188
Deferred income taxes, net	12,019	16,901
BOLI	94,209	93,108
Goodwill	25,638	25,638
Core deposit intangibles, net	185	343
Other assets	58,900	57,488
Total Assets	3,502,819	3,524,723
Liabilities
Deposits	2,998,691	2,955,541
Borrowings	48,000	115,000
Other liabilities	54,382	57,663
Total liabilities	3,101,073	3,128,204
Stockholders' equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.01 par value, 60,000,000 shares authorized, 16,303,461 shares     issued and outstanding at December 31, 2021; 16,636,483 at June 30, 2021	163	167
Additional paid in capital	147,552	160,582
Retained earnings	258,986	240,075
Unearned ESOP shares	(5,555)	(5,819)
Accumulated other comprehensive income	600	1,514
Total stockholders' equity	401,746	396,519
Total liabilities and stockholders' equity	$ 3,502,819	$ 3,524,723

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Statement of Financial Position [Abstract]
Debt securities available for sale, at fair value, amortized cost	$ 121,071	$ 154,493
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock authorized shares	10,000,000	10,000,000
Preferred stock issued shares	0	0
Preferred stock shares outstanding	0	0
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized	60,000,000	60,000,000
Common stock shares issued	16,303,461	16,636,483
Common stock shares outstanding	16,303,461	16,636,483

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Interest and dividend income
Loans	$ 26,929	$ 28,343	$ 54,824	$ 56,935
Commercial paper and interest-bearing deposits	468	614	799	1,495
Debt securities available for sale	411	504	935	1,032
Other investments	680	696	1,235	1,144
Total interest and dividend income	28,488	30,157	57,793	60,606
Interest expense
Deposits	1,305	2,347	2,877	5,600
Borrowings	15	1,688	41	3,375
Total interest expense	1,320	4,035	2,918	8,975
Net interest income	27,168	26,122	54,875	51,631
Total provision (benefit) for credit losses	(2,500)	(3,030)	(3,960)	(2,080)
Net interest income after provision (benefit) for credit losses	29,668	29,152	58,835	53,711
Noninterest income
Service charges and fees on deposit accounts	2,513	2,416	4,885	4,513
Loan income and fees	805	569	1,784	1,043
Gain on sale of loans held for sale	3,901	3,704	7,958	7,048
BOLI income	490	511	1,008	1,043
Operating lease income	1,718	1,349	3,258	2,675
Other	753	795	1,639	1,661
Total noninterest income	10,180	9,344	20,532	17,983
Noninterest expense
Salaries and employee benefits	14,872	15,700	30,152	30,907
Occupancy expense, net	2,401	2,261	4,718	4,554
Computer services	2,369	2,220	4,693	4,527
Telephone, postage, and supplies	735	871	1,447	1,533
Marketing and advertising	832	327	1,537	652
Deposit insurance premiums	302	487	868	998
Gain on sale of REO	0	0	(3)	(35)
REO related expense	116	165	261	413
Core deposit intangible amortization	65	202	158	440
Other	4,217	4,210	8,094	8,454
Total noninterest expense	25,909	26,443	51,925	52,443
Net income before income taxes	13,939	12,053	27,442	19,251
Income tax expense	2,861	2,592	5,837	4,037
Net income	$ 11,078	$ 9,461	$ 21,605	$ 15,214
Net income per common share:
Basic (in dollars per share)	$ 0.70	$ 0.58	$ 1.36	$ 0.93
Diluted (in dollars per share)	$ 0.68	$ 0.57	$ 1.33	$ 0.92
Average shares outstanding:
Basic (in shares)	15,632,283	16,202,844	15,696,765	16,216,917
Diluted (in shares)	15,989,606	16,563,359	16,057,607	16,514,831

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 11,078	$ 9,461	$ 21,605	$ 15,214
Other comprehensive income (loss)
Gains (losses) arising during the period	(882)	(84)	(1,187)	114
Deferred income tax benefit (expense)	203	19	273	(26)
Total other comprehensive income (loss)	(679)	(65)	(914)	88
Comprehensive income	$ 10,399	$ 9,396	$ 20,691	$ 15,302

XML

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative-effect adjustment due to the adoption of ASU 2016-13	Common Stock	Additional Paid In Capital	Retained Earnings	Retained Earnings Cumulative-effect adjustment due to the adoption of ASU 2016-13	Unearned ESOP Shares	Accumulated Other Comprehensive Income
Balance at beginning of period (in shares) at Jun. 30, 2020			17,021,357
Balance at beginning of period at Jun. 30, 2020	$ 408,263	$ (13,358)	$ 170	$ 169,648	$ 242,776	$ (13,358)	$ (6,348)	$ 2,017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,214				15,214
Cash dividends declared on common stock	(2,450)				(2,450)
Shares repurchased (in shares)			(277,122)
Common stock repurchased	(5,179)		$ (3)	(5,176)
Forfeited restricted stock (in shares)			(6,575)
Retired stock (in shares)			(633)
Retired stock	$ (9)			(9)
Exercised stock options (in shares)	54,000		54,000
Exercised stock options	$ 776		$ 1	775
Share-based compensation expense	960			960
ESOP compensation expense	419			154			265
Other comprehensive income (loss)	88							88
Balance at end of period (in shares) at Dec. 31, 2020			16,791,027
Balance at end of period at Dec. 31, 2020	404,724		$ 168	166,352	242,182		(6,083)	2,105
Balance at beginning of period (in shares) at Sep. 30, 2020			17,020,724
Balance at beginning of period at Sep. 30, 2020	400,351		$ 170	170,204	234,023		(6,216)	2,170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,461				9,461
Cash dividends declared on common stock	(1,302)				(1,302)
Shares repurchased (in shares)			(277,122)
Common stock repurchased	(5,179)		$ (3)	(5,176)
Forfeited restricted stock (in shares)			(6,575)
Exercised stock options (in shares)			54,000
Exercised stock options	776		$ 1	775
Share-based compensation expense	454			454
ESOP compensation expense	228			95			133
Other comprehensive income (loss)	(65)							(65)
Balance at end of period (in shares) at Dec. 31, 2020			16,791,027
Balance at end of period at Dec. 31, 2020	$ 404,724		$ 168	166,352	242,182		(6,083)	2,105
Balance at beginning of period (in shares) at Jun. 30, 2021	16,636,483		16,636,483
Balance at beginning of period at Jun. 30, 2021	$ 396,519		$ 167	160,582	240,075		(5,819)	1,514
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,605				21,605
Cash dividends declared on common stock	(2,694)				(2,694)
Shares repurchased (in shares)			(675,832)
Common stock repurchased	(19,403)		$ (7)	(19,396)
Forfeited restricted stock (in shares)			(9,400)
Retired stock (in shares)			(2,708)
Retired stock	$ (75)			(75)
Granted restricted stock (in shares)			7,118
Exercised stock options (in shares)	347,800		347,800
Exercised stock options	$ 5,042		$ 3	5,039
Share-based compensation expense	900			900
ESOP compensation expense	766			502			264
Other comprehensive income (loss)	$ (914)							(914)
Balance at end of period (in shares) at Dec. 31, 2021	16,303,461		16,303,461
Balance at end of period at Dec. 31, 2021	$ 401,746		$ 163	147,552	258,986		(5,555)	600
Balance at beginning of period (in shares) at Sep. 30, 2021			16,307,658
Balance at beginning of period at Sep. 30, 2021	396,511		$ 163	151,425	249,331		(5,687)	1,279
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,078				11,078
Cash dividends declared on common stock	(1,423)				(1,423)
Shares repurchased (in shares)			(299,397)
Common stock repurchased	(8,970)		$ (3)	(8,967)
Forfeited restricted stock (in shares)			(6,400)
Exercised stock options (in shares)			301,600
Exercised stock options	4,342		$ 3	4,339
Share-based compensation expense	485			485
ESOP compensation expense	402			270			132
Other comprehensive income (loss)	$ (679)							(679)
Balance at end of period (in shares) at Dec. 31, 2021	16,303,461		16,303,461
Balance at end of period at Dec. 31, 2021	$ 401,746		$ 163	$ 147,552	$ 258,986		$ (5,555)	$ 600

XML

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Common stock, dividends, declared (in dollars per share)	$ 90.00	$ 80.00	$ 170	$ 150

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities:
Net income	$ 21,605	$ 15,214
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision (benefit) for credit losses	(3,960)	(2,080)
Depreciation and amortization	4,782	3,885
Deferred income tax expense	5,154	1,671
Net accretion of purchase accounting adjustments on loans	(784)	(864)
Net amortization and accretion	1,586	522
Impairment on assets held for sale	87	0
Gain on sale of REO	(3)	(35)
BOLI income	(1,008)	(1,043)
Gain on sale of loans held for sale	(7,958)	(7,048)
Origination of loans held for sale	(301,898)	(312,627)
Proceeds from sale of loans held for sale	303,911	264,325
New deferred loan origination fees, net	(273)	(316)
Decrease (increase) in accrued interest receivable and other assets	(2,321)	4,328
Core deposit intangible amortization	158	440
ESOP compensation expense	766	419
Share-based compensation expense	900	960
Increase (decrease) in other liabilities	(3,391)	717
Net cash provided by (used in) operating activities	17,353	(31,532)
Investing activities:
Purchases of debt securities available for sale	(7,011)	(73,690)
Proceeds from maturities, calls and paydowns of debt securities available for sale	40,042	46,893
Purchases of commercial paper	(291,652)	(338,567)
Proceeds from maturities and calls of commercial paper	227,499	459,550
Purchases of CDs in other banks	(996)	(1,245)
Proceeds from maturities of CDs in other banks	7,116	8,297
Net redemptions (purchases) of other investments, cost	1,593	(626)
Net increase in loans	34,131	105,181
Purchase of BOLI	(93)	(96)
Purchase of equipment for operating leases	(1,677)	(6,940)
Payoff of equipment for operating leases	1,558	0
Purchase of premises and equipment	(4,886)	(13,382)
Proceeds from sale of assets held for sale	1,693	0
Proceeds from sale of REO	146	228
Net cash provided by investing activities	7,463	185,603
Financing activities:
Net increase (decrease) in deposits	43,150	(42,487)
Net decrease in short-term borrowings	(97,000)	0
Proceeds from long-term borrowings	30,000	0
Common stock repurchased	(19,403)	(5,179)
Cash dividends paid	(2,694)	(2,450)
Retired stock	(75)	(9)
Exercised stock options	5,042	776
Net cash used in financing activities	(40,980)	(49,349)
Net increase (decrease) in cash and cash equivalents	(16,164)	104,722
Cash and cash equivalents at beginning of period	50,990	121,622
Cash and cash equivalents at end of period	34,826	226,344
Cash paid during the period for:
Interest	2,929	5,404
Income taxes	192	1,686
Noncash transactions:
Unrealized gain (loss) in value of debt securities available for sale, net of income taxes	(914)	88
Transfer of loans to REO	0	108
Transfer of loans held for sale to loans held for investment	11,629	10,496
Transfer of loans held for investment to loans held for sale	12,827	0
ROU asset and lease liabilities for operating lease accounting	946	597
Transfer of premises and equipment to assets held for sale (included in other assets)	$ 3,229	$ 0

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Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The consolidated financial statements presented in this report include the accounts of HomeTrust Bancshares, Inc., a Maryland corporation ("HomeTrust"), and its wholly-owned subsidiary, HomeTrust Bank (the "Bank"). As used throughout this report, the term the "Company" refers to HomeTrust and the Bank, its consolidated subsidiary, unless the context otherwise requires.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2021 ("2021 Form 10-K") filed with the SEC on September 10, 2021. The results of operations for the six months ended December 31, 2021 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2022.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company's accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments. In particular, management has identified the determination of the provision and the allowance for credit losses on loans as an accounting policy that, due to the judgments, estimates and assumptions inherent in this policy, is critical to an understanding of the Company's financial statements. This policy and the related judgments, estimates and assumptions is described in greater detail in the notes to the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in the 2021 Form 10-K. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to this critical accounting policy, the use of other judgments, estimates and assumptions could result in material differences in the Company's results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on this estimate and the Company's financial condition and operating results in future periods.

The COVID-19 pandemic has caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. The effects of the COVID-19 pandemic may meaningfully impact significant estimates such as the allowance for credit losses or certain loan concentrations in the hospitality and healthcare industries. See "Note 6 - Loans and Allowance for Credit Losses on Loans" for more information on loans that have been modified or are in deferral due to COVID-19.

Reclassifications and corrections. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or stockholders’ equity as previously reported.

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Recent Accounting Pronouncements

6 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Adoption of New Accounting Standards

ASU 2020-01, "Investment—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." This ASU clarified the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2021 and early adoption was permitted. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.

Newly Issued but Not Yet Effective Accounting Standards

ASU 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments." This ASU amends the lease classification requirements for lessors to classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease that would result in the recognition of a day-one loss at lease commencement, provided that the lease includes variable lease payments that do not depend on an index or rate. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset and therefore, does not recognize a selling profit or loss. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

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Debt Securities

6 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Debt Securities

Debt Securities

Debt securities available for sale consist of the following at the dates indicated:

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,984	$	85	$	(136)	$	18,933
MBS, residential	37,424		882		(121)		38,185
Municipal bonds	6,928		321		—		7,249
Corporate bonds	57,735		94		(345)		57,484
Total	$	121,071	$	1,382	$	(602)	$	121,851

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,975	$	135	$	(37)	$	19,073
MBS, residential	42,119		1,339		(54)		43,404
Municipal bonds	9,098		453		—		9,551
Corporate bonds	84,301		257		(127)		84,431
Total	$	154,493	$	2,184	$	(218)	$	156,459

Debt securities available for sale by contractual maturity at December 31, 2021 and June 30, 2021 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.

	December 31, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	36,079	$	36,230
Due after one year through five years	41,755		41,500
Due after five years through ten years	5,813		5,936
Due after ten years	—		—
MBS, residential	37,424		38,185
Total	$	121,071	$	121,851

	June 30, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	34,615	$	34,684
Due after one year through five years	73,249		73,633
Due after five years through ten years	4,510		4,738
Due after ten years	—		—
MBS, residential	42,119		43,404
Total	$	154,493	$	156,459

The Company had no sales of debt securities available for sale during the three and six months ended December 31, 2021 and 2020. There were no gross realized gains or losses for the three and six months ended December 31, 2021 and 2020.

Debt securities available for sale with amortized costs totaling $55,636 and $52,603 and market values of $56,267 and $53,897 at December 31, 2021 and June 30, 2021, respectively, were pledged as collateral to secure various public deposits and other borrowings.

The gross unrealized losses and the fair value for debt securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and June 30, 2021 were as follows:

	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,864	$	(136)	$	—	$	—	$	14,864	$	(136)
MBS, residential	9,344		(100)		1,132		(21)		10,476		(121)
Corporate bonds	43,619		(345)		—		—		43,619		(345)
Total	$	67,827	$	(581)	$	1,132	$	(21)	$	68,959	$	(602)

	June 30, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,963	$	(37)	$	—	$	—	$	14,963	$	(37)
MBS, residential	5,212		(28)		1,205		(26)		6,417		(54)
Corporate bonds	19,873		(127)		—		—		19,873		(127)
Total	$	40,048	$	(192)	$	1,205	$	(26)	$	41,253	$	(218)

The total number of securities with unrealized losses at December 31, 2021 and June 30, 2021 were 39 and 28, respectively.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. All debt securities available for sale in an unrealized loss position as of December 31, 2021 continue to perform as scheduled and management does not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of management's evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, management considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. Management does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that securities will be required to be sold. See "Note 1 – Summary of Significant Account Policies" in our 2021 Form 10-K for further discussion.

Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that management will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.

Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on investment securities and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021, the accrued interest receivable for debt securities available for sale was $529.

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Other Investments

6 Months Ended

Dec. 31, 2021

Investments, All Other Investments [Abstract]

Other Investments

Other Investments

Other investments, at cost, consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
FHLB of Atlanta stock	$	2,965	$	6,153
FRB stock	7,403		7,386
SBIC investments	11,749		10,171
Total	$	22,117	$	23,710

As a requirement for membership, the Bank invests in the stock of both the FHLB of Atlanta and the FRB. No ready market exists for these securities so carrying value, or cost, approximates their fair value based on the redemption provisions of the FHLB of Atlanta and the FRB, respectively. SBIC investments are equity securities without a readily determinable fair value and are recorded at cost.

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Loans Held For Sale

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans Held For Sale

Loans Held For Sale

Loans held for sale as of the dates indicated consist of the following:

	December 31, 2021		June 30, 2021
One-to-four family	$	19,246	$	31,873
SBA	8,220		4,160
HELOCs - originated	74,604		57,506
Total	$	102,070	$	93,539

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Loans and Allowance for Credit Losses on Loans

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and Allowance for Credit Losses on Loans

Loans and Allowance for Credit Losses on Loans

Loans consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
Commercial loans:
Commercial real estate	$	1,113,330	$	1,142,276
Construction and development	226,439		179,427
Commercial and industrial	162,396		141,341
Equipment finance	367,008		317,920
Municipal finance	131,078		140,421
PPP loans	19,044		46,650
Total commercial loans	2,019,295		1,968,035
Retail consumer loans:
One-to-four family	356,850		406,549
HELOCs - originated	128,189		130,225
HELOCs - purchased	30,795		38,976
Construction and land/lots	69,253		66,027
Indirect auto finance	84,581		115,093
Consumer	7,109		8,362
Total retail consumer loans	676,777		765,232
Total loans, net of deferred loan fees and costs	2,696,072		2,733,267
Allowance for credit losses on loans	(30,933)		(35,468)
Loans, net	$	2,665,139	$	2,697,799

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(1) At December 31, 2021 and June 30, 2021 accrued interest receivable of $7,560 and $7,339 was accounted for separately from the amortized cost basis.

