0000927089-20-000528.txt : 20201109 0000927089-20-000528.hdr.sgml : 20201109 20201109172613 ACCESSION NUMBER: 0000927089-20-000528 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 136 CONFORMED PERIOD OF REPORT: 20200930 FILED AS OF DATE: 20201109 DATE AS OF CHANGE: 20201109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN MISSOURI BANCORP, INC. CENTRAL INDEX KEY: 0000916907 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 431665523 STATE OF INCORPORATION: MO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-23406 FILM NUMBER: 201298832 BUSINESS ADDRESS: STREET 1: 2991 OAK GROVE ROAD CITY: POPLAR BLUFF STATE: MO ZIP: 63901 BUSINESS PHONE: 573-778-1800 MAIL ADDRESS: STREET 1: 2991 OAK GROVE ROAD CITY: POPLAR BLUFF STATE: MO ZIP: 63901 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHERN MISSOURI BANCORP INC DATE OF NAME CHANGE: 19940104 10-Q 1 smbc-20200930.htm SOUTHERN MISSOURI BANCORP, INC. - FORM 10-Q SEC FILING SOUTHERN MISSOURI BANCORP, INC. - Form 10-Q SEC filing
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

 

For the quarterly period ended September 30, 2020

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

 

For the transition period from                to                

 

Commission file number   0-23406

 

SOUTHERN MISSOURI BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Missouri

 

43-1665523

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

2991 Oak Grove Road, Poplar Bluff, Missouri

 

63901

(Address of principal executive offices)

 

(Zip Code)

 

(573) 778-1800

Registrant's telephone number, including area code

 

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

SMBC

NASDAQ Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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

X

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 and post such files).

Yes

X

No

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

 

Large accelerated filer /  /

Accelerated filer /X/

Emerging growth company [  ]

Non-accelerated filer /  /

Smaller reporting 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 12 b-2 of the Exchange Act)

Yes

No

[X]



Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:

Class

 

Outstanding at November 6, 2020

Common Stock, Par Value $0.01

 

9,119,154 Shares

 



 

SOUTHERN MISSOURI BANCORP, INC.

FORM 10-Q

 

INDEX

 

 

PART I.

Financial Information

PAGE NO.

 

 

 

Item 1.

Condensed Consolidated Financial Statements

 

 

 

 

 

-      Condensed Consolidated Balance Sheets

3

 

 

 

 

-      Condensed Consolidated Statements of Income  

4

 

 

 

 

-      Condensed Consolidated Statements of Comprehensive Income  

5

 

 

-      Condensed Consolidated Statements of Stockholders’ Equity  

 

 

6

 

-      Condensed Consolidated Statements of Cash Flows

7

 

 

 

 

-      Notes to Condensed Consolidated Financial Statements

8

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of

  Operations

35

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

45

 

 

 

Item 4.

Controls and Procedures

47

 

 

 

PART II.

OTHER INFORMATION

48

 

 

 

Item 1.

Legal Proceedings

48

 

 

 

Item 1a.

Risk Factors

48

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

48

 

 

 

Item 3.

Defaults upon Senior Securities

48

 

 

 

Item 4.

Mine Safety Disclosures

48

 

 

 

Item 5.

Other Information

48

 

 

 

Item 6.

Exhibits

49

 

 

 

 

-     Signature Page

50

 

 

 

 

-     Certifications

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




PART I: Item 1:  Condensed Consolidated Financial Statements

 

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2020 AND JUNE 30, 2020

 

(dollars in thousands)

September 30, 2020

June 30, 2020

 

(unaudited)

 

Assets

 

 

Cash and cash equivalents

$                    41,875

$                    54,245

Interest-bearing time deposits

                           975

                           974

Available for sale securities

                    175,528

                    176,524

Stock in FHLB of Des Moines

                        6,939

                        6,390

Stock in Federal Reserve Bank of St. Louis

                        5,017

                        4,363

Loans receivable, net of allowance for credit losses of
    $35,084 and $25,139 at September 30, 2020 and
    June 30, 2020, respectively

                 2,150,463

                 2,141,929

Accrued interest receivable

                      13,766

                      12,116

Premises and equipment, net

                      64,430

                      65,106

Bank owned life insurance – cash surrender value

                      43,644

                      43,363

Goodwill

                      14,089

                      14,089

Other intangible assets, net

                        7,493

                        7,700

Prepaid expenses and other assets

                      16,515

                      15,358

    Total assets

$               2,540,734

$               2,542,157

 

 

 

Liabilities and Stockholders' Equity

 

 

Deposits

$               2,168,074

$               2,184,847

Advances from FHLB

                      85,637

                      70,024

Accounts payable and other liabilities

                      10,478

                      12,151

Accrued interest payable

                        1,402

                        1,646

Subordinated debt

                      15,168

                      15,142

    Total liabilities

                 2,280,759

                 2,283,810

 

 

 

Common stock, $0.01 par value; 25,000,000 shares authorized;
    9,344,574 and 9,345,339 shares issued at September 30, 2020 and June 30, 2020, respectively

                             93

                             93

Additional paid-in capital

                      95,058

                      95,035

Retained earnings

                    167,175

                    165,709

Treasury Stock of 217,949 shares at September 30, 2020
    and June 30, 2020, at cost

                      (6,937)

                      (6,937)

Accumulated other comprehensive income

                        4,586

                        4,447

    Total stockholders' equity

                    259,975

                    258,347

    Total liabilities and stockholders' equity

$               2,540,734

$               2,542,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Condensed Consolidated Financial Statements


-3-



SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

 

 

Three months ended

 

September 30,

(dollars in thousands except per share data)

2020

2019

INTEREST INCOME:

 

 

     Loans

$        25,907

$        25,640

     Investment securities

               490

               520

     Mortgage-backed securities

               534

               716

     Other interest-earning assets

                 41

                 46

                  Total interest income

          26,972

          26,922

INTEREST EXPENSE:

 

 

     Deposits

            4,390

            6,578

     Advances from FHLB

               380

               522

     Note payable

                    -

                 37

     Subordinated debt

               138

               225

                  Total interest expense

            4,908

            7,362

NET INTEREST INCOME

          22,064

          19,560

PROVISION FOR CREDIT LOSSES

               774

               896

NET INTEREST INCOME AFTER

   PROVISION FOR CREDIT LOSSES

          21,290

          18,664

NONINTEREST INCOME:

 

 

    Deposit account charges and related fees

            1,339

            1,423

    Bank card interchange income

               830

               751

    Loan late charges

               141

               146

    Loan servicing fees

               310

               130

    Other loan fees

               327

               243

    Net realized gains on sale of loans

            1,206

               273

    Earnings on bank owned life insurance

               280

               254

    Other income

               508

               270

                  Total noninterest income

            4,941

            3,490

NONINTEREST EXPENSE:

 

 

    Compensation and benefits

            7,720

            7,125

    Occupancy and equipment, net

            1,970

            1,852

    Data processing expense

            1,062

               885

    Telecommunications expense

               315

               320

    Deposit insurance premiums

               201

                    -

    Legal and professional fees

               198

               184

    Advertising

               230

               309

    Postage and office supplies

               193

               183

    Intangible amortization

               380

               441

    Foreclosed property expenses/losses

                 50

                 48

    Provision (credit) for off balance sheet credit exposure

               226

             (146)

    Other operating expense

               953

            1,149

                  Total noninterest expense

          13,498

          12,350

INCOME BEFORE INCOME TAXES

          12,733

            9,804

INCOME TAXES

            2,747

            1,976

NET INCOME

$          9,986

$          7,828

 

 

 

Basic earnings per common share

$            1.09

$            0.85

Diluted earnings per common share

$            1.09

$            0.85

Dividends per common share

$            0.15

$            0.15

 

 

 

 

See Notes to Condensed Consolidated Financial Statements


-4-



SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

 

 

 

Three months ended

 

September 30,

(dollars in thousands)

2020

2019

Net income

$          9,986

$          7,828

     Other comprehensive income:

 

 

           Unrealized gains on securities available-for-sale

               179

               263

           Tax expense

               (40)

               (56)

     Total other comprehensive income

               139

               207

Comprehensive income

$        10,125

$          8,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Condensed Consolidated Financial Statements


-5-



SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

 

 

 

For the three- month period ended September 30, 2020

 

 

Additional

 

 

Accumulated Other

Total

 

Common

Paid-In   

Retained

Treasury

Comprehensive

Stockholders'

(dollars in thousands)

Stock

Capital

Earnings

Stock

Income

Equity

BALANCE AS OF JUNE 30, 2020

$           93

$      95,035

$    165,709

$ (6,937)

$        4,447

$   258,347

 

 

 

 

 

 

 

Impact of ASU 2016-13 adoption

 

 

        (7,151)

 

 

       (7,151)

Net Income  

 

 

          9,986

 

 

         9,986

Change in unrealized gain on available for sale securities

 

 

 

             139

            139

Dividends paid on common stock ($.15 per share)

 

 

        (1,369)

 

 

       (1,369)

Stock option expense

 

               23

 

 

 

              23

BALANCE AS OF SEPTEMBER 30, 2020

$           93

$      95,058

$    167,175

$ (6,937)

$        4,586

$   259,975

 

 

For the three- month period ended September 30, 2019

 

 

Additional

 

 

Accumulated Other

Total

 

Common

Paid-In   

Retained

Treasury

Comprehensive

Stockholders'

(dollars in thousands)

Stock

Capital

Earnings

Stock

Income  

Equity

BALANCE AS OF JUNE 30, 2019

$           93

$      94,541

$    143,677

$ (1,166)

$        1,247

$   238,392

 

 

 

 

 

 

 

Net Income  

 

 

          7,828

 

 

         7,828

Change in unrealized gain on available for sale securities

 

 

 

             207

            207

Dividends paid on common stock ($.15 per share)

 

 

        (1,382)

 

 

       (1,382)

Stock option expense

 

               17

 

 

 

              17

Stock grant expense

 

               14

 

 

 

              14

Treasury stock purchased

 

 

 

     (2,814)

 

       (2,814)

BALANCE AS OF SEPTEMBER 30, 2019

$           93

$      94,572

$    150,123

$ (3,980)

$        1,454

$   242,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Condensed Consolidated Financial Statements


-6-



SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (Unaudited)

 

Three months ended

 

September 30,

(dollars in thousands)

2020

2019

Cash Flows From Operating Activities:

 

 

Net Income

$          9,986

$          7,828

   Items not requiring (providing) cash:

 

 

     Depreciation

1,011

920

     Loss (gain) on disposal of fixed assets

26

(2)

     Stock option and stock grant expense

23

31

     Loss on sale/write-down of REO

36

10

     Amortization of intangible assets

380

441

     Accretion of purchase accounting adjustments

(281)

(492)

     Increase in cash surrender value of bank owned life insurance (BOLI)

(281)

(254)

     Provision for credit losses

774

896

     Net amortization of premiums and discounts on securities

452

264

     Originations of loans held for sale

(47,888)

(10,132)

     Proceeds from sales of loans held for sale

45,300

9,986

     Gain on sales of loans held for sale

(1,206)

(273)

   Changes in:

 

 

     Accrued interest receivable

(1,650)

(1,459)

     Prepaid expenses and other assets

849

(2,638)

     Accounts payable and other liabilities

(1,392)

276

     Deferred income taxes

14

6

     Accrued interest payable

(245)

(199)

           Net cash provided by operating activities

5,908

5,209

Cash flows from investing activities:

 

 

     Net increase in loans

(14,163)

(28,472)

     Net change in interest-bearing deposits

(2)

(1)

     Proceeds from maturities of available for sale securities

15,715

11,041

     Net purchases of Federal Home Loan Bank stock

(335)

-

     Net purchases of Federal Reserve Bank of St. Louis stock

(654)

(2,500)

     Purchases of available-for-sale securities

(14,992)

(16,512)

     Purchases of premises and equipment

(453)

(1,687)

     Investments in state & federal tax credits

(1,051)

(10)

     Proceeds from sale of fixed assets

71

13

     Proceeds from sale of foreclosed assets

129

275

           Net cash used in investing activities

(15,735)

(37,853)

Cash flows from financing activities:

 

 

     Net increase (decrease) in demand deposits and savings accounts

10,311

(8,949)

     Net decrease in certificates of deposits

(27,073)

(12,200)

     Net decrease in securities sold under agreements to repurchase

-

(4,376)

     Proceeds from Federal Home Loan Bank advances

34,800

147,550

     Repayments of Federal Home Loan Bank advances

(19,212)

(89,162)

     Purchase of treasury stock

-

(2,814)

     Dividends paid on common stock

(1,369)

(1,382)

           Net cash (used in) provided by financing activities

(2,543)

28,667

Decrease in cash and cash equivalents

(12,370)

(3,977)

Cash and cash equivalents at beginning of period

54,245

35,400

Cash and cash equivalents at end of period

$        41,875

$        31,423

Supplemental disclosures of cash flow information:

 

 

Noncash investing and financing activities:

 

 

Conversion of loans to foreclosed real estate

$               69

$             365

Conversion of loans to repossessed assets

                  -   

                 59

Right of use assets obtained in exchange for lease obligations: Operating Leases

                 22

            1,996

Cash paid during the period for:

 

 

Interest (net of interest credited)

$             678

$             964

Income taxes

            1,793

            2,856

 

See Notes to Condensed Consolidated Financial Statements


-7-



SOUTHERN MISSOURI BANCORP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

Note 1:  Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company as of June 30, 2020, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three-month period ended September 30, 2020, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2020 Form 10-K, which was filed with the SEC.

 

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Southern Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

 

Note 2:  Organization and Summary of Significant Accounting Policies

 

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities.  SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC.  Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At September 30, 2020, assets of the REIT were approximately $877 million, and consisted primarily of loan participations acquired from the Bank.

 

The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

 

Basis of Financial Statement Presentation. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

 

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

 

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 


-8-



On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020. Effective July 1, 2020 through September 30, 2020, the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.

 

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $4.2 million and $6.9 million at September 30 and June 30, 2020, respectively. The deposits are held in various commercial banks with a total of $303,000 and $319,000 exceeding the FDIC’s deposit insurance limits at September 30 and June 30, 2020, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

 

Interest-bearing Time Deposits. Interest bearing deposits in banks mature within seven years and are carried at cost.

 

Available for Sale Securities. Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income, a component of stockholders’ equity. All securities have been classified as available for sale.

 

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

 

The Company does not invest in collateralized mortgage obligations that are considered high risk.

 

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

 

At adoption, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2020, and June 30, 2020.

 

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

 

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.

 


-9-



Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.  The Company complies with regulatory guidance which indicates that loans should be placed on nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. At September 30, 2020, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at September 30, 2020. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

 

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

 

Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages.

 

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools.  The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically.

 


-10-



Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk.

 

Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received).

 

Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

 

Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.  

 

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

 

Off-Balance Sheet Credit Exposures.   Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is


-11-



represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.  The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets.  The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense for off-balance sheet credit exposures included in other non-interest expense in the Company’s consolidated statements of income.

 

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis.  Costs for development and improvement of the property are capitalized.

 

Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.

 

Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.

 

Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

 

Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

 

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value.  Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.

 

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2020, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the decline in the market value of the Company’s common stock, relative to peers; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.  The Company believes there continues to be no impairment of goodwill at September 30, 2020.

 

Intangible Assets.  The Company’s intangible assets at September 30, 2020 included gross core deposit intangibles of $15.3 million with $9.0 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.3 million.  At June 30, 2020, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $8.7 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.1 million.  The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.0 million in the remainder of fiscal 2021, $1.4 million in fiscal 2022 through fiscal 2024, and $807,000 million in fiscal 2025, and $328,000 thereafter. As of June 30, 2020, there was no impairment indicated, and the Company believes there continues to be no impairment of other intangible assets at September 30, 2020.

 

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC


-12-



740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

 

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

 

The Company files consolidated income tax returns with its subsidiary.

 

Incentive Plans. The Company accounts for its Management and Recognition Plan (MRP), Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.”  Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

 

Outside Directors’ Retirement.   The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.

 

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

 

Stock Options. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

 

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

 

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities, and changes in the funded status of defined benefit pension plans.

 

Transfers Between Fair Value Hierarchy Levels.  Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

 


-13-



The following paragraphs summarize the impact of new accounting pronouncements:

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures.  Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020.  The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACI model and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million.  In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.  On July 1, 2020, the amortized cost basis of the PCD loans were increased to reflect the addition of $434,000 to the ACL.  The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially.

 

 

The following table illustrates the impact of adoption of ASU 2016-13:

 

 

July 1, 2020

 

As reported

As reported

Impact of

 

under

prior to

adoption

(dollars in thousands)

ASU 2016-13

ASU 2016-13

ASU 2016-13

Loans receivable

$              2,142,363

$              2,141,929

$                         434

Allowance for credit losses on loans:

 

 

 

Real Estate Loans:

 

 

 

     Residential

                      8,396

                      4,875

                      3,521

     Construction

                        1,889

                        2,010

                         (121)

     Commercial

                      15,988

                      12,132

                        3,856

Consumer loans

                        2,247

                        1,182

                        1,065

Commercial loans

                        5,952

                        4,940

                        1,012

Total allowance for credit losses on loans

$                    34,472

$                    25,139

$                      9,333

 

 

 

 

Total allowance for credit losses on
    off-balance sheet credit exposures

$                      2,227

$                      1,959

$                         268

 

 

The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.

 

In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of


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December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020.

 

 

Note 3:  Securities

 

The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and approximate fair value of securities available for sale consisted of the following:

 

 

September 30, 2020

 

 

Gross

Gross

Allowance

Estimated

 

Amortized

Unrealized

Unrealized

for

Fair

(dollars in thousands)

Cost

Gains

Losses

Credit Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 

 State and political subdivisions

$             42,880

$               1,608

$                    (1)

$                      -

$             44,487

 Other securities

                 9,358

                    169

                  (327)

                        -

                 9,200

 Mortgage-backed GSE residential

             117,366

                 4,518

                    (43)

                        -

             121,841

    Total investment and mortgage-backed securities

$           169,604

$               6,295

$                (371)

$                      -

$           175,528

 

 

June 30, 2020

 

 

Gross

Gross

Estimated

 

Amortized

Unrealized

Unrealized

Fair

(dollars in thousands)

Cost

Gains

Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 State and political subdivisions

$             40,486

$               1,502

$                      -

$             41,988

 Other securities

                 7,919

                      48

                  (343)

                 7,624

 Mortgage-backed GSE residential

             122,375

                 4,576

                    (39)

             126,912

    Total investment and mortgage-backed securities

$           170,780

$               6,126

$                (382)

$           176,524

 

 

The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

 

 

 

September 30, 2020

 

Amortized

Estimated

(dollars in thousands)

Cost

Fair Value

  Within one year

$                     1,370

$           1,398

  After one year but less than five years

                     10,341

           10,525

  After five years but less than ten years

                     17,180

           17,689

  After ten years

                     23,347

           24,075

     Total investment securities

                     52,238

           53,687

  Mortgage-backed securities

                   117,366

         121,841

    Total investment and mortgage-backed securities

$                 169,604

$       175,528

 

 

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $146.2 million at September 30, 2020 and $156.1 million at June 30, 2020.  The securities pledged consist of marketable securities, including $77.3 million and $82.0 million of Mortgage-Backed Securities, $34.9 million and $41.9 million of Collateralized Mortgage Obligations, $33.0 million and $32.0 million of State and Political Subdivisions Obligations, and $1.0 million and $200,000 of Other Securities at September 30 and June 30, 2020, respectively.

 


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The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at September 30 and June 30, 2020:

 

 

September 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Obligations of state and political subdivisions

$        531

$            1

$             -

$             -

$        531

$            1

 Other securities

               -

               -

          839

          327

          839

          327

 Mortgage-backed securities

       8,368

            43

               -

               -

       8,368

            43

   Total investments and mortgage-backed securities

$     8,899

$          44

$        839

$        327

$     9,738

$        371

 

 

June 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Other securities

$        995

$            5

$        643

$        338

$     1,638

$        343

 Mortgage-backed securities

       9,037

            39

               -

               -

       9,037

            39

   Total investments and mortgage-backed securities

$   10,032

$          44

$        643

$        338

$   10,675

$        382

 

 

Mortgage-backed securities. The unrealized losses on the Company’s investments in mortgage-backed securities were caused by variations in market interest rates since purchase or acquisition. The securities are of high credit quality (AA or higher). Because the Company does not intend to sell these securities and it likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

 

Other securities.  At September 30, 2020 there were two pooled trust preferred securities with an estimated fair value of $654,000 and unrealized losses of $322,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

 

The September 30, 2020, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

 

One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

 

The Company does not believe any other individual unrealized loss as of September 30, 2020, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.


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Credit losses recognized on investments.  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three-month periods ended September 30, 2020 and 2019.

 

 

Note 4:  Loans and Allowance for Credit Losses

 

Classes of loans are summarized as follows:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Real Estate Loans:

 

 

     Residential

$                      635,718

$               627,357

     Construction

                        207,737

                 185,924

     Commercial

                        884,835

                 887,419

Consumer loans

                          80,906

                   80,767

Commercial loans

                        481,582

                 468,448

                     2,290,778

              2,249,915

Loans in process

                      (101,392)

                  (78,452)

Deferred loan fees, net

                          (3,839)

                    (4,395)

Allowance for credit losses

                        (35,084)

                  (25,139)

     Total loans

$                   2,150,463

$            2,141,929

 

The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At September 30, 2020, the Bank had purchased participations in 22 loans totaling $55.7 million, as compared to 23 loans totaling $58.2 million at June 30, 2020.

 

Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences.  This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied.  Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property.  Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

 

The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area.  The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.

 

Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.


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Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

 

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multifamily or commercial construction loans typically mature in 12 to 24 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

 

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At September 30, 2020, construction loans outstanding included 78 loans, totaling $36.1 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above.  As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs).  Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included drawn balances of $4.4 million in construction loans which were modified at the borrower’s request due to the current situation of heightened economic uncertainty triggered by the pandemic.

 

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

 

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable.  Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

 

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles


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have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

 

Commercial Business Lending. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.

 

Allowance for Credit Losses. The provision for credit losses for the three-month period ended September 30, 2020, was $774,000, relatively low as compared to earlier quarters in calendar year 2020, or as compared to the same period of the prior fiscal year. The charge was based on the estimated required ACL, reflecting management’s estimate of the current expected credit losses in the Company’s loan portfolio at September 30, 2020, and as of that date the Company’s ACL was $35.1 million. The relatively low provision was attributable primarily to the current quarter’s relatively low loan growth and stable credit quality indicators quarter-over-quarter. While uncertainty remains regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, the Company assesses that the economic outlook is little changed as compared to June 30, 2020. However, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and the Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be somewhat offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL.

 

The following tables present the balance in the ACL and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment as of September 30 and June 30, 2020, and activity in the ACL and ALLL for the three-month periods ended September 30, 2020 and 2019:

 

 

 

 

 

At period end and for the three months ended September 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for credit losses:

 

 

 

 

 

 

     Balance, beginning of period
          prior to adoption of CECL

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Impact of CECL adoption

                 3,521

                  (121)

                 3,856

               1,065

                   1,012

                 9,333

     Provision charged to expense

                    252

                        3

                      61

                      61

                    397

                    774

     Losses charged off

                    (19)

                        -

                        -

                      (6)

                  (145)

                  (170)

     Recoveries

                        -

                        -

                        1

                        3

                        4

                        8

     Balance, end of period

$            8,629

$               1,892

$             16,050

$               2,305

$               6,208

$             35,084

 


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At period end and for the three months ended September 30, 2019

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, beginning of period

$               3,706

$               1,365

$               9,399

$               1,046

$               4,387

$             19,903

     Provision charged to expense

                  (134)

                    174

                    376

                      96

                    384

                    896

     Losses charged off

                        -

                        -

                        -

                    (72)

                    (35)

                  (107)

     Recoveries

                        -

                        -

                      14

                        4

                        -

                      18

     Balance, end of period

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

 

 

At June 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, end of period

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

Loans:

 

 

 

 

 

 

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$           626,085

$           106,194

$           872,716

$             80,767

$           463,902

$        2,149,664

     Ending Balance: loans acquired
           with deteriorated credit quality

$               1,272

$               1,278

$             14,703

$                      -

$               4,546

$             21,799

 

 

Included in the Company’s loan portfolio are certain loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination, which are considered purchased credit deteriorated (PCD) loans. Prior to the July 1, 2020 adoption of ASU 2016-13, these loans were accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were described as purchased credit impaired (PCI) loans. Under ASC 310-30, these loans were written down at acquisition to an amount estimated to be collectible, and, unless there was further deterioration following the acquisition, an ALLL was not recognized for these loans. As a result, certain historical ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s credit quality over time. The ratios particularly affected by accounting under ASC 310-30 include the allowance as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. For more information about the transition from PCI to PCD status of the Company’s acquired loans, see Note 2: Organization and Summary of Significant Accounting Policies, Loans.

 

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of


-20-



single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

 

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring.  Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

 

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days.  This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

 

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding.  These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

 

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

 

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades.  The primary responsibility for this review rests with loan administration personnel.  This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies.  The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

 


-21-



The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of September 30, 2020. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

 

 

 

 

 

 

 

 

 

Revolving

 

2021

2020

2019

2018

2017

Prior

loans

Total

Residential Real Estate

 

 

 

 

 

 

 

 

Pass

$ 123,469

$ 225,522

$   65,243

$   53,150

$   38,183

$ 117,755

$     5,416

$    628,738

Watch

          125

          122

          419

               -

            98

          876

               -

          1,640

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

          145

          1,007

          227

            73

               -

       3,818

               -

          5,270

Doubtful

               -

               -

               -

               -

               -

            32

               -

               32

Total Residential Real Estate

$ 123,739

$ 226,651

$   65,889

$   53,237

$   38,281

$ 122,505

$     5,416

$    635,718

 

 

 

 

 

 

 

 

 

Construction Real Estate

 

 

 

 

 

 

 

 

Pass

$   42,502

$   52,358

$     6,914

$             -

$             -

$             -

$        205

$    101,979

Watch

               -

               -

          417

       3,949

               -

               -

               -

          4,366

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

               -

               -

               -

               -

               -

               -

                  -

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Construction Real Estate

$   42,502

$   52,358

$     7,331

$     3,949

$             -

$             -

$        205

$    106,345

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

Pass

$   64,829

$ 222,926

$ 151,121

$ 158,268

$   87,699

$ 117,612

$   27,117

$    829,572

Watch

          508

       9,348

     10,611

       4,956

     14,252

       1,493

          904

        42,072

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

       1,222

       6,149

          560

          285

       2,718

       1,369

               -

        12,303

Doubtful

               -

               -

          888

               -

               -

               -

               -

             888

Total Commercial Real Estate

$   66,559

$ 238,423

$ 163,180

$ 163,509

$ 104,669

$ 120,474

$   28,021

$    884,835

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

Pass

$     7,540

$   17,077

$     7,148

$     2,512

$     1,289

$        788

$   44,316

$      80,670

Watch

               -

               -

               -

               -

               -

               -

               -

                  -

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

            42

            15

            41

            25

            42

            71

             236

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Consumer

$     7,540

$   17,119

$     7,163

$     2,553

$     1,314

$        830

$   44,387

$      80,906

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

Pass

$   27,116

$ 232,331

$   37,049

$   21,354

$   10,050

$   13,662

$ 130,547

$    472,109

Watch

       1,009

          162

            64

              8

            12

               -

       1,725

          2,980

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

            35

       1,584

       1,640

          462

          180

              8

       2,584

          6,493

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Commercial

$   28,160

$ 234,077

$   38,753

$   21,824

$   10,242

$   13,670

$ 134,856

$    481,582

 

 

 

 

 

 

 

 

Total Loans

 

 

 

 

 

 

 

 

Pass

$ 265,456

$ 750,214

$ 267,475

$ 235,284

$ 137,221

$ 249,817

$ 207,601

$ 2,113,068

Watch

       1,642

       9,632

     11,511

       8,913

     14,362

       2,369

       2,629

        51,058

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

       1,402

       8,782

       2,442

          861

       2,923

       5,237

       2,655

        24,302

Doubtful

               -

               -

          888

               -

               -

            32

               -

             920

Total

$ 268,500

$ 768,628

$ 282,316

$ 245,072

$ 154,506

$ 257,479

$ 212,885

$ 2,189,386

 

 

 

At September 30, 2020, PCD loans comprised $5.6 million of credits rated “Pass”; $10.1 million of credits rated “Watch”; none rated “Special Mention”; $5.7 million of credits rated “Substandard”; and none rated “Doubtful”.