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

Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:

Pass—A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special Mention—A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard—A substandard asset is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful—An asset classified doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values.

Loss—Assets classified loss are considered uncollectible and of such little value that their continuing to be carried as an asset is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022		2021		2020		2019		2018		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	83,972	$	221,764	$	171,332	$	125,455	$	141,325	$	313,297	$	21,312	$	1,078,457
Special mention	741		—		—		—		15,442		13,248		—		29,431
Substandard	—		—		—		—		608		4,436		398		5,442
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	84,713	$	221,764	$	171,332	$	125,455	$	157,375	$	330,981	$	21,710	$	1,113,330
Construction and development
Risk rating:
Pass	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	7,606	$	163,684	$	221,094
Special mention	—		—		—		—		—		237		4,753		4,990
Substandard	—		—		—		—		—		355		—		355
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and development	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	8,198	$	168,437	$	226,439
Commercial and industrial
Risk rating:
Pass	$	35,007	$	24,658	$	14,293	$	12,733	$	7,932	$	22,767	$	38,283	$	155,673
Special mention	—		—		—		412		—		110		37		559
Substandard	—		670		350		860		—		54		4,230		6,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial and industrial	$	35,007	$	25,328	$	14,643	$	14,005	$	7,932	$	22,931	$	42,550	$	162,396
Equipment finance
Risk rating:
Pass	$	104,196	$	134,807	$	85,693	$	38,388	$	2,918	$	—	$	—	$	366,002
Special mention	—		84		364		277		—		—		—		725
Substandard	—		—		31		—		—		—		—		31
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	104,196	$	134,891	$	86,088	$	38,915	$	2,918	$	—	$	—	$	367,008
Municipal leases
Risk rating:
Pass	$	10,555	$	24,390	$	9,216	$	12,272	$	15,071	$	46,184	$	13,096	$	130,784
Special mention	—		—		—		—		—		257		—		257
Substandard	—		37		—		—		—		—		—		37
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	10,555	$	24,427	$	9,216	$	12,272	$	15,071	$	46,441	$	13,096	$	131,078
PPP loans
Risk rating:
Pass	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Total commercial loans
Risk rating:
Pass	$	252,343	$	436,004	$	292,964	$	191,695	$	171,819	$	389,854	$	236,375	$	1,971,054
Special mention	741		84		364		689		15,442		13,852		4,790		35,962
Substandard	—		707		381		860		608		4,845		4,628		12,029
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total commercial loans	$	253,084	$	436,795	$	293,709	$	193,494	$	187,869	$	408,551	$	245,793	$	2,019,295

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022			2021		2020		2019			2018		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	18,078		$	68,642	$	53,075	$	34,164		$	32,376	$	139,793	$	2,913	$	349,041
Special mention	—			—		—		—			—		987		—		987
Substandard	—			—		963		540			212		4,639		—		6,354
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		—			—		310		—		310
Total one-to-four family	$	18,078		$	68,642	$	54,038	$	34,704		$	32,588	$	145,887	$	2,913	$	356,850
HELOCs - originated
Risk rating:
Pass	$	941		$	1,400	$	373	$	1,602		$	147	$	8,662	$	113,937	$	127,062
Special mention	—			—		—		—			—		10		—		10
Substandard	—			—		—		158			—		908		51		1,117
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - originated	$	941		$	1,400	$	373	$	1,760		$	147	$	9,580	$	113,988	$	128,189
HELOCs - purchased
Risk rating:
Pass	$	—		$	—	$	—	$	—		$	—	$	—	$	30,342	$	30,342
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—		0	—		—		453		453
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - purchased	$	—		$	—	$	—	$	—		$	—	$	—	$	30,795	$	30,795
Construction and land/lots
Risk rating:
Pass	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,474	$	53,454	$	68,858
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—			—		395		—		395
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total construction and land/lots	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,869	$	53,454	$	69,253
Indirect auto finance
Risk rating:
Pass	$	9,174		$	24,932	$	20,364	$	11,420		$	12,664	$	5,146	$	—	$	83,700
Special mention	—		0	—		—		—			—		—		—		—
Substandard	—			52		327		126			243		133		—		881
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total indirect auto finance	$	9,174		$	24,984	$	20,691	$	11,546		$	12,907	$	5,279	$	—	$	84,581
Total consumer
Risk rating:
Pass	$	382		$	1,048	$	743	$	4,323		$	154	$	102	$	308	$	7,060
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		16			—		4		28		48
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		1			—		—		—		1
Total consumer	$	382		$	1,048	$	743	$	4,340		$	154	$	106	$	336	$	7,109
Total retail consumer loans
Risk rating:
Pass	$	29,581		$	105,170	$	77,278	$	51,562		$	45,341	$	156,177	$	200,954	$	666,063
Special mention	—			—		—		—			—		997		—		997
Substandard	—			52		1,290		840			455		6,079		532		9,248
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		1			—		310		—		311
Total retail consumer loans	$	29,581		$	105,222	$	78,568	$	52,403		$	45,796	$	163,721	$	201,486	$	676,777

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	227,850	$	177,691	$	142,407	$	158,147	$	158,525	$	220,834	$	25,860	$	1,111,314
Special mention	—		—		—		16,951		1,256		3,092		—		21,299
Substandard	—		—		—		630		4,993		3,642		398		9,663
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	227,850	$	177,691	$	142,407	$	175,728	$	164,774	$	227,568	$	26,258	$	1,142,276
Construction and development
Risk rating:
Pass	18,262		6,523		10,349		6,008		2,693		7,153		123,843		$	174,831
Special mention	—		—		—		—		—		286		3,827		4,113
Substandard	—		—		—		—		—		482		—		482
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total construction and development	$	18,262	$	6,523	$	10,349	$	6,008	$	2,693	$	7,922	$	127,670	$	179,427
Commercial and industrial
Risk rating:
Pass	29,606		14,010		18,826		10,759		15,346		10,589		36,165		$	135,301
Special mention	—		21		438		110		32		125		37		763
Substandard	31		33		300		—		—		83		4,829		5,276
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total commercial and industrial	$	29,637	$	14,064	$	19,564	$	10,869	$	15,378	$	10,798	$	41,031	$	141,341
Equipment finance
Risk rating:
Pass	154,685		104,681		53,178		4,773		—		—		—		$	317,317
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		323		—		—		—		—		323
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	154,685	$	104,681	$	53,781	$	4,773	$	—	$	—	$	—	$	317,920
Municipal leases
Risk rating:
Pass	23,358		19,240		14,005		17,979		9,738		47,144		8,700		$	140,164
Special mention	—		—		—		—		—		257		—		257
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	23,358	$	19,240	$	14,005	$	17,979	$	9,738	$	47,401	$	8,700	$	140,421
PPP loans
Risk rating:
Pass	29,667		16,983		—		—		—		—		—		$	46,650
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	29,667	$	16,983	$	—	$	—	$	—	$	—	$	—	$	46,650
Total commercial loans
Risk rating:
Pass	$	483,428	$	339,128	$	238,765	$	197,666	$	186,302	$	285,720	$	194,568	$	1,925,577
Special mention	—		21		438		17,061		1,288		3,760		3,864		26,432
Substandard	31		33		623		630		4,993		4,207		5,227		15,744
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		2		—		2
Total commercial loans	$	483,459	$	339,182	$	240,106	$	215,357	$	192,583	$	293,689	$	203,659	$	1,968,035

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	72,723	$	52,987	$	46,958	$	40,461	$	37,361	$	143,531	$	4,345	$	398,366
Special mention	—		—		—		—		27		1,084		—		1,111
Substandard	246		981		—		216		86		5,037		—		6,566
Doubtful	—		—		—		—		—		191		—		191
Loss	—		—		—		—		—		315		—		315
Total one-to-four family	$	72,969	$	53,968	$	46,958	$	40,677	$	37,474	$	150,158	$	4,345	$	406,549
HELOCs - originated
Risk rating:
Pass	2,767		465		1,294		217		716		9,469		114,048		$	128,976
Special mention	—		—		—		—		—		12		—		12
Substandard	—		—		159		—		38		935		105		1,237
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - originated	$	2,767	$	465	$	1,453	$	217	$	754	$	10,416	$	114,153	$	130,225
HELOCs - purchased
Risk rating:
Pass	—		—		—		—		—		—		38,523		$	38,523
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		453		453
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	38,976	$	38,976
Construction and land/lots
Risk rating:
Pass	4,244		12,133		2,357		956		—		3,558		42,267		$	65,515
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		96		—		416		—		512
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and land/lots	$	4,244	$	12,133	$	2,357	$	1,052	$	—	$	3,974	$	42,267	$	66,027
Indirect auto finance
Risk rating:
Pass	42,128		27,134		16,224		18,853		7,561		2,061		—		$	113,961
Special mention	—		—		—		—		—		—		—		—
Substandard	29		415		195		273		143		75		—		1,130
Doubtful	—		—		—		—		—		—		—		—
Loss	2		—		—		—		—		—		—		2
Total indirect auto finance	$	42,159	$	27,549	$	16,419	$	19,126	$	7,704	$	2,136	$	—	$	115,093
Consumer
Risk rating:
Pass	1,344		1,019		5,204		252		90		91		288		$	8,288
Special mention	—		—		—		14		—		—		—		14
Substandard	—		3		19		11		4		10		11		58
Doubtful	—		—		—		—		—		—		—		—
Loss	—		1		1		—		—		—		—		2
Total consumer	$	1,344	$	1,023	$	5,224	$	277	$	94	$	101	$	299	$	8,362
Total retail consumer loans
Risk rating:
Pass	$	123,206	$	93,738	$	72,037	$	60,739	$	45,728	$	158,710	$	199,471	$	753,629
Special mention	—		—		—		14		27		1,096		—		1,137
Substandard	275		1,399		373		596		271		6,473		569		9,956
Doubtful	—		—		—		—		—		191		—		191
Loss	2		1		1		—		—		315		—		319
Total retail consumer loans	$	123,483	$	95,138	$	72,411	$	61,349	$	46,026	$	166,785	$	200,040	$	765,232

The following tables present aging analysis of past due loans (includes nonaccrual loans) by segment and class for the periods indicated below:

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
December 31, 2021
Commercial loans:
Commercial real estate	$	56	$	242	$	298	$	1,113,032	$	1,113,330
Construction and development	—		253		253		226,186		226,439
Commercial and industrial	345		560		905		161,491		162,396
Equipment finance	90		93		183		366,825		367,008
Municipal finance	—		—		—		131,078		131,078
PPP loans	20		—		20		19,024		19,044
Retail consumer loans:
One-to-four family	1,007		1,493		2,500		354,350		356,850
HELOCs - originated	86		272		358		127,831		128,189
HELOCs - purchased	346		—		346		30,449		30,795
Construction and land/lots	123		22		145		69,108		69,253
Indirect auto finance	346		110		456		84,125		84,581
Consumer	337		41		378		6,731		7,109
Total loans	$	2,756	$	3,086	$	5,842	$	2,690,230	$	2,696,072

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2021
Commercial loans:
Commercial real estate	$	396	$	1,680	$	2,076	$	1,140,200	$	1,142,276
Construction and development	—		37		37		179,390		179,427
Commercial and industrial	634		19		653		140,688		141,341
Equipment finance	—		347		347		317,573		317,920
Municipal finance	—		—		—		140,421		140,421
PPP loans	—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	1,112		1,124		2,236		404,313		406,549
HELOCs - originated	290		186		476		129,749		130,225
HELOCs - purchased	198		79		277		38,699		38,976
Construction and land/lots	6		35		41		65,986		66,027
Indirect auto finance	299		259		558		114,535		115,093
Consumer	378		36		414		7,948		8,362
Total loans	$	3,313	$	3,802	$	7,115	$	2,726,152	$	2,733,267

The following table presents recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the six months ended December 31, 2021.

	December 31, 2021		June 30, 2021		90 Days + & still accruing as of December 31, 2021		Nonaccrual with no allowance as of December 31, 2021		Interest income recognized
Commercial loans:
Commercial real estate	$	1,244	$	7,015	$	—	$	—	$	24
Construction and development	355		482		—		—		4
Commercial and industrial	923		49		—		67		17
Equipment finance	328		630		—		—		1
Municipal finance	38		—		—		—		2
Retail consumer loans:
One-to-four family	2,127		2,625		—		540		27
HELOCs - originated	352		476		—		—		3
HELOCs - purchased	452		453		—		359		11
Construction and land/lots	22		22		—		—		—
Indirect auto finance	272		438		—		—		5
Consumer	45		416		—		—		2
Total loans	$	6,158	$	12,606	$	—	$	966	$	96

The decrease in the nonaccrual balance in the above schedule, compared to June 30, 2021, is mainly due to the payoff of two commercial real estate loan relationships totaling $5.1 million.

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. The above table excludes $11,048 and $11,088 of TDRs that were performing under their restructured payment terms as of December 31, 2021 and June 30, 2021, respectively.

The following table presents a breakdown of the provision (benefit) for credit losses included in our Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Provision (benefit) for credit losses:
Loans	$	(2,440)	$	(3,350)	$	(3,775)	$	(2,400)
Off-balance-sheet credit exposure	(110)		140		(235)		140
Commercial paper	50		180		50		180
Total provision (benefit) for credit losses	$	(2,500)	$	(3,030)	$	(3,960)	$	(2,080)

The following tables present analysis of the ACL on loans by segment for the periods indicated below:

	Three Months Ended						Six Months Ended
	December 31, 2021						December 31, 2021
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	24,204	$	10,202	$	34,406	$	24,746	$	10,722	$	35,468
Benefit for credit losses	(140)		(2,300)		(2,440)		(763)		(3,012)		(3,775)
Charge-offs	(1,131)		(16)		(1,147)		(1,750)		(106)		(1,856)
Recoveries	35		79		114		735		361		1,096
Net (charge-offs) recoveries	(1,096)		63		(1,033)		(1,015)		255		(760)
Balance at end of period	$	22,968	$	7,965	$	30,933	$	22,968	$	7,965	$	30,933

	Three Months Ended						Six Months Ended
	December 31, 2020						December 31, 2020
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	25,199	$	17,933	$	43,132	$	21,116	$	6,956	$	28,072
Impact of adoption ASU 2016-13	—		—		—		4,073		10,736		14,809
Provision (benefit) for credit losses	(292)		(3,058)		(3,350)		—		(2,400)		(2,400)
Charge-offs	(308)		(253)		(561)		(1,403)		(935)		(2,338)
Recoveries	300		323		623		1,113		588		1,701
Net (charge-offs) recoveries	(8)		70		62		(290)		(347)		(637)
Balance at end of period	$	24,899	$	14,945	39,844		$	24,899	$	14,945	$	39,844

The following tables present ending balances of loans and the related ACL, by segment and class for the periods indicated below:

	Allowance for Credit Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
December 31, 2021
Commercial loans:
Commercial real estate	$	2	$	11,065	$	11,067	$	580	$	1,112,750	$	1,113,330
Construction and development	—		1,684		1,684		—		226,439		226,439
Commercial and industrial	674		2,566		3,240		2,172		160,224		162,396
Equipment finance	—		6,520		6,520		—		367,008		367,008
Municipal finance	—		457		457		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	2		3,632		3,634		2,500		354,350		356,850
HELOCs - originated	—		1,272		1,272		—		128,189		128,189
HELOCs - purchased	—		306		306		—		30,795		30,795
Construction and land/lots	—		705		705		—		69,253		69,253
Indirect auto finance	—		1,929		1,929		—		84,581		84,581
Consumer	—		119		119		—		7,109		7,109
Total	$	678	$	30,255	$	30,933	$	5,252	$	2,690,820	$	2,696,072

	Allowance for Loan Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
June 30, 2021
Commercial loans:
Commercial real estate	$	456	$	12,826	$	13,282	$	5,729	$	1,136,547	$	1,142,276
Construction and development	—		1,801		1,801		80		179,347		179,427
Commercial and industrial	9		2,583		2,592		760		140,581		141,341
Equipment finance	—		6,537		6,537		275		317,645		317,920
Municipal finance	—		534		534		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	2		5,407		5,409		1,977		404,572		406,549
HELOCs - originated	—		1,512		1,512		—		130,225		130,225
HELOCs - purchased	—		452		452		—		38,976		38,976
Construction and land/lots	—		812		812		—		66,027		66,027
Indirect auto finance	—		2,367		2,367		—		115,093		115,093
Consumer	—		170		170		—		8,362		8,362
Total	$	467	$	35,001	$	35,468	$	8,821	$	2,724,446	$	2,733,267

In estimating ECL, ASC 326 prescribes that if foreclosure is probable, a CDA is required to be measured at the fair value of collateral, but as a practical expedient, if foreclosure is not probable, fair value measurement is optional. For those CDA loans measured at the fair value of collateral, a credit loss expense is recorded for loan amounts in excess of fair value. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, and securing collateral, as well as collateral coverage for those loans for the periods indicated below:

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
December 31, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	—	$	578	$	—	$	1,112,752	$	1,113,330
Construction and development	—		—		—		—		226,439		226,439
Commercial and industrial	—		—		—		650		161,746		162,396
Equipment finance	—		—		—		—		367,008		367,008
Municipal finance	—		—		—		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	1,335		—		—		—		355,515		356,850
HELOCs - originated	—		—		—		—		128,189		128,189
HELOCs - purchased	—		—		—		—		30,795		30,795
Construction and land/lots	—		—		—		—		69,253		69,253
Indirect auto finance	—		—		—		—		84,581		84,581
Consumer	—		—		—		—		7,109		7,109
Total	$	1,335	$	—	$	578	$	650	$	2,693,509	$	2,696,072
Total Collateral Value	$	1,825	$	—	$	1,044	$	—

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
June 30, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	3,421	$	2,308	$	—	$	1,136,547	$	1,142,276
Construction and development	—		80		—		—		179,347		179,427
Commercial and industrial	—		—		—		25		141,316		141,341
Equipment finance	—		—		—		—		317,920		317,920
Municipal finance	—		—		—		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	807		—		—		—		405,742		406,549
HELOCs - originated	—		—		—		—		130,225		130,225
HELOCs - purchased	—		—		—		—		38,976		38,976
Construction and land/lots	—		—		—		—		66,027		66,027
Indirect auto finance	—		—		—		—		115,093		115,093
Consumer	—		—		—		—		8,362		8,362
Total	$	807	$	3,501	$	2,308	$	25	$	2,726,626	$	2,733,267
Total Collateral Value	$	1,160	$	3,602	$	2,723	$	26

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

	Three Months Ended December 31,
	2021					2020
	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
Other TDRs:
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	1	51		51		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	—	—		—		3	45		43
Total	4	$	266	$	263	5	$	289	$	282

	Six Months Ended December 31,
	2021					2020
	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
Other TDRs:
Commercial:
Commercial real estate	—	—		—		1	4,408		3,800
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	2	68		70		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	5	84		80		9	141		109
Total	10	$	367	$	362	12	$	4,793	$	4,148

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 periods indicated below:

	Three Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	—	$	—	1	$	1
Total	—	$	—	1	$	1

	Six Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	2	44		2	$	12
Total	2	$	44	2	$	12

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 determining the ACL, management considers TDRs for all loan classes, and the subsequent nonperformance in accordance with their modified terms, by measuring a reserve on a loan-by-loan basis 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.

Off-Balance-Sheet Credit Exposure

The Company maintains a separate reserve for credit losses on off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At December 31, 2021, the allowance for credit losses on off-balance-sheet credit exposures included in other liabilities was $2,088.

Modifications in Response to COVID-19

Beginning in March 2020, the Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. The CARES Act along with a joint agency statement issued by banking agencies and confirmed by FASB staff that short-term modifications made in response to COVID-19 were not considered TDRs; however, the relief offered by the CARES Act ended December 31, 2021.

The Bank offered payment and financial relief programs for borrowers impacted by COVID-19. These programs included loan payment deferrals for up to 90 days (which could be renewed for another 90 days under certain circumstances), waived late fees, and suspension of foreclosure proceedings and repossessions. Since March 2020, the Company received numerous requests from borrowers for some type of payment relief; however, the majority of these payment deferrals have ended and borrowers are again making regular loan payments.

As of December 31, 2021, the Company had $652 in loans with full principal and interest payment deferrals related to COVID-19 compared to $107 at June 30, 2021. Substantially all loans placed on full payment deferral during the pandemic have come out of deferral and borrowers are either making regular loan payments or interest-only payments. As of December 31, 2021, the Company had $15,604 in commercial loan deferrals on interest-only payments compared to $78,850 at June 30, 2021.

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Net Income per Share

6 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income per Share

Net Income per ShareThe following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock as of the dates indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Numerator:
Net income	$	11,078	$	9,461	$	21,605	$	15,214
Allocation of earnings to participating securities	(94)		(77)		(182)		(124)
Numerator for basic EPS - Net income available to common stockholders	$	10,984	$	9,384	$	21,423	$	15,090
Effect of dilutive securities:
Dilutive effect of participating securities	2		1		4		2
Numerator for diluted EPS	$	10,986	$	9,385	$	21,427	$	15,092
Denominator:
Weighted-average common shares outstanding - basic	15,632,283		16,202,844		15,696,765		16,216,917
Dilutive effect of assumed exercises of stock options	357,323		360,515		360,842		297,914
Weighted-average common shares outstanding - diluted	15,989,606		16,563,359		16,057,607		16,514,831
Net income per share - basic	$	0.70	$	0.58	$	1.36	$	0.93
Net income per share - diluted	$	0.68	$	0.57	$	1.33	$	0.92

Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. There were 41,000 and 56,000 stock options that were anti-dilutive for the three and six months ended December 31, 2021, respectively. There were 512,200 and 547,200 stock options that were anti-dilutive for the three and six months ended December 31, 2020, respectively.

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Equity Incentive Plan

6 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Equity Incentive Plan

Equity Incentive Plan

The Company provides stock-based awards through the 2013 Omnibus Incentive Plan, which provides for awards of restricted stock, restricted stock units, stock options, stock appreciation rights and cash awards to directors, directors emeritus, officers, employees and advisory directors. The cost of equity-based awards under the 2013 Omnibus Incentive Plan generally is based on the fair value of the awards on their grant date. The maximum number of shares that may be utilized for awards under the plan is 2,962,400, including 2,116,000 for stock options and stock appreciation rights and 846,400 for awards of restricted stock and restricted stock units. Shares of common stock issued under the plan would be issued out of authorized but unissued shares, some or all of which may be repurchased shares. The Company repurchased a number of shares on the open market sufficient to cover awards of restricted stock and restricted stock units available to be granted under the 2013 Omnibus Incentive Plan, for $13,297, at an average cost of $15.71 per share during the year ended June 30, 2013.

The table below presents share-based compensation expense and the estimated related tax benefit for stock options and restricted stock for the three and six months ended December 31, 2021 and 2020, respectively:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Share-based compensation expense	$	485	$	454	$	900	$	960
Tax benefit	114		107		212		226

The table below presents stock option activity and related information for the six months ended December 31, 2021 and 2020:

	Options	Weighted- Average Exercise Price		Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options outstanding at June 30, 2020	1,615,500	$	18.12	4.4	$	1,711
Exercised	54,000	14.37		—	—
Forfeited	26,900	25.77		—	—
Options outstanding at December 31, 2020	1,534,600	$	18.12	3.8	$	5,070
Exercisable at December 31, 2020	1,243,700	$	16.35	3.0	$	5,027
Non-vested at December 31, 2020	290,900	$	25.67	7.3	$	42
Options outstanding at June 30, 2021	1,319,456	$	19.07	3.9	$	11,657
Exercised	347,800	14.50		—	—
Forfeited	18,600	23.06		—	—
Options outstanding at December 31, 2021	953,056	$	20.65	4.1	$	9,840
Exercisable at December 31, 2021	727,506	$	19.12	3.2	$	8,631
Non-vested at December 31, 2021	225,550	$	25.62	6.9	$	1,210

There were no options granted during the six months ended December 31, 2021 and 2020.

At December 31, 2021, the Company had $894 of unrecognized compensation expense related to 225,550 stock options originally scheduled to vest over a five-year vesting period. The weighted average period over which compensation cost related to non-vested awards expected to be recognized was 1.1 years at December 31, 2021. At December 31, 2020, the Company had $1,297 of unrecognized compensation expense related to 290,900 stock options originally scheduled to vest over a five-year vesting period. The weighted average period over which compensation cost related to non-vested awards expected to be recognized was 1.3 years at December 31, 2020.

The table below presents restricted stock award activity and related information:

	Restricted Stock Awards	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested at June 30, 2020	144,046	$	25.89	$	2,305
Vested	2,600	25.37		—
Forfeited	7,650	25.65		—
Non-vested at December 31, 2020	133,796	$	25.91	$	2,584
Non-vested at June 30, 2021	151,575	$	25.06	$	4,229
Vested	8,918	26.93		—
Forfeited	9,400	24.57		—
Non-vested at December 31, 2021	133,257	$	25.06	$	4,128

The table above includes non-vested performance-based restricted stock units totaling 23,662 and 15,565 at December 31, 2021 and 2020, respectively. Each issuance of these stock units is scheduled to vest over 3.0 years assuming the applicable dilutive EPS goals are met.

At December 31, 2021, unrecognized compensation expense was $2,043 related to 133,257 shares of restricted stock originally scheduled to vest over three- and five-year vesting periods. The weighted average period over which compensation cost related to non-vested awards is expected to be recognized was 1.3 years at December 31, 2021. At December 31, 2020, unrecognized compensation expense was $2,250 related to 133,796 shares of restricted stock originally scheduled to vest over three- and five-year vesting periods. The weighted average period over which compensation cost related to non-vested awards is expected to be recognized was 1.4 years at December 31, 2020.

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Loan Commitments – Legally binding commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. In the normal course of business, there are various outstanding commitments to extend credit that are not reflected in the consolidated financial statements. At December 31, 2021 and June 30, 2021, respectively, loan commitments (excluding $201,032 and $277,600 of undisbursed portions of construction loans) totaled $78,875 and $123,463 of which $22,199 and $45,270 were variable rate commitments and $56,676 and $78,193 were fixed rate commitments. The fixed rate loans had interest rates ranging from 1.08% to 8.56% at December 31, 2021 and 2.50% to 8.36% at June 30, 2021, and terms ranging from three to 30 years. Pre-approved but unused lines of credit (principally second mortgage home equity loans and overdraft protection loans) totaled $539,778 and $530,505 at December 31, 2021 and June 30, 2021, respectively. These amounts represent the Company's exposure to credit risk, and in the opinion of management have no more than the normal lending risk that the Company commits to its borrowers. The Company has two types of commitments related to certain one-to-four family loans held for sale: rate lock commitments and forward loan commitments. Rate lock commitments are commitments to extend credit to a customer that has an interest rate lock and are considered derivative instruments. The rate lock commitments do not qualify for hedge accounting. In order to mitigate the risk from interest rate fluctuations, the Company enters into forward loan sale commitments on a “best efforts” basis, which do not meet the definition of a derivative instrument. The fair value of these interest rate lock commitments was not material at December 31, 2021 or June 30, 2021.

The Company grants construction and permanent loans collateralized primarily by residential and commercial real estate to customers throughout its primary market areas. In addition, the Company grants equipment financing throughout the United States and municipal financing to customers throughout North and South Carolina. The Company’s loan portfolio can be affected by the general economic conditions within these market areas. Management believes that the Company has no significant concentration of credit in the loan portfolio.

Restrictions on Cash – In response to COVID-19, the FRB reduced the reserve requirements to zero on March 15, 2020. Prior to this change the Bank was required by regulation to maintain a varying cash reserve balance with the FRB. 

Guarantees – Standby letters of credit obligate the Company to meet certain financial obligations of its customers, if, under the contractual terms of the agreement, the customers are unable to do so. The financial standby letters of credit issued by the Company are irrevocable and payment is only guaranteed upon the borrower's failure to perform its obligations to the beneficiary. Total commitments under standby letters of credit as of December 31, 2021 and June 30, 2021 were $9,496 and $8,681, respectively. There was no liability recorded for these letters of credit at December 31, 2021 or June 30, 2021, respectively.

Litigation – From time to time, the Company is involved in litigation matters in the ordinary course of business. These proceedings and the associated legal claims are often contested, and the outcome of individual matters is not always predictable. These claims and counter claims typically arise during the course of collection efforts on problem loans or with respect to actions to enforce liens on properties in which the Company holds a security interest. The Company is not a party to any pending legal proceedings that management believes would have a material adverse effect on the Company’s financial condition or results of operations.

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Fair Value of Financial Instruments

6 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Debt securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. The Company measures the fair value of loans receivable under the exit price notion. The fair value of nonperforming loans is based on the underlying value of the collateral.

Fair Value Hierarchy

The Company groups assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1:    Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2:    Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3:    Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 20 of the 2021 Form 10-K.

Financial Assets Recorded at Fair Value

The following table presents financial assets measured at fair value on a recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	18,933	$	—	$	18,933	$	—
MBS, residential	38,185		—		38,185		—
Municipal bonds	7,249		—		7,249		—
Corporate bonds	57,484		—		57,484		—
Total	$	121,851	$	—	$	121,851	$	—

	June 30, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	19,073	$	—	$	19,073	$	—
MBS, residential	43,404		—		43,404		—
Municipal bonds	9,551		—		9,551		—
Corporate bonds	84,431		—		84,431		—
Total	$	156,459	$	—	$	156,459	$	—

There were no transfers between levels during the six months ended December 31, 2021 and 2020.

The following table presents financial assets measured at fair value on a non-recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	288	$	—	$	—	$	288
Commercial and industrial	—		—		—		—
Total	$	288	$	—	$	—	$	288

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	4,841	$	—	$	—	$	4,841
Equipment finance	275		—		—		275
Total	$	5,116	$	—	$	—	$	5,116

A loan is considered to be collateral dependent when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. For real estate loans, the fair value of the loan's collateral is determined by a third party appraisal, which is then adjusted for the estimated selling and closing costs related to liquidation of the collateral (typically ranging from 8% to 12% of the appraised value). For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. Additional discounts of 5% to 15% may be applied depending on the age of the appraisals. The unobservable inputs may vary depending on the individual asset with no one of the three methods being the predominant approach. For non-real estate loans, the fair value of the loan's collateral may be determined using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the customer and customer's business.

The stated carrying value and estimated fair value amounts of financial instruments as of December 31, 2021 and June 30, 2021, are summarized below:

	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	34,826	$	34,826	$	34,826	$	—	$	—
Commercial paper	254,157		254,157		254,157		—		—
Certificates of deposit in other banks	34,002		34,002		—		34,002		—
Debt securities available for sale	121,851		121,851		—		121,851		—
Loans held for sale	102,070		103,317		—		—		103,317
Loans, net	2,665,139		2,625,236		—		—		2,625,236
FHLB stock	2,965		N/A		N/A		N/A		N/A
FRB stock	7,403		N/A		N/A		N/A		N/A
SBIC investments	11,749		11,749		—		—		11,749
Accrued interest receivable	8,200		8,200		—		640		7,560
Liabilities:
Noninterest-bearing and NOW accounts	1,321,502		1,321,502		—		1,321,502		—
Money market accounts	1,010,901		1,010,901		—		1,010,901		—
Savings accounts	224,474		224,474		—		224,474		—
Certificates of deposit	441,814		441,568		—		441,568		—
Borrowings	48,000		47,998		—		47,998		—
Accrued interest payable	42		42		—		42		—

	June 30, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	50,990	$	50,990	$	50,990	$	—	$	—
Commercial paper	189,596		189,596		189,596		—		—
Certificates of deposit in other banks	40,122		40,122		—		40,122		—
Debt securities available for sale	156,459		156,459		—		156,459		—
Loans held for sale	93,539		94,779		—		—		94,779
Loans, net	2,697,799		2,668,570		—		—		2,668,570
FHLB stock	6,153		N/A		N/A		N/A		N/A
FRB stock	7,386		N/A		N/A		N/A		N/A
SBIC investments	10,171		10,171		—		—		10,171
Accrued interest receivable	7,933		7,933		52		542		7,339
Liabilities:
Noninterest-bearing and NOW accounts	1,281,372		1,281,372		—		1,281,372		—
Money market accounts	975,001		975,001		—		975,001		—
Savings accounts	226,391		226,391		—		226,391		—
Certificates of deposit	472,777		474,397		—		474,397		—
Borrowings	115,000		115,000		—		115,000		—
Accrued interest payable	52		52		—		52		—

The Company had off-balance sheet financial commitments, which included approximately $829,181 and $940,249 of commitments to originate loans, undisbursed portions of interim construction loans, unused lines of credit, and standby letters of credit at December 31, 2021 and June 30, 2021, respectively (see "Note 9 – Commitments and Contingencies"). Since these commitments are based on current rates, the carrying amount approximates the fair value.

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Leases

6 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at December 31, 2021 and June 30, 2021 and is included in other assets. The corresponding lease liability totaled $1,783 and $1,804 at December 31, 2021 and June 30, 2021, respectively, and is included in other liabilities. For the three and six months ended December 31, 2021 and 2020, interest expense on the lease liability totaled $24 and $48, respectively. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, medical, and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to five years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $23,869 and $25,932 with a residual value of $14,800 and $15,330 as of December 31, 2021 and June 30, 2021, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

As Lessor - Direct Financing Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $753 and $570, respectively. For the six months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,512 and $1,099, respectively.

The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.9 million and $63.3 million at December 31 and June 30, 2021, respectively.

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at December 31, 2021 and June 30, 2021 and is included in other assets. The corresponding lease liability totaled $1,783 and $1,804 at December 31, 2021 and June 30, 2021, respectively, and is included in other liabilities. For the three and six months ended December 31, 2021 and 2020, interest expense on the lease liability totaled $24 and $48, respectively. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, medical, and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to five years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $23,869 and $25,932 with a residual value of $14,800 and $15,330 as of December 31, 2021 and June 30, 2021, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

As Lessor - Direct Financing Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $753 and $570, respectively. For the six months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,512 and $1,099, respectively.

The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.9 million and $63.3 million at December 31 and June 30, 2021, respectively.

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at December 31, 2021 and June 30, 2021 and is included in other assets. The corresponding lease liability totaled $1,783 and $1,804 at December 31, 2021 and June 30, 2021, respectively, and is included in other liabilities. For the three and six months ended December 31, 2021 and 2020, interest expense on the lease liability totaled $24 and $48, respectively. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, medical, and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to five years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $23,869 and $25,932 with a residual value of $14,800 and $15,330 as of December 31, 2021 and June 30, 2021, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

As Lessor - Direct Financing Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $753 and $570, respectively. For the six months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,512 and $1,099, respectively.

The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.9 million and $63.3 million at December 31 and June 30, 2021, respectively.

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at December 31, 2021 and June 30, 2021 and is included in other assets. The corresponding lease liability totaled $1,783 and $1,804 at December 31, 2021 and June 30, 2021, respectively, and is included in other liabilities. For the three and six months ended December 31, 2021 and 2020, interest expense on the lease liability totaled $24 and $48, respectively. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, medical, and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to five years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $23,869 and $25,932 with a residual value of $14,800 and $15,330 as of December 31, 2021 and June 30, 2021, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

As Lessor - Direct Financing Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $753 and $570, respectively. For the six months ended December 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,512 and $1,099, respectively.