 


-22-



The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2020. This table includes PCI loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification:

 

 

June 30, 2020

 

Residential

Construction

Commercial

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Pass

$                   620,004

$           103,105

$                  829,276

$             80,517

$           457,385

Watch

                         1,900

                 4,367

                      45,262

                      45

                 4,708

Special Mention

                               -   

                      -   

                           403

                      25

                      -   

Substandard

                         5,453

                      -   

                      11,590

                    180

                 6,355

Doubtful

                               -   

                      -   

                           888

                      -   

                      -   

     Total

$                   627,357

$           107,472

$                  887,419

$             80,767

$           468,448

 

 

At June 30, 2020, PCI loans comprised $5.9 million of credits rated “Pass”; $10.3 million of credits rated “Watch”, none rated “Special Mention”, $5.6 million of credits rated “Substandard” and none rated “Doubtful”.

 

Past-due Loans.  The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of September 30 and June 30, 2020.  These tables include PCD and PCI loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

 

 

September 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  974

$                    37

$               1,343

$               2,354

$           633,364

$           635,718

$                     -

     Construction

                    200

                        -

                        -

                    200

             106,145

             106,345

                       -

     Commercial

                 1,008

                        9

                    760

                 1,777

             883,058

             884,835

                       -

Consumer loans

                    761

                      78

                    248

                 1,087

               79,819

               80,906

                       -

Commercial loans

                    756

                    243

                    490

                 1,489

             480,093

             481,582

                       -

     Total loans

$               3,699

$                  367

$               2,841

$               6,907

$        2,182,479

$        2,189,386

$                     -

 

 

June 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  772

$                  378

$                  654

$               1,804

$           625,553

$           627,357

$                     -

     Construction

                        -

                        -

                        -

                        -

             107,472

             107,472

                       -

     Commercial

                    641

                    327

                 1,073

                 2,041

             885,378

             887,419

                       -

Consumer loans

                    180

                      53

                    193

                    426

               80,341

               80,767

                       -

Commercial loans

                      93

                 1,219

                    810

                 2,122

             466,326

             468,448

                       -

     Total loans

$               1,686

$               1,977

$               2,730

$               6,393

$        2,165,070

$        2,171,463

$                     -

 

 

Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included $93.6 million in loans reported as current in the above table, none of which were past due.  Loans with such modifications in effect at June 30, 2020, included $380.1 million in loans reported as current in the above table, while an additional $29,000 of consumer loans and $1,000 in residential real estate loans with such modifications were reported as 30-59 days past due, and $66,000 of commercial loans with such modifications were reported as 60-89 days past due.

 

At September 30, and June 30, 2020 there were no PCD or PCI loans that were greater than 90 days past due.  

 


-23-



Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

 

Collateral-dependent Loans. At September 30, 2020, there were no collateral-dependent loans that were individually evaluated to determine expected credit losses.

 

Impairment. Prior to the July 1, 2020, adoption of ASU 2016-13, a loan was considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it was probable the Company would be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans included nonperforming loans, as well as performing loans modified in troubled debt restructurings where concessions were granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.

 

The table below presents impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2020. The table includes PCI loans at June 30, 2020 for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, continued to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would be less than the amount previously expected, the Company would allocate a specific allowance under the terms of ASC 310-10-35.

 

 

June 30, 2020

 

Recorded

Unpaid Principal

Specific

(dollars in thousands)

Balance

Balance

Allowance

Loans without a specific valuation allowance:

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

                 1,277

                 1,312

                        -

     Commercial real estate

               19,271

               23,676

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                 5,040

                 6,065

                        -

Loans with a specific valuation allowance:

 

 

 

     Residential real estate

$                      -

$                      -

$                      -

     Construction real estate

                        -

                        -

                        -

     Commercial real estate

                        -

                        -

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                        -

                        -

                        -

Total:

 

 

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

$               1,277

$               1,312

$                      -

     Commercial real estate

$             19,271

$             23,676

$                      -

     Consumer loans

$                      -

$                      -

$                      -

     Commercial loans

$               5,040

$               6,065

$                      -

 

 

At June 30, 2020, PCI loans comprised $21.8 million of impaired loans without a specific valuation allowance.


-24-



The following table presents information regarding interest income recognized on impaired loans:

 

 

For the three-month period ended

 

September 30, 2019

 

Average

 

(dollars in thousands)

Investment in

Interest Income

Impaired Loans

Recognized

Residential Real Estate

$                   1,677

$                         23

Construction Real Estate

                     1,306

                           48

Commercial Real Estate

                   17,721

                         335

Consumer Loans

                             -

                              -

Commercial Loans

                     5,812

                           93

   Total Loans

$                 26,516

$                       499

 

 

Interest income on impaired loans recognized on a cash basis in the three-month period ended September 30, 2019, was immaterial. For the three-month period ended September 30, 2019, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $83,000.

 

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at September 30 and June 30, 2020.  The table excludes performing TDRs.

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Residential real estate

$               4,339

$               4,010

Construction real estate

                      -   

                      -   

Commercial real estate

                 3,052

                 3,106

Consumer loans

                    255

                    196

Commercial loans

                 1,129

                 1,345

     Total loans

$               8,775

$               8,657

 

 

At September 30, 2020, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three-month periods ended September 30, 2019 and 2020, was immaterial.

 

Troubled Debt Restructurings. Prior to the July 1, 2020, adoption of ASU 2016-13, loans restructured as TDRs were included in certain loan categories classified as impaired loans, where economic concessions have been granted to borrowers who have experienced financial difficulties. Subsequent to the adoption of ASU 2016-13, TDRs are evaluated to determine whether they share similar risk characteristics with collectively evaluated loan pools, or must be individually evaluated. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. In general, the Company’s loans that have been subject to classification as TDRs are the result of guidance under ASU No. 2011-02, which indicates that the Company may not consider the borrower’s effective borrowing rate on the old debt immediately before the restructuring in determining whether a concession has been granted. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

 


-25-



During the three-month periods ended September 30, 2020 and 2019, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below:

 

 

 

 

For the three-month periods ended

 

 

September 30, 2020

September 30, 2019

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

1

$                 98

-

$                          -

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

2

              1,840

-

                            -

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

1

                   36

-

                            -

           Total

 

4

$            1,974

-

$                          -

 

 

Performing loans classified as TDRs and outstanding at September 30 and June 30, 2020, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans.

 

 

 

September 30, 2020

June 30, 2020

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

3

$               1,015

3

$                     791

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

7

              3,904

10

                    4,544

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

8

              3,229

7

                    3,245

           Total

 

18

$            8,148

20

$                  8,580

 

 

Residential Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of September 30, and June 30, 2020, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $565,000 and $563,000, respectively. In addition, as of September 30 and June 30, 2020, the Company had residential mortgage loans and home equity loans with a carrying value of $329,000 and $435,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

 

Purchased Credit Deteriorated Loans. Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered PCI. Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. All loans considered to be PCI prior to July 1, 2020, were converted to PCD on that date.

 

The carrying amount of $21.8 million in PCI loans was included in the balance sheet amount of loans receivable at June 30, 2020, with no associated ACL. In accordance with ASU 2016-13, the Company did not reassess whether the PCI loans met the criteria of PCD loans as of the adoption date. The amortized cost of the PCD loans were adjusted to reflect the addition of $434,000 to the ACL. PCD loans receivable, net of ACL, totaling $20.9 million were included in the balance sheet amount of loans receivable at September 30, 2020.

 

During the three-month periods ended September 30, 2019 and 2020, the Company did not increase or reverse ALLL or ACL related to PCI or PCD loans.

 


-26-



Note 5:  Premises and Equipment

 

Following is a summary of premises and equipment:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Land

$                    12,514

$                    12,585

Buildings and improvements

                      56,675

                      56,039

Construction in progress

                             35

                           435

Furniture, fixtures, equipment and software

                      18,276

                      18,109

Automobiles

                           120

                           120

Operating leases ROU asset

                        1,944

                        1,965

                      89,564

                      89,253

Less accumulated depreciation

                      25,134

                      24,147

$                    64,430

$                    65,106

 

 

Leases.  The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2019, using the modified retrospective transition approach whereby comparative periods were not restated.  The Company also elected certain relief options under the ASU, including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less).  The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.   

 

All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets.  With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets.  The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.  Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income.

 

ASU 2016-02 also requires certain other accounting elections.  The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months.  ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease


-27-



liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%.  The expected lease terms range from 18 months to 20 years.   

 

September 30, 2020

June 30, 2020

Consolidated Balance Sheet

 

 

Operating leases right of use asset

$                      1,944

$                      1,965

Operating leases liability

$                      1,944

$                      1,965

 

 

Three Months Ended September 30,

2020

2019

Consolidated Statement of Income

 

 

Operating lease costs classified as occupancy and equipment expense

$                           72

$                           57

    (includes short-term lease costs)

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

    Operating cash flows from operating leases

$                           67

$                           39

ROU assets obtained in exchange for operating lease obligations:

$                           -   

$                      2,004

 

 

 

For the three months ended September 30, 2020 and 2019, lease expense was $72,000 and $57,000, respectively. At September 30, 2020, future expected lease payments for leases with terms exceeding one year were as follows:

 

(dollars in thousands)

 

2021

$                  269

2022

                    243

2023

                    243

2024

                    243

2025

                    242

Thereafter

                 2,134

Future lease payments expected

$               3,374

 

 

The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases.   For the three month periods ended September 30, 2020 and 2019, income recognized from these lessor agreements was $75,000 and $82,000, respectively, and was included in net occupancy and equipment expense.

 

 

Note 6:  Deposits

 

Deposits are summarized as follows:

 

 

 

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Non-interest bearing accounts

$                  307,023

$                  316,048

NOW accounts

                    789,486

                    781,937

Money market deposit accounts

                    234,948

                    231,162

Savings accounts

                    189,218

                    181,229

Certificates

                    647,399

                    674,471

    Total Deposit Accounts

$               2,168,074

$               2,184,847

 

 


-28-



Note 7:  Earnings Per Share

 

The following table sets forth the computation of basic and diluted earnings per share:

 

 

Three months ended

 

September 30,

 

2020

2019

(dollars in thousands except per share data)

 

 

Net income

$                 9,986

$                 7,828

  Less: distributed earnings allocated to participating securities

                        (4)

                           -

  Less: undistributed earnings allocated to participating securities

                      (26)

                           -

Net income available to common shareholders

                   9,956

                   7,828

 

 

 

Weighted-average common shares outstanding, including participating securities

            9,126,866

            9,232,257

  Less: weighted-average participating securities outstanding (restricted shares)

               (27,260)

                         -   

Weighted-average basic common shares outstanding

            9,099,606

            9,232,257

  Add: effect of dilutive securities, stock options, and awards

                   2,191

                 11,891

Denominator for diluted earnings per share

$          9,101,797

$          9,244,148

 

 

 

Basic earnings per share available to common stockholders

$                   1.09

$                   0.85

Diluted earnings per share available to common stockholders

$                   1.09

$                   0.85

 

 

Options outstanding at September 30, 2020 and 2019, to purchase 50,500, and 15,500 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2020 and 2019, respectively.

 

 

Note 8: Income Taxes   

 

The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state examinations by tax authorities for tax years ending June 30, 2015 and before.  The Company recognized no interest or penalties related to income taxes.

 

The Company’s income tax provision is comprised of the following components:

 

 

For the three-month periods ended

(dollars in thousands)

09/30/2020

September 30, 2019

Income taxes

 

 

     Current

$                      4,750

$                      1,970

     Deferred

                      (2,003)

                               6

Total income tax provision

$                      2,747

$                      1,976

 

 


-29-



The components of net deferred tax assets are summarized as follows:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Deferred tax assets:

     Provision for losses on loans

$                      8,023

$                      5,802

     Accrued compensation and benefits

                           539

                           825

     NOL carry forwards acquired

                           136

                           149

     Minimum Tax Credit

                           130

                           130

     Unrealized loss on other real estate

                           187

                           257

    Other

                           120

                             26

Total deferred tax assets

                        9,135

                        7,189

 

 

 

Deferred tax liabilities:

 

 

     Purchase accounting adjustments

                             42

                             64

     Depreciation

                        1,785

                        1,665

     FHLB stock dividends

                           120

                           120

     Prepaid expenses

                           208

                           259

     Unrealized gain on available for sale securities

                        1,304

                        1,265

     Other

                             -   

                           104

Total deferred tax liabilities

                        3,459

                        3,477

 

 

 

     Net deferred tax asset

$                      5,676

$                      3,712

 

 

As of September 30, 2020, the Company had approximately $675,000 and $119,000 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., the August 2014 acquisition of Peoples Service Company, and the June 2017 acquisition of Tammcorp, Inc.  The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027.

 

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

 

 

For the three-month periods ended

(dollars in thousands)

September 30, 2020

September 30, 2019

Tax at statutory rate

$                      2,674

$                      2,059

Increase (reduction) in taxes
     resulting from:

 

 

           Nontaxable municipal income

                         (103)

                         (113)

           State tax, net of Federal benefit

                           241

                           109

           Cash surrender value of
                 Bank-owned life insurance

                           (59)

                           (53)

           Tax credit benefits

                             26

                             -   

           Other, net

                           (32)

                           (26)

Actual provision

$                      2,747

$                      1,976

 

For the three month periods ended September 30, 2020 and 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).  

 

Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.

 


-30-



Note 9:  401(k) Retirement Plan

 

The Bank has a 401(k) retirement plan that covers substantially all eligible employees.  The Bank made a “safe harbor” matching contribution to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2020; for fiscal 2021, the Company has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions.   During the three-month period ended September 30, 2020, retirement plan expenses recognized for the Plan totaled approximately $457,000, as compared to $381,000 for the same period of the prior fiscal year.  Employee deferrals and safe harbor contributions are fully vested.  Profit-sharing or other contributions vest over a period of five years.

 

Note 10:  Subordinated Debt

 

Southern Missouri Statutory Trust I issued $7.0 million of Floating Rate Capital Securities (the “Trust Preferred Securities”) with a liquidation value of $1,000 per share in March 2004. The securities are due in 30 years, redeemable after five years and bear interest at a floating rate based on LIBOR. At September 30, 2020, the current rate was 3.00%. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act.  The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

 

Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries.

 

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.70%. The carrying value of the debt securities was approximately $2.7 million at September 30 and June 30, 2020.

 

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.05%.  The carrying value of the debt securities was approximately $5.3 million at September 30, and June 30, 2020.

 

 

Note 11:  Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

 

Level 1Quoted prices in active markets for identical assets or liabilities 

 

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities 

 

Level 3Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities 


-31-



 

Recurring Measurements. The following table presents the fair value measurements recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30 and June 30, 2020:

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   44,487

$                  -

$        44,487

$                  -

Other securities

                       9,200

                    -

            9,200

                    -

Mortgage-backed GSE residential

                   121,841

                    -

        121,841

                    -

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   41,988

$                  -

$        41,988

$                  -

Other securities

                       7,624

                    -

            7,624

                    -

Mortgage-backed GSE residential

                   126,912

                    -

        126,912

                    -

 

 

 

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

 

Available-for-sale Securities. When quoted market prices are available in an active market, securities are classified within Level 1.  If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics.  For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.   In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

 


-32-



Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020:

 

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                     166

$                          -

$                  -

$             166

 

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                  2,211

$                          -

$                  -

$          2,211

 

 

The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended September 30, 2020 and 2019:

 

 

 

 

For the three months ended

(dollars in thousands)

 

 

September 30, 2020

September 30, 2019

Foreclosed and repossessed assets held for sale

$                      (36)

$               (1)

     Total losses on assets measured on a non-recurring basis

$                      (36)

$               (1)

 

The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

 

Foreclosed and Repossessed Assets Held for Sale. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

 

Unobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

 

(dollars in thousands)

 

Fair value at
September 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                     166

Third party appraisal

Marketability discount

24.5% - 60.4%

41.3%

 

 

 

 

 

 

 

(dollars in thousands)

 

Fair value at
June 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                  2,211

Third party appraisal

Marketability discount

8.0% - 56.9%

15.7%

 

 


-33-



Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020.

 

 

 

September 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                41,875

$                41,875

$                  -

$                  -

     Interest-bearing time deposits

 

                       975

                            -

               975

                    -

     Stock in FHLB

 

                    6,939

                            -

            6,939

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    5,017

                            -

            5,017

                    -

     Loans receivable, net

 

             2,150,463

                            -

                    -

     2,167,748

     Accrued interest receivable

 

                  13,766

                            -

          13,766

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,168,074

             1,520,675

                    -

        651,528

     Advances from FHLB

 

                  85,637

                            -

          87,514

                    -

     Accrued interest payable

 

                    1,402

                            -

            1,402

                    -

     Subordinated debt

 

                  15,168

                            -

                    -

          13,455

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

 

 

June 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                54,245

$                54,245

$                  -

$                  -

     Interest-bearing time deposits

 

                       974

                            -

               974

                    -

     Stock in FHLB

 

                    6,390

                            -

            6,390

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    4,363

                            -

            4,363

                    -

     Loans receivable, net

 

             2,141,929

                            -

                    -

     2,143,823

     Accrued interest receivable

 

                  12,116

                            -

          12,116

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,184,847

             1,508,740

                    -

        676,816

     Advances from FHLB

 

                  70,024

                            -

          72,136

                    -

     Accrued interest payable

 

                    1,646

                            -

            1,646

                    -

     Subordinated debt

 

                  15,142

                            -

                    -

          11,511

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

 


-34-



PART I:  Item 2:  Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

SOUTHERN MISSOURI BANCORP, INC.

 

General

 

Southern Missouri Bancorp, Inc. (Southern Missouri or Company) is a Missouri corporation and owns all of the outstanding stock of Southern Bank (the Bank). The Company’s earnings are primarily dependent on the operations of the Bank. As a result, the following discussion relates primarily to the operations of the Bank. The Bank’s deposit accounts are generally insured up to a maximum of $250,000 by the Deposit Insurance Fund (DIF), which is administered by the Federal Deposit Insurance Corporation (FDIC). At September 30, 2020, the Bank operated from its headquarters, 46 full-service branch offices, and two limited-service branch offices.  The Bank owns the office building and related land in which its headquarters are located, and 44 of its other branch offices.  The remaining four branches are either leased or partially owned.

 

The significant accounting policies followed by Southern Missouri Bancorp, Inc. and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying consolidated condensed financial statements.

 

The consolidated balance sheet of the Company as of June 30, 2020, has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report filed with the Securities and Exchange Commission.

 

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited consolidated financial statements and accompanying notes. The following discussion reviews the Company’s condensed consolidated financial condition at September 30, 2020, and results of operations for the three-month periods ended September 30, 2020 and 2019.

 

Forward Looking Statements

 

This document contains statements about the Company and its subsidiaries which we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, without limitation, statements with respect to anticipated future operating and financial performance, growth opportunities, interest rates, cost savings and funding advantages expected or anticipated to be realized by management. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by the Company and its management are based on beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and are not guarantees of future performance. The important factors we discuss below, as well as other factors discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and identified in this filing and in our other filings with the SEC and those presented elsewhere by our management from time to time, could cause actual results to differ materially from those indicated by the forward-looking statements made in this document:

 

·potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, generally, resulting from the ongoing COVID-19 pandemic and any governmental or societal responses thereto; 

 

·expected cost savings, synergies and other benefits from our merger and acquisition activities, including our ongoing and recently completed acquisitions, might not be realized within the anticipated time frames, to the extent anticipated, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; 


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·the strength of the United States economy in general and the strength of the local economies in which we conduct operations; 

 

·fluctuations in interest rates and in real estate values; 

 

·monetary and fiscal policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the U.S. Government and other governmental initiatives affecting the financial services industry; 

 

·the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; 

 

·our ability to access cost-effective funding; 

 

·the timely development of and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; 

 

·fluctuations in real estate values and both residential and commercial real estate markets, as well as agricultural business conditions; 

 

·demand for loans and deposits in our market area; 

 

·legislative or regulatory changes that adversely affect our business; 

 

·changes in accounting principles, policies, or guidelines; 

 

·results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down assets; 

 

·the impact of technological changes; and 

 

·our success at managing the risks involved in the foregoing. 

 

The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

 

The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

 

Critical Accounting Policies

 

Accounting principles generally accepted in the United States of America are complex and require management to apply significant judgments to various accounting, reporting and disclosure matters. Management of the Company must use assumptions and estimates to apply these principles where actual measurement is not possible or practical. For a complete discussion of the Company’s significant accounting policies, see “Notes to the Consolidated Financial Statements” in the Company’s 2020 Annual Report. Certain policies are considered critical because they are highly dependent upon subjective or complex judgments, assumptions and estimates. Changes in such estimates may have a significant impact on the financial statements. Management has reviewed the application of these policies with the Audit Committee of the Company’s Board of Directors. For a discussion of applying critical accounting policies, see “Critical Accounting Policies” beginning on page 51 in the Company’s 2020 Annual Report.   On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020.  See Part I, Item 1, Notes to Condensed Consolidated Financial Statements, Note 2: Organization and Summary of Significant Accounting Policies, for additional information.

 

COVID-19 Pandemic Response

 

Southern Missouri is committed to serving our communities in this difficult time, and to the safety of our team members and customers.

 

General operating conditions. Beginning Monday, March 23, 2020, the Company closed its lobbies to access except


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by appointment, and encouraged customers to utilize our online, mobile, drive-thru, or integrated teller machines (ITMs) for service when possible. The Company began re-opening lobbies on Monday, May 4, 2020, subject to guidance by state and local authorities. In a limited number of instances, some facilities have again closed to the public for a short period of time due to unavailability of team members complying with quarantine orders from local health authorities. With the initial onset of the pandemic in March, and again on an ongoing basis as the number of cases and hospitalizations in our region increased over the summer months, the Company has worked to increase our telework capabilities, and we have had as many as 20% of our team members working remotely during the month of October either on a regular or rotating basis. No team members have been furloughed, and no furloughs are anticipated. Business travel has been limited where not considered urgent. A limited number of team members are on full or partial paid leave in accordance with provisions of the Families First Coronavirus Response Act (the FFCRA) or the CARES Act. The operations of the Company’s internal controls have not been significantly impacted by changes in our work environment.

 

SBA Paycheck Protection Program Lending. The Company originated approximately 1,700 loans totaling $138.6 million under the Small Business Administration’s Paycheck Protection Program (PPP) through September 30, 2020. A limited number were repaid by the borrower shortly after origination. At September 30, 2020, balances outstanding were $133.7 million. Through October 31, 2020, approximately 170 applications by borrowers for forgiveness totaling $11.4 million have been submitted by the Company to the SBA, but only 15 applications totaling $3.0 million have been approved by the SBA.

 

Deferrals and modifications. As of October 31, 2020, following regulatory guidance, the Company has agreements in place with borrowers to defer or modify payment arrangements for approximately 59 loans totaling $37.2 million, a level that is significantly reduced since June 30, 2020. These are loans that were otherwise current and performing, but anticipated difficulties in the coming months due to the pandemic response. Generally, the deferrals were initially granted for three-month periods, while interest-only modifications were for six-month periods. For more information regarding these deferrals and modifications, see discussion included at “Allowance for Credit Loss Activity.”

 

Executive Summary  

 

Our results of operations depend primarily on our net interest margin, which is directly impacted by the interest rate environment. The net interest margin represents interest income earned on interest-earning assets (primarily real estate loans, commercial and agricultural loans, and the investment portfolio), less interest expense paid on interest-bearing liabilities (primarily interest-bearing transaction accounts, certificates of deposit, savings and money market deposit accounts, repurchase agreements, and borrowed funds), as a percentage of average interest-earning assets. Net interest margin is directly impacted by the spread between long-term interest rates and short-term interest rates, as our interest-earning assets, particularly those with initial terms to maturity or repricing greater than one year, generally price off longer term rates while our interest-bearing liabilities generally price off shorter term interest rates. This difference in longer term and shorter term interest rates is often referred to as the steepness of the yield curve. A steep yield curve – in which the difference in interest rates between short term and long term periods is relatively large – could be beneficial to our net interest income, as the interest rate spread between our interest-earning assets and interest-bearing liabilities would be larger. Conversely, a flat or flattening yield curve, in which the difference in rates between short term and long term periods is relatively small or shrinking, or an inverted yield curve, in which short term rates exceed long term rates, could have an adverse impact on our net interest income, as our interest rate spread could decrease.

 

Our results of operations may also be affected significantly by general and local economic and competitive conditions, particularly those with respect to changes in market interest rates, government policies and actions of regulatory authorities.

 

During the first three months of fiscal 2021, total assets decreased by $1.4 million. The decrease was primarily attributable to reduced cash and cash equivalent balances, and a modest decrease in available-for-sale (AFS) securities, partially offset by a modest increase in loans, net of the allowance for credit losses (ACL), and an increase in accrued interest receivable. Cash equivalents and time deposits decreased by a combined $12.4 million; AFS securities decreased $1.0 million; loans, net of the ACL, increased $8.5 million; and accrued interest receivable increased $1.7 million. The impact of the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), increased the ACL by $9.3 million, of which $434,000 related to the transition from PCI to PCD methodology, and reduced retained earnings by $6.9 million, net of deferred taxes, through a one-time cumulative effect adjustment.


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Additionally, due to adoption of ASU 2016-13, the Company revised its analysis of its unused lines of credit and recorded a one-time cumulative effect adjustment to the allowance for off-balance sheet exposures totaling $268,000, offset by a reduction to retained earnings, net of deferred taxes, of $209,000.  Deposits decreased $16.8 million and advances from the Federal Home Loan Bank (FHLB) increased $15.6 million, primarily attributable to the Company’s use of this funding source to fund loan growth in what is typically a seasonally slow quarter for deposit growth. Equity increased $1.6 million, attributable primarily to retention of net income, partially offset by cash dividends paid and the one-time cumulative effect adjustment on adoption of ASU 2016-13.

 

Net income for the first three months of fiscal 2021 was $10.0 million, an increase of $2.2 million, or 27.6% as compared to the same period of the prior fiscal year. Compared to the year-ago period, the Company’s increase in net income was the result of increases in net interest income and noninterest income, and a reduction in provision for credit losses, partially offset by increases in noninterest expense and provision for income taxes. Diluted net income available to common shareholders was $1.09 per share for the first three months of fiscal 2021, as compared to $.85 per share for the same period of the prior fiscal year. For the first three months of fiscal 2021, net interest income increased $2.5 million, or 12.8%; noninterest income increased $1.5 million, or 41.6%; provision for credit losses decreased $122,000, or 13.6%; noninterest expense increased $1.1 million, or 9.3%; and provision for income taxes increased $771,000, or 39.0%, as compared to the same period of the prior fiscal year. For more information see “Results of Operations.”

 

Interest rates during the first three months of fiscal 2021 were relatively unchanged. At September 30, 2020, as compared to June 30, 2020, the yield on two-year treasuries dropped from 0.16% to 0.13%; the yield on five-year treasuries dropped from 0.29% to 0.28%; the yield on ten-year treasuries increased from 0.66% to 0.69%; and the yield on 30-year treasuries increased from 1.41% to 1.46%. The spread between two- and ten-year treasuries was as low as 41 basis points and as high as 60 basis points, much higher than the range noted during the same quarter a year ago. The spread between three-month and 10-year treasuries was similar, and represented even more improvement than that noted between two- and ten-year treasuries. As compared to the first three months of the prior fiscal year, our average yield on earning assets decreased by 69 basis points, reflecting loans (including PPP loans) originated and renewed at lower market yields, adjustable-rate loans which re-priced at lower rates, and reduced discount accretion on acquired assets recorded at fair value. Our cost of interest-bearing liabilities decreased by 66 basis points, as our cost of wholesale funding moved lower with market rates, and the Company reduced rates offered on certificates of deposit and nonmaturity accounts. Lower market rates reflected decreases by the Federal Reserve’s Open Market Committee (FOMC), which began at a measured pace in the quarter ended September 30, 2019, and was followed by sharp reductions in March 2020, as the FOMC reacted to reduced economic activity at the outset of the COVID-19 pandemic (see “Results of Operations: Comparison of the three-month periods ended September 30, 2020 and 2019 – Net Interest Income”). While the improved slope of the yield curve is encouraging in terms of the Company’s net interest margin, the overall low level of market interest rates is concerning, as our asset yields are expected to continue to decrease, while the Company’s ability to significantly reduce its cost of funds further may be limited.