The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.9 million and $63.3 million at December 31 and June 30, 2021, respectively.

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Accounting

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2021 ("2021 Form 10-K") filed with the SEC on September 10, 2021. The results of operations for the six months ended December 31, 2021 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2022.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company's accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments. In particular, management has identified the determination of the provision and the allowance for credit losses on loans as an accounting policy that, due to the judgments, estimates and assumptions inherent in this policy, is critical to an understanding of the Company's financial statements. This policy and the related judgments, estimates and assumptions is described in greater detail in the notes to the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in the 2021 Form 10-K. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to this critical accounting policy, the use of other judgments, estimates and assumptions could result in material differences in the Company's results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on this estimate and the Company's financial condition and operating results in future periods.

Reclassifications and corrections

Reclassifications and corrections. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or stockholders’ equity as previously reported.

Recent Accounting Pronouncements

Adoption of New Accounting Standards

ASU 2020-01, "Investment—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." This ASU clarified the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2021 and early adoption was permitted. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.

Newly Issued but Not Yet Effective Accounting Standards

ASU 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments." This ASU amends the lease classification requirements for lessors to classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease that would result in the recognition of a day-one loss at lease commencement, provided that the lease includes variable lease payments that do not depend on an index or rate. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset and therefore, does not recognize a selling profit or loss. The amendments in this ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

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Debt Securities (Tables)

6 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

Debt securities available for sale consist of the following at the dates indicated:

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,984	$	85	$	(136)	$	18,933
MBS, residential	37,424		882		(121)		38,185
Municipal bonds	6,928		321		—		7,249
Corporate bonds	57,735		94		(345)		57,484
Total	$	121,071	$	1,382	$	(602)	$	121,851

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,975	$	135	$	(37)	$	19,073
MBS, residential	42,119		1,339		(54)		43,404
Municipal bonds	9,098		453		—		9,551
Corporate bonds	84,301		257		(127)		84,431
Total	$	154,493	$	2,184	$	(218)	$	156,459

Investments Classified by Contractual Maturity Date

Debt securities available for sale by contractual maturity at December 31, 2021 and June 30, 2021 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.

	December 31, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	36,079	$	36,230
Due after one year through five years	41,755		41,500
Due after five years through ten years	5,813		5,936
Due after ten years	—		—
MBS, residential	37,424		38,185
Total	$	121,071	$	121,851

	June 30, 2021
	Amortized Cost		Estimated Fair Value
Due within one year	$	34,615	$	34,684
Due after one year through five years	73,249		73,633
Due after five years through ten years	4,510		4,738
Due after ten years	—		—
MBS, residential	42,119		43,404
Total	$	154,493	$	156,459

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The gross unrealized losses and the fair value for debt securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and June 30, 2021 were as follows:

	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,864	$	(136)	$	—	$	—	$	14,864	$	(136)
MBS, residential	9,344		(100)		1,132		(21)		10,476		(121)
Corporate bonds	43,619		(345)		—		—		43,619		(345)
Total	$	67,827	$	(581)	$	1,132	$	(21)	$	68,959	$	(602)

	June 30, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,963	$	(37)	$	—	$	—	$	14,963	$	(37)
MBS, residential	5,212		(28)		1,205		(26)		6,417		(54)
Corporate bonds	19,873		(127)		—		—		19,873		(127)
Total	$	40,048	$	(192)	$	1,205	$	(26)	$	41,253	$	(218)

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Other Investments (Tables)

6 Months Ended

Dec. 31, 2021

Investments, All Other Investments [Abstract]

Investment

Other investments, at cost, consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
FHLB of Atlanta stock	$	2,965	$	6,153
FRB stock	7,403		7,386
SBIC investments	11,749		10,171
Total	$	22,117	$	23,710

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Loans Held For Sale (Tables)

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Loans Held for Sale

Loans held for sale as of the dates indicated consist of the following:

	December 31, 2021		June 30, 2021
One-to-four family	$	19,246	$	31,873
SBA	8,220		4,160
HELOCs - originated	74,604		57,506
Total	$	102,070	$	93,539

Loans consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
Commercial loans:
Commercial real estate	$	1,113,330	$	1,142,276
Construction and development	226,439		179,427
Commercial and industrial	162,396		141,341
Equipment finance	367,008		317,920
Municipal finance	131,078		140,421
PPP loans	19,044		46,650
Total commercial loans	2,019,295		1,968,035
Retail consumer loans:
One-to-four family	356,850		406,549
HELOCs - originated	128,189		130,225
HELOCs - purchased	30,795		38,976
Construction and land/lots	69,253		66,027
Indirect auto finance	84,581		115,093
Consumer	7,109		8,362
Total retail consumer loans	676,777		765,232
Total loans, net of deferred loan fees and costs	2,696,072		2,733,267
Allowance for credit losses on loans	(30,933)		(35,468)
Loans, net	$	2,665,139	$	2,697,799

_________________________________________________________________

(1) At December 31, 2021 and June 30, 2021 accrued interest receivable of $7,560 and $7,339 was accounted for separately from the amortized cost basis.

The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, and securing collateral, as well as collateral coverage for those loans for the periods indicated below:

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
December 31, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	—	$	578	$	—	$	1,112,752	$	1,113,330
Construction and development	—		—		—		—		226,439		226,439
Commercial and industrial	—		—		—		650		161,746		162,396
Equipment finance	—		—		—		—		367,008		367,008
Municipal finance	—		—		—		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	1,335		—		—		—		355,515		356,850
HELOCs - originated	—		—		—		—		128,189		128,189
HELOCs - purchased	—		—		—		—		30,795		30,795
Construction and land/lots	—		—		—		—		69,253		69,253
Indirect auto finance	—		—		—		—		84,581		84,581
Consumer	—		—		—		—		7,109		7,109
Total	$	1,335	$	—	$	578	$	650	$	2,693,509	$	2,696,072
Total Collateral Value	$	1,825	$	—	$	1,044	$	—

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
June 30, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	3,421	$	2,308	$	—	$	1,136,547	$	1,142,276
Construction and development	—		80		—		—		179,347		179,427
Commercial and industrial	—		—		—		25		141,316		141,341
Equipment finance	—		—		—		—		317,920		317,920
Municipal finance	—		—		—		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	807		—		—		—		405,742		406,549
HELOCs - originated	—		—		—		—		130,225		130,225
HELOCs - purchased	—		—		—		—		38,976		38,976
Construction and land/lots	—		—		—		—		66,027		66,027
Indirect auto finance	—		—		—		—		115,093		115,093
Consumer	—		—		—		—		8,362		8,362
Total	$	807	$	3,501	$	2,308	$	25	$	2,726,626	$	2,733,267
Total Collateral Value	$	1,160	$	3,602	$	2,723	$	26

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Loans and Allowance for Credit Losses on Loans (Tables)

6 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans held for sale as of the dates indicated consist of the following:

	December 31, 2021		June 30, 2021
One-to-four family	$	19,246	$	31,873
SBA	8,220		4,160
HELOCs - originated	74,604		57,506
Total	$	102,070	$	93,539

Loans consist of the following at the dates indicated:

	December 31, 2021		June 30, 2021
Commercial loans:
Commercial real estate	$	1,113,330	$	1,142,276
Construction and development	226,439		179,427
Commercial and industrial	162,396		141,341
Equipment finance	367,008		317,920
Municipal finance	131,078		140,421
PPP loans	19,044		46,650
Total commercial loans	2,019,295		1,968,035
Retail consumer loans:
One-to-four family	356,850		406,549
HELOCs - originated	128,189		130,225
HELOCs - purchased	30,795		38,976
Construction and land/lots	69,253		66,027
Indirect auto finance	84,581		115,093
Consumer	7,109		8,362
Total retail consumer loans	676,777		765,232
Total loans, net of deferred loan fees and costs	2,696,072		2,733,267
Allowance for credit losses on loans	(30,933)		(35,468)
Loans, net	$	2,665,139	$	2,697,799

_________________________________________________________________

(1) At December 31, 2021 and June 30, 2021 accrued interest receivable of $7,560 and $7,339 was accounted for separately from the amortized cost basis.

The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, and securing collateral, as well as collateral coverage for those loans for the periods indicated below:

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
December 31, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	—	$	578	$	—	$	1,112,752	$	1,113,330
Construction and development	—		—		—		—		226,439		226,439
Commercial and industrial	—		—		—		650		161,746		162,396
Equipment finance	—		—		—		—		367,008		367,008
Municipal finance	—		—		—		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	1,335		—		—		—		355,515		356,850
HELOCs - originated	—		—		—		—		128,189		128,189
HELOCs - purchased	—		—		—		—		30,795		30,795
Construction and land/lots	—		—		—		—		69,253		69,253
Indirect auto finance	—		—		—		—		84,581		84,581
Consumer	—		—		—		—		7,109		7,109
Total	$	1,335	$	—	$	578	$	650	$	2,693,509	$	2,696,072
Total Collateral Value	$	1,825	$	—	$	1,044	$	—

	Type of Collateral and Extent to Which Collateral Secures Financial Assets
June 30, 2021	Residential Property		Investment Property		Commercial Property		Business Assets		Financial Assets Not Considered Collateral Dependent		Total
Commercial loans:
Commercial real estate	$	—	$	3,421	$	2,308	$	—	$	1,136,547	$	1,142,276
Construction and development	—		80		—		—		179,347		179,427
Commercial and industrial	—		—		—		25		141,316		141,341
Equipment finance	—		—		—		—		317,920		317,920
Municipal finance	—		—		—		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	807		—		—		—		405,742		406,549
HELOCs - originated	—		—		—		—		130,225		130,225
HELOCs - purchased	—		—		—		—		38,976		38,976
Construction and land/lots	—		—		—		—		66,027		66,027
Indirect auto finance	—		—		—		—		115,093		115,093
Consumer	—		—		—		—		8,362		8,362
Total	$	807	$	3,501	$	2,308	$	25	$	2,726,626	$	2,733,267
Total Collateral Value	$	1,160	$	3,602	$	2,723	$	26

Financing Receivable Credit Quality Indicators

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022		2021		2020		2019		2018		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	83,972	$	221,764	$	171,332	$	125,455	$	141,325	$	313,297	$	21,312	$	1,078,457
Special mention	741		—		—		—		15,442		13,248		—		29,431
Substandard	—		—		—		—		608		4,436		398		5,442
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	84,713	$	221,764	$	171,332	$	125,455	$	157,375	$	330,981	$	21,710	$	1,113,330
Construction and development
Risk rating:
Pass	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	7,606	$	163,684	$	221,094
Special mention	—		—		—		—		—		237		4,753		4,990
Substandard	—		—		—		—		—		355		—		355
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and development	$	18,603	$	18,270	$	5,511	$	2,847	$	4,573	$	8,198	$	168,437	$	226,439
Commercial and industrial
Risk rating:
Pass	$	35,007	$	24,658	$	14,293	$	12,733	$	7,932	$	22,767	$	38,283	$	155,673
Special mention	—		—		—		412		—		110		37		559
Substandard	—		670		350		860		—		54		4,230		6,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial and industrial	$	35,007	$	25,328	$	14,643	$	14,005	$	7,932	$	22,931	$	42,550	$	162,396
Equipment finance
Risk rating:
Pass	$	104,196	$	134,807	$	85,693	$	38,388	$	2,918	$	—	$	—	$	366,002
Special mention	—		84		364		277		—		—		—		725
Substandard	—		—		31		—		—		—		—		31
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	104,196	$	134,891	$	86,088	$	38,915	$	2,918	$	—	$	—	$	367,008
Municipal leases
Risk rating:
Pass	$	10,555	$	24,390	$	9,216	$	12,272	$	15,071	$	46,184	$	13,096	$	130,784
Special mention	—		—		—		—		—		257		—		257
Substandard	—		37		—		—		—		—		—		37
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	10,555	$	24,427	$	9,216	$	12,272	$	15,071	$	46,441	$	13,096	$	131,078
PPP loans
Risk rating:
Pass	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	10	$	12,115	$	6,919	$	—	$	—	$	—	$	—	$	19,044
Total commercial loans
Risk rating:
Pass	$	252,343	$	436,004	$	292,964	$	191,695	$	171,819	$	389,854	$	236,375	$	1,971,054
Special mention	741		84		364		689		15,442		13,852		4,790		35,962
Substandard	—		707		381		860		608		4,845		4,628		12,029
Doubtful	—		—		—		250		—		—		—		250
Loss	—		—		—		—		—		—		—		—
Total commercial loans	$	253,084	$	436,795	$	293,709	$	193,494	$	187,869	$	408,551	$	245,793	$	2,019,295

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
December 31, 2021	2022			2021		2020		2019			2018		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	18,078		$	68,642	$	53,075	$	34,164		$	32,376	$	139,793	$	2,913	$	349,041
Special mention	—			—		—		—			—		987		—		987
Substandard	—			—		963		540			212		4,639		—		6,354
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		—			—		310		—		310
Total one-to-four family	$	18,078		$	68,642	$	54,038	$	34,704		$	32,588	$	145,887	$	2,913	$	356,850
HELOCs - originated
Risk rating:
Pass	$	941		$	1,400	$	373	$	1,602		$	147	$	8,662	$	113,937	$	127,062
Special mention	—			—		—		—			—		10		—		10
Substandard	—			—		—		158			—		908		51		1,117
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - originated	$	941		$	1,400	$	373	$	1,760		$	147	$	9,580	$	113,988	$	128,189
HELOCs - purchased
Risk rating:
Pass	$	—		$	—	$	—	$	—		$	—	$	—	$	30,342	$	30,342
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—		0	—		—		453		453
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total HELOCs - purchased	$	—		$	—	$	—	$	—		$	—	$	—	$	30,795	$	30,795
Construction and land/lots
Risk rating:
Pass	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,474	$	53,454	$	68,858
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		—			—		395		—		395
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total construction and land/lots	$	1,006		$	9,148	$	2,723	$	53		$	—	$	2,869	$	53,454	$	69,253
Indirect auto finance
Risk rating:
Pass	$	9,174		$	24,932	$	20,364	$	11,420		$	12,664	$	5,146	$	—	$	83,700
Special mention	—		0	—		—		—			—		—		—		—
Substandard	—			52		327		126			243		133		—		881
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		—			—		—		—		—
Total indirect auto finance	$	9,174		$	24,984	$	20,691	$	11,546		$	12,907	$	5,279	$	—	$	84,581
Total consumer
Risk rating:
Pass	$	382		$	1,048	$	743	$	4,323		$	154	$	102	$	308	$	7,060
Special mention	—			—		—		—			—		—		—		—
Substandard	—			—		—		16			—		4		28		48
Doubtful	—			—		—		—			—		—		—		—
Loss	—			—		—		1			—		—		—		1
Total consumer	$	382		$	1,048	$	743	$	4,340		$	154	$	106	$	336	$	7,109
Total retail consumer loans
Risk rating:
Pass	$	29,581		$	105,170	$	77,278	$	51,562		$	45,341	$	156,177	$	200,954	$	666,063
Special mention	—			—		—		—			—		997		—		997
Substandard	—			52		1,290		840			455		6,079		532		9,248
Doubtful	—			—		—		—			—		158		—		158
Loss	—			—		—		1			—		310		—		311
Total retail consumer loans	$	29,581		$	105,222	$	78,568	$	52,403		$	45,796	$	163,721	$	201,486	$	676,777

The following table presents the credit risk profile by risk grade for commercial loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
Commercial real estate
Risk rating:
Pass	$	227,850	$	177,691	$	142,407	$	158,147	$	158,525	$	220,834	$	25,860	$	1,111,314
Special mention	—		—		—		16,951		1,256		3,092		—		21,299
Substandard	—		—		—		630		4,993		3,642		398		9,663
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial real estate	$	227,850	$	177,691	$	142,407	$	175,728	$	164,774	$	227,568	$	26,258	$	1,142,276
Construction and development
Risk rating:
Pass	18,262		6,523		10,349		6,008		2,693		7,153		123,843		$	174,831
Special mention	—		—		—		—		—		286		3,827		4,113
Substandard	—		—		—		—		—		482		—		482
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total construction and development	$	18,262	$	6,523	$	10,349	$	6,008	$	2,693	$	7,922	$	127,670	$	179,427
Commercial and industrial
Risk rating:
Pass	29,606		14,010		18,826		10,759		15,346		10,589		36,165		$	135,301
Special mention	—		21		438		110		32		125		37		763
Substandard	31		33		300		—		—		83		4,829		5,276
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		1		—		1
Total commercial and industrial	$	29,637	$	14,064	$	19,564	$	10,869	$	15,378	$	10,798	$	41,031	$	141,341
Equipment finance
Risk rating:
Pass	154,685		104,681		53,178		4,773		—		—		—		$	317,317
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		323		—		—		—		—		323
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		—		—		—
Total equipment finance	$	154,685	$	104,681	$	53,781	$	4,773	$	—	$	—	$	—	$	317,920
Municipal leases
Risk rating:
Pass	23,358		19,240		14,005		17,979		9,738		47,144		8,700		$	140,164
Special mention	—		—		—		—		—		257		—		257
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total municipal leases	$	23,358	$	19,240	$	14,005	$	17,979	$	9,738	$	47,401	$	8,700	$	140,421
PPP loans
Risk rating:
Pass	29,667		16,983		—		—		—		—		—		$	46,650
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total PPP loans	$	29,667	$	16,983	$	—	$	—	$	—	$	—	$	—	$	46,650
Total commercial loans
Risk rating:
Pass	$	483,428	$	339,128	$	238,765	$	197,666	$	186,302	$	285,720	$	194,568	$	1,925,577
Special mention	—		21		438		17,061		1,288		3,760		3,864		26,432
Substandard	31		33		623		630		4,993		4,207		5,227		15,744
Doubtful	—		—		280		—		—		—		—		280
Loss	—		—		—		—		—		2		—		2
Total commercial loans	$	483,459	$	339,182	$	240,106	$	215,357	$	192,583	$	293,689	$	203,659	$	1,968,035

The following table presents the credit risk profile by risk grade for retail consumer loans by origination year:

	Term Loans By Origination Fiscal Year
June 30, 2021	2021		2020		2019		2018		2017		Prior		Revolving		Total
One-to-four family
Risk rating:
Pass	$	72,723	$	52,987	$	46,958	$	40,461	$	37,361	$	143,531	$	4,345	$	398,366
Special mention	—		—		—		—		27		1,084		—		1,111
Substandard	246		981		—		216		86		5,037		—		6,566
Doubtful	—		—		—		—		—		191		—		191
Loss	—		—		—		—		—		315		—		315
Total one-to-four family	$	72,969	$	53,968	$	46,958	$	40,677	$	37,474	$	150,158	$	4,345	$	406,549
HELOCs - originated
Risk rating:
Pass	2,767		465		1,294		217		716		9,469		114,048		$	128,976
Special mention	—		—		—		—		—		12		—		12
Substandard	—		—		159		—		38		935		105		1,237
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - originated	$	2,767	$	465	$	1,453	$	217	$	754	$	10,416	$	114,153	$	130,225
HELOCs - purchased
Risk rating:
Pass	—		—		—		—		—		—		38,523		$	38,523
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		453		453
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total HELOCs - purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	38,976	$	38,976
Construction and land/lots
Risk rating:
Pass	4,244		12,133		2,357		956		—		3,558		42,267		$	65,515
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		96		—		416		—		512
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total construction and land/lots	$	4,244	$	12,133	$	2,357	$	1,052	$	—	$	3,974	$	42,267	$	66,027
Indirect auto finance
Risk rating:
Pass	42,128		27,134		16,224		18,853		7,561		2,061		—		$	113,961
Special mention	—		—		—		—		—		—		—		—
Substandard	29		415		195		273		143		75		—		1,130
Doubtful	—		—		—		—		—		—		—		—
Loss	2		—		—		—		—		—		—		2
Total indirect auto finance	$	42,159	$	27,549	$	16,419	$	19,126	$	7,704	$	2,136	$	—	$	115,093
Consumer
Risk rating:
Pass	1,344		1,019		5,204		252		90		91		288		$	8,288
Special mention	—		—		—		14		—		—		—		14
Substandard	—		3		19		11		4		10		11		58
Doubtful	—		—		—		—		—		—		—		—
Loss	—		1		1		—		—		—		—		2
Total consumer	$	1,344	$	1,023	$	5,224	$	277	$	94	$	101	$	299	$	8,362
Total retail consumer loans
Risk rating:
Pass	$	123,206	$	93,738	$	72,037	$	60,739	$	45,728	$	158,710	$	199,471	$	753,629
Special mention	—		—		—		14		27		1,096		—		1,137
Substandard	275		1,399		373		596		271		6,473		569		9,956
Doubtful	—		—		—		—		—		191		—		191
Loss	2		1		1		—		—		315		—		319
Total retail consumer loans	$	123,483	$	95,138	$	72,411	$	61,349	$	46,026	$	166,785	$	200,040	$	765,232

Past Due Financing Receivables

The following tables present aging analysis of past due loans (includes nonaccrual loans) by segment and class for the periods indicated below:

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
December 31, 2021
Commercial loans:
Commercial real estate	$	56	$	242	$	298	$	1,113,032	$	1,113,330
Construction and development	—		253		253		226,186		226,439
Commercial and industrial	345		560		905		161,491		162,396
Equipment finance	90		93		183		366,825		367,008
Municipal finance	—		—		—		131,078		131,078
PPP loans	20		—		20		19,024		19,044
Retail consumer loans:
One-to-four family	1,007		1,493		2,500		354,350		356,850
HELOCs - originated	86		272		358		127,831		128,189
HELOCs - purchased	346		—		346		30,449		30,795
Construction and land/lots	123		22		145		69,108		69,253
Indirect auto finance	346		110		456		84,125		84,581
Consumer	337		41		378		6,731		7,109
Total loans	$	2,756	$	3,086	$	5,842	$	2,690,230	$	2,696,072

	Past Due								Total
	30-89 Days		90 Days+		Total		Current		Loans
June 30, 2021
Commercial loans:
Commercial real estate	$	396	$	1,680	$	2,076	$	1,140,200	$	1,142,276
Construction and development	—		37		37		179,390		179,427
Commercial and industrial	634		19		653		140,688		141,341
Equipment finance	—		347		347		317,573		317,920
Municipal finance	—		—		—		140,421		140,421
PPP loans	—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	1,112		1,124		2,236		404,313		406,549
HELOCs - originated	290		186		476		129,749		130,225
HELOCs - purchased	198		79		277		38,699		38,976
Construction and land/lots	6		35		41		65,986		66,027
Indirect auto finance	299		259		558		114,535		115,093
Consumer	378		36		414		7,948		8,362
Total loans	$	3,313	$	3,802	$	7,115	$	2,726,152	$	2,733,267

Schedule of Past Due Loans Still Accruing and Nonaccruing Interest

The following table presents recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the six months ended December 31, 2021.

	December 31, 2021		June 30, 2021		90 Days + & still accruing as of December 31, 2021		Nonaccrual with no allowance as of December 31, 2021		Interest income recognized
Commercial loans:
Commercial real estate	$	1,244	$	7,015	$	—	$	—	$	24
Construction and development	355		482		—		—		4
Commercial and industrial	923		49		—		67		17
Equipment finance	328		630		—		—		1
Municipal finance	38		—		—		—		2
Retail consumer loans:
One-to-four family	2,127		2,625		—		540		27
HELOCs - originated	352		476		—		—		3
HELOCs - purchased	452		453		—		359		11
Construction and land/lots	22		22		—		—		—
Indirect auto finance	272		438		—		—		5
Consumer	45		416		—		—		2
Total loans	$	6,158	$	12,606	$	—	$	966	$	96

Breakdown of Provision (Benefit) for Credit Losses

The following table presents a breakdown of the provision (benefit) for credit losses included in our Consolidated Statements of Income:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Provision (benefit) for credit losses:
Loans	$	(2,440)	$	(3,350)	$	(3,775)	$	(2,400)
Off-balance-sheet credit exposure	(110)		140		(235)		140
Commercial paper	50		180		50		180
Total provision (benefit) for credit losses	$	(2,500)	$	(3,030)	$	(3,960)	$	(2,080)

Allowance for Credit Losses on Financing Receivables

The following tables present analysis of the ACL on loans by segment for the periods indicated below:

	Three Months Ended						Six Months Ended
	December 31, 2021						December 31, 2021
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	24,204	$	10,202	$	34,406	$	24,746	$	10,722	$	35,468
Benefit for credit losses	(140)		(2,300)		(2,440)		(763)		(3,012)		(3,775)
Charge-offs	(1,131)		(16)		(1,147)		(1,750)		(106)		(1,856)
Recoveries	35		79		114		735		361		1,096
Net (charge-offs) recoveries	(1,096)		63		(1,033)		(1,015)		255		(760)
Balance at end of period	$	22,968	$	7,965	$	30,933	$	22,968	$	7,965	$	30,933

	Three Months Ended						Six Months Ended
	December 31, 2020						December 31, 2020
	Commercial		Retail Consumer		Total		Commercial		Retail Consumer		Total
Balance at beginning of period	$	25,199	$	17,933	$	43,132	$	21,116	$	6,956	$	28,072
Impact of adoption ASU 2016-13	—		—		—		4,073		10,736		14,809
Provision (benefit) for credit losses	(292)		(3,058)		(3,350)		—		(2,400)		(2,400)
Charge-offs	(308)		(253)		(561)		(1,403)		(935)		(2,338)
Recoveries	300		323		623		1,113		588		1,701
Net (charge-offs) recoveries	(8)		70		62		(290)		(347)		(637)
Balance at end of period	$	24,899	$	14,945	39,844		$	24,899	$	14,945	$	39,844

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

The following tables present ending balances of loans and the related ACL, by segment and class for the periods indicated below:

	Allowance for Credit Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
December 31, 2021
Commercial loans:
Commercial real estate	$	2	$	11,065	$	11,067	$	580	$	1,112,750	$	1,113,330
Construction and development	—		1,684		1,684		—		226,439		226,439
Commercial and industrial	674		2,566		3,240		2,172		160,224		162,396
Equipment finance	—		6,520		6,520		—		367,008		367,008
Municipal finance	—		457		457		—		131,078		131,078
PPP loans	—		—		—		—		19,044		19,044
Retail consumer loans:
One-to-four family	2		3,632		3,634		2,500		354,350		356,850
HELOCs - originated	—		1,272		1,272		—		128,189		128,189
HELOCs - purchased	—		306		306		—		30,795		30,795
Construction and land/lots	—		705		705		—		69,253		69,253
Indirect auto finance	—		1,929		1,929		—		84,581		84,581
Consumer	—		119		119		—		7,109		7,109
Total	$	678	$	30,255	$	30,933	$	5,252	$	2,690,820	$	2,696,072

	Allowance for Loan Losses						Total Loans Receivable
	Loans Individually Evaluated		Loans Collectively Evaluated		Total		Loans Individually Evaluated		Loans Collectively Evaluated		Total
June 30, 2021
Commercial loans:
Commercial real estate	$	456	$	12,826	$	13,282	$	5,729	$	1,136,547	$	1,142,276
Construction and development	—		1,801		1,801		80		179,347		179,427
Commercial and industrial	9		2,583		2,592		760		140,581		141,341
Equipment finance	—		6,537		6,537		275		317,645		317,920
Municipal finance	—		534		534		—		140,421		140,421
PPP loans	—		—		—		—		46,650		46,650
Retail consumer loans:
One-to-four family	2		5,407		5,409		1,977		404,572		406,549
HELOCs - originated	—		1,512		1,512		—		130,225		130,225
HELOCs - purchased	—		452		452		—		38,976		38,976
Construction and land/lots	—		812		812		—		66,027		66,027
Indirect auto finance	—		2,367		2,367		—		115,093		115,093
Consumer	—		170		170		—		8,362		8,362
Total	$	467	$	35,001	$	35,468	$	8,821	$	2,724,446	$	2,733,267

Troubled Debt Restructurings on Financing Receivables

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

	Three Months Ended December 31,
	2021					2020
	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
Other TDRs:
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	1	51		51		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	—	—		—		3	45		43
Total	4	$	266	$	263	5	$	289	$	282

	Six Months Ended December 31,
	2021					2020
	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
Other TDRs:
Commercial:
Commercial real estate	—	—		—		1	4,408		3,800
Retail consumer:
One-to-four family	3	215		212		1	19		16
HELOCs - originated	2	68		70		—	—		—
Construction and land/lots	—	—		—		1	225		223
Indirect auto finance	5	84		80		9	141		109
Total	10	$	367	$	362	12	$	4,793	$	4,148

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 periods indicated below:

	Three Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	—	$	—	1	$	1
Total	—	$	—	1	$	1

	Six Months Ended December 31,
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Other TDRs:
Retail consumer:
Indirect auto finance	2	44		2	$	12
Total	2	$	44	2	$	12

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Net Income per Share (Tables)

6 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock as of the dates indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Numerator:
Net income	$	11,078	$	9,461	$	21,605	$	15,214
Allocation of earnings to participating securities	(94)		(77)		(182)		(124)
Numerator for basic EPS - Net income available to common stockholders	$	10,984	$	9,384	$	21,423	$	15,090
Effect of dilutive securities:
Dilutive effect of participating securities	2		1		4		2
Numerator for diluted EPS	$	10,986	$	9,385	$	21,427	$	15,092
Denominator:
Weighted-average common shares outstanding - basic	15,632,283		16,202,844		15,696,765		16,216,917
Dilutive effect of assumed exercises of stock options	357,323		360,515		360,842		297,914
Weighted-average common shares outstanding - diluted	15,989,606		16,563,359		16,057,607		16,514,831
Net income per share - basic	$	0.70	$	0.58	$	1.36	$	0.93
Net income per share - diluted	$	0.68	$	0.57	$	1.33	$	0.92

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Equity Incentive Plan (Tables)

6 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The table below presents share-based compensation expense and the estimated related tax benefit for stock options and restricted stock for the three and six months ended December 31, 2021 and 2020, respectively:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Share-based compensation expense	$	485	$	454	$	900	$	960
Tax benefit	114		107		212		226

Equity Incentive Plan Stock Option Activity

The table below presents stock option activity and related information for the six months ended December 31, 2021 and 2020:

	Options	Weighted- Average Exercise Price		Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options outstanding at June 30, 2020	1,615,500	$	18.12	4.4	$	1,711
Exercised	54,000	14.37		—	—
Forfeited	26,900	25.77		—	—
Options outstanding at December 31, 2020	1,534,600	$	18.12	3.8	$	5,070
Exercisable at December 31, 2020	1,243,700	$	16.35	3.0	$	5,027
Non-vested at December 31, 2020	290,900	$	25.67	7.3	$	42
Options outstanding at June 30, 2021	1,319,456	$	19.07	3.9	$	11,657
Exercised	347,800	14.50		—	—
Forfeited	18,600	23.06		—	—
Options outstanding at December 31, 2021	953,056	$	20.65	4.1	$	9,840
Exercisable at December 31, 2021	727,506	$	19.12	3.2	$	8,631
Non-vested at December 31, 2021	225,550	$	25.62	6.9	$	1,210

Schedule of Nonvested Restricted Stock Units Activity

The table below presents restricted stock award activity and related information:

	Restricted Stock Awards	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested at June 30, 2020	144,046	$	25.89	$	2,305
Vested	2,600	25.37		—
Forfeited	7,650	25.65		—
Non-vested at December 31, 2020	133,796	$	25.91	$	2,584
Non-vested at June 30, 2021	151,575	$	25.06	$	4,229
Vested	8,918	26.93		—
Forfeited	9,400	24.57		—
Non-vested at December 31, 2021	133,257	$	25.06	$	4,128

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents financial assets measured at fair value on a recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	18,933	$	—	$	18,933	$	—
MBS, residential	38,185		—		38,185		—
Municipal bonds	7,249		—		7,249		—
Corporate bonds	57,484		—		57,484		—
Total	$	121,851	$	—	$	121,851	$	—

	June 30, 2021
	Total		Level 1		Level 2		Level 3
U.S government agencies	$	19,073	$	—	$	19,073	$	—
MBS, residential	43,404		—		43,404		—
Municipal bonds	9,551		—		9,551		—
Corporate bonds	84,431		—		84,431		—
Total	$	156,459	$	—	$	156,459	$	—

Fair Value Measurements, Nonrecurring

The following table presents financial assets measured at fair value on a non-recurring basis at the dates indicated:

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	288	$	—	$	—	$	288
Commercial and industrial	—		—		—		—
Total	$	288	$	—	$	—	$	288

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Collateral dependent loans:
Commercial real estate	$	4,841	$	—	$	—	$	4,841
Equipment finance	275		—		—		275
Total	$	5,116	$	—	$	—	$	5,116

Fair Value, by Balance Sheet Grouping

The stated carrying value and estimated fair value amounts of financial instruments as of December 31, 2021 and June 30, 2021, are summarized below:

	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	34,826	$	34,826	$	34,826	$	—	$	—
Commercial paper	254,157		254,157		254,157		—		—
Certificates of deposit in other banks	34,002		34,002		—		34,002		—
Debt securities available for sale	121,851		121,851		—		121,851		—
Loans held for sale	102,070		103,317		—		—		103,317
Loans, net	2,665,139		2,625,236		—		—		2,625,236
FHLB stock	2,965		N/A		N/A		N/A		N/A
FRB stock	7,403		N/A		N/A		N/A		N/A
SBIC investments	11,749		11,749		—		—		11,749
Accrued interest receivable	8,200		8,200		—		640		7,560
Liabilities:
Noninterest-bearing and NOW accounts	1,321,502		1,321,502		—		1,321,502		—
Money market accounts	1,010,901		1,010,901		—		1,010,901		—
Savings accounts	224,474		224,474		—		224,474		—
Certificates of deposit	441,814		441,568		—		441,568		—
Borrowings	48,000		47,998		—		47,998		—
Accrued interest payable	42		42		—		42		—

	June 30, 2021
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	50,990	$	50,990	$	50,990	$	—	$	—
Commercial paper	189,596		189,596		189,596		—		—
Certificates of deposit in other banks	40,122		40,122		—		40,122		—
Debt securities available for sale	156,459		156,459		—		156,459		—
Loans held for sale	93,539		94,779		—		—		94,779
Loans, net	2,697,799		2,668,570		—		—		2,668,570
FHLB stock	6,153		N/A		N/A		N/A		N/A
FRB stock	7,386		N/A		N/A		N/A		N/A
SBIC investments	10,171		10,171		—		—		10,171
Accrued interest receivable	7,933		7,933		52		542		7,339
Liabilities:
Noninterest-bearing and NOW accounts	1,281,372		1,281,372		—		1,281,372		—
Money market accounts	975,001		975,001		—		975,001		—
Savings accounts	226,391		226,391		—		226,391		—
Certificates of deposit	472,777		474,397		—		474,397		—
Borrowings	115,000		115,000		—		115,000		—
Accrued interest payable	52		52		—		52		—

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Leases (Tables)

6 Months Ended

Dec. 31, 2021

Leases [Abstract]

Assets and Liabilities, Lessee

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	December 31, 2021			June 30, 2021
ROU assets	$	5,178		$	5,498
Lease liabilities	5,941			5,926
Weighted-average remaining lease terms (years)	10.49			9.49
Weighted-average discount rate	3.21		%	3.18		%