 

Net interest income increased $2.5 million, or 12.8%, as the Company saw an increase of 15.2% in average interest earning assets, partially offset by a decline in the net interest margin. Our net interest margin decreased eight basis points when comparing the first three months of fiscal 2021 to the same period of the prior fiscal year. The decrease was attributable primarily to reduced benefits from the accretion of the discounts on acquired loans carried at fair value, as well as a reduction in interest income that resulted from the resolution of particular nonperforming loans during the current period. Benefits attributable to accretion of discounts on acquired loans (partially offset by the accretion of discounts on assumed time deposits) contributed six basis points to the net interest margin, a decrease from a contribution of 10 basis points in the year-ago period. The dollar impact of this component of net interest income has generally been declining each sequential quarter as assets mature or prepay, although the May 2020 acquisition of Central Federal Bancshares, Inc., (the “Central Federal Acquisition”), partially offsets that decline, as there was no comparable item in the same period a year ago, although the impact is limited due to the relative size of the acquired portfolio. The Company generally expects this component of net interest income to decline over time. Resolution of particular nonperforming loans during the quarter ended September 30, 2019, contributed another eight basis points to the net interest margin in that period, without material comparable items in the current period.

 

The Company’s net income is also affected by the level of its noninterest income and noninterest expenses. Non-interest income generally consists primarily of deposit account service charges, bank card interchange income, loan-related fees, earnings on bank-owned life insurance, gains on sales of loans, and other general operating income.


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Noninterest expenses consist primarily of compensation and employee benefits, occupancy-related expenses, deposit insurance assessments, professional fees, advertising, postage and office expenses, insurance, the amortization of intangible assets, and other general operating expenses. During the three-month period ended September 30, 2020, noninterest income increased $1.5 million, or 41.6%, as compared to the same period of the prior fiscal year, attributable primarily to gains realized on sales of residential loans originated for that purpose, other income, loan servicing fees, other loan fees, and bank card interchange income, partially offset by decreases in deposit account service charges. Noninterest expense for the three-month period ended September 30, 2020, increased $1.1 million, or 9.3%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, provisioning for off-balance sheet credit exposure, deposit insurance premiums, data processing expenses, and occupancy, partially offset by decreases in other expenses.

 

Increases in net interest income, noninterest income, and noninterest expense were attributable in part to the Central Federal Acquisition, which was completed in May 2020.

 

We expect, over time, to continue to grow our assets through the origination and occasional purchase of loans, and purchases of investment securities. The primary funding for this asset growth is expected to come from retail deposits, brokered funding, and short- and long-term FHLB borrowings. We have grown and intend to continue to grow deposits by offering desirable deposit products for our current customers and by attracting new depository relationships. We will also continue to explore strategic expansion opportunities in market areas that we believe will be attractive to our business model.

 

Comparison of Financial Condition at September 30 and June 30, 2020  

 

The Company’s consolidated balance sheet contracted slightly in the first three months of fiscal 2021, with total assets of $2.5 billion at September 30, 2020, reflecting a decrease of $1.4 million, or 0.1%, as compared to June 30, 2020. Growth in net loan balances, accrued interest receivable, and other assets was offset by reductions in cash and cash equivalents, and AFS securities.

 

Cash equivalents and time deposits were a combined $42.9 million at September 30, 2020, a decrease of $12.4 million, or 22.4%, as compared to June 30, 2020. AFS securities were $175.5 million at September 30, 2020, a decrease of $1.0 million, or 0.6%, as compared to June 30, 2020.

 

Loans, net of the ACL, were $2.2 billion at September 30, 2020, an increase of $8.5 million, or 0.4%, as compared to June 30, 2020. Gross loans increased by $18.5 million, or 0.9%, during the first three months of the fiscal year, while the ACL at September 30, 2020, reflected an increase of $9.9 million, as compared to the balance of our allowance for loan and lease losses (ALLL) at June 30, 2020. The Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, effective as of July 1, 2020, the beginning of our 2021 fiscal year. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020, while provisioning in excess of net charge offs during the first quarter of fiscal 2021 increased the ACL by an additional $612,000, as compared to July 1, 2020. The increase in loan balances in the portfolio was primarily attributable to commercial loans and residential real estate loans, partially offset by modest declines in commercial real estate loans and drawn construction loan balances. Residential real estate loans increased on growth in 1- to 4-family residential lending, partially offset by a modest decline in multifamily real estate loans. Commercial loan balances increased primarily as a result of seasonal agricultural loan draws, partially offset by a reduction in commercial and industrial loan types, and in total, commercial loan balances remained relatively high compared to recent periods as a result of the Small Business Administration’s Paycheck Protection Program (PPP) loans, which totaled $133.7 million at September 30, 2020, as compared to $132.3 million at June 30, 2020. In early October, the Company began submitting applications to the SBA for forgiveness of the loans originated under the PPP program but, to date, relatively few have been submitted, and only a small percentage of those submitted have been processed by the SBA. Loans anticipated to fund in the next 90 days stood at $122.7 million at September 30, 2020, as compared to $86.6 million at June 30, 2020, and $101.7 million at September 30, 2019.

 

Deposits were $2.2 billion at September 30, 2020, a decrease of $16.8 million, or 0.8%, as compared to June 30, 2020. The decrease reflected a decrease in time deposits, partially offset by an increase in nonmaturity deposits, and was inclusive of decreases of $16.9 million in public unit funds and $2.3 million in brokered time deposits. Public unit


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balances were $288.3 million at September 30, 2020, as public unit depositors partially reversed growth noted over recent quarters. Brokered time deposits were $21.0 million, and brokered money market deposits were $20.0 million, at September 30, 2020. In total, deposit balances saw decreases in certificates of deposit and non-interest bearing transaction accounts, partially offset by increases in savings accounts, interest-bearing transaction accounts, and money market deposit accounts. The average loan-to-deposit ratio for the first quarter of fiscal 2021 was 99.1%, as compared to 99.2% for the same period of the prior fiscal year.

 

FHLB advances were $85.6 million at September 30, 2020, an increase of $15.6 million, or 22.3%, as compared to June 30, 2020, with the increase primarily attributable to the Company’s use of overnight borrowings to partially fund increases in loans and outflows in deposits.

 

The Company’s stockholders’ equity was $260.0 million at September 30, 2020, an increase of $1.6 million, or 0.6%, as compared to June 30, 2020. The increase was attributable primarily to earnings retained after $1.4 million in cash dividends paid, partially offset by the $7.2 million one-time negative adjustment to retained earnings resulting from the adoption of the CECL standard.


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Average Balance Sheet, Interest, and Average Yields and Rates for the Three-Month Periods Ended

September 30, 2020 and 2019

 

The table below presents certain information regarding our financial condition and net interest income for the three-month periods ended September 30, 2020 and 2019. The table presents the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. Yields on tax-exempt obligations were not computed on a tax equivalent basis.

 

Three-month period ended

Three-month period ended

 

September 30, 2020

September 30, 2019

(dollars in thousands)

Average
Balance

Interest and Dividends

Yield/
Cost (%)

Average
Balance

Interest and Dividends

Yield/
Cost (%)

 

 

 

 

 

 

 

Interest earning assets:

 

 

 

 

 

 

  Mortgage loans (1)

$   1,623,073

$        20,392

     5.03

$   1,420,538

$        19,067

     5.37

  Other loans (1)

        539,052

            5,515

     4.09

        444,806

            6,573

     5.91

      Total net loans

     2,162,125

          25,907

     4.79

     1,865,344

          25,640

     5.50

  Mortgage-backed securities

        119,029

               534

     1.79

        113,614

               716

     2.52

  Investment securities (2)

          62,506

               490

     3.14

          66,009

               520

     3.15

  Other interest earning assets

          19,768

                 41

     0.83

            7,001

                 46

     2.62

        Total interest earning assets (1)

     2,363,428

          26,972

     4.56

     2,051,968

          26,922

     5.25

Other noninterest earning assets (3)

        174,574

                    -

 

        184,415

                    -

 

            Total assets

$   2,538,002

$        26,972

 

$   2,236,383

$        26,922

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

   Savings accounts

$      185,278

               146

     0.32

$      167,202

               346

     0.83

   NOW accounts

        784,444

            1,248

     0.64

        623,895

            1,706

     1.09

   Money market deposit accounts

        233,476

               263

     0.45

        196,737

               803

     1.63

   Certificates of deposit

        662,438

            2,733

     1.65

        673,160

            3,723

     2.21

      Total interest bearing deposits  

     1,865,636

            4,390

     0.94

     1,660,994

            6,578

     1.58

Borrowings:

 

 

 

 

 

 

   Securities sold under agreements
     to repurchase

                    -

                    -

-

               329

                    -

     0.03

   FHLB advances

          70,272

               380

     2.16

          82,192

               522

     2.54

   Note Payable

                    -

                    -

-

            3,000

                 37

     4.88

   Subordinated debt

          15,155

               138

     3.63

          15,055

               225

     5.99

      Total interest bearing liabilities

     1,951,063

            4,908

     1.01

     1,761,570

            7,362

     1.67

Noninterest bearing demand deposits

        316,996

                    -

 

        218,755

                    -

 

Other noninterest bearing liabilities

          14,673

                    -

 

          16,014

                    -

 

      Total liabilities

     2,282,732

            4,908

 

     1,996,339

            7,362

 

Stockholders’ equity

        255,270

                    -

 

        240,044

                    -

 

            Total liabilities and
              stockholders' equity

$   2,538,002

$          4,908

 

$   2,236,383

$          7,362

 

 

 

 

 

 

 

 

Net interest income  

 

$        22,064

 

 

$        19,560

 

 

 

 

 

 

 

 

Interest rate spread (4)

 

 

3.55%

 

 

3.58%

Net interest margin (5)

 

 

3.73%

 

 

3.81%

 

 

 

 

 

 

 

Ratio of average interest-earning assets
to average interest-bearing liabilities

121.14%

 

 

116.49%

 

 

 

(1)Calculated net of deferred loan fees, loan discounts and loans-in-process. Non-accrual loans are not included in average loans. 

(2)Includes FHLB and Federal Reserve Bank of St. Louis membership stock and related cash dividends. 

(3)Includes average balances for fixed assets and BOLI of $65.1 million and $43.5 million, respectively, for the three-month period ended September 30, 2020, as compared to $63.1 million and $38.4 million, respectively, for the same period of the prior fiscal year. 

(4)Interest rate spread represents the difference between the average rate on interest-earning assets and the average cost of interest-bearing liabilities. 


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(5)Net interest margin represents annualized net interest income divided by average interest-earning assets. 

 

 

Rate/Volume Analysis

 

The following table sets forth the effects of changing rates and volumes on the Company’s net interest income for the three-month period ended September 30, 2020, compared to the three-month period ended September 30, 2019. Information is provided with respect to (i) effects on interest income and expense attributable to changes in volume (changes in volume multiplied by the prior rate), (ii) effects on interest income and expense attributable to change in rate (changes in rate multiplied by prior volume), and (iii) changes in rate/volume (change in rate multiplied by change in volume).

 

 

 

Three-month period ended September 30, 2020

Compared to three-month period ended September 30, 2019

Increase (Decrease) Due to

(dollars in thousands)

 

Rate

Volume

Rate/

Net

 

 

Volume

 

Interest-earnings assets:

 

 

 

 

 

  Loans receivable (1)

 

$               (3,289)

$                 4,079

$                  (523)

$                    267

  Mortgage-backed securities

 

                    (207)

                        34

                        (9)

                    (182)

  Investment securities (2)

 

                        (3)

                      (28)

                          1

                      (30)

  Other interest-earning deposits

                      (31)

                        84

                      (58)

                        (5)

Total net change in income on

 

 

 

 

  interest-earning assets

 

                 (3,530)

                   4,169

                    (589)

                        50

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

  Deposits

 

                 (2,454)

                      567

                    (301)

                 (2,188)

  FHLB advances

 

                      (77)

                      (76)

                        11

                    (142)

  Note Payable

 

                      (37)

                      (37)

                        37

                      (37)

  Subordinated Debt

 

                      (89)

                          1

                          1

                      (87)

Total net change in expense on

 

 

 

 

  interest-bearing liabilities

 

                 (2,657)

                      455

                    (252)

                 (2,454)

Net change in net interest income

$                  (873)

$                 3,714

$                  (337)

$                 2,504

 

(1)Does not include interest on loans placed on nonaccrual status. 

(2)Does not include dividends earned on equity securities. 

 

 

Results of Operations – Comparison of the three-month periods ended September 30, 2020 and 2019

 

General. Net income for the three-month period ended September 30, 2020, was $10.0 million, an increase of $2.2 million, or 27.6%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, and a decrease in provision for loan losses, partially offset by increases in noninterest expense and provision for income taxes.

 

For the three-month period ended September 30, 2020, basic and fully-diluted net income per share available to common shareholders was $1.09 under both measures, as compared to $0.85 under both measures for the same period of the prior fiscal year, which represented an increase of $0.24, or 28.2%. Our annualized return on average assets for the three-month period ended September 30, 2020, was 1.57%, as compared to 1.40% for the same period of the prior fiscal year. Our return on average common stockholders’ equity for the three-month period ended September 30, 2020, was 15.6%, as compared to 13.0% in the same period of the prior fiscal year.

 

Net Interest Income. Net interest income for the three-month period ended September 30, 2020, was $22.1 million, an increase of $2.5 million, or 12.8%, as compared to the same period of the prior fiscal year. The increase was attributable to a 15.2% increase in the average balance of interest-earning assets, partially offset by a decrease in net interest margin to 3.73% in the current three-month period, from 3.81% in the three-month period a year ago.

 

Loan discount accretion and deposit premium amortization related to the Company’s August 2014 acquisition of Peoples Bank of the Ozarks, the June 2017 acquisition of Capaha Bank, the February 2018 acquisition of Southern


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Missouri Bank of Marshfield, the November 2018 acquisition of Gideon Bancshares Company (the “Gideon Acquisition”), and the Central Federal Acquisition resulted in $339,000 in net interest income for the three-month period ended September 30, 2020, as compared to $508,000 in net interest income for the same period a year ago. The decline is attributable to expected reductions in discount accretion as additional time has elapsed since the loan portfolios were acquired and balances have declined, partially offset by the recent Central Federal Acquisition, although the acquired loans and resulting discount accretion from that acquisition is relatively small. The Company generally expects this component of net interest income will continue to decline over time, although volatility may occur to the extent we have periodic resolutions of specific credit impaired loans. Combined, these components of net interest income contributed six basis points to net interest margin in the three-month period ended September 30, 2020, as compared to a contribution of 10 basis points in the same period of the prior fiscal year, and as compared to the six basis point contribution in the linked quarter, ended June 30, 2020, when net interest margin was 3.75%. Additionally, in the year-ago and linked periods, the Company recognized additional interest income as a result of the resolution of a limited number of nonperforming loans, with no material contribution from similar resolutions in the current period. This recognition of $414,000 in interest income in the year-ago period, and $159,000 in the linked period, contributed eight and three basis points, respectively, to net interest margin in the year-ago and linked periods.

 

For the three-month period ended September 30, 2020, our net interest rate spread was 3.55%, as compared to 3.58% in the year-ago period. The decrease in net interest rate spread, compared to the same period a year ago, resulted from a 69 basis point decrease in the average yield on interest-earning assets, partially offset by a 66 basis point decrease in the average cost of interest-bearing liabilities.

 

Interest Income. Total interest income for the three-month period ended September 30, 2020, was $27.0 million, an increase of $50,000, or 0.2%, as compared to the same period of the prior fiscal year. The increase was attributed to a 15.2% increase in the average balance of interest-earning assets, offset by a 69 basis point decrease in the average yield earned on interest-earning assets, as compared to the same period of the prior fiscal year. Increased average interest-earning balances were attributable primarily to growth in the loan portfolio, inclusive of the Central Federal Acquisition and PPP loans originated, while interest-earning cash equivalents and investment balances increased by smaller amounts. The decrease in the average yield on interest-earning assets was attributable to loans (including PPP loans) originated and renewed at lower market yields, adjustable-rate loans which re-priced at lower rates, and reduced discount accretion on acquired assets recorded at fair value.

 

Interest Expense. Total interest expense for the three-month period ended September 30, 2020, was $4.9 million, a decrease of $2.5 million, or 33.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to a 66 basis point decrease in the average cost of interest-bearing liabilities, partially offset by a 10.8% increase in the average balance of interest-bearing liabilities, as compared to the same period of the prior fiscal year. The decrease in the average cost of interest-bearing liabilities was attributable primarily to a lower cost of wholesale funding as a result of lower market rates, and the Company offering of reduced rates on certificates of deposit and nonmaturity accounts. Increased average interest-bearing balances were attributable primarily to increases in interest-bearing transaction accounts, money market deposit accounts, and savings accounts, partially offset by lower FHLB balances, certificate of deposit balances, and other borrowings.

 

Provision for Credit Losses. The provision for credit losses for the three-month period ended September 30, 2020, was $774,000, as compared to $896,000 in the same period of the prior fiscal year. The decrease as compared to the same quarter a year ago was attributable primarily to the current quarter’s relatively low loan growth and stable credit quality indicators quarter-over-quarter. While uncertainty remains regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, the Company assesses that the outlook is little changed as compared to the year ended June 30, 2020. As a percentage of average loans outstanding, the provision for credit losses in the current three-month period represented a charge of 0.14% (annualized), while the Company recorded net charge offs during the period of 0.03% (annualized). During the same period of the prior fiscal year, the provision for credit losses as a percentage of average loans outstanding represented a charge of 0.19% (annualized), while the Company recorded net charge offs of 0.02% (annualized). (See “Critical Accounting Policies”, “Allowance for Credit Loss Activity” and “Nonperforming Assets”).

 

Noninterest Income. The Company’s noninterest income for the three-month period ended September 30, 2020, was $4.9 million, an increase of $1.5 million, or 41.6%, as compared to the same period of the prior fiscal year. In the current period, increases in gains realized on the sale of residential real estate loans originated for that purpose, other income, loan servicing fees, other loans fees, and bank card interchange income were partially offset by


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decreases in deposit account service charges. Gains realized on the sale of residential real estate loans originated for that purpose increased as originations of these loans more than tripled, remaining consistent with the linked quarter, while pricing improved slightly. As we generally retain servicing of residential real estate loans originated for sale, our portfolio of serviced loans increased by 16% during the quarter, which increased servicing income through fees received and the recognition of mortgage servicing rights at origination. Other income included a $187,000 non-recurring benefit related to a broker-dealer agreement to provide wealth management services in a new market area, with no comparable item in the year-ago period. Bank card interchange income increased as a result of an 8% increase in the number of bank card transactions and a 17% increase in bank card dollar volume.

 

Noninterest Expense. Noninterest expense for the three-month period ended September 30, 2020, was $13.5 million, an increase of $1.1 million, or 9.3%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, provisioning for off-balance sheet credit exposure, deposit insurance premiums, data processing expenses, and occupancy, partially offset by a reduction in other expenses, which included a variety of relatively small items that trended lower, including the costs of providing rewards checking products, employee travel expenses, and customer entertainment. Included in compensation expense was $150,000 in non-recurring expense related to the hiring of an investment representative for the Company’s wealth management group; otherwise, the increase over the prior year primarily reflected standard increases in compensation and an increase in employee headcount over the prior year, due in part to the Central Federal Acquisition, as well as a de novo branch opened early in the quarter. Data processing and occupancy expenses also increased in part due to the new facilities, while data processing expenses have also been higher since the implementation of a new data processing environment in the first half of fiscal 2020. Deposit insurance premiums reflected a return to a normalized level of premiums after the Company benefited from one-time assessment credits for much of the prior fiscal year. The efficiency ratio for the three-month period ended September 30, 2020, was 50.0%, as compared to 53.6% in the same period of the prior fiscal year, with the improvement attributable primarily to the current period’s increase in noninterest income.

 

Income Taxes. The income tax provision for the three-month period ended September 30, 2020, was $2.7 million, an increase of 39.0% as compared to the same period of the prior fiscal year, as higher pre-tax income combined with an increase in the effective tax rate, to 21.6%, as compared to 20.2% in the same period a year ago. While the Company generated higher levels of pre-tax income, investments in tax-advantaged assets were modestly reduced, resulting in a higher effective tax rate.

 

Allowance for Credit Loss Activity  

 

The Company regularly reviews its ACL and makes adjustments to its balance based on management’s estimate of (1) the total expected losses included in the Company’s financial assets held at amortized cost, which is limited to the Company’s loan portfolio, and (2) any credit deterioration in the Company’s available-for-sale securities as of the balance sheet date. The Company holds no securities classified as held-to-maturity.

 

Although the Company maintains its ACL at a level that it considers sufficient to provide for losses, there can be no assurance that future losses will not exceed internal estimates. In addition, the amount of the ACL is subject to review by regulatory agencies, which can order the Company to record additional allowances. The required ACL has been estimated based upon the guidelines in ASC Topic 326, Financial Instruments – Credit Losses, following the July 1, 2020 adoption of ASU 2016-13, also known as the current expected credit loss, or CECL, standard.


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The following table summarizes changes in the ACL over the three-month periods ended September 30, 2020 and 2019:

 

 

For the three months ended

 

September 30,

(dollars in thousands)

2020

2019

 

 

Balance, beginning of period

$                  25,139

$             19,903

Impact of CECL adoption

                      9,333

                        -

Loans charged off:

 

 

     Residential real estate

                         (19)

                        -

     Construction

                             -

                        -

     Commercial business

                       (145)

                        -

     Commercial real estate

                             -

                    (72)

     Consumer

                           (6)

                    (35)

     Gross charged off loans

                       (170)

                  (107)

Recoveries of loans previously charged off:

 

 

     Residential real estate

                             -

                        -

     Construction

                             -

                        -

     Commercial business

                             4

                      14

     Commercial real estate

                             1

                        4

     Consumer

                             3

                        -

      Gross recoveries of charged off loans

                             8

                      18

Net charge offs

                       (162)

                    (89)

Provision charged to expense

                         774

                    896

Balance, end of period

$                  35,084

$             20,710

 

 

The estimate involves the considerations of quantitative and qualitative factors relevant to the loans as segmented by the Company, and is based on an evaluation, at the reporting date, of historical loss experience, coupled with qualitative adjustments to address current economic conditions and credit quality, and reasonable and supportable forecasts. Specific qualitative factors considered include, but may not be limited to:

 

Changes in lending policies and/or loan review system 

National, regional, and local economic trends and/or conditions 

Changes and/or trends in the nature, volume, or terms of the loan portfolio 

Experience, ability, and depth of lending management and staff 

Levels and/or trends of delinquent, non-accrual, problem assets, or charge offs and recoveries 

Concentrations of credit 

Changes in collateral values 

Agricultural economic conditions 

Risks from regulatory, legal, or competitive factors 

 

At our June 30, 2020, fiscal year end, prior to the adoption of ASU 2016-13, the Company’s ALLL was $25.1 million. Upon adoption of the standard, effective July 1, 2020, the Company increased the ACL by $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, increased the ACL by $434,000 related to the transition from PCI to PCD methodology, and reduced retained earnings by $6.9 million, net of deferred taxes, through a one-time cumulative effect adjustment.  For the three-month period ended September 30, 2020, the ACL increased by an additional $612,000, reflecting a charge to provision for credit losses of $774,000, and net charge offs of $162,000. The charge was based on the estimated required ACL, reflecting management’s estimate of the current expected credit losses in the Company’s loan portfolio at September 30, 2020, and as of that date the Company’s ACL was $35.1 million. While the Company’s management believes the ACL at September 30, 2020, is adequate, based on that estimate, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and the Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels.


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The following table sets forth the sum of the amounts of the ACL attributable to individual loans within each category, or the loan categories in general, and the percentage of the ACL that is attributable to each category, as of the reporting date. The table also reflects the percentage of loans in each category to the total loan portfolio, as of the reporting date.

 

 

 

ACL as of

% of total

ALLL as of

% of total

 

 

September 30, 2020

ACL

June 30, 2020

ALLL

Real Estate Loans:

 

 

 

 

 

     Residential

 

$                  8,629

24.6%

$                  4,875

19.4%

     Construction

 

                    1,892

5.4%

                    2,010

8.0%

     Commercial

 

                  16,050

45.7%

                  12,132

48.3%

Consumer loans

 

                    2,305

6.6%

                    1,182

4.7%

Commercial loans

 

                    6,208

17.7%

                    4,940

19.6%

 

 

$                35,084

100.0%

$                25,139

100.0%

 

For loans that do not exhibit similar risk characteristics, the Company evaluates the loan on an individual basis. Loans that are classified with an adverse internal credit rating or identified as a troubled debt restructuring (TDR) are most commonly considered for individual evaluation. The ACL for individually evaluated loans may be estimated based on the fair value of the underlying collateral, or based on the present value of expected cash flows.

 

In recent months, following regulatory guidance encouraging financial institutions to work with borrowers affected by the COVID-19 pandemic, the Company has granted payment deferrals or interest-only modifications for borrowers. For loans that were otherwise current and performing prior to the COVID-19 pandemic, but for which borrowers anticipated difficulties in the coming months due to impact of the pandemic, the Company elected to not apply requirements of U.S. GAAP related to TDRs, as provided in the CARES Act. At September 30, 2020, such deferrals and modifications were in effect for approximately 250 loans totaling $93.6 million, as compared to approximately 900 loans totaling $380.2 million at June 30, 2020. Generally, deferrals were granted for three-month periods, while interest-only modifications were for six-month periods. Some loans were granted additional deferrals or modifications, and these loans were generally reviewed for potential adverse credit classification. At October 31, 2020, the balance of loans for which payment deferrals or interest-only modifications were in place had declined to approximately 59 loans with balances of $37.2 million. The table below illustrates the amount of such deferrals and modifications in relation to our loan portfolio by loan type and collateral or industry.

 

 

As of October 31, 2020

 

As of June 30, 2020

Loan portfolio balances and CARES Act modifications

Balance

 

Payment

 

Interest-only

 

Payment

 

Interest-only

     (dollars in thousands)

Outstanding

 

Deferrals

 

Modifications

 

Deferrals

 

Modifications

 

 

 

 

 

 

 

 

 

 

1- to 4-family residential loans

$              440,935

 

$                   221

 

$                   521

 

$               1,171

 

$               8,805

Multifamily residential loans

                196,324

 

                       -   

 

                 9,823

 

                        -   

 

               12,278

     Total residential loans

                637,259

 

                     221

 

               10,344

 

                 1,171

 

               21,083

1- to 4-family owner-occupied construction loans

                   24,761

 

                       -   

 

                       -   

 

                        -   

 

                       -   

1- to 4-family speculative construction loans

                   12,468

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Multifamily construction loans

                   42,134

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Other construction loans

                   34,037

 

                       -   

 

                 4,367

 

                 4,367

 

                       -   

     Total construction loan balances drawn

                113,400

 

                       -   

 

                 4,367

 

                 4,367

 

                       -   

Agricultural real estate loans

                183,636

 

                 1,772

 

                       -   

 

                 1,967

 

                 1,415

Loans for vacant land - developed, undeveloped,

          and other purposes

                   57,580

 

                       -   

 

                       -   

 

                        -   

 

                 1,203

Owner-occupied commercial real estate loans to:

 

 

 

 

 

 

 

 

 

Churches and nonprofits

                   19,232

 

                       -   

 

                       13

 

                        -   

 

                 1,449

Non-professional services

                   16,732

 

                       -   

 

                       -   

 

                        -   

 

                 2,106

Retail

                   25,079

 

                       -   

 

                       -   

 

                        -   

 

                 1,257

Automobile dealerships

                   21,828

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Healthcare providers

                     7,823

 

                       -   

 

                       -   

 

                        -   

 

                     330

Restaurants

                   47,697

 

                       -   

 

                 8,409

 

                        -   

 

                 5,694

Convenience stores

                   22,444

 

                       -   

 

                       -   

 

                        -   

 

                 1,303

Automotive services

                     9,587

 

                       -   

 

                       -   

 

                        -   

 

                     244

Manufacturing

                   18,653

 

                       -   

 

                 5,304

 

                        -   

 

                 7,262

Professional services

                   14,382

 

                       -   

 

                       -   

 

                        -   

 

                     354

Warehouse/distribution

                     4,865

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Grocery

                     5,522

 

                       -   

 

                       -   

 

                        -   

 

                       26

Other

                   22,902

 

                       -   

 

                       -   

 

                        -   

 

                     551

Total owner-occupied

       commercial real estate loans

                236,746

 

                       -   

 

               13,726

 

                        -   

 

               20,576


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As of October 31, 2020

 

As of June 30, 2020

Loan portfolio balances and CARES Act modifications

Balance

 

Payment

 

Interest-only

 

Payment

 

Interest-only

     (continued, dollars in thousands)

Outstanding

 

Deferrals

 

Modifications

 

Deferrals

 

Modifications

 

 

 

 

 

 

 

 

 

 

Non-owner-occupied commercial real estate loans to:

 

 

 

 

 

 

 

 

 

Care facilities

                   33,466

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Non-professional services

                   14,387

 

                       -   

 

                       -   

 

                        -   

 

                 3,864

Retail

                   33,054

 

                     545

 

                       -   

 

                     545

 

                     525

Healthcare providers

                   33,474

 

                       -   

 

                       -   

 

                        -   

 

                     442

Restaurants

                   46,936

 

                       -   

 

                     412

 

                        -   

 

                     413

Convenience stores

                     8,945

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Automotive services

                     7,401

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Hotels

                   80,133

 

                       -   

 

                 1,470

 

                        -   

 

                 3,495

Manufacturing

                     5,046

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Storage units

                   14,357

 

                       -   

 

                     404

 

                        -   

 

                     404

Professional services

                   11,289

 

                       -   

 

                     460

 

                        -   

 

                     460

Multi-tenant retail

                   77,171

 

                       -   

 

                 1,985

 

                        -   

 

               14,872

Warehouse/distribution

                   26,075

 

                       -   

 

                       -   

 

                        -   

 

                 2,953

Other

                   30,840

 

                       -   

 

                       -   

 

                        -   

 

                 4,218

Total non-owner-occupied

       commercial real estate loans

                422,574

 

                     545

 

                 4,731

 

                     545

 

               31,646

     Total commercial real estate

                900,536

 

                 2,317

 

               18,457

 

                 2,512

 

               54,840

Home equity lines of credit

                   41,744

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Deposit-secured loans

                     4,738

 

                       -   

 

                       -   

 

                        -   

 

                         1

All other consumer loans

                   33,481

 

                     100

 

                       -   

 

                       83

 

                       92

     Total consumer loans

                   79,963

 

                     100

 

                       -   

 

                       83

 

                       93

Agricultural production and equipment loans

                114,260

 

                     351

 

                       -   

 

                     351

 

                       84

Loans to municipalities or other public units

                   10,066

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Commercial and industrial loans to:

                            -   

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Forestry, fishing, and hunting

                   14,992

 

                       -   

 

                       -   

 

                        -   

 

                     364

Construction

                   30,408

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Finance and insurance

                   49,404

 

                       -   

 

                       -   

 

                        -   

 

                       20

Real estate rental and leasing

                   26,882

 

                       -   

 

                       -   

 

                        -   

 

                       54

Healthcare and social assistance

                   38,080

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Accommodations and food services

                   31,806

 

                       -   

 

                       -   

 

                        -   

 

                     707

Manufacturing

                   15,945

 

                       -   

 

                     710

 

                        -   

 

                 3,097

Retail trade

                   47,852

 

                       -   

 

                       28

 

                        -   

 

                     874

Transportation and warehousing

                   37,612

 

                       -   

 

                     181

 

                        -   

 

                 3,071

Professional services

                     8,643

 

                       -   

 

                       -   

 

                        -   

 

                       12

Administrative support and waste management

                   10,203

 

                       -   

 

                       -   

 

                        -   

 

                       -   

Arts, entertainment, and recreation

                     4,255

 

                       -   

 

                       27

 

                     585

 

                       27

Other commercial loans

                   40,919

 

                       -   

 

                       79

 

                          8

 

                     238

Total commercial and industrial loans

                357,001

 

                       -   

 

                 1,025

 

                     593

 

                 8,464

     Total commercial loans

                481,327

 

                     351

 

                 1,025

 

                     944

 

                 8,548

        Total gross loans receivable,

               excluding deferred loan fees

$          2,212,485

 

$               2,989

 

$             34,193

 

$               9,077

 

$             84,564

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2020, the Company had loans of $25.2 million, or 1.15% of total loans, adversely classified ($24.3 million classified “substandard”; $920,000 classified “doubtful”), as compared to loans of $24.5 million, or 1.13% of total loans, adversely classified ($23.6 million classified “substandard”; $888,000 classified “doubtful”) at June 30, 2020, and $25.8 million, or 1.36% of total  loans, adversely classified ($25.8 million classified “substandard”; none classified “doubtful”) at September 30, 2019. Classified loans were generally comprised of loans secured by commercial and residential real estate, and other commercial purpose collateral. All loans were classified due to concerns as to the borrowers’ ability to continue to generate sufficient cash flows to service the debt. Of our classified loans, the Company had ceased recognition of interest on loans with a carrying value of $7.9 million at September 30, 2020. As noted in Note 4 to the condensed consolidated financial statements, the Company’s total past due loans increased from $6.4 million at June 30, 2020, to $6.9 million at September 30, 2020. Total past due loans were $9.9 million at September 30, 2019.

 

In connection with the adoption of ASU 2016-13, the Company also revised its analysis of its unused lines of credit and recorded a one-time cumulative effect adjustment to the allowance for off-balance sheet exposures totaling $268,000, offset by a reduction to retained earnings, net of deferred taxes, of $209,000. For the three-month period ended September 30, 2020, the allowance for off-balance sheet exposures increased by an additional $226,000, funded by a charge to provision for off-balance sheet credit exposures (non-interest expense), primarily due to an


-47-



increase in unused lines of credit. At September 30, 2020, approximately $2.5 million was accrued within other liabilities related to off-balance sheet credit exposures.

 

 

Nonperforming Assets

 

The ratio of nonperforming assets to total assets and nonperforming loans to net loans receivable is another measure of asset quality. Nonperforming assets of the Company include nonaccruing loans, accruing loans delinquent/past maturity 90 days or more, and assets which have been acquired as a result of foreclosure or deed-in-lieu of foreclosure. The table below summarizes changes in the Company’s level of nonperforming assets over selected time periods:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

September 30, 2019

Nonaccruing loans:

 

 

 

   Residential real estate

$                        4,339

$                        4,010

$                        5,286

   Construction

                                 -

                                 -

                                 -

   Commercial real estate

                          3,052

                          3,106

                          6,968

   Consumer

                             255

                             196

                             179

   Commercial business

                          1,129

                          1,345

                          1,588

      Total

                          8,775

                          8,657

                        14,021

 

 

 

 

Loans 90 days past due accruing interest:

 

 

 

   Residential real estate

                                 -

                                 -

                                 -

   Construction

                                 -

                                 -

                                 -

   Commercial real estate

                                 -

                                 -

                                 -

   Consumer

                                 -

                                 -

                                 -

   Commercial business

                                 -

                                 -

                                 -

      Total

                                 -

                                 -

                                 -

 

 

 

 

Total nonperforming loans

                          8,775

                          8,657

                        14,021

 

 

 

 

Foreclosed assets held for sale:

 

 

 

   Real estate owned

                          2,466

                          2,561

                          3,820

   Other nonperforming assets

                                 9

                                 9

                               71

      Total nonperforming assets

$                      11,250

$                      11,227

$                      17,912

 

 

At September 30, 2020, TDRs totaled $12.7 million, of which $4.5 million was considered nonperforming and is included in the nonaccrual loan total above. The remaining $8.1 million in TDRs have complied with the modified terms for a reasonable period of time and are therefore considered by the Company to be accrual status loans. In general, these loans were subject to classification as TDRs at September 30, 2020, on the basis of guidance under ASU No. 2011-02, which indicates that the Company may not consider the borrower’s effective borrowing rate on the old debt immediately before the restructuring in determining whether a concession has been granted. At June 30, 2020, TDRs totaled $11.2 million, of which $2.6 million was considered nonperforming and is included in the nonaccrual loan total above. The remaining $8.6 million in TDRs at June 30, 2020, had complied with the modified terms for a reasonable period of time and were therefore considered by the Company to be accrual status loans.

 

At September 30, 2020, nonperforming assets totaled $11.3 million, as compared to $11.2 million at June 30, 2020, and $17.9 million at September 30, 2019. The decrease in nonperforming assets from one year earlier was attributable primarily to a decrease in nonaccrual loans, as the Company resolved some nonaccrual loans which had been acquired in the Gideon Acquisition.

 

Liquidity Resources

 

The term “liquidity” refers to our ability to generate adequate amounts of cash to fund loan originations, loans purchases, deposit withdrawals and operating expenses. Our primary sources of funds include deposit growth, securities sold under agreements to repurchase, FHLB advances, brokered deposits, amortization and prepayment of loan principal and interest, investment maturities and sales, and funds provided by our operations. While the scheduled loan repayments and maturing investments are relatively predictable, deposit flows, FHLB advance


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redemptions, and loan and security prepayment rates are significantly influenced by factors outside of the Bank’s control, including interest rates, general and local economic conditions and competition in the marketplace. The Bank relies on FHLB advances and brokered deposits as additional sources for funding cash or liquidity needs.

 

The Company uses its liquid resources principally to satisfy its ongoing cash requirements, which include funding loan commitments, funding maturing certificates of deposit and deposit withdrawals, maintaining liquidity, funding maturing or called FHLB advances, purchasing investments, and meeting operating expenses.

 

At September 30, 2020, the Company had outstanding commitments and approvals to extend credit of approximately $451.9 million (including $314.9 million in unused lines of credit) in mortgage and non-mortgage loans. These commitments and approvals are expected to be funded through existing cash balances, cash flow from normal operations and, if needed, advances from the FHLB or the Federal Reserve’s discount window. At September 30, 2020, the Bank had pledged $910.8 million of its single-family residential and commercial real estate loan portfolios to the FHLB for available credit of approximately $411.4 million, of which $86.0 million had been advanced. The Bank has the ability to pledge several other loan portfolios, including, for example, its commercial and home equity loans, which could provide additional collateral for additional borrowings. In total, FHLB borrowings are generally limited to 45% of bank assets, or approximately $1.1 billion, subject to available collateral. Also, at September 30, 2020, the Bank had pledged a total of $276.2 million in loans secured by farmland and agricultural production loans to the Federal Reserve, providing access to $203.2 million in primary credit borrowings from the Federal Reserve’s discount window. The Company has continued to monitor the availability of the Federal Reserve’s PPP Lending Facility (PPPLF), but has not utilized it to date, given our improved liquidity position and the lack of attractive alternative investment options. Currently, the Company expects to process forgiveness applications for the majority of our $133.7 million in outstanding PPP loans in the next several months, and will then assess the regulatory capital and liquidity considerations of the potential use of the PPPLF for any balances not forgiven and expected to remain outstanding to maturity, which, in most instances, is two years from the date of origination. Management believes its liquid resources will be sufficient to meet the Company’s liquidity needs.

 

Regulatory Capital

 

The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies.  Failure to meet minimum capital requirements can result in certain mandatory—and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards.  The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company’s and Bank’s regulators could require adjustments to regulatory capital not reflected in the condensed consolidated financial statements.

 

Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Additionally, to make distributions or discretionary bonus payments, the Company and Bank must maintain a capital conservation buffer of 2.5% of risk-weighted assets. Management believes, as of September 30 and June 30, 2020, that the Company and the Bank met all capital adequacy requirements to which they are subject.

 

Effective January 1, 2020, depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a tier 1 leverage ratio of greater than 9 percent, are considered qualifying community banking organizations and are eligible to opt into an alternative, simplified regulatory capital framework, which utilizes a newly-defined “Community Bank Leverage Ratio” (CBLR). The CBLR framework is an optional framework that is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9 percent are considered to have satisfied the risk-based and leverage capital requirements in the agencies’ generally applicable capital rule. In April 2020, the federal bank regulatory agencies announced the issuance of two interim final rules to provide temporary relief to community banking


-49-



organizations, and adopted the final rule with no changes in October 2020. Under the rules, the CBLR requirement is a minimum of 8% for the remainder of calendar year 2020, 8.5% for calendar year 2021, and 9% thereafter. The Company and the Bank have not made an election to utilize the CBLR framework, but will continue to monitor the available option, and could do so in the future.

 

In August 2020, the Federal banking agencies adopted a final rule updating a December 2018 rule regarding the impact on regulatory capital of adoption of the CECL standard. The rule now allows institutions which adopt the CECL standard in 2020 a five-year transition period to recognize the estimated impact of adoption on regulatory capital. The Company and the Bank have elected to exercise their option to recognize the impact of adoption over the five-year period.

 

As of September 30, 2020, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

 

The tables below summarize the Company’s and Bank’s actual and required regulatory capital:

 

 

Actual

For Capital Adequacy  Purposes

To Be Well Capitalized Under Prompt Corrective Action Provisions

As of September 30, 2020

Amount

Ratio

Amount

Ratio

Amount

Ratio

(dollars in thousands)

 

Total Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

$    280,912

13.14%

$    171,060

8.00%

n/a

n/a

Southern Bank

      279,546

13.20%

      169,459

8.00%

      211,824

10.00%

Tier I Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

      254,419

11.90%

      128,295

6.00%

n/a

n/a

Southern Bank

      253,053

11.95%

      127,094

6.00%

      169,459

8.00%

Tier I Capital (to Average Assets)

 

 

 

 

 

 

Consolidated

      254,419

10.07%

      101,104

4.00%

n/a

n/a

Southern Bank

      253,053

10.00%

      101,239

4.00%

      126,549

5.00%

Common Equity Tier I Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

      239,251

11.19%

        96,221

4.50%

n/a

n/a

Southern Bank

      253,053

11.95%

        95,321

4.50%

      137,685

6.50%

 

 

 

 

 

 

 

 

Actual

For Capital Adequacy  Purposes

To Be Well Capitalized Under Prompt Corrective Action Provisions

As of June 30, 2020

Amount

Ratio

Amount

Ratio

Amount

Ratio

(dollars in thousands)

 

Total Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

$    278,924

13.17%

$    169,473

8.00%

n/a

n/a

Southern Bank

      271,137

12.88%

      168,355

8.00%

      210,444

10.00%

Tier I Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

      252,609

11.92%

      127,105

6.00%

n/a

n/a

Southern Bank

      244,822

11.63%

      126,266

6.00%

      168,355

8.00%

Tier I Capital (to Average Assets)

 

 

 

 

 

 

Consolidated

      252,609

9.95%

      101,528

4.00%

n/a

n/a

Southern Bank

      244,822

9.66%

      101,370

4.00%

      126,713

5.00%

Common Equity Tier I Capital (to Risk-Weighted Assets)

 

 

 

 

 

 

Consolidated

      237,467

11.21%

        95,328

4.50%

n/a

n/a

Southern Bank

      244,822

11.63%

        94,700

4.50%

      136,789

6.50%


-50-



PART I: Item 3:  Quantitative and Qualitative Disclosures About Market Risk

SOUTHERN MISSOURI BANCORP, INC.

 

Asset and Liability Management and Market Risk

 

The goal of the Company’s asset/liability management strategy is to manage the interest rate sensitivity of both interest-earning assets and interest-bearing liabilities in order to maximize net interest income without exposing the Bank to an excessive level of interest rate risk. The Company employs various strategies intended to manage the potential effect that changing interest rates may have on future operating results. The primary asset/liability management strategy has been to focus on matching the anticipated re-pricing intervals of interest-earning assets and interest-bearing liabilities. At times, however, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, the Company may determine to increase its interest rate risk position somewhat in order to maintain its net interest margin.

 

In an effort to manage the interest rate risk resulting from fixed rate lending, the Bank has utilized longer term FHLB advances (with maturities up to ten years), subject to early redemptions and fixed terms. Other elements of the Company’s current asset/liability strategy include (i) increasing originations of commercial business, commercial real estate, agricultural operating lines, and agricultural real estate loans, which typically provide higher yields and shorter repricing periods, but inherently increase credit risk; (ii) actively soliciting less rate-sensitive deposits, including aggressive use of the Company’s “rewards checking” product, and (iii) offering competitively-priced money market accounts and CDs with maturities of up to five years. The degree to which each segment of the strategy is achieved will affect profitability and exposure to interest rate risk.

 

The Company continues to originate long-term, fixed-rate residential loans. During the first three months of fiscal year 2021, fixed rate 1- to 4-family residential loan production totaled $83.3 million, as compared to $27.9 million during the same period of the prior fiscal year. At September 30, 2020, the fixed rate residential loan portfolio was $279.3 million with a weighted average maturity of 169 months, as compared to $178.5 million at September 30, 2019, with a weighted average maturity of 104 months. The Company originated $7.0 million in adjustable-rate 1- to 4-family residential loans during the three-month period ended September 30, 2020, as compared to $5.3 million during the same period of the prior fiscal year. At September 30, 2020, fixed rate loans with remaining maturities in excess of 10 years totaled $152.7 million, or 7.1% of net loans receivable, as compared to $51.2 million, or 2.7% of net loans receivable at September 30, 2019. The Company originated $52.7 million in fixed rate commercial and commercial real estate loans during the three-month period ended September 30, 2020, as compared to $47.8 million during the same period of the prior fiscal year.  The Company also originated $19.3 million in adjustable rate commercial and commercial real estate loans during the three-month period ended September 30, 2020, as compared to $10.7 million during the same period of the prior fiscal year. At September 30, 2020, adjustable-rate home equity lines of credit decreased to $42.5 million, as compared to $44.7 million at September 30, 2019. At September 30, 2020, the Company’s investment portfolio had an expected weighted-average life of 3.2 years, compared to 3.6 years at September 30, 2019. Management continues to focus on customer retention, customer satisfaction, and offering new products to customers in order to increase the Company’s amount of less rate-sensitive deposit accounts.


-51-



Interest Rate Sensitivity Analysis

 

The following table sets forth as of September 30, 2020, management’s estimates of the projected changes in net portfolio value (“NPV”) in the event of 100, 200, and 300 basis point (“bp”) instantaneous and permanent increases, and 100, 200, and 300 basis point instantaneous and permanent decreases in market interest rates. Dollar amounts are expressed in thousands.

 

 

 

 

 

 

 

 

September 30, 2020

 

 

 

 

 

NPV as Percentage of

 

Net Portfolio

 

PV of Assets

Change in Rates

Value

Change

% Change

 

NPV Ratio

Change

+300 bp

$          246,235

$           (26,939)

-10%

 

10.27%

-0.39%

+200 bp

             262,036

                 (11,138)

-4%

 

10.69%

0.03%

+100 bp

             277,210

                   4,036

1%

 

11.06%

0.40%

0 bp

             273,174

                               -

                               -

 

10.66%

0.00%

-100 bp

             283,146

                9,973

4%

 

10.96%

0.30%

-200 bp

             290,110

                16,936

6%

 

11.20%

0.54%

-300 bp

             294,887

                21,713

8%

 

11.36%

0.69%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

NPV as Percentage of

 

Net Portfolio

 

PV of Assets

Change in Rates

Value

Change

% Change

 

NPV Ratio

Change

+300 bp

$          238,832

$           (16,824)

-7%

 

9.99%

-0.07%

+200 bp

             251,461

                 (4,196)

-2%

 

10.31%

0.25%

+100 bp

             262,302

                   6,645

3%

 

10.53%

0.47%

0 bp

             255,657

                               -

                               -

 

10.06%

0.00%

-100 bp

             268,902

                13,245

5%

 

10.49%

0.43%

-200 bp

             277,452

                21,795

9%

 

10.79%

0.73%

-300 bp

             283,773

                28,116

11%

 

11.01%

0.95%

 

Computations of prospective effects of hypothetical interest rate changes are based on an internally generated model using actual maturity and repricing schedules for the Bank’s loans and deposits, and are based on numerous assumptions, including relative levels of market interest rates, loan repayments and deposit run-offs, and should not be relied upon as indicative of actual results. Further, the computations do not contemplate any actions the Bank may undertake in response to changes in interest rates.

 

Management cannot predict future interest rates or their effect on the Bank’s net present value (“NPV”) in the future. Certain shortcomings are inherent in the method of analysis presented in the computation of NPV. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in differing degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have an initial fixed rate period typically from one to seven years and over the remaining life of the asset changes in the interest rate are restricted. In addition, the proportion of adjustable-rate loans in the Bank’s portfolios could decrease in future periods due to refinancing activity if market interest rates remain steady in the future. Further, in the event of a change in interest rates, prepayment and early withdrawal levels could deviate significantly from those assumed in the table. Finally, the ability of many borrowers to service their adjustable-rate debt may decrease in the event of an interest rate increase.

 

The Bank’s Board of Directors (the “Board”) is responsible for reviewing the Bank’s asset and liability policies. The Board’s Asset/Liability Committees meets monthly to review interest rate risk and trends, as well as liquidity and capital ratios and requirements. The Bank’s management is responsible for administering the policies and determinations of the Boards with respect to the Bank’s asset and liability goals and strategies.


-52-



PART I: Item 4:  Controls and Procedures

SOUTHERN MISSOURI BANCORP, INC.

 

 

An evaluation of Southern Missouri Bancorp’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended, (the “Act”)) as of September 30, 2020, was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, and several other members of our senior management. The Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2020, the Company’s disclosure controls and procedures 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 management (including the Chief Executive and 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. There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Act) that occurred during the quarter ended September 30, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

The Company does not expect that its disclosures and procedures 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 a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management 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.


-53-



PART II: Other Information

SOUTHERN MISSOURI BANCORP, INC.

 

Item 1:  Legal Proceedings

 

In the opinion of management, the Company is not a party to any pending claims or lawsuits that are expected to have a material effect on the Company’s financial condition or operations. Periodically, there have been various claims and lawsuits involving the Company mainly as a defendant, such as claims to enforce liens, condemnation proceedings on properties in which the Company holds security interests, claims involving the making and servicing of real property loans and other issues incident to the Bank’s business. Aside from such pending claims and lawsuits, which are incident to the conduct of the Company’s ordinary business, the Company is not a party to any material pending legal proceedings that would have a material effect on the financial condition or operations of the Company.

 

Item 1a:  Risk Factors

 

There have been no material changes to the risk factors set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2020.

 

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

 

 

 

Period

 

Total Number of Shares (or Units) Purchased

 

Average Price Paid per Share (or Unit)

 

Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs

Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet be Purchased Under the Plans or Program

7/1/2020 thru 7/31/2020

-

$                        -

-

232,051

8/1/2020 thru 8/31/2020

-

-

-

232,051

9/1/2020 thru 9/30/2020

-

-

-

232,051

Total

-

$                        -

-

232,051

 

Item 3:  Defaults upon Senior Securities

 

Not applicable

 

Item 4:  Mine Safety Disclosures

 

Not applicable 

 

Item 5:  Other Information

 

None


-54-



Item 6:  Exhibits

 

 

Exhibit Number

 

Document

3.1(i)

Articles of Incorporation of the Registrant (filed as an exhibit to the Registrant’s Annual Report on Form 10-KSB for the fiscal year ended June 30, 1999 and incorporated herein by reference)

3.1(i)A

Amendment to Articles of Incorporation of Southern Missouri increasing the authorized capital stock of Southern Missouri (filed as an exhibit to Southern Missouri's Current Report on Form 8-K filed on November 21, 2016 and incorporated herein by reference)

3.1(i)B

Amendment to Articles of Incorporation of Southern Missouri increasing the authorized capital stock of Southern Missouri(filed as an exhibit to Southern Missouri's Current Report on Form 8-K filed on November 8, 2018 and incorporated herein by reference)

3.1(ii)

Certificate of Designation for the Registrant’s Senior Non-Cumulative Perpetual Preferred Stock, Series A (filed as an exhibit to the Registrant’s Current Report on Form 8-K filed on July 26, 2011 and incorporated herein by reference)

3.2

Bylaws of the Registrant (filed as an exhibit to the Registrant’s Current Report on Form 8-K filed on December 6, 2007 and incorporated herein by reference)

10

Material Contracts:

 

1.

Registrant’s 2017 Omnibus Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 26, 2017, and incorporated herein by reference)

 

2.

2008 Equity Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 19, 2008 and incorporated herein by reference)

 

3.

2003 Stock Option and Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 17, 2003 and incorporated herein by reference)

 

4.

Employment and Change-in-control Agreements

 

 

(i)

Employment Agreement with Greg A. Steffens (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

 

(ii)

Change-in-control Agreement with Kimberly A. Capps (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

 

(iii)

Change-in-control Agreement with Matthew T. Funke (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

 

(iv)

Change-in-control Agreement with Lora L. Daves (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30 2019 and incorporated herein by reference)

 

 

(v)

Change-in-control Agreement with Justin G. Cox (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

 

(vi)

Change-in-control Agreement with Mark E. Hecker (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

 

(vii)

Change-in-control Agreement with Rick A. Windes (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)

 

5.

Director’s Retirement Agreements

 

 

(i)

Director’s Retirement Agreement with Sammy A. Schalk (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2000 and incorporated herein by reference)

 

 

(ii)

Director’s Retirement Agreement with Ronnie D. Black (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2000 and incorporated herein by reference)

 

 

(iii)

Director’s Retirement Agreement with L. Douglas Bagby (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2000 and incorporated herein by reference)

 

 

(iv)

Director’s Retirement Agreement with Rebecca McLane Brooks (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2004 and incorporated herein by reference)

 

 

(v)

Director’s Retirement Agreement with Charles R. Love (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2004 and incorporated herein by reference)

 

 

(vi)

Director’s Retirement Agreement with Charles R. Moffitt (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2004 and incorporated herein by reference)

 

 

(vii)

Director’s Retirement Agreement with Dennis C. Robison (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 and incorporated herein by reference)

 

 

(viii)

Director’s Retirement Agreement with David J. Tooley (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2011 and incorporated herein by reference)

 

 

(ix)

Director’s Retirement Agreement with Todd E. Hensley (filed as an exhibit to the Registrant’s Annual Report on Form 10-K for the year ended June 30, 2015 and incorporated herein by reference)

 

6.

Tax Sharing Agreement (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and incorporated herein by reference)

10.1

Named Executive Officer Salary and Bonus Arrangements for 2020 (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2020)


-55-



10.2

Director Fee Arrangements for 2020 (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2020)

14

Code of Conduct and Ethics (filed as an exhibit to the Registrant’s Annual Report on Form 10-K for the year ended June 30, 2016)

21

Subsidiaries of the Registrant (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2020)

31.1

Rule 13a-14(a)/15-d14(a) Certifications

31.2

Rule 13a-14(a)/15-d14(a) Certifications

32

Section 1350 Certifications

101

Attached as Exhibit 101 are the following financial statements from the Southern Missouri Bancorp, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of cash flows and (iv) the notes to consolidated financial statements.


-56-



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.

 

 

 

SOUTHERN MISSOURI BANCORP, INC.

 

 

Registrant

 

 

 

Date:  November 9, 2020

 

/s/ Greg A. Steffens

 

 

Greg A. Steffens

 

 

President & Chief Executive Officer

 

 

(Principal Executive Officer)

 

 

 

Date:  November 9, 2020

 

/s/ Matthew T. Funke

 

 

Matthew T. Funke

 

 

Executive Vice President & Chief Financial Officer

 

 

(Principal Financial and Accounting Officer)


-57-

 

EX-31 2 ex31-1.htm EXHIBIT 31.1

Exhibit 31.1

 

CERTIFICATION

 

I, Greg A. Steffens, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Southern Missouri Bancorp, Inc. 

 

2. Based on my knowledge, this report does not contain any untrue statement of a 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 registrant as of, and for, the periods presented in this report;  

 

4.The registrant's other certifying officers 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))  for the registrant and we 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 registrant, including its consolidated subsidiaries, 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 control over financial reporting, or caused such internal control 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 registrant'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 evaluation; and 

 

d)disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.  

 

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant'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 registrant'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 registrant's internal control over financial reporting. 

 

Date:   November 9, 2020

 

By:

/s/ Greg A. Steffens

 

 

 

Greg A. Steffens

 

 

 

President & Chief Executive Officer

 

 

 

(Principal Executive Officer)

 

EX-31 3 ex31-2.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION

 

I, Matthew T. Funke, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Southern Missouri Bancorp, Inc. 

 

2. Based on my knowledge, this report does not contain any untrue statement of a 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 registrant as of, and for, the periods presented in this report;  

 

4.The registrant's other certifying officers 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))  for the registrant and we 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 registrant, including its consolidated subsidiaries, 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 control over financial reporting, or caused such internal control 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 registrant'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 evaluation; and 

 

d)disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.  