Lessee, Operating Lease, Liability, Maturity

The following schedule summarizes aggregate future minimum lease payments under these operating leases at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total undiscounted minimum lease payments	6,970
Less: amount representing interest	(1,029)
Total lease liability	$	5,941

Lease, Cost

The following table presents components of operating lease expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense, net)	$	328	$	342	$	723	$	681
Variable lease cost (included in occupancy expense, net)	55		61		116		122
Sublease income (included in other, noninterest income)	(47)		(57)		(94)		(114)
Total operating lease expense, net	$	336	$	346	$	745	$	689

Supplemental lease cash flow information for the six months ended December 31, 2021 and 2020:

	Six Months Ended December 31,
	2021		2020
ROU assets - noncash additions (operating leases)	$	946	$	597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797		1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	67		67

Finance Lease, Liability, Maturity

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$	1,783

Schedule of Total Equipment Finance Operating Lease Income and Depreciation Expense

The following table presents total equipment finance operating lease income and depreciation expense for the three and six months ended December 31, 2021 and 2020:

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Operating lease income	$	1,718	$	1,349	$	3,258	$	2,675
Depreciation expense	1,497		1,413		2,882		2,954

Lessor, Operating Lease, Payments to be Received, Maturity

The following schedule summarizes aggregate future minimum lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	$	11,616

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The following schedule summarizes aggregate future minimum finance lease payments to be received at December 31, 2021:

Fiscal year ending June 30:
Remaining 2022	$	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$	62,855

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Debt Securities - Available for Sale Securities Table (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 121,071	$ 154,493
Gross Unrealized Gains	1,382	2,184
Gross Unrealized Losses	(602)	(218)
Estimated Fair Value	121,851	156,459
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	18,984	18,975
Gross Unrealized Gains	85	135
Gross Unrealized Losses	(136)	(37)
Estimated Fair Value	18,933	19,073
MBS, residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	37,424	42,119
Gross Unrealized Gains	882	1,339
Gross Unrealized Losses	(121)	(54)
Estimated Fair Value	38,185	43,404
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	6,928	9,098
Gross Unrealized Gains	321	453
Gross Unrealized Losses	0	0
Estimated Fair Value	7,249	9,551
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	57,735	84,301
Gross Unrealized Gains	94	257
Gross Unrealized Losses	(345)	(127)
Estimated Fair Value	$ 57,484	$ 84,431

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Debt Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Amortized Cost
Due within one year	$ 36,079	$ 34,615
Due after one year through five years	41,755	73,249
Due after five years through ten years	5,813	4,510
Due after ten years	0	0
Total	121,071	154,493
Estimated Fair Value
Due within one year	36,230	34,684
Due after one year through five years	41,500	73,633
Due after five years through ten years	5,936	4,738
Due after ten years	0	0
Estimated Fair Value	121,851	156,459
MBS, residential
Amortized Cost
Total	37,424	42,119
Estimated Fair Value
Estimated Fair Value	$ 38,185	$ 43,404

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Debt Securities - Narrative (Details)	6 Months Ended
	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 121,851,000		$ 156,459,000
Proceeds from sale of securities available for sale	0	$ 0
Gross realized gain (loss)	0	$ 0
Securities available for sale pledged as collateral market value	$ 56,267,000		$ 53,897,000
Number of securities with unrealized losses | security	39		28
Accrued interest receivable for investment securities available for sale	$ 529,000
Collateral Pledged
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 55,636,000		$ 52,603,000

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Debt Securities - Available for Sale Securities Continuous Unrealized Loss Position Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 121,851	$ 156,459
Less than 12 Months, Fair Value	67,827	40,048
12 Months or Longer, Fair Value	1,132	1,205
Total, Fair Value	68,959	41,253
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] (Deprecated 2018-01-31)
12 Months or More, Fair Value	(581)	(192)
12 Months or More, Unrealized Losses	(21)	(26)
Total, Unrealized Losses	(602)	(218)
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	18,933	19,073
Less than 12 Months, Fair Value	14,864	14,963
12 Months or Longer, Fair Value	0	0
Total, Fair Value	14,864	14,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] (Deprecated 2018-01-31)
12 Months or More, Fair Value	(136)	(37)
12 Months or More, Unrealized Losses	0	0
Total, Unrealized Losses	(136)	(37)
MBS, residential
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	38,185	43,404
Less than 12 Months, Fair Value	9,344	5,212
12 Months or Longer, Fair Value	1,132	1,205
Total, Fair Value	10,476	6,417
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] (Deprecated 2018-01-31)
12 Months or More, Fair Value	(100)	(28)
12 Months or More, Unrealized Losses	(21)	(26)
Total, Unrealized Losses	(121)	(54)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	57,484	84,431
Less than 12 Months, Fair Value	43,619	19,873
12 Months or Longer, Fair Value	0	0
Total, Fair Value	43,619	19,873
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] (Deprecated 2018-01-31)
12 Months or More, Fair Value	(345)	(127)
12 Months or More, Unrealized Losses	0	0
Total, Unrealized Losses	(345)	(127)
Collateral Pledged
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 55,636	$ 52,603

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Other Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Other Investment Not Readily Marketable [Line Items]
FHLB of Atlanta stock	$ 2,965	$ 6,153
FRB stock	7,403	7,386
Other investments, at cost	22,117	23,710
Small Business Investment Companies (SBIC)
Other Investment Not Readily Marketable [Line Items]
SBIC investments	$ 11,749	$ 10,171

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Loans Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable
Total	$ 102,070	$ 93,539
One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total	19,246	31,873
SBA
Accounts, Notes, Loans and Financing Receivable
Total	8,220	4,160
HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total	$ 74,604	$ 57,506

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Loans and Allowance for Credit Losses on Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	$ 2,696,072		$ 2,733,267
Allowance for credit losses on loans	(30,933)	$ (34,406)	(35,468)	$ (39,844)	$ (43,132)	$ (28,072)
Loans, net	2,665,139		2,697,799
Accrued interest receivable	7,560		7,339
Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	2,019,295		1,968,035
Allowance for credit losses on loans	(22,968)	(24,204)	(24,746)	(24,899)	(25,199)	(21,116)
Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	19,044		46,650
Allowance for credit losses on loans	0		0
Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	1,113,330		1,142,276
Allowance for credit losses on loans	(11,067)		(13,282)
Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	226,439		179,427
Allowance for credit losses on loans	(1,684)		(1,801)
Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	162,396		141,341
Allowance for credit losses on loans	(3,240)		(2,592)
Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	367,008		317,920
Allowance for credit losses on loans	(6,520)		(6,537)
Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	131,078		140,421
Allowance for credit losses on loans	(457)		(534)
Retail Consumer Loans
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	676,777		765,232
Allowance for credit losses on loans	(7,965)	$ (10,202)	(10,722)	$ (14,945)	$ (17,933)	$ (6,956)
Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	356,850		406,549
Allowance for credit losses on loans	(3,634)		(5,409)
Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	128,189		130,225
Allowance for credit losses on loans	(1,272)		(1,512)
Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	30,795		38,976
Allowance for credit losses on loans	(306)		(452)
Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	69,253		66,027
Allowance for credit losses on loans	(705)		(812)
Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	84,581		115,093
Allowance for credit losses on loans	(1,929)		(2,367)
Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans, net of deferred loan fees and costs	7,109		8,362
Allowance for credit losses on loans	$ (119)		$ (170)

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Loans and Allowance for Credit Losses on Loans - Financing Receivable Credit Quality Indicators, After Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financing Receivable, Recorded Investment
Total loans, net of deferred loan costs	$ 2,696,072	$ 2,733,267
Commercial Loans
Financing Receivable, Recorded Investment
2022	253,084	483,459
2021	436,795	339,182
2020	293,709	240,106
2019	193,494	215,357
2018	187,869	192,583
Prior	408,551	293,689
Revolving	245,793	203,659
Total loans, net of deferred loan costs	2,019,295	1,968,035
Commercial Loans | PPP
Financing Receivable, Recorded Investment
2022	10	29,667
2021	12,115	16,983
2020	6,919	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	19,044	46,650
Commercial Loans | Pass
Financing Receivable, Recorded Investment
2022	252,343	483,428
2021	436,004	339,128
2020	292,964	238,765
2019	191,695	197,666
2018	171,819	186,302
Prior	389,854	285,720
Revolving	236,375	194,568
Total loans, net of deferred loan costs	1,971,054	1,925,577
Commercial Loans | Pass | PPP
Financing Receivable, Recorded Investment
2022	10	29,667
2021	12,115	16,983
2020	6,919	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	19,044	46,650
Commercial Loans | Special Mention
Financing Receivable, Recorded Investment
2022	741	0
2021	84	21
2020	364	438
2019	689	17,061
2018	15,442	1,288
Prior	13,852	3,760
Revolving	4,790	3,864
Total loans, net of deferred loan costs	35,962	26,432
Commercial Loans | Special Mention | PPP
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Substandard
Financing Receivable, Recorded Investment
2022	0	31
2021	707	33
2020	381	623
2019	860	630
2018	608	4,993
Prior	4,845	4,207
Revolving	4,628	5,227
Total loans, net of deferred loan costs	12,029	15,744
Commercial Loans | Substandard | PPP
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	280
2019	250	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	250	280
Commercial Loans | Doubtful | PPP
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	2
Revolving	0	0
Total loans, net of deferred loan costs	0	2
Commercial Loans | Loss | PPP
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Commercial real estate
Financing Receivable, Recorded Investment
2022	84,713	227,850
2021	221,764	177,691
2020	171,332	142,407
2019	125,455	175,728
2018	157,375	164,774
Prior	330,981	227,568
Revolving	21,710	26,258
Total loans, net of deferred loan costs	1,113,330	1,142,276
Commercial Loans | Commercial real estate | Pass
Financing Receivable, Recorded Investment
2022	83,972	227,850
2021	221,764	177,691
2020	171,332	142,407
2019	125,455	158,147
2018	141,325	158,525
Prior	313,297	220,834
Revolving	21,312	25,860
Total loans, net of deferred loan costs	1,078,457	1,111,314
Commercial Loans | Commercial real estate | Special Mention
Financing Receivable, Recorded Investment
2022	741	0
2021	0	0
2020	0	0
2019	0	16,951
2018	15,442	1,256
Prior	13,248	3,092
Revolving	0	0
Total loans, net of deferred loan costs	29,431	21,299
Commercial Loans | Commercial real estate | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	630
2018	608	4,993
Prior	4,436	3,642
Revolving	398	398
Total loans, net of deferred loan costs	5,442	9,663
Commercial Loans | Commercial real estate | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Commercial real estate | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Construction and development
Financing Receivable, Recorded Investment
2022	18,603	18,262
2021	18,270	6,523
2020	5,511	10,349
2019	2,847	6,008
2018	4,573	2,693
Prior	8,198	7,922
Revolving	168,437	127,670
Total loans, net of deferred loan costs	226,439	179,427
Commercial Loans | Construction and development | Pass
Financing Receivable, Recorded Investment
2022	18,603	18,262
2021	18,270	6,523
2020	5,511	10,349
2019	2,847	6,008
2018	4,573	2,693
Prior	7,606	7,153
Revolving	163,684	123,843
Total loans, net of deferred loan costs	221,094	174,831
Commercial Loans | Construction and development | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	237	286
Revolving	4,753	3,827
Total loans, net of deferred loan costs	4,990	4,113
Commercial Loans | Construction and development | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	355	482
Revolving	0	0
Total loans, net of deferred loan costs	355	482
Commercial Loans | Construction and development | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Construction and development | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	1
Revolving	0	0
Total loans, net of deferred loan costs	0	1
Commercial Loans | Commercial and industrial
Financing Receivable, Recorded Investment
2022	35,007	29,637
2021	25,328	14,064
2020	14,643	19,564
2019	14,005	10,869
2018	7,932	15,378
Prior	22,931	10,798
Revolving	42,550	41,031
Total loans, net of deferred loan costs	162,396	141,341
Commercial Loans | Commercial and industrial | Pass
Financing Receivable, Recorded Investment
2022	35,007	29,606
2021	24,658	14,010
2020	14,293	18,826
2019	12,733	10,759
2018	7,932	15,346
Prior	22,767	10,589
Revolving	38,283	36,165
Total loans, net of deferred loan costs	155,673	135,301
Commercial Loans | Commercial and industrial | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	21
2020	0	438
2019	412	110
2018	0	32
Prior	110	125
Revolving	37	37
Total loans, net of deferred loan costs	559	763
Commercial Loans | Commercial and industrial | Substandard
Financing Receivable, Recorded Investment
2022	0	31
2021	670	33
2020	350	300
2019	860	0
2018	0	0
Prior	54	83
Revolving	4,230	4,829
Total loans, net of deferred loan costs	6,164	5,276
Commercial Loans | Commercial and industrial | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Commercial and industrial | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	1
Revolving	0	0
Total loans, net of deferred loan costs	0	1
Commercial Loans | Equipment finance
Financing Receivable, Recorded Investment
2022	104,196	154,685
2021	134,891	104,681
2020	86,088	53,781
2019	38,915	4,773
2018	2,918	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	367,008	317,920
Commercial Loans | Equipment finance | Pass
Financing Receivable, Recorded Investment
2022	104,196	154,685
2021	134,807	104,681
2020	85,693	53,178
2019	38,388	4,773
2018	2,918	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	366,002	317,317
Commercial Loans | Equipment finance | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	84	0
2020	364	0
2019	277	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	725	0
Commercial Loans | Equipment finance | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	31	323
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	31	323
Commercial Loans | Equipment finance | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	280
2019	250	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	250	280
Commercial Loans | Equipment finance | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Municipal finance
Financing Receivable, Recorded Investment
2022	10,555	23,358
2021	24,427	19,240
2020	9,216	14,005
2019	12,272	17,979
2018	15,071	9,738
Prior	46,441	47,401
Revolving	13,096	8,700
Total loans, net of deferred loan costs	131,078	140,421
Commercial Loans | Municipal finance | Pass
Financing Receivable, Recorded Investment
2022	10,555	23,358
2021	24,390	19,240
2020	9,216	14,005
2019	12,272	17,979
2018	15,071	9,738
Prior	46,184	47,144
Revolving	13,096	8,700
Total loans, net of deferred loan costs	130,784	140,164
Commercial Loans | Municipal finance | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	257	257
Revolving	0	0
Total loans, net of deferred loan costs	257	257
Commercial Loans | Municipal finance | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	37	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	37	0
Commercial Loans | Municipal finance | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Commercial Loans | Municipal finance | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans
Financing Receivable, Recorded Investment
2022	29,581	123,483
2021	105,222	95,138
2020	78,568	72,411
2019	52,403	61,349
2018	45,796	46,026
Prior	163,721	166,785
Revolving	201,486	200,040
Total loans, net of deferred loan costs	676,777	765,232
Retail Consumer Loans | Pass
Financing Receivable, Recorded Investment
2022	29,581	123,206
2021	105,170	93,738
2020	77,278	72,037
2019	51,562	60,739
2018	45,341	45,728
Prior	156,177	158,710
Revolving	200,954	199,471
Total loans, net of deferred loan costs	666,063	753,629
Retail Consumer Loans | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	14
2018	0	27
Prior	997	1,096
Revolving	0	0
Total loans, net of deferred loan costs	997	1,137
Retail Consumer Loans | Substandard
Financing Receivable, Recorded Investment
2022	0	275
2021	52	1,399
2020	1,290	373
2019	840	596
2018	455	271
Prior	6,079	6,473
Revolving	532	569
Total loans, net of deferred loan costs	9,248	9,956
Retail Consumer Loans | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	158	191
Revolving	0	0
Total loans, net of deferred loan costs	158	191
Retail Consumer Loans | Loss
Financing Receivable, Recorded Investment
2022	0	2
2021	0	1
2020	0	1
2019	1	0
2018	0	0
Prior	310	315
Revolving	0	0
Total loans, net of deferred loan costs	311	319
Retail Consumer Loans | One-to-four family
Financing Receivable, Recorded Investment
2022	18,078	72,969
2021	68,642	53,968
2020	54,038	46,958
2019	34,704	40,677
2018	32,588	37,474
Prior	145,887	150,158
Revolving	2,913	4,345
Total loans, net of deferred loan costs	356,850	406,549
Retail Consumer Loans | One-to-four family | Pass
Financing Receivable, Recorded Investment
2022	18,078	72,723
2021	68,642	52,987
2020	53,075	46,958
2019	34,164	40,461
2018	32,376	37,361
Prior	139,793	143,531
Revolving	2,913	4,345
Total loans, net of deferred loan costs	349,041	398,366
Retail Consumer Loans | One-to-four family | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	27
Prior	987	1,084
Revolving	0	0
Total loans, net of deferred loan costs	987	1,111
Retail Consumer Loans | One-to-four family | Substandard
Financing Receivable, Recorded Investment
2022	0	246
2021	0	981
2020	963	0
2019	540	216
2018	212	86
Prior	4,639	5,037
Revolving	0	0
Total loans, net of deferred loan costs	6,354	6,566
Retail Consumer Loans | One-to-four family | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	158	191
Revolving	0	0
Total loans, net of deferred loan costs	158	191
Retail Consumer Loans | One-to-four family | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	310	315
Revolving	0	0
Total loans, net of deferred loan costs	310	315
Retail Consumer Loans | HELOCs - originated
Financing Receivable, Recorded Investment
2022	941	2,767
2021	1,400	465
2020	373	1,453
2019	1,760	217
2018	147	754
Prior	9,580	10,416
Revolving	113,988	114,153
Total loans, net of deferred loan costs	128,189	130,225
Retail Consumer Loans | HELOCs - originated | Pass
Financing Receivable, Recorded Investment
2022	941	2,767
2021	1,400	465
2020	373	1,294
2019	1,602	217
2018	147	716
Prior	8,662	9,469
Revolving	113,937	114,048
Total loans, net of deferred loan costs	127,062	128,976
Retail Consumer Loans | HELOCs - originated | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	10	12
Revolving	0	0
Total loans, net of deferred loan costs	10	12
Retail Consumer Loans | HELOCs - originated | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	159
2019	158	0
2018	0	38
Prior	908	935
Revolving	51	105
Total loans, net of deferred loan costs	1,117	1,237
Retail Consumer Loans | HELOCs - originated | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | HELOCs - originated | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | HELOCs - purchased
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	30,795	38,976
Total loans, net of deferred loan costs	30,795	38,976
Retail Consumer Loans | HELOCs - purchased | Pass
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	30,342	38,523
Total loans, net of deferred loan costs	30,342	38,523
Retail Consumer Loans | HELOCs - purchased | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | HELOCs - purchased | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	453	453
Total loans, net of deferred loan costs	453	453
Retail Consumer Loans | HELOCs - purchased | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | HELOCs - purchased | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Construction and land/lots
Financing Receivable, Recorded Investment
2022	1,006	4,244
2021	9,148	12,133
2020	2,723	2,357
2019	53	1,052
2018	0	0
Prior	2,869	3,974
Revolving	53,454	42,267
Total loans, net of deferred loan costs	69,253	66,027
Retail Consumer Loans | Construction and land/lots | Pass
Financing Receivable, Recorded Investment
2022	1,006	4,244
2021	9,148	12,133
2020	2,723	2,357
2019	53	956
2018	0	0
Prior	2,474	3,558
Revolving	53,454	42,267
Total loans, net of deferred loan costs	68,858	65,515
Retail Consumer Loans | Construction and land/lots | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Construction and land/lots | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	96
2018	0	0
Prior	395	416
Revolving	0	0
Total loans, net of deferred loan costs	395	512
Retail Consumer Loans | Construction and land/lots | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Construction and land/lots | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Indirect auto finance
Financing Receivable, Recorded Investment
2022	9,174	42,159
2021	24,984	27,549
2020	20,691	16,419
2019	11,546	19,126
2018	12,907	7,704
Prior	5,279	2,136
Revolving	0	0
Total loans, net of deferred loan costs	84,581	115,093
Retail Consumer Loans | Indirect auto finance | Pass
Financing Receivable, Recorded Investment
2022	9,174	42,128
2021	24,932	27,134
2020	20,364	16,224
2019	11,420	18,853
2018	12,664	7,561
Prior	5,146	2,061
Revolving	0	0
Total loans, net of deferred loan costs	83,700	113,961
Retail Consumer Loans | Indirect auto finance | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Indirect auto finance | Substandard
Financing Receivable, Recorded Investment
2022	0	29
2021	52	415
2020	327	195
2019	126	273
2018	243	143
Prior	133	75
Revolving	0	0
Total loans, net of deferred loan costs	881	1,130
Retail Consumer Loans | Indirect auto finance | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Indirect auto finance | Loss
Financing Receivable, Recorded Investment
2022	0	2
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	2
Retail Consumer Loans | Consumer
Financing Receivable, Recorded Investment
2022	382	1,344
2021	1,048	1,023
2020	743	5,224
2019	4,340	277
2018	154	94
Prior	106	101
Revolving	336	299
Total loans, net of deferred loan costs	7,109	8,362
Retail Consumer Loans | Consumer | Pass
Financing Receivable, Recorded Investment
2022	382	1,344
2021	1,048	1,019
2020	743	5,204
2019	4,323	252
2018	154	90
Prior	102	91
Revolving	308	288
Total loans, net of deferred loan costs	7,060	8,288
Retail Consumer Loans | Consumer | Special Mention
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	14
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	14
Retail Consumer Loans | Consumer | Substandard
Financing Receivable, Recorded Investment
2022	0	0
2021	0	3
2020	0	19
2019	16	11
2018	0	4
Prior	4	10
Revolving	28	11
Total loans, net of deferred loan costs	48	58
Retail Consumer Loans | Consumer | Doubtful
Financing Receivable, Recorded Investment
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	0	0
Retail Consumer Loans | Consumer | Loss
Financing Receivable, Recorded Investment
2022	0	0
2021	0	1
2020	0	1
2019	1	0
2018	0	0
Prior	0	0
Revolving	0	0
Total loans, net of deferred loan costs	$ 1	$ 2