 

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant'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 registrant'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 registrant's internal control over financial reporting. 

 

 

Date:   November 9, 2020

 

By:

/s / Matthew T. Funke

 

 

 

Matthew T. Funke

 

 

 

Executive Vice President & Chief Financial Officer

 

 

 

(Principal Financial Officer)

 

EX-32 4 ex32.htm EXHIBIT 32

Exhibit 32

 

CERTIFICATION

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned hereby certifies in his capacity as an officer of Southern Missouri Bancorp, Inc. (the “Company”) that the quarterly report of the Company on Form 10-Q for the quarter ended March 31, 2020, fully complies with the requirements of Section 13(a) of the Securities 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 for the periods presented in the financial statements included in such report. 

 

 

Date:   November 9, 2020

 

By:

/s/ Greg A. Steffens

 

 

 

Greg A. Steffens

 

 

 

President & Chief Executive Officer

 

 

 

(Principal Executive Officer)

 

 

 

 

 

 

 

 

Date:   November 9, 2020

 

By:

/s/ Matthew T. Funke

 

 

 

Matthew T. Funke

 

 

 

Executive Vice President & Chief Financial Officer

 

 

 

(Principal Financial Officer)

 

 

EX-101.CAL 5 smbc-20200930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 6 smbc-20200930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 7 smbc-20200930_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs Represents the monetary amount of Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs, during the indicated time period. Business Acquisition, Acquiree Deferred Tax Assets NOL Carry Forwards Acquired Represents the monetary amount of Deferred Tax Assets NOL Carry Forwards Acquired, as of the indicated date. Less: undistributed earnings allocated to participating securities Operating Leases, Future Minimum Payments, Due in Two Years Property, Plant and Equipment, Gross Furniture, fixtures, equipment and software Performing Loans Represents the Performing Loans, during the indicated time period. Impaired Financing Receivable With No Related Allowance Specific Allowance Represents the monetary amount of Impaired Financing Receivable With No Related Allowance Specific Allowance, as of the indicated date. Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance Total by Credit Quality Indicator Represents the Total by Credit Quality Indicator, during the indicated time period. Impact of CECL adoption Represents the monetary amount of Impact of CECL adoption, during the indicated time period. Statistical Measurement [Axis] Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax Represents the textual narrative disclosure of Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax, during the indicated time period. Schedule of Deferred Tax Assets and Liabilities Schedule of Effective Income Tax Rate Reconciliation Schedule of Deposit Liabilities Represents the textual narrative disclosure of Schedule of Deposit Liabilities, during the indicated time period. Calculated Amount of Right of Use Assets and Lease Liabilities Schedule of Adoption of ASU 2016-30 Represents the textual narrative disclosure of Schedule of Adoption of ASU 2016-30, during the indicated time period. Marketable Securities, Policy Note 10: Subordinated Debt Dividends paid on common stock Dividends paid on common stock Cash flows from financing activities: Net purchases of Federal Reserve Bank of St. Louis stock Net purchases of Federal Reserve Bank of St. Louis stock Net amortization of premiums and discounts on securities Cash Flows From Operating Activities: Dividends paid on common stock ($.15 per share) Dividends paid on common stock ($.15 per share) Comprehensive income Diluted earnings per common share Net realized gains on sale of loans Bank card interchange income Subordinated debt Amendment Flag Number of common stock shares outstanding State Net Operating Loss Carryforwards Represents the monetary amount of State Net Operating Loss Carryforwards, during the indicated time period. Other Net income available to common shareholders Deposits, Negotiable Order of Withdrawal (NOW) Noninterest-bearing Deposit Liabilities Income Recognized From Lessor Agreements Represents the monetary amount of Income Recognized From Lessor Agreements, during the indicated time period. Minimum Construction in progress Financial Asset, 60 to 89 Days Past Due Special Mention Foreclosed residential real estate properties physical possession Represents the monetary amount of Foreclosed residential real estate properties physical possession, as of the indicated date. Available-for-sale Securities Estimated Fair Value Represents the monetary amount of Available-for-sale Securities Estimated Fair Value, as of the indicated date. Investments {1} Investments SEC Schedule, 12-09, Valuation Allowances and Reserves Type [Axis] Finite-Lived Intangible Asset, Expected Amortization, Year Two Fair Value Option, Disclosures Cash and Cash Equivalents, Policy Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies Supplemental disclosures of cash flow information: Depreciation NET INCOME Net Income Other operating expense Advertising Note Payable Represents the monetary amount of Note Payable, during the indicated time period. Loans and Leases Receivable, Allowance Total liabilities Title of 12(b) Security Public Float Trading Exchange Financial liabilities Represents the Financial liabilities, during the indicated time period. Financial assets Represents the Financial assets, during the indicated time period. Measurement Frequency Deposits, Savings Deposits Liability, Operating Leases Represents the monetary amount of Liability, Operating Leases, as of the indicated date. Financing Receivables Greater than 90 Days Past Due and Still Accruing Represents the Financing Receivables Greater than 90 Days Past Due and Still Accruing, during the indicated time period. Purchased Credit Impaired Loans Represents the monetary amount of Purchased Credit Impaired Loans, as of the indicated date. Accounts Receivable, Allowance for Credit Loss, Recovery Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time Purchased Participation Loans Represents the monetary amount of Purchased Participation Loans, as of the indicated date. Deferred loan fees, net Represents the Deferred loan fees, net, during the indicated time period. Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss Commercial Loan SEC Schedule, 12-09, Valuation Allowances and Reserves Schedule of Debtor Troubled Debt Restructuring, Current Period Schedule of Interest Income Recognized on Impaired Loans Represents the textual narrative disclosure of Schedule of Interest Income Recognized on Impaired Loans, during the indicated time period. Receivable Type [Axis] Interest (net of interest credited) Conversion of Loans to Foreclosed Real Estate Represents the monetary amount of Conversion of Loans to Foreclosed Real Estate, during the indicated time period. Net cash used in investing activities Proceeds from maturities of available for sale securities Net change in interest-bearing deposits Loss on sale/write-down of REO Comprehensive Income (Loss), Net Represents the monetary amount of Comprehensive Income (Loss), Net, during the indicated time period. INCOME BEFORE INCOME TAXES Compensation and benefits Common Stock, Shares Authorized Additional paid-in capital Accrued interest payable Advances from FHLB Goodwill Entity Address, Postal Zip Code Entity Address, City or Town Entity File Number Period End date Federal Home Loan Bank Advances {1} Federal Home Loan Bank Advances Fair Value Measurements Nonrecurring Weighted Average Discount Applied Represents the description of Fair Value Measurements Nonrecurring Weighted Average Discount Applied, during the indicated time period. Unobservable Measurement Input, Uncertainty, Description Fair value on a recurring basis Represents the monetary amount of Fair value on a recurring basis, as of the indicated date. Fair Value Measurement Deferred Tax Liabilities FHLB Stock Dividends Represents the monetary amount of Deferred Tax Liabilities FHLB Stock Dividends, as of the indicated date. Deferred Tax Assets, Gross Deferred Tax Assets Accrued Compensation and Benefits Represents the monetary amount of Deferred Tax Assets Accrued Compensation and Benefits, as of the indicated date. Operating Leases, Future Minimum Payments, Due in Four Years Consolidated Entities [Axis] Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance Represents the monetary amount of Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance, as of the indicated date. Internal Credit Assessment [Axis] Amount of Loans Modified for Other Than TDR Represents the monetary amount of Amount of Loans Modified for Other Than TDR, as of the indicated date. Available for sale Securities Gross Unrealized Gain Represents the monetary amount of Available for sale Securities Gross Unrealized Gain, as of the indicated date. Financial Instruments Property, Plant and Equipment Purchase Credit Impaired Represents the Purchase Credit Impaired, during the indicated time period. Investments Classified by Contractual Maturity Date Lessee, Operating Lease, Disclosure Total other comprehensive income Deposit Account Charges and Related Fees Represents the monetary amount of Deposit Account Charges and Related Fees, during the indicated time period. Cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Registrant CIK Fair Value Hierarchy and NAV [Axis] Tax Credit Benefits Represents the monetary amount of Tax Credit Benefits, during the indicated time period. Deferred Tax Assets Unrealized Loss on Other Real Estate Represents the monetary amount of Deferred Tax Assets Unrealized Loss on Other Real Estate, as of the indicated date. Current Income Tax Expense (Benefit) Operating Cash Flows from Operating Leases Represents the monetary amount of Operating Cash Flows from Operating Leases, during the indicated time period. Supplemental Disclosures of Cash Flow Information Represents the Supplemental Disclosures of Cash Flow Information, during the indicated time period. Maximum Automobiles Impaired Financing Receivable, with Related Allowance, Recorded Investment Credit Facility Prior to adoption of CECL Represents the Prior to adoption of CECL, during the indicated time period. Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 Short-term Debt, Type [Axis] Impact of adoption ASU 2016-13 Represents the Impact of adoption ASU 2016-13, during the indicated time period. Other Finite Lived Intangible Assets Gross Accumulated Amortization Represents the monetary amount of Other Finite Lived Intangible Assets Gross Accumulated Amortization, during the indicated time period. Schedule of Balance in the Allowance for Loan Losses and Recorded Investment Represents the textual narrative disclosure of Schedule of Balance in the Allowance for Loan Losses and Recorded Investment, during the indicated time period. Commercial Real Estate Lending Policy Represents the textual narrative disclosure of Commercial Real Estate Lending Policy, during the indicated time period. Goodwill Policy Represents the textual narrative disclosure of Goodwill Policy, during the indicated time period. Loans Policy Notes Net decrease in securities sold under agreements to repurchase Net increase in loans Stock option expense Stockholders' Equity, Total Concentration Risk Benchmark Other Loan Fees Represents the monetary amount of Other Loan Fees, during the indicated time period. Advances from FHLB {1} Advances from FHLB Loans Treasury Stock of 217,949 shares at September 30, 2020 and June 30, 2020, at cost Treasury Stock of 217,949 shares at September 30, 2020 and June 30, 2020, at cost Loans receivable, net of allowance for credit losses of $35,084 and $25,139 at September 30, 2020 and June 30, 2020, respectively Entity Address, State or Province Emerging Growth Company Subordinated Debt {1} Subordinated Debt Investment in Federal Home Loan Bank Stock Represents the Investment in Federal Home Loan Bank Stock, during the indicated time period. Measurement Frequency [Axis] Deferred Tax Assets, Net of Valuation Allowance Operating Lease, Payments Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance Financing Receivable, Individually Evaluated for Impairment End of Period Represents the End of Period, during the indicated time period. Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value Mortgage-backed securities GSE residential fair value Represents the monetary amount of Mortgage-backed securities GSE residential fair value, as of the indicated date. Mortgage-backed securities GSE residential amortized cost Represents the monetary amount of Mortgage-backed securities GSE residential amortized cost, as of the indicated date. Impact of adoption of ASU 2016-13 Represents the monetary amount of Impact of adoption of ASU 2016-13, during the indicated time period. Finite-Lived Intangible Asset, Expected Amortization, after Year Five Impaired Loans Represents the textual narrative disclosure of Impaired Loans, during the indicated time period. Purchase Credit Deteriorated Represents the Purchase Credit Deteriorated, during the indicated time period. Schedule of Accounts, Notes, Loans and Financing Receivable Credit Quality Indicators Represents the textual narrative disclosure of Credit Quality Indicators, during the indicated time period. Note 8: Income Taxes Note 1: Basis of Presentation Conversion of foreclosed real estate to loans Represents the monetary amount of Conversion of foreclosed real estate to loans, during the indicated time period. Net increase (decrease) in demand deposits and savings accounts Net purchases of Federal Home Loan Bank stock Occupancy and equipment, net Net Interest Income After Provision for Loan Losses Represents the monetary amount of Net Interest Income After Provision for Loan Losses, during the indicated time period. Total interest expense Total interest expense Total interest income Total interest income Other interest-earning assets Total liabilities and stockholders' equity Retained earnings Document Quarterly Report Amendment Description Well-known Seasoned Issuer Tax Identification Number (TIN) Financial Instruments Owned Carrying Amount Represents the monetary amount of Financial Instruments Owned Carrying Amount, as of the indicated date. Interest-bearing time deposits {1} Interest-bearing time deposits Represents the Interest-bearing time deposits, during the indicated time period. Federal Net Operating Loss Carryforwards Represents the monetary amount of Federal Net Operating Loss Carryforwards, during the indicated time period. Deposits, Money Market Deposits Less accumulated depreciation Buildings and improvements Impaired Financing Receivable Interest Income Recognized Represents the monetary amount of Impaired Financing Receivable Interest Income Recognized, during the indicated time period. Allowance for Loan and Lease Losses, Write-offs Valuation Approach and Technique Residential mortgage loans and home equity loans formal foreclosure proceedings in process Represents the monetary amount of Residential mortgage loans and home equity loans formal foreclosure proceedings in process, as of the indicated date. Loans Receivable Loans Receivable Gross Represents the Loans Receivable Gross, during the indicated time period. Other Debt Obligations Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost US States and Political Subdivisions Debt Securities Real Estate Loan Fair Value, Assets Measured on Recurring Basis Receivable Other Securities Policy Represents the textual narrative disclosure of Other Securities Policy, during the indicated time period. New Accounting Pronouncements Federal Home Loan Bank and Federal Reserve Bank Stock Represents the textual narrative disclosure of Federal Home Loan Bank and Federal Reserve Bank Stock, during the indicated time period. Note 2: Organization and Summary of Significant Accounting Policies Cash paid during the period for Represents the description of Cash paid during the period for, during the indicated time period. Repayments of Federal Home Loan Bank advances Repayments of Federal Home Loan Bank advances Additional Paid-in Capital Equity Component Tax expense Postage and office supplies Loan Late Charges Represents the monetary amount of Loan Late Charges, during the indicated time period. Accumulated other comprehensive income (loss) Accrued interest receivable Interactive Data Current Assumed floating rate junior subordinated debt securities Represents the monetary amount of Assumed floating rate junior subordinated debt securities, during the indicated time period. Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax Income tax provision, total Represents the monetary amount of Income tax provision, total, during the indicated time period. Consolidated Statement of Income Represents the Consolidated Statement of Income, during the indicated time period. Lessee Expected Lease Terms Represents the description of Lessee Expected Lease Terms, during the indicated time period. Financing Receivable Credit Quality Indicators {1} Financing Receivable Credit Quality Indicators Represents the monetary amount of Financing Receivable Credit Quality Indicators, as of the indicated date. Watch Represents the Watch, during the indicated time period. Financing Receivable, Collectively Evaluated for Impairment Allowance for loan losses Represents the Allowance for loan losses, during the indicated time period. Real Estate Investments, Net Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis Represents the textual narrative disclosure of Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis, during the indicated time period. Fair Value Measurements, Nonrecurring Schedule of Loan Portfolio Aging Analysis Represents the textual narrative disclosure of Schedule of Loan Portfolio Aging Analysis, during the indicated time period. Consumer Lending Policy Represents the textual narrative disclosure of Consumer Lending Policy, during the indicated time period. Credit Losses Recognized on Investments Policy Represents the textual narrative disclosure of Credit Losses Recognized on Investments Policy, during the indicated time period. Intangible Assets, Finite-Lived, Policy Principles of Consolidation Policy Proceeds from Federal Home Loan Bank advances Accrued interest receivable {1} Accrued interest receivable Gain (Loss) on Disposal of Fixed Assets Represents the monetary amount of Gain (Loss) on Disposal of Fixed Assets, during the indicated time period. 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Weighted-average basic common shares outstanding Less: weighted-average participating securities outstanding (restricted shares) Less: weighted-average participating securities outstanding (restricted shares) Weighted-average common shares outstanding, including participating securities Asset Class [Axis] Land Impaired Financing Receivable With and Without Related Allowance Specific Allowance Represents the monetary amount of Impaired Financing Receivable With and Without Related Allowance Specific Allowance, as of the indicated date. Revolving Credit Facility Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment Short-term Debt, Type Total allowance for credit losses on off-balance sheet credit exposures Represents the Total allowance for credit losses on off-balance sheet credit exposures, during the indicated time period. Schedule of Financial Instruments Represents the textual narrative disclosure of Schedule of Financial Instruments, during the indicated time period. Schedule of Available for Sale Securities Comprehensive Income Outside Directors Retirement Plan Policy Represents the textual narrative disclosure of Outside Directors Retirement Plan Policy, during the indicated time period. Note 11: Fair Value Measurements Net decrease in certificates of deposits Proceeds from sale of foreclosed assets Investments in state & federal tax credits Investments in state & federal tax credits Amortization of intangible assets Intangible amortization Other income Deposits Filer Category Deposits {2} Deposits Fair Value Measurements, Valuation Processes, Description Gains (losses) recognized on assets measured on a non-recurring basis Represents the monetary amount of Gains (losses) recognized on assets measured on a non-recurring basis, during the indicated time period. Reported Value Measurement Income Tax Expense, Actual Represents the monetary amount of Income Tax Expense, Actual, during the indicated time period. Other, net Other, net Less: distributed earnings allocated to participating securities Less: distributed earnings allocated to participating securities Operating Leases, Future Minimum Payments, Due in Five Years Cash paid for amounts included in the measurement of lease liabilities Represents the Cash paid for amounts included in the measurement of lease liabilities, during the indicated time period. Credit Facility [Axis] Number of Purchased Participation Loans Represents the pure numeric value of Number of Purchased Participation Loans, during the indicated time period. Security Owned and Pledged as Collateral, Fair Value Securities Borrowed, Allowance for Credit Loss Other securities Represents the Other securities, during the indicated time period. As reported under ASU 2016-13 Represents the As reported under ASU 2016-13, during the indicated time period. Other Finite-Lived Intangible Assets, Gross Schedule of Financing Receivables, Non Accrual Status Tables/Schedules Earnings Per Share, Policy Stock Option Policy Represents the textual narrative disclosure of Stock Option Policy, during the indicated time period. Property, Plant and Equipment, Policy Foreclosed Real Estate Policy Represents the textual narrative disclosure of Foreclosed Real Estate Policy, during the indicated time period. Policies Deferred income taxes Prepaid expenses and other assets {1} Prepaid expenses and other assets Stock Option and Stock Grant Expense Represents the monetary amount of Stock Option and Stock Grant Expense, during the indicated time period. Mortgage-backed securities Common stock, $.01 par value; 25,000,000 shares authorized; 9,344,574 and 9,345,339 shares issued at September 30, 2020 and June 30, 2020, respectively Common stock, $.01 par value; 25,000,000 shares authorized; 9,344,574 and 9,345,339 shares issued at September 30, 2020 and June 30, 2020, respectively Liabilities and Stockholders' Equity Interest-bearing time deposits Assets {1} Assets Ex Transition Period Long-term Debt, Type Commitments to Extend Credit Fair value on a nonrecurring basis Represents the monetary amount of Fair value on a nonrecurring basis, as of the indicated date. Measurement Basis [Axis] Ozarks Legacy Community Financial, Inc Represents the Ozarks Legacy Community Financial, Inc, during the indicated time period. 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Interest Bearing Time Deposits Represents the textual narrative disclosure of Interest Bearing Time Deposits, during the indicated time period. Proceeds from sale of fixed assets Originations of loans held for sale Originations of loans held for sale Increase in cash surrender value of bank owned life insurance (BOLI) AOCI Attributable to Parent Other Comprehensive Income Represents the description of Other Comprehensive Income, during the indicated time period. Dividends per common share Total noninterest income Premises and equipment, net Available for sale securities Document Fiscal Period Focus Entity Listing, Par Value Per Share City Area Code Voluntary filer Details Accrued interest receivable {2} Accrued interest receivable Represents the Accrued interest receivable, during the indicated time period. Foreclosed and repossessed assets Represents the Foreclosed and repossessed assets, during the indicated time period. Defined Contribution Plan, Administrative Expense Deferred tax liabilities purchase accounting adjustments Represents the monetary amount of Deferred tax liabilities purchase accounting adjustments, as of the indicated date. Deferred Income Taxes and Tax Credits Interest-bearing Domestic Deposit, Certificates of Deposits Recorded investment Impaired Financing Receivable With Related Allowance Specific Allowance Represents the monetary amount of Impaired Financing Receivable With Related Allowance Specific Allowance, as of the indicated date. Internal Credit Assessment Financing Receivables Acquired with Deteriorated Credit Quality Represents the monetary amount of Financing Receivables Acquired with Deteriorated Credit Quality, during the indicated time period. COVID-19 Represents the COVID-19, during the indicated time period. Loans Receivable {1} Loans Receivable Represents the monetary amount of Loans Receivable, during the indicated time period. 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Treasury stock purchased Treasury stock purchased Stock Grant Expense Represents the monetary amount of Stock Grant Expense, during the indicated time period. Common Stock Earnings on bank owned life insurance Subordinated debt {1} Subordinated debt Prepaid expenses and other assets Entity Address, Address Line One Document Transition Report Fair Value, Inputs, Level 2 Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent Options Outstanding With An Exercise Price In Excess of the Market Price Represents the pure numeric value of Options Outstanding With An Exercise Price In Excess of the Market Price, during the indicated time period. Operating Lease, Expense Loans With Option to Temporarily suspended loans Represents the monetary amount of Loans With Option to Temporarily suspended loans, during the indicated time period. Pass Total Loans Represents the Total Loans, during the indicated time period. Financing Receivable, Credit Loss, Expense (Reversal) Allowance for Loan Losses Allowance for Loan Losses Represents the monetary amount of Allowance for Loan Losses, during the indicated time period. Valuation Approach and Technique [Axis] Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10 Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One Collateral Held Class of Financing Receivable [Axis] As reported prior to ASU 2016-13 Represents the As reported prior to ASU 2016-13, during the indicated time period. Residential Mortgage Lending Policy Represents the textual narrative disclosure of Residential Mortgage Lending Policy, during the indicated time period. Noncash investing and financing activities: Purchase of Treasury Stock Represents the monetary amount of Purchase of Treasury Stock, during the indicated time period. Accounts payable and other liabilities {1} Accounts payable and other liabilities Proceeds from sales of loans held for sale Net Income Net income Retained Earnings Statement NONINTEREST EXPENSE: Provision for credit losses PROVISION FOR CREDIT LOSSES Stock in FHLB of Des Moines Line of Credit Long-term Debt, Type [Axis] Cash and Cash Equivalents Foreclosed and repossessed assets held for sale Represents the Foreclosed and repossessed assets held for sale, during the indicated time period. Fair Value, Inputs, Level 1 Nontaxable Municipal Income Represents the monetary amount of Nontaxable Municipal Income, during the indicated time period. Increase (reduction) in taxes Represents the Increase (reduction) in taxes, during the indicated time period. Deferred Tax Liabilities Depreciation Represents the monetary amount of Deferred Tax Liabilities Depreciation, as of the indicated date. Effect of dilutive securities, stock options, and awards Represents the Effect of dilutive securities, stock options, and awards (number of shares), during the indicated time period. Operating Leases, Future Minimum Payments, Due Thereafter Operating Lease, Weighted Average Discount Rate, Percent Operating leases ROU asset Financing Receivables Current Represents the Financing Receivables Current, during the indicated time period. Financial Asset, Equal to or Greater than 90 Days Past Due Financial Asset, Period Past Due Fair Value of Pooled Trust Preferred Securities Held Represents the monetary amount of Fair Value of Pooled Trust Preferred Securities Held, as of the indicated date. Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year Amortization of Mortgage Servicing Rights (MSRs) Performing Loans Classified as Troubled Debt Restructuring Loans Represents the textual narrative disclosure of Performing Loans Classified as Troubled Debt Restructuring Loans, during the indicated time period. Note 7: Earnings Per Share Note 4: Loans and Allowance for Loan Losses Net cash provided by operating activities Accrued interest payable {1} Accrued interest payable Items not requiring (providing) cash: Impact of ASU 2016-13 adoption Represents the monetary amount of Impact of ASU 2016-13 adoption, during the indicated time period. Equity Balance Equity Balance Equity Balance Treasury Stock Total noninterest expense Total noninterest expense Deposit insurance premiums NONINTEREST INCOME: Common Stock, Shares, Issued Total assets Total assets Stock in Federal Reserve Bank of St. Louis Document Fiscal Year Focus Small Business Letter of Credit Fair Value Measurements Nonrecurring Range of discounts Applied Represents the description of Fair Value Measurements Nonrecurring Range of discounts Applied, during the indicated time period. Fair Value Hierarchy and NAV Peoples Service Company, Inc Represents the Peoples Service Company, Inc, during the indicated time period. Business Acquisition [Axis] Unrealized gain on available for sale securities Recorded Investment {1} Recorded Investment Number of modifications Total Credit Quality Indicator for Years Represents the Total Credit Quality Indicator for Years, during the indicated time period. Prior to 2017 Represents the Prior to 2017, during the indicated time period. Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality Represents the monetary amount of Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality, during the indicated time period. Loans in process Represents the Loans in process, during the indicated time period. Debt and equity securities amortized cost Represents the monetary amount of Debt and equity securities amortized cost, as of the indicated date. Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five Financial Instrument [Axis] Residential Real Estate Collateral Held [Axis] Finite-Lived Intangible Assets, Accumulated Amortization Share-based Compensation, Option and Incentive Plans Policy Off-Balance Sheet Credit Exposures Conversion of Loans to Repossessed Assets Represents the monetary amount of Conversion of Loans to Repossessed Assets, during the indicated time period. Decrease in cash and cash equivalents Net cash (used in) provided by financing activities Change in Unrealized Loss on Available for Sale Securities Represents the monetary amount of Change in Unrealized Loss on Available for Sale Securities, during the indicated time period. Telecommunications expense Deposits {1} Deposits INTEREST EXPENSE: SEC Form Registrant Name Fiscal Year End Deferred Tax Assets Provision for Losses on Loans Represents the monetary amount of Deferred Tax Assets Provision for Losses on Loans, as of the indicated date. Operating Leases, Future Minimum Payments, Remainder of Fiscal Year Asset Class Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest Impaired Financing Receivable With and Without Related Allowance Recorded Investment Represents the monetary amount of Impaired Financing Receivable With and Without Related Allowance Recorded Investment, as of the indicated date. Financing Receivables Past Due Represents the Financing Receivables Past Due, during the indicated time period. Financial Asset, Period Past Due [Axis] Credit Risk Profile {1} Credit Risk Profile Represents the monetary amount of Credit Risk Profile, as of the indicated date. Purchased Credit Deteriorated Loans Represents the monetary amount of Purchased Credit Deteriorated Loans, as of the indicated date. Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment Beginning of Period Represents the Beginning of Period, during the indicated time period. Number of Loans Modified for Other Than TDR Represents the pure numeric value of Number of Loans Modified for Other Than TDR, as of the indicated date. Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value Investment Type [Axis] Core Deposits and Intangible Assets, Remaining Amortization Period Represents the description of Core Deposits and Intangible Assets, Remaining Amortization Period, during the indicated time period. Schedule of Future Minimum Rental Payments for Operating Leases Repurchase Agreements, Collateral, Policy Use of Estimates Policy Note 9: 401(k) Retirement Plan Note 3: Securities Purchases of available-for-sale securities Purchases of available-for-sale securities Gain (loss) on Loans Held for Sale Gain (loss) on Loans Held for Sale Represents the monetary amount of Gain (loss) on Loans Held for Sale, during the indicated time period. Concentration Risk Benchmark [Axis] Basic earnings per common share Provision (credit) for off balance sheet credit exposure Represents the monetary amount of Provision (credit) for off balance sheet credit exposure, during the indicated time period. Investment securities Local Phone Number Shell Company Current with reporting Trading Symbol Investment in Stock of Federal Reserve Bank of St. Louis Represents the Investment in Stock of Federal Reserve Bank of St. Louis, during the indicated time period. Accrued interest payable {2} Accrued interest payable Represents the Accrued interest payable, during the indicated time period. Marketable discount Represents the Marketable discount, during the indicated time period. ROU assets obtained in exchange for operating lease obligations: Right of Use Asset, Operating Leases Represents the monetary amount of Right of Use Asset, Operating Leases, as of the indicated date. Consolidated Entities Impaired Financing Receivable, Average Recorded Investment Impaired Financing Receivable, with No Related Allowance, Recorded Investment Doubtful Substandard Statistical Measurement Construction Loans Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five Available For Sale Securities Gross Unrealized Losses Represents the monetary amount of Available For Sale Securities Gross Unrealized Losses, as of the indicated date. Consumer Loan Finite-Lived Core Deposits, Gross Financing Receivable Credit Quality Indicators Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value {1} Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value Commercial Business Lending Policy Represents the textual narrative disclosure of Commercial Business Lending Policy, during the indicated time period. Construction Lending Policy Represents the textual narrative disclosure of Construction Lending Policy, during the indicated time period. Income Tax, Policy Bank Owned Life Insurance Policy Represents the textual narrative disclosure of Bank Owned Life Insurance Policy, during the indicated time period. Purchases of premises and equipment Purchases of premises and equipment Statement [Line Items] Foreclosed property expenses/losses Data processing expense Loan Servicing Fees Represents the monetary amount of Loan Servicing Fees, during the indicated time period. 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MO 43-1665523 2991 Oak Grove Road Poplar Bluff MO 63901 573 778-1800 Common SMBC NASDAQ Yes Yes Accelerated Filer false false false 0.01 9119154 41875000 54245000 975000 974000 175528000 176524000 6939000 6390000 5017000 4363000 35084000 25139000 2150463000 2141929000 13766000 12116000 64430000 65106000 43644000 43363000 14089000 14089000 7493000 7700000 16515000 15358000 2540734000 2542157000 2168074000 2184847000 85637000 70024000 10478000 12151000 1402000 1646000 15168000 15142000 2280759000 2283810000 0.01 0.01 25000000 25000000 9344574 9345339 93000 93000 95058000 95035000 167175000 165709000 6937000 6937000 4586000 4447000 259975000 258347000 2540734000 2542157000 25907000 25640000 490000 520000 534000 716000 41000 46000 26972000 26922000 4390000 6578000 380000 522000 0 37000 138000 225000 4908000 7362000 22064000 19560000 774000 896000 21290000 18664000 1339000 1423000 830000 751000 141000 146000 310000 130000 327000 243000 1206000 273000 280000 254000 508000 270000 4941000 3490000 7720000 7125000 1970000 1852000 1062000 885000 315000 320000 201000 0 198000 184000 230000 309000 193000 183000 380000 441000 50000 48000 226000 -146000 953000 1149000 13498000 12350000 12733000 9804000 2747000 1976000 9986000 7828000 1.09 0.85 1.09 0.85 0.15 0.15 9986000 7828000 179000 263000 -40000 -56000 139000 207000 10125000 8035000 93000 95035000 165709000 -6937000 4447000 258347000 -7151000 -7151000 9986000 9986000 139000 139000 1369000 1369000 23000 23000 93000 95058000 167175000 -6937000 4586000 259975000 93000 94541000 143677000 -1166000 1247000 238392000 7828000 7828000 207000 207000 1382000 1382000 17000 17000 14000 14000 2814000 2814000 93000 94572000 150123000 -3980000 1454000 242262000 9986000 7828000 1011000 920000 26000 -2000 23000 31000 36000 10000 380000 441000 -281000 -492000 -281000 -254000 774000 896000 452000 264000 47888000 10132000 45300000 9986000 1206000 273000 -1650000 -1459000 849000 -2638000 -1392000 276000 14000 6000 -245000 -199000 5908000 5209000 -14163000 -28472000 -2000 -1000 15715000 11041000 -335000 0 654000 2500000 14992000 16512000 453000 1687000 1051000 10000 71000 13000 129000 275000 -15735000 -37853000 10311000 -8949000 -27073000 -12200000 0 -4376000 34800000 147550000 19212000 89162000 0 -2814000 1369000 1382000 -2543000 28667000 -12370000 -3977000 54245000 35400000 41875000 31423000 69000 365000 0 59000 22000 1996000 678000 964000 1793000 2856000 <p style="font:10pt Calibri;margin:0;text-align:justify">Note 1:  <span style="border-bottom:1px solid #000000">Basis of Presentation</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company as of June 30, 2020, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three-month period ended September 30, 2020, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2020 Form 10-K, which was filed with the SEC.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Southern Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.</p> <p style="font:10pt Calibri;margin:0;text-align:justify">Note 2:  <span style="border-bottom:1px solid #000000">Organization and Summary of Significant Accounting Policies</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Organization.</b> Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities.  SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC.  Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At September 30, 2020, assets of the REIT were approximately $877 million, and consisted primarily of loan participations acquired from the Bank.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Basis of Financial Statement Presentation.</b> The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Principles of Consolidation.</b> The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Use of Estimates.</b> The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;color:#212529;text-align:justify">On July 1, 2020,<span style="color:#000000"> the Company adopted ASU 2016-13, <i>Financial Instruments – Credit Losses</i>, also known as the current expected credit loss (“CECL”) standard, </span>which created material changes to the existing critical accounting policy that existed at June 30, 2020<i>. </i>Effective July 1, 2020 through<i> </i>September 30, 2020<i>, </i>the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Cash and Cash Equivalents.</b><i> </i>For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $4.2 million and $6.9 million at September 30 and June 30, 2020, respectively. The deposits are held in various commercial banks with a total of $303,000 and $319,000 exceeding the FDIC’s deposit insurance limits at September 30 and June 30, 2020, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Interest-bearing Time Deposits. </b>Interest bearing deposits in banks mature within seven years and are carried at cost.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Available for Sale Securities.</b><i> </i>Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income, a component of stockholders’ equity. All securities have been classified as available for sale.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company does not invest in collateralized mortgage obligations that are considered high risk.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At adoption, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2020, and June 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Federal Reserve Bank and Federal Home Loan Bank Stock. </b>The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Loans. </b>Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.  The Company complies with regulatory guidance which indicates that loans should be placed on nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. At September 30, 2020, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at September 30, 2020. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools.  The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically. </p> <p style="font:10pt Times New Roman;margin:0;color:#212529"> </p> <p style="font:10pt Calibri;margin:0">Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk. </p> <p style="font:10pt Times New Roman;margin:0;color:#212529"> </p> <p style="font:10pt Calibri;margin:0">Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received).</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.  </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Off-Balance Sheet Credit Exposures.  </b> Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.  The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets.  The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense for off-balance sheet credit exposures included in other non-interest expense in the Company’s consolidated statements of income.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Foreclosed Real Estate. </b>Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis.  Costs for development and improvement of the property are capitalized.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Premises and Equipment.</b> Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Bank Owned Life Insurance.</b> Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value.  Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Goodwill.</b><span style="font-family:Times New Roman"> </span>The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2020, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the decline in the market value of the Company’s common stock, relative to peers; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.  The Company believes there continues to be no impairment of goodwill at September 30, 2020.</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0"><b>Intangible Assets.</b>  The Company’s intangible assets at September 30, 2020 included gross core deposit intangibles of $15.3 million with $9.0 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.3 million.  At June 30, 2020, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $8.7 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.1 million.  The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.0 million in the remainder of fiscal 2021, $1.4 million in fiscal 2022 through fiscal 2024, and $807,000 million in fiscal 2025, and $328,000 thereafter. As of June 30, 2020, there was no impairment indicated, and the Company believes there continues to be no impairment of other intangible assets at September 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Income Taxes. </b>The Company accounts for income taxes in accordance with income tax accounting guidance (ASC </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company recognizes interest and penalties on income taxes as a component of income tax expense.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company files consolidated income tax returns with its subsidiary.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Incentive Plans.</b> The Company accounts for its Management and Recognition Plan (MRP), Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.”  Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Outside Directors’ Retirement.  </b><i> </i>The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Stock Options.</b> Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Earnings Per Share.</b><i> </i>Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Comprehensive Income.</b> Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities, and changes in the funded status of defined benefit pension plans.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Transfers Between Fair Value Hierarchy Levels.  </b>Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>The following paragraphs summarize the impact of new accounting pronouncements: </b></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures.  Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020.  The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACI model and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million.  In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.  On July 1, 2020, the amortized cost basis of the PCD loans were increased to reflect the addition of $434,000 to the ACL.  The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table illustrates the impact of adoption of ASU 2016-13: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:439.85pt"><tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:250.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">July 1, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Impact of</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">under</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">prior to </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">adoption</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:83.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"/><td style="width:83.6pt" valign="bottom"/><td style="width:83.4pt" valign="bottom"/><td style="width:83.05pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Loans receivable</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $              2,142,363 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $              2,141,929 </span></p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $                         434 </span></p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Allowance for credit losses on loans: </p> </td><td style="width:83.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       8,396 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       4,875 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       3,521 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,889 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,010 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                          (121)</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       15,988 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       12,132 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         3,856 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,247 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,182 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,065 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         5,952 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         4,940 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,012 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on loans</p> </td><td style="width:83.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    34,472 </p> </td><td style="width:83.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    25,139 </p> </td><td style="width:83.05pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      9,333 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on<br/>     off-balance sheet credit exposures</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      2,227 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      1,959 </p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                         268 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;color:#000000">The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Organization.</b> Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities.  SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC.  Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At September 30, 2020, assets of the REIT were approximately $877 million, and consisted primarily of loan participations acquired from the Bank.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Basis of Financial Statement Presentation.</b> The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.</p> MO 877000000 <p style="font:10pt Calibri;margin:0"><b>Principles of Consolidation.</b> The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.</p> <p style="font:10pt Calibri;margin:0"><b>Use of Estimates.</b> The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;color:#212529;text-align:justify">On July 1, 2020,<span style="color:#000000"> the Company adopted ASU 2016-13, <i>Financial Instruments – Credit Losses</i>, also known as the current expected credit loss (“CECL”) standard, </span>which created material changes to the existing critical accounting policy that existed at June 30, 2020<i>. </i>Effective July 1, 2020 through<i> </i>September 30, 2020<i>, </i>the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.</p> <p style="font:10pt Calibri;margin:0"><b>Cash and Cash Equivalents.</b><i> </i>For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $4.2 million and $6.9 million at September 30 and June 30, 2020, respectively. The deposits are held in various commercial banks with a total of $303,000 and $319,000 exceeding the FDIC’s deposit insurance limits at September 30 and June 30, 2020, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.</p> <p style="font:10pt Calibri;margin:0"><b>Interest-bearing Time Deposits. </b>Interest bearing deposits in banks mature within seven years and are carried at cost.</p> <p style="font:10pt Calibri;margin:0"><b>Available for Sale Securities.</b><i> </i>Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income, a component of stockholders’ equity. All securities have been classified as available for sale.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company does not invest in collateralized mortgage obligations that are considered high risk.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At adoption, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2020, and June 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.</p> <p style="font:10pt Calibri;margin:0"><b>Federal Reserve Bank and Federal Home Loan Bank Stock. </b>The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.</p> <p style="font:10pt Calibri;margin:0"><b>Loans. </b>Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.  The Company complies with regulatory guidance which indicates that loans should be placed on nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. At September 30, 2020, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at September 30, 2020. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools.  The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically. </p> <p style="font:10pt Times New Roman;margin:0;color:#212529"> </p> <p style="font:10pt Calibri;margin:0">Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk. </p> <p style="font:10pt Times New Roman;margin:0;color:#212529"> </p> <p style="font:10pt Calibri;margin:0">Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received).</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.  </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.</p> <p style="font:10pt Calibri;margin:0"><b>Off-Balance Sheet Credit Exposures.  </b> Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.  The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets.  The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense for off-balance sheet credit exposures included in other non-interest expense in the Company’s consolidated statements of income.</span></p> <p style="font:10pt Calibri;margin:0"><b>Foreclosed Real Estate. </b>Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis.  Costs for development and improvement of the property are capitalized.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.</p> <p style="font:10pt Calibri;margin:0"><b>Premises and Equipment.</b> Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.</p> <p style="font:10pt Calibri;margin:0"><b>Bank Owned Life Insurance.</b> Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value.  Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.</p> <p style="font:10pt Calibri;margin:0"><b>Goodwill.</b><span style="font-family:Times New Roman"> </span>The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2020, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the decline in the market value of the Company’s common stock, relative to peers; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.  The Company believes there continues to be no impairment of goodwill at September 30, 2020.</p> <p style="font:10pt Calibri;margin:0"><b>Intangible Assets.</b>  The Company’s intangible assets at September 30, 2020 included gross core deposit intangibles of $15.3 million with $9.0 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.3 million.  At June 30, 2020, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $8.7 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.1 million.  The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.0 million in the remainder of fiscal 2021, $1.4 million in fiscal 2022 through fiscal 2024, and $807,000 million in fiscal 2025, and $328,000 thereafter. As of June 30, 2020, there was no impairment indicated, and the Company believes there continues to be no impairment of other intangible assets at September 30, 2020.</p> 15300000 9000000.0 3800000 3800000 1300000 15300000 8700000 3800000 3800000 1100000 five to seven years 1000000.0 1400000 1400000 1400000 1400000 807000 328000 0 <p style="font:10pt Calibri;margin:0"><b>Income Taxes. </b>The Company accounts for income taxes in accordance with income tax accounting guidance (ASC </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company recognizes interest and penalties on income taxes as a component of income tax expense.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company files consolidated income tax returns with its subsidiary.</p> <p style="font:10pt Calibri;margin:0"><b>Incentive Plans.</b> The Company accounts for its Management and Recognition Plan (MRP), Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.”  Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.</p> <p style="font:10pt Calibri;margin:0"><b>Outside Directors’ Retirement.  </b><i> </i>The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.</p> <p style="font:10pt Calibri;margin:0"><b>Stock Options.</b> Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award. </p> <p style="font:10pt Calibri;margin:0"><b>Earnings Per Share.</b><i> </i>Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.</p> <p style="font:10pt Calibri;margin:0"><b>Comprehensive Income.</b> Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities, and changes in the funded status of defined benefit pension plans.</p> <p style="font:10pt Calibri;margin:0"><b>Transfers Between Fair Value Hierarchy Levels.  </b>Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.</p> <p style="font:10pt Calibri;margin:0"><b>The following paragraphs summarize the impact of new accounting pronouncements: </b></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures.  Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020.  The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACI model and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million.  In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.  On July 1, 2020, the amortized cost basis of the PCD loans were increased to reflect the addition of $434,000 to the ACL.  The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table illustrates the impact of adoption of ASU 2016-13: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:439.85pt"><tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:250.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">July 1, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Impact of</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">under</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">prior to </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">adoption</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:83.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"/><td style="width:83.6pt" valign="bottom"/><td style="width:83.4pt" valign="bottom"/><td style="width:83.05pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Loans receivable</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $              2,142,363 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $              2,141,929 </span></p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $                         434 </span></p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Allowance for credit losses on loans: </p> </td><td style="width:83.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       8,396 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       4,875 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       3,521 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,889 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,010 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                          (121)</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       15,988 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       12,132 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         3,856 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,247 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,182 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,065 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         5,952 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         4,940 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,012 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on loans</p> </td><td style="width:83.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    34,472 </p> </td><td style="width:83.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    25,139 </p> </td><td style="width:83.05pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      9,333 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on<br/>     off-balance sheet credit exposures</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      2,227 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      1,959 </p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                         268 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;color:#000000">The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:439.85pt"><tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:250.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">July 1, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">As reported </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Impact of</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">under</p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">prior to </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">adoption</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:83.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td><td style="width:83.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">ASU 2016-13</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"/><td style="width:83.6pt" valign="bottom"/><td style="width:83.4pt" valign="bottom"/><td style="width:83.05pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Loans receivable</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $              2,142,363 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $              2,141,929 </span></p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font:9pt Calibri"> $                         434 </span></p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Allowance for credit losses on loans: </p> </td><td style="width:83.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt;border-top:3px double #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       8,396 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       4,875 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       3,521 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,889 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,010 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                          (121)</p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       15,988 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       12,132 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         3,856 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         2,247 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,182 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,065 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:83.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         5,952 </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         4,940 </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                         1,012 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on loans</p> </td><td style="width:83.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    34,472 </p> </td><td style="width:83.