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Loans and Allowance for Credit Losses on Loans - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Financing Receivable, Past Due [Line Items]
Past Due	$ 5,842	$ 7,115
Current	2,690,230	2,726,152
Total Loans	2,696,072	2,733,267
30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	2,756	3,313
90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	3,086	3,802
Commercial Loans
Financing Receivable, Past Due [Line Items]
Total Loans	2,019,295	1,968,035
Commercial Loans | PPP
Financing Receivable, Past Due [Line Items]
Past Due	20	0
Current	19,024	46,650
Total Loans	19,044	46,650
Commercial Loans | 30-89 Days | PPP
Financing Receivable, Past Due [Line Items]
Past Due	20	0
Commercial Loans | 90 Days+ | PPP
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Commercial Loans | Commercial real estate
Financing Receivable, Past Due [Line Items]
Past Due	298	2,076
Current	1,113,032	1,140,200
Total Loans	1,113,330	1,142,276
Commercial Loans | Commercial real estate | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	56	396
Commercial Loans | Commercial real estate | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	242	1,680
Commercial Loans | Construction and development
Financing Receivable, Past Due [Line Items]
Past Due	253	37
Current	226,186	179,390
Total Loans	226,439	179,427
Commercial Loans | Construction and development | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Commercial Loans | Construction and development | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	253	37
Commercial Loans | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Past Due	905	653
Current	161,491	140,688
Total Loans	162,396	141,341
Commercial Loans | Commercial and industrial | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	345	634
Commercial Loans | Commercial and industrial | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	560	19
Commercial Loans | Equipment finance
Financing Receivable, Past Due [Line Items]
Past Due	183	347
Current	366,825	317,573
Total Loans	367,008	317,920
Commercial Loans | Equipment finance | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	90	0
Commercial Loans | Equipment finance | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	93	347
Commercial Loans | Municipal finance
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Current	131,078	140,421
Total Loans	131,078	140,421
Commercial Loans | Municipal finance | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Commercial Loans | Municipal finance | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Retail Consumer Loans
Financing Receivable, Past Due [Line Items]
Total Loans	676,777	765,232
Retail Consumer Loans | One-to-four family
Financing Receivable, Past Due [Line Items]
Past Due	2,500	2,236
Current	354,350	404,313
Total Loans	356,850	406,549
Retail Consumer Loans | One-to-four family | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	1,007	1,112
Retail Consumer Loans | One-to-four family | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	1,493	1,124
Retail Consumer Loans | HELOCs - originated
Financing Receivable, Past Due [Line Items]
Past Due	358	476
Current	127,831	129,749
Total Loans	128,189	130,225
Retail Consumer Loans | HELOCs - originated | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	86	290
Retail Consumer Loans | HELOCs - originated | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	272	186
Retail Consumer Loans | HELOCs - purchased
Financing Receivable, Past Due [Line Items]
Past Due	346	277
Current	30,449	38,699
Total Loans	30,795	38,976
Retail Consumer Loans | HELOCs - purchased | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	346	198
Retail Consumer Loans | HELOCs - purchased | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	0	79
Retail Consumer Loans | Construction and land/lots
Financing Receivable, Past Due [Line Items]
Past Due	145	41
Current	69,108	65,986
Total Loans	69,253	66,027
Retail Consumer Loans | Construction and land/lots | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	123	6
Retail Consumer Loans | Construction and land/lots | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	22	35
Retail Consumer Loans | Indirect auto finance
Financing Receivable, Past Due [Line Items]
Past Due	456	558
Current	84,125	114,535
Total Loans	84,581	115,093
Retail Consumer Loans | Indirect auto finance | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	346	299
Retail Consumer Loans | Indirect auto finance | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	110	259
Retail Consumer Loans | Consumer
Financing Receivable, Past Due [Line Items]
Past Due	378	414
Current	6,731	7,948
Total Loans	7,109	8,362
Retail Consumer Loans | Consumer | 30-89 Days
Financing Receivable, Past Due [Line Items]
Past Due	337	378
Retail Consumer Loans | Consumer | 90 Days+
Financing Receivable, Past Due [Line Items]
Past Due	$ 41	$ 36

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Loans and Allowance for Credit Losses on Loans - Schedule of Past Due Loans Still Accruing and Nonaccruing Interest (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	$ 6,158	$ 12,606
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	966
Interest income recognized	96
Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	1,244	7,015
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	24
Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	355	482
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	4
Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	923	49
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	67
Interest income recognized	17
Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	328	630
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	1
Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	38	0
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	2
Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	2,127	2,625
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	540
Interest income recognized	27
Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	352	476
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	3
Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	452	453
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	359
Interest income recognized	11
Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	22	22
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	0
Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	272	438
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	5
Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Nonaccrual loans	45	$ 416
90 Days + & still accruing as of December 31, 2021	0
Nonaccrual with no allowance as of December 31, 2021	0
Interest income recognized	$ 2

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Loans and Allowance for Credit Losses on Loans - Narrative (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2021 USD ($) loan	Jun. 30, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable
Number of loans | loan	2
Financing receivable, nonaccrual, payoffs and charge offs	$ 5,100
Reserve for credit losses for off-balance sheet credit exposures included in other liabilities	2,088
Payment deferral amount	652	$ 107
Coronavirus Aid, Relief, And Economic Securities Act, Short-Term Modifications | Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Amount of loans on interest-only payments	15,604	78,850
Performing financing receivable
Accounts, Notes, Loans and Financing Receivable
Performing restructured loans included in impaired loans	$ 11,048	$ 11,088

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Loans and Allowance for Credit Losses on Loans - Breakdown of Provision (Benefit) For Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Provision (benefit) for credit losses:
Loans	$ (2,440)	$ (3,350)	$ (3,775)	$ (2,400)
Off-balance-sheet credit exposure	(110)	140	(235)	140
Commercial paper	50	180	50	180
Total provision (benefit) for credit losses	$ (2,500)	$ (3,030)	$ (3,960)	$ (2,080)

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Loans and Allowance for Credit Losses on Loans - Schedule of Allowance for Credit Losses on Financing Receivables Table (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 34,406	$ 43,132	$ 35,468	$ 28,072
Provision (benefit) for credit losses	(2,440)	(3,350)	(3,775)	(2,400)
Charge-offs	(1,147)	(561)	(1,856)	(2,338)
Recoveries	114	623	1,096	1,701
Net (charge-offs) recoveries	(1,033)	62	(760)	(637)
Balance at end of period	30,933	39,844	30,933	39,844
Cumulative-effect adjustment due to the adoption of ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				14,809
Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	24,204	25,199	24,746	21,116
Provision (benefit) for credit losses	(140)	(292)	(763)	0
Charge-offs	(1,131)	(308)	(1,750)	(1,403)
Recoveries	35	300	735	1,113
Net (charge-offs) recoveries	(1,096)	(8)	(1,015)	(290)
Balance at end of period	22,968	24,899	22,968	24,899
Commercial Loans | Cumulative-effect adjustment due to the adoption of ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				4,073
Retail Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	10,202	17,933	10,722	6,956
Provision (benefit) for credit losses	(2,300)	(3,058)	(3,012)	(2,400)
Charge-offs	(16)	(253)	(106)	(935)
Recoveries	79	323	361	588
Net (charge-offs) recoveries	63	70	255	(347)
Balance at end of period	$ 7,965	$ 14,945	$ 7,965	14,945
Retail Consumer Loans | Cumulative-effect adjustment due to the adoption of ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				$ 10,736

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Loans and Allowance for Credit Losses on Loans - Schedule of Ending Balances of Loans and the Related Allowance by Segment and Class (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	$ 678		$ 467
Allowance for credit losses, Loans collectively evaluated	30,255		35,001
Allowance for credit losses, Total	30,933	$ 34,406	35,468	$ 39,844	$ 43,132	$ 28,072
Total loans receivable, Loans individually evaluated for impairment	5,252		8,821
Total loans receivable, Loans collectively evaluated	2,690,820		2,724,446
Total loans receivable	2,696,072		2,733,267
Commercial Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Total	22,968	24,204	24,746	24,899	25,199	21,116
Total loans receivable	2,019,295		1,968,035
Commercial Loans | PPP
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	0		0
Allowance for credit losses, Total	0		0
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	19,044		46,650
Total loans receivable	19,044		46,650
Commercial Loans | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	2		456
Allowance for credit losses, Loans collectively evaluated	11,065		12,826
Allowance for credit losses, Total	11,067		13,282
Total loans receivable, Loans individually evaluated for impairment	580		5,729
Total loans receivable, Loans collectively evaluated	1,112,750		1,136,547
Total loans receivable	1,113,330		1,142,276
Commercial Loans | Construction and development
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	1,684		1,801
Allowance for credit losses, Total	1,684		1,801
Total loans receivable, Loans individually evaluated for impairment	0		80
Total loans receivable, Loans collectively evaluated	226,439		179,347
Total loans receivable	226,439		179,427
Commercial Loans | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	674		9
Allowance for credit losses, Loans collectively evaluated	2,566		2,583
Allowance for credit losses, Total	3,240		2,592
Total loans receivable, Loans individually evaluated for impairment	2,172		760
Total loans receivable, Loans collectively evaluated	160,224		140,581
Total loans receivable	162,396		141,341
Commercial Loans | Equipment finance
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	6,520		6,537
Allowance for credit losses, Total	6,520		6,537
Total loans receivable, Loans individually evaluated for impairment	0		275
Total loans receivable, Loans collectively evaluated	367,008		317,645
Total loans receivable	367,008		317,920
Commercial Loans | Municipal finance
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	457		534
Allowance for credit losses, Total	457		534
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	131,078		140,421
Total loans receivable	131,078		140,421
Retail Consumer Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Total	7,965	$ 10,202	10,722	$ 14,945	$ 17,933	$ 6,956
Total loans receivable	676,777		765,232
Retail Consumer Loans | One-to-four family
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	2		2
Allowance for credit losses, Loans collectively evaluated	3,632		5,407
Allowance for credit losses, Total	3,634		5,409
Total loans receivable, Loans individually evaluated for impairment	2,500		1,977
Total loans receivable, Loans collectively evaluated	354,350		404,572
Total loans receivable	356,850		406,549
Retail Consumer Loans | HELOCs - originated
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	1,272		1,512
Allowance for credit losses, Total	1,272		1,512
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	128,189		130,225
Total loans receivable	128,189		130,225
Retail Consumer Loans | HELOCs - purchased
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	306		452
Allowance for credit losses, Total	306		452
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	30,795		38,976
Total loans receivable	30,795		38,976
Retail Consumer Loans | Construction and land/lots
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	705		812
Allowance for credit losses, Total	705		812
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	69,253		66,027
Total loans receivable	69,253		66,027
Retail Consumer Loans | Indirect auto finance
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	1,929		2,367
Allowance for credit losses, Total	1,929		2,367
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	84,581		115,093
Total loans receivable	84,581		115,093
Retail Consumer Loans | Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Loans individually evaluated for impairment	0		0
Allowance for credit losses, Loans collectively evaluated	119		170
Allowance for credit losses, Total	119		170
Total loans receivable, Loans individually evaluated for impairment	0		0
Total loans receivable, Loans collectively evaluated	7,109		8,362
Total loans receivable	$ 7,109		$ 8,362

XML

Loans and Allowance for Credit Losses on Loans - Breakdown Between Loans Identified as CDAs and Non-CDAs (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	$ 2,696,072	$ 2,733,267
Commercial Loans
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	2,019,295	1,968,035
Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	19,044	46,650
Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	1,113,330	1,142,276
Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	226,439	179,427
Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	162,396	141,341
Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	367,008	317,920
Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	131,078	140,421
Retail Consumer Loans
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	676,777	765,232
Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	356,850	406,549
Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	128,189	130,225
Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	30,795	38,976
Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	69,253	66,027
Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	84,581	115,093
Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	7,109	8,362
Residential Property
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	1,335	807
Total Collateral Value	1,825	1,160
Residential Property | Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	1,335	807
Residential Property | Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Residential Property | Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	3,501
Total Collateral Value	0	3,602
Investment Property | Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	3,421
Investment Property | Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	80
Investment Property | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Investment Property | Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	578	2,308
Total Collateral Value	1,044	2,723
Commercial Property | Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	578	2,308
Commercial Property | Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Commercial Property | Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	650	25
Total Collateral Value	0	26
Business Assets | Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	650	25
Business Assets | Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Business Assets | Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	0	0
Financial Assets Not Considered Collateral Dependent
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	2,693,509	2,726,626
Financial Assets Not Considered Collateral Dependent | Commercial Loans | PPP
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	19,044	46,650
Financial Assets Not Considered Collateral Dependent | Commercial Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	1,112,752	1,136,547
Financial Assets Not Considered Collateral Dependent | Commercial Loans | Construction and development
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	226,439	179,347
Financial Assets Not Considered Collateral Dependent | Commercial Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	161,746	141,316
Financial Assets Not Considered Collateral Dependent | Commercial Loans | Equipment finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	367,008	317,920
Financial Assets Not Considered Collateral Dependent | Commercial Loans | Municipal finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	131,078	140,421
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	355,515	405,742
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | HELOCs - originated
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	128,189	130,225
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | HELOCs - purchased
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	30,795	38,976
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | Construction and land/lots
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	69,253	66,027
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | Indirect auto finance
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	84,581	115,093
Financial Assets Not Considered Collateral Dependent | Retail Consumer Loans | Consumer
Accounts, Notes, Loans and Financing Receivable
Total loans receivable	$ 7,109	$ 8,362