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                    25,139 </p> </td><td style="width:83.05pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      9,333 </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:83.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:83.05pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:189.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total allowance for credit losses on<br/>     off-balance sheet credit exposures</p> </td><td style="width:83.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      2,227 </p> </td><td style="width:83.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      1,959 </p> </td><td style="width:83.05pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                         268 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 8396000 4875000 3521000 1889000 2010000 -121000 15988000 12132000 3856000 2247000 1182000 1065000 5952000 4940000 1012000 34472000 25139000 9333000 2227000 1959000 268000 <p style="font:10pt Calibri;margin:0">Note 3:  <span style="border-bottom:1px solid #000000">Securities</span> </p> <p style="font:10pt Calibri;margin:0"><span style="border-bottom:1px solid #000000"> </span> </p> <p style="font:10pt Calibri;margin:0">The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and approximate fair value of securities available for sale consisted of the following:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:572.55pt;margin-left:-48.6pt"><tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="5" style="width:353.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:72pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Allowance</p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">for </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Cost</p> </td><td style="width:74.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gains</p> </td><td style="width:70.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:65.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Credit Losses</p> </td><td style="width:71.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Value</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"/><td style="width:72pt" valign="bottom"/><td style="width:74.1pt" valign="bottom"/><td style="width:70.95pt" valign="bottom"/><td style="width:65.35pt" valign="bottom"/><td style="width:71.35pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Investment and mortgage backed securities:</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:65.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  State and political subdivisions</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             42,880 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               1,608 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                    (1)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             44,487 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  9,358 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     169 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                   (327)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                         - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  9,200 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed GSE residential</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              117,366 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  4,518 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     (43)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                         - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              121,841 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:72pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           169,604 </p> </td><td style="width:74.1pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               6,295 </p> </td><td style="width:70.95pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                (371)</p> </td><td style="width:65.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:71.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           175,528 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:528pt;margin-left:-53.1pt"><tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:303pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:74.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:74.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Cost</p> </td><td style="width:75.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gains</p> </td><td style="width:76.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:76.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Value</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"/><td style="width:74.5pt" valign="bottom"/><td style="width:75.55pt" valign="bottom"/><td style="width:76.35pt" valign="bottom"/><td style="width:76.6pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Investment and mortgage backed securities:</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  State and political subdivisions</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             40,486 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               1,502 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             41,988 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  7,919 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       48 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                   (343)</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  7,624 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed GSE residential</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              122,375 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  4,576 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     (39)</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              126,912 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:74.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           170,780 </p> </td><td style="width:75.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               6,126 </p> </td><td style="width:76.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                (382)</p> </td><td style="width:76.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           176,524 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:402.8pt"><tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">Cost</span></p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">Fair Value</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   Within one year</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                     1,370 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $           1,398 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After one year but less than five years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      10,341 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            10,525 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After five years but less than ten years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      17,180 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            17,689 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After ten years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      23,347 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            24,075 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Total investment securities</p> </td><td style="width:96pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      52,238 </p> </td><td style="width:70pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            53,687 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   Mortgage-backed securities</p> </td><td style="width:96pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                    117,366 </p> </td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">          121,841 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:96pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 169,604 </p> </td><td style="width:70pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $       175,528 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $146.2 million at September 30, 2020 and $156.1 million at June 30, 2020.  The securities pledged consist of marketable securities, including $77.3 million and $82.0 million of Mortgage-Backed Securities, $34.9 million and $41.9 million of Collateralized Mortgage Obligations, $33.0 million and $32.0 million of State and Political Subdivisions Obligations, and $1.0 million and $200,000 of Other Securities at September 30 and June 30, 2020, respectively.</p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at September 30 and June 30, 2020:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:531.65pt"><tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:306.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:108.2pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Less than 12 months</p> </td><td colspan="2" style="width:99.35pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">12 months or more</p> </td><td colspan="3" style="width:98.8pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:49.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:58.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:49.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:48.85pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:49.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:58.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:48.85pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"/><td style="width:49.7pt" valign="bottom"/><td style="width:58.5pt" valign="bottom"/><td style="width:49.5pt" valign="bottom"/><td colspan="2" style="width:50.15pt" valign="bottom"/><td style="width:48.85pt" valign="bottom"/><td colspan="2" style="width:50.15pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Obligations of state and political subdivisions</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        531 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            1 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $             - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $             - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        531 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            1 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           839 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           327 </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           839 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           327 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        8,368 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             43 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        8,368 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             43 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">    Total investments and mortgage-backed securities</p> </td><td style="width:49.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     8,899 </p> </td><td style="width:58.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $          44 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        839 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        327 </p> </td><td style="width:48.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     9,738 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        371 </p> </td></tr> </table> <p style="font:10pt Times New Roman;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:531.65pt"><tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:306.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:108.2pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Less than 12 months</p> </td><td colspan="2" style="width:99.35pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">12 months or more</p> </td><td colspan="3" style="width:98.8pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:49.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:58.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:49.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:48.85pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:49.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:58.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:48.85pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"/><td style="width:49.7pt" valign="top"/><td style="width:58.5pt" valign="top"/><td style="width:49.5pt" valign="top"/><td colspan="2" style="width:50.15pt" valign="top"/><td style="width:48.85pt" valign="top"/><td colspan="2" style="width:50.15pt" valign="top"/></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        995 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            5 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        643 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        338 </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     1,638 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        343 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        9,037 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             39 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        9,037 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             39 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">    Total investments and mortgage-backed securities</p> </td><td style="width:49.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $   10,032 </p> </td><td style="width:58.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $          44 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        643 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        338 </p> </td><td style="width:48.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $   10,675 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        382 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Mortgage-backed securities</i>. The unrealized losses on the Company’s investments in mortgage-backed securities were caused by variations in market interest rates since purchase or acquisition. The securities are of high credit quality (AA or higher). Because the Company does not intend to sell these securities and it likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Other securities.  </i>At September 30, 2020 there were two pooled trust preferred securities with an estimated fair value of $654,000 and unrealized losses of $322,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The September 30, 2020, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company does not believe any other individual unrealized loss as of September 30, 2020, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Credit losses recognized on investments.</i>  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three-month periods ended September 30, 2020 and 2019.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:572.55pt;margin-left:-48.6pt"><tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="5" style="width:353.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:72pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Allowance</p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">for </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Cost</p> </td><td style="width:74.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gains</p> </td><td style="width:70.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:65.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Credit Losses</p> </td><td style="width:71.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Value</p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"/><td style="width:72pt" valign="bottom"/><td style="width:74.1pt" valign="bottom"/><td style="width:70.95pt" valign="bottom"/><td style="width:65.35pt" valign="bottom"/><td style="width:71.35pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Investment and mortgage backed securities:</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:65.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  State and political subdivisions</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             42,880 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               1,608 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                    (1)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             44,487 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  9,358 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     169 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                   (327)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                         - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  9,200 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed GSE residential</p> </td><td style="width:72pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              117,366 </p> </td><td style="width:74.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  4,518 </p> </td><td style="width:70.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     (43)</p> </td><td style="width:65.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                         - </p> </td><td style="width:71.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              121,841 </p> </td></tr> <tr style="height:7.2pt"><td style="width:218.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:72pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           169,604 </p> </td><td style="width:74.1pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               6,295 </p> </td><td style="width:70.95pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                (371)</p> </td><td style="width:65.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:71.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           175,528 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:528pt;margin-left:-53.1pt"><tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:303pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:74.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gross</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:74.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Cost</p> </td><td style="width:75.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Gains</p> </td><td style="width:76.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:76.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Value</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"/><td style="width:74.5pt" valign="bottom"/><td style="width:75.55pt" valign="bottom"/><td style="width:76.35pt" valign="bottom"/><td style="width:76.6pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Investment and mortgage backed securities:</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  State and political subdivisions</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             40,486 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               1,502 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      - </p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $             41,988 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  7,919 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       48 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                   (343)</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  7,624 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed GSE residential</p> </td><td style="width:74.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              122,375 </p> </td><td style="width:75.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                  4,576 </p> </td><td style="width:76.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     (39)</p> </td><td style="width:76.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0">              126,912 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:74.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           170,780 </p> </td><td style="width:75.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $               6,126 </p> </td><td style="width:76.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                (382)</p> </td><td style="width:76.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $           176,524 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 42880000 1608000 -1000 0 44487000 9358000 169000 -327000 0 9200000 117366000 4518000 -43000 0 121841000 169604000 6295000 -371000 0 175528000 40486000 1502000 0 41988000 7919000 48000 -343000 7624000 122375000 4576000 -39000 126912000 170780000 6126000 -382000 176524000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:402.8pt"><tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Amortized</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Estimated</p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">Cost</span></p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">Fair Value</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   Within one year</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                     1,370 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $           1,398 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After one year but less than five years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      10,341 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            10,525 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After five years but less than ten years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      17,180 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            17,689 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   After ten years</p> </td><td style="width:96pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      23,347 </p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            24,075 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">      Total investment securities</p> </td><td style="width:96pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                      52,238 </p> </td><td style="width:70pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">            53,687 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">   Mortgage-backed securities</p> </td><td style="width:96pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                    117,366 </p> </td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">          121,841 </p> </td></tr> <tr style="height:7.2pt"><td style="width:236.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">     Total investment and mortgage-backed securities</p> </td><td style="width:96pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 169,604 </p> </td><td style="width:70pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $       175,528 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 1370000 1398000 10341000 10525000 17180000 17689000 23347000 24075000 52238000 53687000 117366000 121841000 169604000 175528000 <p style="font:10pt Calibri;margin:0">The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $146.2 million at September 30, 2020 and $156.1 million at June 30, 2020.  The securities pledged consist of marketable securities, including $77.3 million and $82.0 million of Mortgage-Backed Securities, $34.9 million and $41.9 million of Collateralized Mortgage Obligations, $33.0 million and $32.0 million of State and Political Subdivisions Obligations, and $1.0 million and $200,000 of Other Securities at September 30 and June 30, 2020, respectively.</p> 146200000 156100000 77300000 82000000.0 34900000 41900000 33000000.0 32000000.0 1000000.0 200000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:531.65pt"><tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:306.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:108.2pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Less than 12 months</p> </td><td colspan="2" style="width:99.35pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">12 months or more</p> </td><td colspan="3" style="width:98.8pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:49.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:58.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:49.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:48.85pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:49.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:58.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:48.85pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"/><td style="width:49.7pt" valign="bottom"/><td style="width:58.5pt" valign="bottom"/><td style="width:49.5pt" valign="bottom"/><td colspan="2" style="width:50.15pt" valign="bottom"/><td style="width:48.85pt" valign="bottom"/><td colspan="2" style="width:50.15pt" valign="bottom"/></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Obligations of state and political subdivisions</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        531 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            1 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $             - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $             - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        531 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            1 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           839 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           327 </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           839 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">           327 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        8,368 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             43 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        8,368 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             43 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">    Total investments and mortgage-backed securities</p> </td><td style="width:49.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     8,899 </p> </td><td style="width:58.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $          44 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        839 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        327 </p> </td><td style="width:48.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     9,738 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        371 </p> </td></tr> </table> <p style="font:10pt Times New Roman;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:531.65pt"><tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:306.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:108.2pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Less than 12 months</p> </td><td colspan="2" style="width:99.35pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">12 months or more</p> </td><td colspan="3" style="width:98.8pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:49.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:58.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:49.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td><td style="width:48.85pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td colspan="2" style="width:50.15pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Unrealized</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:49.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:58.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td><td style="width:48.85pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td colspan="2" style="width:50.15pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">Losses</p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"/><td style="width:49.7pt" valign="top"/><td style="width:58.5pt" valign="top"/><td style="width:49.5pt" valign="top"/><td colspan="2" style="width:50.15pt" valign="top"/><td style="width:48.85pt" valign="top"/><td colspan="2" style="width:50.15pt" valign="top"/></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Other securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        995 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            5 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        643 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        338 </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $     1,638 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        343 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">  Mortgage-backed securities</p> </td><td style="width:49.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        9,037 </p> </td><td style="width:58.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             39 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                - </p> </td><td style="width:48.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">        9,037 </p> </td><td colspan="2" style="width:50.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">             39 </p> </td></tr> <tr style="height:7.2pt"><td style="width:224.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0">    Total investments and mortgage-backed securities</p> </td><td style="width:49.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $   10,032 </p> </td><td style="width:58.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $          44 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        643 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        338 </p> </td><td style="width:48.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $   10,675 </p> </td><td colspan="2" style="width:50.15pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $        382 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 531000 1000 0 0 531000 1000 0 0 839000 327000 839000 327000 8368000 43000 0 0 8368000 43000 8899000 44000 839000 327000 9738000 371000 995000 5000 643000 338000 1638000 343000 9037000 39000 0 0 9037000 39000 10032000 44000 643000 338000 10675000 382000 <p style="font:10pt Calibri;margin:0"><i>Other securities.  </i>At September 30, 2020 there were two pooled trust preferred securities with an estimated fair value of $654,000 and unrealized losses of $322,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The September 30, 2020, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company does not believe any other individual unrealized loss as of September 30, 2020, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio. </p> 2 654000 322000 <p style="font:10pt Calibri;margin:0"><i>Credit losses recognized on investments.</i>  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three-month periods ended September 30, 2020 and 2019.</p> <p style="font:10pt Calibri;margin:0">Note 4:  <span style="border-bottom:1px solid #000000">Loans and Allowance for Credit Losses</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Classes of loans are summarized as follows:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:403.75pt"><tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000"><b> September 30, 2020</b></span></p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:82.5pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      635,718 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               627,357 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         207,737 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  185,924 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         884,835 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  887,419 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                           80,906 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                    80,767 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:96.25pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         481,582 </p> </td><td style="width:82.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  468,448 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"/><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                      2,290,778 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">               2,249,915 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Loans in process</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                       (101,392)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                   (78,452)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Deferred loan fees, net</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                           (3,839)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     (4,395)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Allowance for credit losses</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         (35,084)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                   (25,139)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Total loans</p> </td><td style="width:96.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                   2,150,463 </p> </td><td style="width:82.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $            2,141,929 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At September 30, 2020, the Bank had purchased participations in 22 loans totaling $55.7 million, as compared to 23 loans totaling $58.2 million at June 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Residential Mortgage Lending. </i>The Company actively originates loans for the acquisition or refinance of one- to four-family residences.  This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied.  Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property.  Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area.  The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Commercial Real Estate Lending. </i>The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Construction Lending. </i>The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multifamily or commercial construction loans typically mature in 12 to 24 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At September 30, 2020, construction loans outstanding included 78 loans, totaling $36.1 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above.  As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs).  Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included drawn balances of $4.4 million in construction loans which were modified at the borrower’s request due to the current situation of heightened economic uncertainty triggered by the pandemic. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Consumer Lending</i>. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable.  Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Commercial Business Lending</i>. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Allowance for Credit Losses. </i>The provision for credit losses for the three-month period ended September 30, 2020, was $774,000, relatively low as compared to earlier quarters in calendar year 2020, or as compared to the same period of the prior fiscal year. The charge was based on the estimated required ACL, reflecting management’s estimate of the current expected credit losses in the Company’s loan portfolio at September 30, 2020, and as of that date the Company’s ACL was $35.1 million. The relatively low provision was attributable primarily to the current quarter’s relatively low loan growth and stable credit quality indicators quarter-over-quarter. While uncertainty remains regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, the Company assesses that the economic outlook is little changed as compared to June 30, 2020. However, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and the Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be somewhat offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following tables present the balance in the ACL and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment as of September 30 and June 30, 2020, and activity in the ACL and ALLL for the three-month periods ended September 30, 2020 and 2019:</p> <p style="font:12pt Courier;margin:0"> </p> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At period end and for the three months ended <span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for credit losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, beginning of period<br/>           prior to adoption of CECL</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               4,875 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,010 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             12,132 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,182 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               4,940 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Impact of CECL adoption</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  3,521 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (121)</p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  3,856 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                1,065 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    1,012 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  9,333 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision charged to expense</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     252 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         3 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       61 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       61 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     397 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     774 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Losses charged off</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     (19)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       (6)</p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (145)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (170)</p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Recoveries</p> </td><td style="width:72.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         1 </p> </td><td style="width:72.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         3 </p> </td><td style="width:73.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         4 </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         8 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $            8,629 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,892 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             16,050 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,305 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,208 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             35,084 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At period end and for the three months ended <span style="border-bottom:1px solid #000000">September 30, 2019</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for loan losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, beginning of period</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,706 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,365 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,399 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,046 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,387 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             19,903 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision charged to expense</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                   (134)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     174 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     376 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       96 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     384 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     896 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Losses charged off</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     (72)</p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     (35)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                   (107)</p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Recoveries</p> </td><td style="width:72.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       14 </p> </td><td style="width:72.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         4 </p> </td><td style="width:73.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,572 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,539 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,789 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,074 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,736 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             20,710 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,572 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,539 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,789 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,074 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,736 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             20,710 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At <span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for loan losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,875 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               2,010 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             12,132 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,182 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,940 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,875 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               2,010 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             12,132 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,182 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,940 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Loans:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           626,085 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           106,194 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           872,716 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,767 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           463,902 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $        2,149,664 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,272 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,278 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             14,703 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,546 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             21,799 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Included in the Company’s loan portfolio are certain loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination, which are considered purchased credit deteriorated (PCD) loans. Prior to the July 1, 2020 adoption of ASU 2016-13, these loans were accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were described as purchased credit impaired (PCI) loans. Under ASC 310-30, these loans were written down at acquisition to an amount estimated to be collectible, and, unless there was further deterioration following the acquisition, an ALLL was not recognized for these loans. As a result, certain historical ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s credit quality over time. The ratios particularly affected by accounting under ASC 310-30 include the allowance as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. For more information about the transition from PCI to PCD status of the Company’s acquired loans, see Note 2: <i>Organization and Summary of Significant Accounting Policies</i>, <i>Loans</i>.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><span style="font-family:Times New Roman"><i>Credit Quality Indicators</i>. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of </span></p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Times New Roman">single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:</span></p> <p style="font:10pt Times New Roman;margin:0;text-indent:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Watch </i>– Loans classified as watch exhibit weaknesses that require more than usual monitoring.  Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Special Mention</i> – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days.  This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Substandard</i> – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding.  These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Doubtful</i> – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt">Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be <i>Pass</i> rated loans. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades.  The primary responsibility for this review rests with loan administration personnel.  This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies.  The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of September 30, 2020. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:567pt"><tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Revolving</p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"/><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2021</p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2020</p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2019</p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2018</p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2017</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Prior</p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">loans</p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Residential Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 123,469 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 225,522 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   65,243 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   53,150 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,183 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 117,755 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     5,416 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    628,738 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           125 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           122 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           419 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             98 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           876 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           1,640 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             14 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             24 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                38 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           145 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           1,007 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           227 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             73 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        3,818 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           5,270 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             32 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                32 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Residential Real Estate</p> </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 123,739 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 226,651 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   65,889 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   53,237 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,281 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 122,505 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     5,416 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    635,718 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Construction Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   42,502 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   52,358 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     6,914 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        205 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    101,979 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           417 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        3,949 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           4,366 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Construction Real Estate </p> </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   42,502 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   52,358 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,331 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     3,949 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        205 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    106,345 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Commercial Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   64,829 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 222,926 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 151,121 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 158,268 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   87,699 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 117,612 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   27,117 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    829,572 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           508 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        9,348 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      10,611 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        4,956 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      14,252 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,493 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           904 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         42,072 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,222 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        6,149 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           560 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           285 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,718 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,369 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         12,303 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           888 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              888 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Commercial Real Estate</p> </td><td style="width:52.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   66,559 </p> </td><td style="width:58pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 238,423 </p> </td><td style="width:52.35pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 163,180 </p> </td><td style="width:51pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 163,509 </p> </td><td style="width:53.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 104,669 </p> </td><td style="width:49.5pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 120,474 </p> </td><td style="width:49.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   28,021 </p> </td><td style="width:58.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    884,835 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:-0.7pt">Consumer</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,540 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   17,077 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,148 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     2,512 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     1,289 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        788 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   44,316 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $      80,670 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             42 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             15 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             41 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             25 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             42 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             71 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              236 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total Consumer</td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,540 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   17,119 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,163 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     2,553 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     1,314 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        830 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   44,387 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $      80,906 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Commercial</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   27,116 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 232,331 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   37,049 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   21,354 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   10,050 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   13,662 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 130,547 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    472,109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,009 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           162 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             64 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">               8 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             12 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,725 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           2,980 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             35 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,584 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,640 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           462 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           180 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">               8 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,584 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           6,493 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total Commercial </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   28,160 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 234,077 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,753 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   21,824 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   10,242 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   13,670 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 134,856 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    481,582 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total Loans</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 265,456 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 750,214 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 267,475 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 235,284 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 137,221 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 249,817 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 207,601 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 2,113,068 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,642 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        9,632 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      11,511 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        8,913 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      14,362 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,369 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,629 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         51,058 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             14 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             24 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                38 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,402 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        8,782 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,442 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           861 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,923 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        5,237 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,655 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         24,302 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           888 </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             32 </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              920 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total</td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 268,500 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 768,628 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 282,316 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 245,072 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 154,506 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 257,479 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 212,885 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 2,189,386 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At September 30, 2020, PCD loans comprised $5.6 million of credits rated “Pass”; $10.1 million of credits rated “Watch”; none rated “Special Mention”; $5.7 million of credits rated “Substandard”; and none rated “Doubtful”.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2020. This table includes PCI loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:489.05pt"><tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="5" style="width:384.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:86.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:69.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:70.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Consumer</p> </td><td style="width:73.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Pass</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   620,004 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           103,105 </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  829,276 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,517 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           457,385 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Watch</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          1,900 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  4,367 </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       45,262 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       45 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  4,708 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Special Mention</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                -   </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            403 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       25 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Substandard</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          5,453 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       11,590 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     180 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  6,355 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Doubtful</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                -   </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            888 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total</p> </td><td style="width:86.2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   627,357 </p> </td><td style="width:69.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           107,472 </p> </td><td style="width:83.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  887,419 </p> </td><td style="width:70.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,767 </p> </td><td style="width:73.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           468,448 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At June 30, 2020, PCI loans comprised $5.9 million of credits rated “Pass”; $10.3 million of credits rated “Watch”, none rated “Special Mention”, $5.6 million of credits rated “Substandard” and none rated “Doubtful”.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Past-due Loans</i>.  The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of September 30 and June 30, 2020.  These tables include PCD and PCI loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:589.4pt"><tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:498pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than 90</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">30-59 Days</p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">60-89 Days</p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">90 Days</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total Loans</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Days Past Due</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:73.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Current</p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Receivable</p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">and Accruing</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  974 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                    37 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,343 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,354 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           633,364 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           635,718 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     200 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     200 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              106,145 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              106,345 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,008 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         9 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     760 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,777 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              883,058 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              884,835 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     761 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       78 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     248 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,087 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                79,819 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,906 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     756 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     243 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     490 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,489 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              480,093 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              481,582 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               3,699 </p> </td><td style="width:69.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  367 </p> </td><td style="width:69.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,841 </p> </td><td style="width:69.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,907 </p> </td><td style="width:73.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,182,479 </p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,189,386 </p> </td><td style="width:74.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:589.4pt"><tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:498pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than 90</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">30-59 Days</p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">60-89 Days</p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">90 Days</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total Loans</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Days Past Due</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:73.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Current</p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Receivable</p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">and Accruing</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  772 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  378 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  654 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,804 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           625,553 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           627,357 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              107,472 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              107,472 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     641 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     327 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,073 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  2,041 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              885,378 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              887,419 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     180 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       53 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     193 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     426 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,341 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,767 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       93 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,219 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     810 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  2,122 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              466,326 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              468,448 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,686 </p> </td><td style="width:69.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,977 </p> </td><td style="width:69.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,730 </p> </td><td style="width:69.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,393 </p> </td><td style="width:73.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,165,070 </p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,171,463 </p> </td><td style="width:74.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Times New Roman;margin:0"><span style="font-family:Calibri">Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included $93.6 million in loans reported as current in the above table, none of which were past due.  Loans with such modifications in effect at June 30, 2020, included $380.1 million in loans reported as current in the above table, while an additional $29,000 of consumer loans and $1,000 in residential real estate loans with such modifications were reported as 30-59 days past due, and $66,000 of commercial loans with such modifications were reported as 60-89 days past due</span>.</p> <p style="font:10pt Times New Roman;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At September 30, and June 30, 2020 there were no PCD or PCI loans that were greater than 90 days past due.  </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Collateral-dependent Loans</i>. At September 30, 2020, there were no collateral-dependent loans that were individually evaluated to determine expected credit losses.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Impairment</i>. Prior to the July 1, 2020, adoption of ASU 2016-13, a loan was considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it was probable the Company would be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans included nonperforming loans, as well as performing loans modified in troubled debt restructurings where concessions were granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The table below presents impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2020. The table includes PCI loans at June 30, 2020 for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, continued to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would be less than the amount previously expected, the Company would allocate a specific allowance under the terms of ASC 310-10-35. </p> <p style="font:11pt Times New Roman;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:420.2pt"><tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:225.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Recorded</p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unpaid Principal</p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Specific</p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Balance</span></p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Balance</span></p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Allowance</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:350.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Loans without a specific valuation allowance:</p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,811 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,047 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,277 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,312 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                19,271 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                23,676 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  5,040 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  6,065 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">Loans with a specific valuation allowance:</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Construction real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Consumer loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total:</p> </td><td style="width:81.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:69.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,811 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,047 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Construction real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,277 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,312 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             19,271 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             23,676 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Consumer loans</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial loans</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               5,040 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               6,065 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At June 30, 2020, PCI loans comprised $21.8 million of impaired loans without a specific valuation allowance.</p> <p style="font:10pt Calibri;margin:0">The following table presents information regarding interest income recognized on impaired loans: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:294.85pt"><tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month period ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:166.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Average</p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Investment in</p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Interest Income</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"/><td style="width:86.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Impaired Loans</p> </td><td style="width:79.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Recognized</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Residential Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   1,677 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                         23 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Construction Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                      1,306 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            48 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Commercial Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                    17,721 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          335 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Consumer Loans </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              - </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                               - </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Commercial Loans </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                      5,812 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            93 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">    Total Loans </p> </td><td style="width:86.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                 26,516 </p> </td><td style="width:79.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                       499 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Interest income on impaired loans recognized on a cash basis in the three-month period ended September 30, 2019, was immaterial. For the three-month period ended September 30, 2019, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $83,000.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Nonaccrual Loans</i>. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at September 30 and June 30, 2020.  The table excludes performing TDRs.</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:303.6pt"><tr style="height:1pt"><td style="width:132.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:88.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:82.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Residential real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,339 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,010 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Construction real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  3,052 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  3,106 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     255 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     196 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,129 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,345 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:88.9pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               8,775 </p> </td><td style="width:82.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               8,657 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">At September 30, 2020, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three-month periods ended September 30, 2019 and 2020, was immaterial.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Troubled Debt Restructurings</i>. Prior to the July 1, 2020, adoption of ASU 2016-13, loans restructured as TDRs were included in certain loan categories classified as impaired loans, where economic concessions have been granted to borrowers who have experienced financial difficulties. Subsequent to the adoption of ASU 2016-13, TDRs are evaluated to determine whether they share similar risk characteristics with collectively evaluated loan pools, or must be individually evaluated. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. In general, the Company’s loans that have been subject to classification as TDRs are the result of guidance under ASU No. 2011-02, which indicates that the Company may not consider the borrower’s effective borrowing rate on the old debt immediately before the restructuring in determining whether a concession has been granted. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">During the three-month periods ended September 30, 2020 and 2019, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below:</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:416.6pt"><tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:261.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:124.3pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td colspan="2" style="width:137.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td><td style="width:61.05pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:76.45pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"><i>(dollars in thousands)</i></p> </td><td style="width:12pt" valign="middle"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:63.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td><td style="width:61.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:76.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">1</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                 98 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                          - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       - </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">2</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">               1,840 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       - </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">1</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    36 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">            Total</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">4</p> </td><td style="width:63.25pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $            1,974 </p> </td><td style="width:61.05pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                          - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"><span style="background-color:#FFFF00"> </span> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Performing loans classified as TDRs and outstanding at September 30 and June 30, 2020, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans.</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:429.9pt"><tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:18pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:132.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td colspan="2" style="width:137.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td><td style="width:60.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:77.4pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:18pt" valign="middle"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:63.5pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td><td colspan="2" style="width:68.6pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:77.4pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">3</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $               1,015 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">3</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                     791 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       - </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">7</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">               3,904 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">10</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                     4,544 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       - </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">8</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">               3,229 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">7</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                     3,245 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">            Total</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">18</p> </td><td colspan="2" style="width:71.55pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            8,148 </p> </td><td style="width:60.55pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">20</p> </td><td style="width:77.4pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  8,580 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Residential Real Estate Foreclosures</i>. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of September 30, and June 30, 2020, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $565,000 and $563,000, respectively. In addition, as of September 30 and June 30, 2020, the Company had residential mortgage loans and home equity loans with a carrying value of $329,000 and $435,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Purchased Credit Deteriorated Loans</i>. Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered PCI. Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. All loans considered to be PCI prior to July 1, 2020, were converted to PCD on that date.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The carrying amount of $21.8 million in PCI loans was included in the balance sheet amount of loans receivable at June 30, 2020, with no associated ACL. In accordance with ASU 2016-13, the Company did not reassess whether the PCI loans met the criteria of PCD loans as of the adoption date. The amortized cost of the PCD loans were adjusted to reflect the addition of $434,000 to the ACL. PCD loans receivable, net of ACL, totaling $20.9 million were included in the balance sheet amount of loans receivable at September 30, 2020. </p> <p style="font:10pt Calibri;margin:0">  </p> <p style="font:10pt Calibri;margin:0">During the three-month periods ended September 30, 2019 and 2020, the Company did not increase or reverse ALLL or ACL related to PCI or PCD loans. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:403.75pt"><tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000"><b> September 30, 2020</b></span></p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:82.5pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                      635,718 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               627,357 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         207,737 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  185,924 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         884,835 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  887,419 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                           80,906 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                    80,767 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:96.25pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         481,582 </p> </td><td style="width:82.5pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                  468,448 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"/><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                      2,290,778 </p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">               2,249,915 </p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Loans in process</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                       (101,392)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                   (78,452)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Deferred loan fees, net</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                           (3,839)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     (4,395)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">Allowance for credit losses</p> </td><td style="width:96.25pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                         (35,084)</p> </td><td style="width:82.5pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                   (25,139)</p> </td></tr> <tr style="height:7.2pt"><td style="width:225pt" valign="top"><p style="font:9pt Calibri;margin:0">      Total loans</p> </td><td style="width:96.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                   2,150,463 </p> </td><td style="width:82.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $            2,141,929 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 635718000 627357000 207737000 185924000 884835000 887419000 80906000 80767000 481582000 468448000 2290778000 2249915000 -101392000 -78452000 -3839000 -4395000 -35084000 -25139000 2150463000 2141929000 22 55700000 23 58200000 <p style="font:10pt Calibri;margin:0"><i>Residential Mortgage Lending. </i>The Company actively originates loans for the acquisition or refinance of one- to four-family residences.  This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied.  Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property.  Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area.  The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.</p> <p style="font:10pt Calibri;margin:0"><i>Commercial Real Estate Lending. </i>The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. </p> <p style="font:10pt Calibri;margin:0"><i>Construction Lending. </i>The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multifamily or commercial construction loans typically mature in 12 to 24 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At September 30, 2020, construction loans outstanding included 78 loans, totaling $36.1 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above.  As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs).  Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included drawn balances of $4.4 million in construction loans which were modified at the borrower’s request due to the current situation of heightened economic uncertainty triggered by the pandemic. </p> 78 36100000 77 48800000 4400000 <p style="font:10pt Calibri;margin:0"><i>Consumer Lending</i>. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable.  Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles </p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Calibri">have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.</span></p> <p style="font:10pt Calibri;margin:0"><i>Commercial Business Lending</i>. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.</p> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At period end and for the three months ended <span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for credit losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, beginning of period<br/>           prior to adoption of CECL</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               4,875 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,010 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             12,132 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,182 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               4,940 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Impact of CECL adoption</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  3,521 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (121)</p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  3,856 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                1,065 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    1,012 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  9,333 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision charged to expense</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     252 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         3 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       61 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       61 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     397 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     774 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Losses charged off</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     (19)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       (6)</p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (145)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   (170)</p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Recoveries</p> </td><td style="width:72.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         1 </p> </td><td style="width:72.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         3 </p> </td><td style="width:73.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         4 </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         8 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $            8,629 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,892 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             16,050 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,305 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,208 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             35,084 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At period end and for the three months ended <span style="border-bottom:1px solid #000000">September 30, 2019</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for loan losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, beginning of period</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,706 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,365 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,399 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,046 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,387 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             19,903 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision charged to expense</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                   (134)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     174 </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     376 </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       96 </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     384 </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     896 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Losses charged off</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     (72)</p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     (35)</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                   (107)</p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Recoveries</p> </td><td style="width:72.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       14 </p> </td><td style="width:72.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         4 </p> </td><td style="width:73.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:70.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,572 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,539 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,789 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,074 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,736 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             20,710 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,572 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,539 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               9,789 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,074 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,736 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             20,710 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:580.75pt"><tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="6" style="width:428.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">At <span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:69.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Real Estate</span></p> </td><td style="width:72.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Consumer</span></p> </td><td style="width:73.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Commercial</span></p> </td><td style="width:70.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Total</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Allowance for loan losses:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Balance, end of period</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,875 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               2,010 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             12,132 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,182 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,940 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,875 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               2,010 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             12,132 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,182 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,940 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             25,139 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Loans:</p> </td><td style="width:72.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:72.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.65pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: individually <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: collectively <br/>            evaluated for impairment</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           626,085 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           106,194 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           872,716 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,767 </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           463,902 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $        2,149,664 </p> </td></tr> <tr style="height:7.2pt"><td style="width:151.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Ending Balance: loans acquired <br/>            with deteriorated credit quality</p> </td><td style="width:72.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,272 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,278 </p> </td><td style="width:69.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             14,703 </p> </td><td style="width:72.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:73.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,546 </p> </td><td style="width:70.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             21,799 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 4875000 2010000 12132000 1182000 4940000 25139000 3521000 -121000 3856000 1065000 1012000 9333000 252000 3000 61000 61000 397000 774000 -19000 0 0 -6000 -145000 -170000 0 0 1000 3000 4000 8000 8629000 1892000 16050000 2305000 6208000 35084000 3706000 1365000 9399000 1046000 4387000 19903000 -134000 174000 376000 96000 384000 896000 0 0 0 -72000 -35000 -107000 0 0 14000 4000 0 18000 3572000 1539000 9789000 1074000 4736000 20710000 0 0 0 0 0 0 3572000 1539000 9789000 1074000 4736000 20710000 0 0 0 0 0 0 4875000 2010000 12132000 1182000 4940000 25139000 0 0 0 0 0 0 4875000 2010000 12132000 1182000 4940000 25139000 0 0 0 0 0 0 0 0 0 0 0 0 626085000 106194000 872716000 80767000 463902000 2149664000 1272000 1278000 14703000 0 4546000 21799000 <p style="font:10pt Calibri;margin:0"><span style="font-family:Times New Roman"><i>Credit Quality Indicators</i>. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of </span></p> <p style="font:10pt Calibri;margin:0"><span style="font:10pt Times New Roman">single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:</span></p> <p style="font:10pt Times New Roman;margin:0;text-indent:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Watch </i>– Loans classified as watch exhibit weaknesses that require more than usual monitoring.  Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Special Mention</i> – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days.  This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Substandard</i> – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding.  These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><i>Doubtful</i> – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.</p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt">Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be <i>Pass</i> rated loans. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades.  The primary responsibility for this review rests with loan administration personnel.  This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies.  The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:567pt"><tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Revolving</p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"/><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2021</p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2020</p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2019</p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2018</p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2017</p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Prior</p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">loans</p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Residential Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 123,469 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 225,522 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   65,243 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   53,150 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,183 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 117,755 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     5,416 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    628,738 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           125 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           122 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           419 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             98 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           876 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           1,640 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             14 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             24 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                38 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           145 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           1,007 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           227 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             73 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        3,818 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           5,270 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             32 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                32 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Residential Real Estate</p> </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 123,739 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 226,651 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   65,889 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   53,237 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,281 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 122,505 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     5,416 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    635,718 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Construction Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   42,502 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   52,358 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     6,914 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        205 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    101,979 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           417 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        3,949 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           4,366 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Construction Real Estate </p> </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   42,502 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   52,358 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,331 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     3,949 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $             - </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        205 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    106,345 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Commercial Real Estate</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Pass</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   64,829 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 222,926 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 151,121 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 158,268 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   87,699 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 117,612 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   27,117 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    829,572 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Watch</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           508 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        9,348 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      10,611 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        4,956 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      14,252 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,493 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           904 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         42,072 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Special Mention</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Substandard</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,222 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        6,149 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           560 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           285 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,718 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,369 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         12,303 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:7.2pt;color:#000000">Doubtful</p> </td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           888 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              888 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt;color:#000000">Total Commercial Real Estate</p> </td><td style="width:52.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   66,559 </p> </td><td style="width:58pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 238,423 </p> </td><td style="width:52.35pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 163,180 </p> </td><td style="width:51pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 163,509 </p> </td><td style="width:53.65pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 104,669 </p> </td><td style="width:49.5pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 120,474 </p> </td><td style="width:49.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   28,021 </p> </td><td style="width:58.4pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    884,835 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:-0.7pt">Consumer</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,540 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   17,077 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,148 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     2,512 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     1,289 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        788 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   44,316 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $      80,670 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             42 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             15 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             41 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             25 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             42 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             71 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              236 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total Consumer</td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,540 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   17,119 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     7,163 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     2,553 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $     1,314 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        830 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   44,387 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $      80,906 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Commercial</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   27,116 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 232,331 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   37,049 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   21,354 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   10,050 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   13,662 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 130,547 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    472,109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,009 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           162 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             64 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">               8 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             12 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,725 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           2,980 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             35 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,584 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,640 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           462 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           180 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">               8 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,584 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           6,493 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total Commercial </td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   28,160 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 234,077 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   38,753 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   21,824 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   10,242 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $   13,670 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 134,856 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $    481,582 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-indent:14.4pt"/> </td><td style="width:52.8pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt;border-top:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Total Loans</p> </td><td style="width:52.8pt" valign="bottom"><p> </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Pass</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 265,456 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 750,214 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 267,475 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 235,284 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 137,221 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 249,817 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 207,601 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 2,113,068 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Watch</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,642 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        9,632 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      11,511 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        8,913 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      14,362 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,369 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,629 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         51,058 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Special Mention</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             14 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             24 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                38 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Substandard</td><td style="width:52.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        1,402 </p> </td><td style="width:58pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        8,782 </p> </td><td style="width:52.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,442 </p> </td><td style="width:51pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           861 </p> </td><td style="width:53.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,923 </p> </td><td style="width:49.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        5,237 </p> </td><td style="width:49.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">        2,655 </p> </td><td style="width:58.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         24,302 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Doubtful</td><td style="width:52.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:52.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           888 </p> </td><td style="width:51pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:53.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:49.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             32 </p> </td><td style="width:49.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                - </p> </td><td style="width:58.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              920 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.7pt" valign="bottom">Total</td><td style="width:52.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 268,500 </p> </td><td style="width:58pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 768,628 </p> </td><td style="width:52.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 282,316 </p> </td><td style="width:51pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 245,072 </p> </td><td style="width:53.65pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 154,506 </p> </td><td style="width:49.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 257,479 </p> </td><td style="width:49.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 212,885 </p> </td><td style="width:58.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $ 2,189,386 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 123469000 225522000 65243000 53150000 38183000 117755000 5416000 628738000 125000 122000 419000 0 98000 876000 0 1640000 0 0 0 14000 0 24000 0 38000 145000 1007000 227000 73000 0 3818000 0 5270000 0 0 0 0 0 32000 0 32000 123739000 226651000 65889000 53237000 38281000 122505000 5416000 635718000 42502000 52358000 6914000 0 0 0 205000 101979000 0 0 417000 3949000 0 0 0 4366000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42502000 52358000 7331000 3949000 0 0 205000 106345000 64829000 222926000 151121000 158268000 87699000 117612000 27117000 829572000 508000 9348000 10611000 4956000 14252000 1493000 904000 42072000 0 0 0 0 0 0 0 0 1222000 6149000 560000 285000 2718000 1369000 0 12303000 0 0 888000 0 0 0 0 888000 66559000 238423000 163180000 163509000 104669000 120474000 28021000 884835000 7540000 17077000 7148000 2512000 1289000 788000 44316000 80670000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42000 15000 41000 25000 42000 71000 236000 0 0 0 0 0 0 0 0 7540000 17119000 7163000 2553000 1314000 830000 44387000 80906000 27116000 232331000 37049000 21354000 10050000 13662000 130547000 472109000 1009000 162000 64000 8000 12000 0 1725000 2980000 0 0 0 0 0 0 0 0 35000 1584000 1640000 462000 180000 8000 2584000 6493000 0 0 0 0 0 0 0 0 28160000 234077000 38753000 21824000 10242000 13670000 134856000 481582000 265456000 750214000 267475000 235284000 137221000 249817000 207601000 2113068000 1642000 9632000 11511000 8913000 14362000 2369000 2629000 51058000 0 0 0 14000 0 24000 0 38000 1402000 8782000 2442000 861000 2923000 5237000 2655000 24302000 0 0 888000 0 0 32000 0 920000 268500000 768628000 282316000 245072000 154506000 257479000 212885000 2189386000 5600000 10100000 0 5700000 0 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:489.05pt"><tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="5" style="width:384.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Residential</p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Construction </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:86.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:69.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Real Estate</p> </td><td style="width:70.35pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Consumer</p> </td><td style="width:73.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Commercial</p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Pass</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   620,004 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           103,105 </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  829,276 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,517 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           457,385 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Watch</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          1,900 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  4,367 </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       45,262 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       45 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  4,708 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Special Mention</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                -   </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            403 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       25 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Substandard</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          5,453 </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       11,590 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     180 </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  6,355 </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Doubtful</p> </td><td style="width:86.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                -   </p> </td><td style="width:69.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            888 </p> </td><td style="width:70.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:73.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:104.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total</p> </td><td style="width:86.2pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   627,357 </p> </td><td style="width:69.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           107,472 </p> </td><td style="width:83.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  887,419 </p> </td><td style="width:70.35pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             80,767 </p> </td><td style="width:73.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $           468,448 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 620004000 103105000 829276000 80517000 457385000 1900000 4367000 45262000 45000 4708000 0 0 403000 25000 0 5453000 0 11590000 180000 6355000 0 0 888000 0 0 627357000 107472000 887419000 80767000 468448000 5900000 10300000 0 5600000 0 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:589.4pt"><tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:498pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000"><b>September 30, 2020</b></span></p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than 90</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">30-59 Days</p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">60-89 Days</p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">90 Days</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total Loans</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Days Past Due</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:73.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Current</p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Receivable</p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">and Accruing</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  974 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                    37 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,343 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,354 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           633,364 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           635,718 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     200 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     200 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              106,145 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              106,345 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,008 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         9 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     760 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,777 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              883,058 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              884,835 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     761 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       78 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     248 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,087 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                79,819 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,906 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     756 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     243 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     490 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,489 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              480,093 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              481,582 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               3,699 </p> </td><td style="width:69.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  367 </p> </td><td style="width:69.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,841 </p> </td><td style="width:69.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,907 </p> </td><td style="width:73.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,182,479 </p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,189,386 </p> </td><td style="width:74.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:589.4pt"><tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="7" style="width:498pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Greater Than 90</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">30-59 Days</p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">60-89 Days</p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">90 Days</p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total</p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Total Loans</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Days Past Due</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:69.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Past Due</p> </td><td style="width:73.75pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Current</p> </td><td style="width:70.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Receivable</p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">and Accruing</p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Real Estate Loans:</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  772 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  378 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  654 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,804 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           625,553 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $           627,357 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         - </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              107,472 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              107,472 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     641 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     327 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,073 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  2,041 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              885,378 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              887,419 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     180 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       53 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     193 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     426 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,341 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                80,767 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       93 </p> </td><td style="width:69.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  1,219 </p> </td><td style="width:69.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     810 </p> </td><td style="width:69.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  2,122 </p> </td><td style="width:73.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              466,326 </p> </td><td style="width:70.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              468,448 </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        - </p> </td></tr> <tr style="height:7.2pt"><td style="width:91.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,686 </p> </td><td style="width:69.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               1,977 </p> </td><td style="width:69.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               2,730 </p> </td><td style="width:69.25pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               6,393 </p> </td><td style="width:73.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,165,070 </p> </td><td style="width:70.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $        2,171,463 </p> </td><td style="width:74.85pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 974000 37000 1343000 2354000 633364000 635718000 0 200000 0 0 200000 106145000 106345000 0 1008000 9000 760000 1777000 883058000 884835000 0 761000 78000 248000 1087000 79819000 80906000 0 756000 243000 490000 1489000 480093000 481582000 0 3699000 367000 2841000 6907000 2182479000 2189386000 0 772000 378000 654000 1804000 625553000 627357000 0 0 0 0 0 107472000 107472000 0 641000 327000 1073000 2041000 885378000 887419000 0 180000 53000 193000 426000 80341000 80767000 0 93000 1219000 810000 2122000 466326000 468448000 0 1686000 1977000 2730000 6393000 2165070000 2171463000 0 93600000 0 380100000 29000000 1000 66000 <p style="font:11pt Times New Roman;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:420.2pt"><tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:225.