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Loans and Allowance for Credit Losses on Loans - Schedule of Debt Restructurings on Financing Receivables (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Financing Receivable, Modifications
Number of loans | loan	4	5,000	10,000	12
Pre-modification outstanding recorded investment	$ 266	$ 289	$ 367	$ 4,793
Post-modification outstanding recorded investment	$ 263	$ 282	$ 362	$ 4,148
Commercial Loans | Other TDR | Commercial real estate
Financing Receivable, Modifications
Number of loans | loan			0	1
Pre-modification outstanding recorded investment			$ 0	$ 4,408
Post-modification outstanding recorded investment			$ 0	$ 3,800
Retail Consumer Loans | One-to-four family
Financing Receivable, Modifications
Number of loans | loan	3	1,000	3,000	1
Pre-modification outstanding recorded investment	$ 215	$ 19	$ 215	$ 19
Post-modification outstanding recorded investment	$ 212	$ 16	$ 212	$ 16
Retail Consumer Loans | HELOCs - originated
Financing Receivable, Modifications
Number of loans | loan	1	0	2,000	0
Pre-modification outstanding recorded investment	$ 51	$ 0	$ 68	$ 0
Post-modification outstanding recorded investment	$ 51	$ 0	$ 70	$ 0
Retail Consumer Loans | Indirect auto finance
Financing Receivable, Modifications
Number of loans | loan	0	3,000	5,000	9
Pre-modification outstanding recorded investment	$ 0	$ 45	$ 84	$ 141
Post-modification outstanding recorded investment	$ 0	$ 43	$ 80	$ 109
Retail Consumer Loans | Other TDR | Construction and land/lots
Financing Receivable, Modifications
Number of loans | loan	0	1,000	0	1
Pre-modification outstanding recorded investment	$ 0	$ 225	$ 0	$ 225
Post-modification outstanding recorded investment	$ 0	$ 223	$ 0	$ 223

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Loans and Allowance for Credit Losses on Loans - Schedule of Troubled Debt Restructurings With Payment Default (Details) - Other TDR $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Financing Receivable, Modifications
Number of loans | loan	0	1	2	2
Recorded investment | $	$ 0	$ 1	$ 44	$ 12
Retail Consumer Loans | Indirect auto finance
Financing Receivable, Modifications
Number of loans | loan	0	1	2	2
Recorded investment | $	$ 0	$ 1	$ 44	$ 12

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Net Income per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income	$ 11,078	$ 9,461	$ 21,605	$ 15,214
Allocation of earnings to participating securities	(94)	(77)	(182)	(124)
Numerator for basic EPS - Net income available to common stockholders	10,984	9,384	21,423	15,090
Dilutive effect of participating securities	2	1	4	2
Numerator for diluted EPS	$ 10,986	$ 9,385	$ 21,427	$ 15,092
Denominator:
Weighted-average common shares outstanding - basic (in shares)	15,632,283	16,202,844	15,696,765	16,216,917
Dilutive effect of assumed exercises of stock options (in shares)	357,323	360,515	360,842	297,914
Weighted-average common shares outstanding - diluted (in shares)	15,989,606	16,563,359	16,057,607	16,514,831
Net income per share - basic (in dollars per share)	$ 0.70	$ 0.58	$ 1.36	$ 0.93
Net income per share - diluted (in dollars per share)	$ 0.68	$ 0.57	$ 1.33	$ 0.92

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Net Income per Share - Antidilutive Stock Options (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	41,000	512,200	56,000,000	547,200,000

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Equity Incentive Plan - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended		9 Months Ended	12 Months Ended
	Jan. 17, 2013	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2014	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan name	2013 Omnibus Incentive Plan
Granted (in shares)		0	0
Nonvested, number of shares (in shares)		225,550	290,900
Remaining contractual life (years)		4 years 1 month 6 days	3 years 9 months 18 days		3 years 10 months 24 days	4 years 4 months 24 days
Options outstanding (in shares)			290,900
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized		$ 894	$ 1,297
Remaining contractual life (years)		5 years	5 years
Compensation cost not yet recognized, period for recognition (in years)		1 year 1 month 6 days	1 year 3 months 18 days
Performance Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Non-vested (in shares)		23,662	15,565
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized, period for recognition (in years)		1 year 3 months 18 days	1 year 4 months 24 days
Compensation not yet recognized, share-based awards other than options		$ 2,043	$ 2,250
Non-vested (in shares)		133,257	133,796		151,575	144,046
Restricted Stock | Vesting Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years	3 years
Restricted Stock | Vesting Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years	5 years
2013 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan description	provides for awards of restricted stock, restricted stock units, stock options, stock appreciation rights and cash awards to directors, directors emeritus, officers, employees and advisory directors
Number of shares authorized (in shares)	2,962,400
Shares held for awards of stock options and stock appreciation rights (in shares)	2,116,000
Shares held for awards of restricted stock and restricted stock units (in shares)	846,400
Shares repurchased, amount				$ 13,297
Shares repurchased, average cost per share (in usd per share)				$ 15.71

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Equity Incentive Plan Equity Incentive Plan - Share Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-based compensation expense	$ 485	$ 454	$ 900	$ 960
Tax benefit	$ 114	$ 107	$ 212	$ 226

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Equity Incentive Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Options
Options Outstanding, Beginning of Period (in shares)	1,319,456	1,615,500	1,615,500
Exercised (in shares)	347,800	54,000
Forfeited (in shares)	18,600	26,900
Options Outstanding, End of period (in shares)	953,056	1,534,600	1,319,456	1,615,500
Exercisable (in shares)	727,506	1,243,700
Weighted- Average Exercise Price
Options Outstanding, Beginning of Period (in usd per share)	$ 19.07	$ 18.12	$ 18.12
Exercised (in usd per share)	14.50	14.37
Forfeited (in usd per share)	23.06	25.77
Options Outstanding, End of Period (in usd per share)	20.65	18.12	$ 19.07	$ 18.12
Exercisable (in usd per share)	$ 19.12	$ 16.35
Remaining contractual life (years)	4 years 1 month 6 days	3 years 9 months 18 days	3 years 10 months 24 days	4 years 4 months 24 days
Exercisable (in years)	3 years 2 months 12 days	3 years
Aggregate intrinsic value	$ 9,840	$ 5,070	$ 11,657	$ 1,711
Aggregate intrinsic value	$ 8,631	$ 5,027
Non-vested Options
Nonvested, number of shares (in shares)	225,550	290,900
Nonvested, weighted average grant date fair value (in dollars per share)	$ 25.62	$ 25.67
Nonvested, contractual term (in years)	6 years 10 months 24 days	7 years 3 months 18 days
Nonvested, intrinsic value	$ 1,210	$ 42

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Equity Incentive Plan - Schedule of Nonvested Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted- Average Grant Date Fair Value
Aggregate intrinsic value	$ 8,631	$ 5,027
Restricted Stock
Restricted Stock Awards
Non-vested, Beginning Balance (in shares)	151,575	144,046
Vested (in shares)	8,918	2,600
Forfeited (in shares)	9,400	7,650
Non-vested, Ending Balance (in shares)	133,257	133,796
Weighted- Average Grant Date Fair Value
Non-vested, Beginning Balance (in usd per share)	$ 25.06	$ 25.89
Vested (in usd per share)	26.93	25.37
Forfeitures (in dollars per share)	24.57	25.65
Non-vested, Ending Balance (in usd per share)	$ 25.06	$ 25.91
Aggregate intrinsic value	$ 4,128	$ 2,584	$ 4,229	$ 2,305

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Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
Other Commitments
Unused commitments to extend credit	$ 78,875	$ 123,463
Variable rate commitments	22,199	45,270
Fixed rate commitments	56,676	78,193
Remaining borrowing capacity	539,778	530,505
Letters of credit outstanding	$ 9,496	$ 8,681
Minimum
Other Commitments
Fixed interest rate (as a percent)	1.08%	2.50%
Loan Commitments Terms		3 years
Maximum
Other Commitments
Fixed interest rate (as a percent)	8.56%	8.36%
Loan Commitments Terms		30 years
Construction and development
Other Commitments
Unused commitments to extend credit	$ 201,032	$ 277,600

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Fair Value of Financial Instruments - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	$ 121,851	$ 156,459
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	121,851	156,459
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
US Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	18,933	19,073
US Government Agencies | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
US Government Agencies | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	18,933	19,073
US Government Agencies | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
MBS, residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	38,185	43,404
MBS, residential | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
MBS, residential | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	38,185	43,404
MBS, residential | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	7,249	9,551
Municipal bonds | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Municipal bonds | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	7,249	9,551
Municipal bonds | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	57,484	84,431
Corporate bonds | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Corporate bonds | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	57,484	84,431
Corporate bonds | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	$ 0	$ 0

XML

Fair Value of Financial Instruments - Schedule of Fair Value Measurements, Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	$ 288	$ 5,116
Commercial Loans | Commercial Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	288	4,841
Commercial Loans | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	275
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 1 | Commercial Loans | Commercial Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 1 | Commercial Loans | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 2 | Commercial Loans | Commercial Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 2 | Commercial Loans | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	288	5,116
Fair Value, Inputs, Level 3 | Commercial Loans | Commercial Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	288	4,841
Fair Value, Inputs, Level 3 | Commercial Loans | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets measured at fair value on a non-recurring basis	$ 0	$ 275

XML

Fair Value of Financial Instruments - Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Fair Value, Inputs, Level 1 | Cash and interest-bearing deposits
Financial Instruments Owned	$ 34,826	$ 50,990
Fair Value, Inputs, Level 1 | Commercial paper
Financial Instruments Owned	254,157	189,596
Fair Value, Inputs, Level 1 | Certificates of deposit in other banks
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Securities available for sale
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Loans held for sale
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Loans, net
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Small Business Investment Company Funds
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Accrued interest receivable
Financial Instruments Owned	0	52
Fair Value, Inputs, Level 1 | Noninterest-bearing and NOW deposits
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Money market accounts
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Savings accounts
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Certificates of deposit
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Other borrowings
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 1 | Accrued interest payable
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Cash and interest-bearing deposits
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Commercial paper
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Certificates of deposit in other banks
Financial Instruments Owned	34,002	40,122
Fair Value, Inputs, Level 2 | Securities available for sale
Financial Instruments Owned	121,851	156,459
Fair Value, Inputs, Level 2 | Loans held for sale
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Loans, net
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Small Business Investment Company Funds
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 2 | Accrued interest receivable
Financial Instruments Owned	640	542
Fair Value, Inputs, Level 2 | Noninterest-bearing and NOW deposits
Financial Instruments Owned	1,321,502	1,281,372
Fair Value, Inputs, Level 2 | Money market accounts
Financial Instruments Owned	1,010,901	975,001
Fair Value, Inputs, Level 2 | Savings accounts
Financial Instruments Owned	224,474	226,391
Fair Value, Inputs, Level 2 | Certificates of deposit
Financial Instruments Owned	441,568	474,397
Fair Value, Inputs, Level 2 | Other borrowings
Financial Instruments Owned	47,998	115,000
Fair Value, Inputs, Level 2 | Accrued interest payable
Financial Instruments Owned	42	52
Fair Value, Inputs, Level 3 | Cash and interest-bearing deposits
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Commercial paper
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Certificates of deposit in other banks
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Securities available for sale
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Loans held for sale
Financial Instruments Owned	103,317	94,779
Fair Value, Inputs, Level 3 | Loans, net
Financial Instruments Owned	2,625,236	2,668,570
Fair Value, Inputs, Level 3 | Small Business Investment Company Funds
Financial Instruments Owned	11,749	10,171
Fair Value, Inputs, Level 3 | Accrued interest receivable
Financial Instruments Owned	7,560	7,339
Fair Value, Inputs, Level 3 | Noninterest-bearing and NOW deposits
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Money market accounts
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Savings accounts
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Certificates of deposit
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Other borrowings
Financial Instruments Owned	0	0
Fair Value, Inputs, Level 3 | Accrued interest payable
Financial Instruments Owned	0	0
Carrying Value | Cash and interest-bearing deposits
Financial Instruments Owned	34,826	50,990
Carrying Value | Commercial paper
Financial Instruments Owned	254,157	189,596
Carrying Value | Certificates of deposit in other banks
Financial Instruments Owned	34,002	40,122
Carrying Value | Securities available for sale
Financial Instruments Owned	121,851	156,459
Carrying Value | Loans held for sale
Financial Instruments Owned	102,070	93,539
Carrying Value | Loans, net
Financial Instruments Owned	2,665,139	2,697,799
Carrying Value | FHLB Stock
Financial Instruments Owned	2,965	6,153
Carrying Value | FRB Stock
Financial Instruments Owned	7,403	7,386
Carrying Value | Small Business Investment Company Funds
Financial Instruments Owned	11,749	10,171
Carrying Value | Accrued interest receivable
Financial Instruments Owned	8,200	7,933
Carrying Value | Noninterest-bearing and NOW deposits
Financial Instruments Owned	1,321,502	1,281,372
Carrying Value | Money market accounts
Financial Instruments Owned	1,010,901	975,001
Carrying Value | Savings accounts
Financial Instruments Owned	224,474	226,391
Carrying Value | Certificates of deposit
Financial Instruments Owned	441,814	472,777
Carrying Value | Other borrowings
Financial Instruments Owned	48,000	115,000
Carrying Value | Accrued interest payable
Financial Instruments Owned	42	52
Fair Value | Cash and interest-bearing deposits
Financial Instruments Owned	34,826	50,990
Fair Value | Commercial paper
Financial Instruments Owned	254,157	189,596
Fair Value | Certificates of deposit in other banks
Financial Instruments Owned	34,002	40,122
Fair Value | Securities available for sale
Financial Instruments Owned	121,851	156,459
Fair Value | Loans held for sale
Financial Instruments Owned	103,317	94,779
Fair Value | Loans, net
Financial Instruments Owned	2,625,236	2,668,570
Fair Value | Small Business Investment Company Funds
Financial Instruments Owned	11,749	10,171
Fair Value | Accrued interest receivable
Financial Instruments Owned	8,200	7,933
Fair Value | Noninterest-bearing and NOW deposits
Financial Instruments Owned	1,321,502	1,281,372
Fair Value | Money market accounts
Financial Instruments Owned	1,010,901	975,001
Fair Value | Savings accounts
Financial Instruments Owned	224,474	226,391
Fair Value | Certificates of deposit
Financial Instruments Owned	441,568	474,397
Fair Value | Other borrowings
Financial Instruments Owned	47,998	115,000
Fair Value | Accrued interest payable
Financial Instruments Owned	$ 42	$ 52

XML

Fair Value of Financial Instruments - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)
Fair Value off-balance sheet risks, amount, liability	$ 829,181	$ 940,249
Minimum | Fair Value, Inputs, Level 3 | Real Estate Loans | Collateral discounts
Level 3 fair value measurements during the period	0.08
Minimum | Fair Value, Inputs, Level 3 | Real Estate Loans | Discount Spread
Level 3 fair value measurements during the period	0.05
Maximum | Fair Value, Inputs, Level 3 | Real Estate Loans | Collateral discounts
Level 3 fair value measurements during the period	0.12
Maximum | Fair Value, Inputs, Level 3 | Real Estate Loans | Discount Spread
Level 3 fair value measurements during the period	0.15

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Leases - Supplement Balance Sheet (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Leases [Abstract]
Renewal term (in years)	15 years
ROU assets	$ 5,178		$ 5,498
Lease liabilities	$ 5,941		$ 5,926
Weighted-average remaining lease terms (years)	10 years 5 months 26 days		9 years 5 months 26 days
Weighted-average discount rate	3.21%		3.18%
Finance lease, right-of-use asset	$ 2,052		$ 2,052
Finance lease, liability	1,783		$ 1,804
Finance lease, interest expense	$ 24	$ 48
Finance lease, discount rate	5.18%

XML

Leases - Maturity Schedule for Finance and Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Operating Leases
Remaining 2022	$ 592
2023	1,166
2024	854
2025	630
2026	512
Thereafter	3,216
Total lease liability	6,970
Less: amount representing interest	(1,029)
Lease liabilities	5,941	$ 5,926
Finance Leases
Remaining 2022	67
2023	134
2024	145
2025	146
2026	146
Thereafter	1,702
Total undiscounted minimum lease payments	2,340
Less: amount representing interest	(557)
Total lease liability	$ 1,783	$ 1,804

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Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost (included in occupancy expense, net)	$ 328	$ 342	$ 723	$ 681
Variable lease cost (included in occupancy expense, net)	55	61	116	122
Sublease income (included in other, noninterest income)	(47)	(57)	(94)	(114)
Total operating lease expense, net	$ 336	$ 346	$ 745	$ 689

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Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
ROU assets - noncash additions (operating leases)	$ 946	$ 597
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	797	1,055
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	$ 67	$ 67

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Leases - Lessor, Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Lessor, Lease, Description [Line Items]
Leased asset	$ 23,869		$ 23,869		$ 25,932
Operating lease, residual value of leased asset	14,800		14,800		15,330
Direct financing lease, interest income	753	$ 570	1,512	$ 1,099
Direct financing lease, lease receivable	$ 62,900		$ 62,900		$ 63,300
Minimum
Lessor, Lease, Description [Line Items]
Term of contract	1 year		1 year
Maximum
Lessor, Lease, Description [Line Items]
Term of contract	5 years		5 years

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Leases - Total Equipment Finance Operating Lease Income and Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease income	$ 1,718	$ 1,349	$ 3,258	$ 2,675
Depreciation expense	$ 1,497	$ 1,413	$ 2,882	$ 2,954

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Leases - Lessor, Fiscal Year Maturity Schedule (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Remaining 2022	$ 3,022
2023	4,825
2024	2,732
2025	778
2026	246
Thereafter	13
Total of future minimum lease payments	11,616
Financing Leases
Remaining 2022	9,609
2023	20,469
2024	17,393
2025	12,141
2026	7,546
Thereafter	3,437
Total undiscounted minimum lease payments	70,595
Less: amount representing interest	(7,740)
Total lease receivable	$ 62,855

XML

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201613Member