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">June 30, 2020</span></p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Recorded</p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unpaid Principal</p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Specific</p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Balance</span></p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Balance</span></p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">Allowance</span></p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:350.75pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Loans without a specific valuation allowance:</p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,811 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,047 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,277 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,312 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                19,271 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                23,676 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  5,040 </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  6,065 </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">Loans with a specific valuation allowance:</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Construction real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial real estate</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Consumer loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial loans</p> </td><td style="width:81.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:74.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td><td style="width:69.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total:</p> </td><td style="width:81.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:69.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               3,811 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,047 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Construction real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,277 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               1,312 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial real estate</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             19,271 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             23,676 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Consumer loans</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> <tr style="height:7.2pt"><td style="width:195pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Commercial loans</p> </td><td style="width:81.55pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               5,040 </p> </td><td style="width:74.2pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               6,065 </p> </td><td style="width:69.45pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 3811000 4047000 0 1277000 1312000 0 19271000 23676000 0 0 0 0 5040000 6065000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3811000 4047000 0 1277000 1312000 0 19271000 23676000 0 0 0 0 5040000 6065000 0 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:294.85pt"><tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month period ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:166.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Average</p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Investment in</p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Interest Income</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"/><td style="width:86.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Impaired Loans</p> </td><td style="width:79.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Recognized</p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Residential Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                   1,677 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                         23 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Construction Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                      1,306 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            48 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Commercial Real Estate </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                    17,721 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                          335 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Consumer Loans </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              - </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                               - </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> Commercial Loans </p> </td><td style="width:86.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                      5,812 </p> </td><td style="width:79.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            93 </p> </td></tr> <tr style="height:7.2pt"><td style="width:128.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">    Total Loans </p> </td><td style="width:86.5pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                 26,516 </p> </td><td style="width:79.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                       499 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 1677000 23000 1306000 48000 17721000 335000 0 0 5812000 93000 26516000 499000 83000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:303.6pt"><tr style="height:1pt"><td style="width:132.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:88.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:82.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Residential real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,339 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               4,010 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Construction real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       -   </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial real estate</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  3,052 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  3,106 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Consumer loans</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     255 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     196 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="top"><p style="font:9pt Calibri;margin:0">Commercial loans</p> </td><td style="width:88.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,129 </p> </td><td style="width:82.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  1,345 </p> </td></tr> <tr style="height:1pt"><td style="width:132.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total loans</p> </td><td style="width:88.9pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               8,775 </p> </td><td style="width:82.55pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $               8,657 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 4339000 4010000 0 0 3052000 3106000 255000 196000 1129000 1345000 8775000 8657000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:416.6pt"><tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:261.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:124.3pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td colspan="2" style="width:137.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td><td style="width:61.05pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:76.45pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0"><i>(dollars in thousands)</i></p> </td><td style="width:12pt" valign="middle"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:63.25pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td><td style="width:61.05pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:76.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">1</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                 98 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                          - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       - </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">2</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">               1,840 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                       - </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">1</p> </td><td style="width:63.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    36 </p> </td><td style="width:61.05pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:142.8pt" valign="top"><p style="font:9pt Calibri;margin:0">            Total</p> </td><td style="width:12pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.05pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">4</p> </td><td style="width:63.25pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $            1,974 </p> </td><td style="width:61.05pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:76.45pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                          - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"><span style="background-color:#FFFF00"> </span> </p> 1 98000 0 0 0 0 0 0 2 1840000 0 0 0 0 0 0 1 36000 0 0 4 1974000 0 0 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:429.9pt"><tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:18pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="3" style="width:132.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td colspan="2" style="width:137.95pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td><td style="width:60.55pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Number of</p> </td><td style="width:77.4pt;border-top:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Recorded</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:18pt" valign="middle"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:63.5pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td><td colspan="2" style="width:68.6pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">modifications</p> </td><td style="width:77.4pt;border-bottom:1pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Investment</p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Residential real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">3</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $               1,015 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">3</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                     791 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Construction real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       - </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial real estate</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">7</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">               3,904 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">10</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                     4,544 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Consumer loans</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                       - </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">-</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                             - </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">      Commercial loans</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">8</p> </td><td colspan="2" style="width:71.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">               3,229 </p> </td><td style="width:60.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">7</p> </td><td style="width:77.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right">                     3,245 </p> </td></tr> <tr style="height:7.2pt"><td style="width:141.1pt" valign="top"><p style="font:9pt Calibri;margin:0">            Total</p> </td><td style="width:18pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> </p> </td><td style="width:61.3pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">18</p> </td><td colspan="2" style="width:71.55pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $            8,148 </p> </td><td style="width:60.55pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">20</p> </td><td style="width:77.4pt;border-top:1pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  8,580 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 3 1015000 3 791000 0 0 0 0 7 3904000 10 4544000 0 0 0 0 8 3229000 7 3245000 18 8148000 20 8580000 565000 563000 329000 435000 <p style="font:10pt Calibri;margin:0">Note 5:  <span style="border-bottom:1px solid #000000">Premises and Equipment</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Following is a summary of premises and equipment:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:448.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Land</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    12,514 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    12,585 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Buildings and improvements</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       56,675 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       56,039 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Construction in progress</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              35 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            435 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Furniture, fixtures, equipment and software</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18,276 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18,109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Automobiles</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases ROU asset</p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,944 </p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,965 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       89,564 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       89,253 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Less accumulated depreciation</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       25,134 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       24,147 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    64,430 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    65,106 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><span style="border-bottom:1px solid #000000">Leases.</span>  The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2019, using the modified retrospective transition approach whereby comparative periods were not restated.  The Company also elected certain relief options under the ASU, including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less).  The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.   </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets.  With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets.  The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.  Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">ASU 2016-02 also requires certain other accounting elections.  The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months.  ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease </p> <p style="font:10pt Calibri;margin:0">liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%.  The expected lease terms range from 18 months to 20 years.   </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:458.25pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:93.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Consolidated Balance Sheet</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases right of use asset</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,944 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,965 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases liability</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,944 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,965 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:458.25pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:184.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Three Months Ended September 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>2020</b></p> </td><td style="width:93.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Consolidated Statement of Income</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating lease costs classified as occupancy and equipment expense</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           72 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           57 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     (includes short-term lease costs)</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:90.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Supplemental disclosures of cash flow information</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:364.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Cash paid for amounts included in the measurement of lease liabilities:</p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     Operating cash flows from operating leases</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           67 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           39 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">ROU assets obtained in exchange for operating lease obligations:</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           -   </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      2,004 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">For the three months ended September 30, 2020 and 2019, lease expense was $72,000 and $57,000, respectively. At September 30, 2020, future expected lease payments for leases with terms exceeding one year were as follows:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:213.8pt"><tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2021</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  269 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2022</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2023</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2024</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2025</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     242 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Thereafter</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  2,134 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Future lease payments expected</p> </td><td style="width:70pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">$               3,374 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases.   For the three month periods ended September 30, 2020 and 2019, income recognized from these lessor agreements was $75,000 and $82,000, respectively, and was included in net occupancy and equipment expense. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:448.3pt;margin-left:5.4pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Land</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    12,514 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    12,585 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Buildings and improvements</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       56,675 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       56,039 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Construction in progress</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              35 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            435 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Furniture, fixtures, equipment and software</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18,276 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       18,109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Automobiles</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases ROU asset</p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,944 </p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,965 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       89,564 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       89,253 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Less accumulated depreciation</p> </td><td style="width:90.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       25,134 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       24,147 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    64,430 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                    65,106 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 12514000 12585000 56675000 56039000 35000 435000 18276000 18109000 120000 120000 1944000 1965000 89564000 89253000 25134000 24147000 64430000 65106000 <p style="font:10pt Calibri;margin:0"><span style="border-bottom:1px solid #000000">Leases.</span>  The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2019, using the modified retrospective transition approach whereby comparative periods were not restated.  The Company also elected certain relief options under the ASU, including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less).  The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.   </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets.  With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets.  The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.  Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income. </p> 0.05 18 months 20 years <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:458.25pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:93.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Consolidated Balance Sheet</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases right of use asset</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,944 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,965 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating leases liability</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,944 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,965 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:458.25pt"><tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:184.45pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Three Months Ended September 30,</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"/><td style="width:90.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>2020</b></p> </td><td style="width:93.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Consolidated Statement of Income</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Operating lease costs classified as occupancy and equipment expense</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           72 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           57 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     (includes short-term lease costs)</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:90.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Supplemental disclosures of cash flow information</span></p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:364.7pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Cash paid for amounts included in the measurement of lease liabilities:</p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     Operating cash flows from operating leases</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           67 </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           39 </p> </td></tr> <tr style="height:7.2pt"><td style="width:273.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">ROU assets obtained in exchange for operating lease obligations:</p> </td><td style="width:90.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                           -   </p> </td><td style="width:93.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      2,004 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 1944000 1965000 1944000 1965000 72000 57000 67000 39000 0 2004000 72000 57000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:213.8pt"><tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2021</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  269 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2022</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2023</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2024</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     243 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">2025</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                     242 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Thereafter</p> </td><td style="width:70pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                  2,134 </p> </td></tr> <tr style="height:7.2pt"><td style="width:143.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Future lease payments expected</p> </td><td style="width:70pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">$               3,374 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 269000 243000 243000 243000 242000 2134000 3374000 75000 82000 <p style="font:10pt Calibri;margin:0">Note 6:  <span style="border-bottom:1px solid #000000">Deposits</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Deposits are summarized as follows:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:361.3pt"><tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:93.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:90.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:93.6pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Non-interest bearing accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  307,023 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  316,048 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">NOW accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     789,486 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     781,937 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Money market deposit accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     234,948 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     231,162 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Savings accounts </p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     189,218 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     181,229 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Certificates</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     647,399 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     674,471 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">     Total Deposit Accounts</p> </td><td style="width:93.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               2,168,074 </p> </td><td style="width:90.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               2,184,847 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:361.3pt"><tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:93.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:90.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:93.6pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:90.7pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Non-interest bearing accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  307,023 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  316,048 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">NOW accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     789,486 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     781,937 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Money market deposit accounts</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     234,948 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     231,162 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Savings accounts </p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     189,218 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     181,229 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">Certificates</p> </td><td style="width:93.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     647,399 </p> </td><td style="width:90.7pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right">                     674,471 </p> </td></tr> <tr style="height:7.2pt"><td style="width:177pt" valign="top"><p style="font:9pt Calibri;margin:0">     Total Deposit Accounts</p> </td><td style="width:93.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               2,168,074 </p> </td><td style="width:90.7pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $               2,184,847 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 307023000 316048000 789486000 781937000 234948000 231162000 189218000 181229000 647399000 674471000 2168074000 2184847000 <p style="font:10pt Calibri;margin:0">Note 7:  <span style="border-bottom:1px solid #000000">Earnings Per Share </span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table sets forth the computation of basic and diluted earnings per share:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:477.4pt"><tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:130.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Three months ended</p> </td></tr> <tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:130.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30,</p> </td></tr> <tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000"><b>2020</b></span></p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">2019</span></p> </td></tr> <tr style="height:1pt"><td valign="bottom"/><td style="width:66.6pt" valign="top"/><td style="width:64.1pt" valign="top"/></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands except per share data)</i></p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Courier;margin:0"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Net income</p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 9,986 </p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 7,828 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: distributed earnings allocated to participating securities</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         (4)</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                            - </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: undistributed earnings allocated to participating securities</p> </td><td style="width:66.6pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       (26)</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                            - </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Net income available to common shareholders</p> </td><td style="width:66.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    9,956 </p> </td><td style="width:64.1pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    7,828 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:66.6pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Weighted-average common shares outstanding, including participating securities</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,126,866 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,232,257 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: weighted-average participating securities outstanding (restricted shares)</p> </td><td style="width:66.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                (27,260)</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                          -   </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Weighted-average basic common shares outstanding</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,099,606 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,232,257 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Add: effect of dilutive securities, stock options, and awards</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    2,191 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  11,891 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Denominator for diluted earnings per share</p> </td><td style="width:66.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $          9,101,797 </p> </td><td style="width:64.1pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $          9,244,148 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:66.6pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Basic earnings per share available to common stockholders</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   1.09 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   0.85 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Diluted earnings per share available to common stockholders</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   1.09 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   0.85 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Options outstanding at September 30, 2020 and 2019, to purchase 50,500, and 15,500 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2020 and 2019, respectively. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="border-collapse:collapse;width:477.4pt"><tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:130.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Three months ended</p> </td></tr> <tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td colspan="2" style="width:130.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30,</p> </td></tr> <tr style="height:1pt"><td style="width:346.7pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000"><b>2020</b></span></p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><span style="border-bottom:1px solid #000000">2019</span></p> </td></tr> <tr style="height:1pt"><td valign="bottom"/><td style="width:66.6pt" valign="top"/><td style="width:64.1pt" valign="top"/></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands except per share data)</i></p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Courier;margin:0"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Net income</p> </td><td style="width:66.6pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 9,986 </p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;text-align:right"> $                 7,828 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: distributed earnings allocated to participating securities</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                         (4)</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                            - </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: undistributed earnings allocated to participating securities</p> </td><td style="width:66.6pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                       (26)</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                            - </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Net income available to common shareholders</p> </td><td style="width:66.6pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    9,956 </p> </td><td style="width:64.1pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    7,828 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:66.6pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Weighted-average common shares outstanding, including participating securities</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,126,866 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,232,257 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Less: weighted-average participating securities outstanding (restricted shares)</p> </td><td style="width:66.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                (27,260)</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                          -   </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Weighted-average basic common shares outstanding</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,099,606 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             9,232,257 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">   Add: effect of dilutive securities, stock options, and awards</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                    2,191 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                  11,891 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Denominator for diluted earnings per share</p> </td><td style="width:66.6pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $          9,101,797 </p> </td><td style="width:64.1pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $          9,244,148 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:66.6pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Courier;margin:0;text-align:right"> </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Basic earnings per share available to common stockholders</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   1.09 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   0.85 </p> </td></tr> <tr style="height:1pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Diluted earnings per share available to common stockholders</p> </td><td style="width:66.6pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   1.09 </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                   0.85 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 9986000 7828000 4000 0 -26000 0 9956000 7828000 9126866 9232257 27260 0 9099606 9232257 2191 11891 9101797 9244148 1.09 0.85 1.09 0.85 50500 15500 <p style="font:10pt Calibri;margin:0">Note 8: <span style="border-bottom:1px solid #000000">Income Taxes   </span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state examinations by tax authorities for tax years ending June 30, 2015 and before.  The Company recognized no interest or penalties related to income taxes.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Company’s income tax provision is comprised of the following components: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:354pt"><tr style="height:7.2pt"><td style="width:188pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>09/30/2020</b></p> </td><td style="border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Income taxes</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td valign="bottom"><p style="font:10pt Courier;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Current</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      4,750 </p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,970 </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Deferred</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       (2,003)</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                6 </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total income tax provision</p> </td><td style="border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      2,747 </p> </td><td style="border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,976 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The components of net deferred tax assets are summarized as follows:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:372.95pt"><tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:92.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Deferred tax assets:</p> </td><td style="width:92.9pt" valign="bottom"/><td style="width:83.8pt" valign="bottom"/></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision for losses on loans</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      8,023 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      5,802 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued compensation and benefits</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            539 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            825 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      NOL carry forwards acquired</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            136 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            149 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Minimum Tax Credit</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            130 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            130 </p> </td></tr> <tr style="height:11.25pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Unrealized loss on other real estate</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            187 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            257 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     Other</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              26 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total deferred tax assets</p> </td><td style="width:92.9pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         9,135 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         7,189 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:92.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Deferred tax liabilities:</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Purchase accounting adjustments</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              42 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              64 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Depreciation</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,785 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,665 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      FHLB stock dividends</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Prepaid expenses</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            208 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            259 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Unrealized gain on available for sale securities</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,304 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,265 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Other</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              -   </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            104 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total deferred tax liabilities</p> </td><td style="width:92.9pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         3,459 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         3,477 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:92.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12.75pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Net deferred tax asset</p> </td><td style="width:92.9pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      5,676 </p> </td><td style="width:83.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      3,712 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">As of September 30, 2020, the Company had approximately $675,000 and $119,000 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., the August 2014 acquisition of Peoples Service Company, and the June 2017 acquisition of Tammcorp, Inc.  The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:365.2pt"><tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:176.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:88pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:88.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Tax at statutory rate</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,674 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,059 </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Increase (reduction) in taxes<br/>      resulting from:</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Nontaxable municipal income</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                          (103)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                          (113)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            State tax, net of Federal benefit</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            241 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Cash surrender value of<br/>                  Bank-owned life insurance</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (59)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (53)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Tax credit benefits</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                              26 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                              -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Other, net</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (32)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (26)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Actual provision</p> </td><td style="width:88pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,747 </p> </td><td style="width:88.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      1,976 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">For the three month periods ended September 30, 2020 and 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).  </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:354pt"><tr style="height:7.2pt"><td style="width:188pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:166pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>09/30/2020</b></p> </td><td style="border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Income taxes</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td valign="bottom"><p style="font:10pt Courier;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Current</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      4,750 </p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,970 </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Deferred</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                       (2,003)</p> </td><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                                6 </p> </td></tr> <tr style="height:7.2pt"><td valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total income tax provision</p> </td><td style="border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      2,747 </p> </td><td style="border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      1,976 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 4750000 1970000 -2003000 6000 2747000 1976000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:372.95pt"><tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:92.9pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:83.8pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Deferred tax assets:</p> </td><td style="width:92.9pt" valign="bottom"/><td style="width:83.8pt" valign="bottom"/></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Provision for losses on loans</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      8,023 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      5,802 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued compensation and benefits</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            539 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            825 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      NOL carry forwards acquired</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            136 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            149 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Minimum Tax Credit</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            130 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            130 </p> </td></tr> <tr style="height:11.25pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Unrealized loss on other real estate</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            187 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            257 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">     Other</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              26 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total deferred tax assets</p> </td><td style="width:92.9pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         9,135 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         7,189 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:92.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Deferred tax liabilities:</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Purchase accounting adjustments</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              42 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              64 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Depreciation</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,785 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,665 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      FHLB stock dividends</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            120 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Prepaid expenses</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            208 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            259 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Unrealized gain on available for sale securities</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,304 </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         1,265 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Other</p> </td><td style="width:92.9pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                              -   </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                            104 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Total deferred tax liabilities</p> </td><td style="width:92.9pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         3,459 </p> </td><td style="width:83.8pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">                         3,477 </p> </td></tr> <tr style="height:12pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:92.9pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:12.75pt"><td style="width:196.25pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Net deferred tax asset</p> </td><td style="width:92.9pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      5,676 </p> </td><td style="width:83.8pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                      3,712 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 8023000 5802000 539000 825000 136000 149000 130000 130000 187000 257000 120000 26000 9135000 7189000 42000 64000 1785000 1665000 120000 120000 208000 259000 1304000 1265000 0 104000 3459000 3477000 5676000 3712000 675000 119000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:365.2pt"><tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:176.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three-month periods ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:88pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:88.4pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Tax at statutory rate</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,674 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,059 </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Increase (reduction) in taxes<br/>      resulting from:</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Nontaxable municipal income</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                          (103)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                          (113)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            State tax, net of Federal benefit</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            241 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            109 </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Cash surrender value of<br/>                  Bank-owned life insurance</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (59)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (53)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Tax credit benefits</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                              26 </p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                              -   </p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">            Other, net</p> </td><td style="width:88pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (32)</p> </td><td style="width:88.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                            (26)</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Actual provision</p> </td><td style="width:88pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      2,747 </p> </td><td style="width:88.4pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                      1,976 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 2674000 2059000 -103000 -113000 241000 109000 -59000 -53000 26000 0 32000 26000 2747000 1976000 0.21 <p style="font:10pt Calibri;margin:0">Note 9:  <span style="border-bottom:1px solid #000000">401(k) Retirement Plan</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The Bank has a 401(k) retirement plan that covers substantially all eligible employees.  The Bank made a “safe harbor” matching contribution to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2020; for fiscal 2021, the Company has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions.   During the three-month period ended September 30, 2020, retirement plan expenses recognized for the Plan totaled approximately $457,000, as compared to $381,000 for the same period of the prior fiscal year.  Employee deferrals and safe harbor contributions are fully vested.  Profit-sharing or other contributions vest over a period of five years.</p> 457000 381000 <p style="font:10pt Calibri;margin:0">Note 10:  <span style="border-bottom:1px solid #000000">Subordinated Debt</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Southern Missouri Statutory Trust I issued $7.0 million of Floating Rate Capital Securities (the “Trust Preferred Securities”) with a liquidation value of $1,000 per share in March 2004. The securities are due in 30 years, redeemable after five years and bear interest at a floating rate based on LIBOR. At September 30, 2020, the current rate was 3.00%. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act.  The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.70%. The carrying value of the debt securities was approximately $2.7 million at September 30 and June 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.05%.  The carrying value of the debt securities was approximately $5.3 million at September 30, and June 30, 2020.</p> <p style="font:10pt Calibri;margin:0"> </p> 3100000 2700000 2700000 6500000 5300000 5300000 <p style="font:10pt Calibri;margin:0;text-align:justify">Note 11:  <span style="border-bottom:1px solid #000000">Fair Value Measurements</span></p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">ASC Topic 820, <i>Fair Value Measurements</i>, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><kbd style="position:absolute;font:10pt Calibri;margin-left:0pt"><b>Level 1</b></kbd><kbd style="margin-left:36pt"/>Quoted prices in active markets for identical assets or liabilities </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><kbd style="position:absolute;font:10pt Calibri;margin-left:0pt"><b>Level 2</b></kbd><kbd style="margin-left:36pt"/>Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"> </p> <p style="font:10pt Calibri;margin:0;margin-left:36pt"><kbd style="position:absolute;font:10pt Calibri;margin-left:0pt"><b>Level 3</b></kbd><kbd style="margin-left:36pt"/>Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Recurring Measurements. </b>The following table presents the fair value measurements recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30 and June 30, 2020:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:549.5pt"><tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:340.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value Measurements at <b>September 30, 2020</b>, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:87.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Quoted Prices in Active Markets for Identical Assets</p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Other Observable Inputs</p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:87.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:81pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 1)</p> </td><td style="width:83.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 2)</p> </td><td style="width:89.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">State and political subdivisions</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                   44,487 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $        44,487 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Other securities</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                        9,200 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">             9,200 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Mortgage-backed GSE residential</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    121,841 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">         121,841 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:549.5pt"><tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:340.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value Measurements at June 30, 2020, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:87.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Quoted Prices in Active Markets for Identical Assets</p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Other Observable Inputs</p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:87.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:81pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 1)</p> </td><td style="width:83.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 2)</p> </td><td style="width:89.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">State and political subdivisions</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                   41,988 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $        41,988 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Other securities</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                        7,624 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">             7,624 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Mortgage-backed GSE residential</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    126,912 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">         126,912 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Available-for-sale Securities. </i>When quoted market prices are available in an active market, securities are classified within Level 1.  If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics.  For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.   In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Nonrecurring Measurements. </b> The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020:</p> <p style="font:12pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:545.5pt"><tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:345.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value Measurements at<b> September 30, 2020</b>, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices in</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Active Markets for</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value</p> </td><td style="width:100pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:87.15pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:199.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                     166 </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                          - </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  - </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             166 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:545.5pt"><tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:345.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value Measurements at June 30, 2020, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices in</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Active Markets for</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value</p> </td><td style="width:100pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:87.15pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:199.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  2,211 </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                          - </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  - </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $          2,211 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended September 30, 2020 and 2019:</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:456.75pt"><tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three months ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:92.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:85.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:278.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:92.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                      (36)</p> </td><td style="width:85.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               (1)</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:278.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total losses on assets measured on a non-recurring basis</p> </td><td style="width:92.85pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                      (36)</p> </td><td style="width:85.5pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               (1)</p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0">The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><i>Foreclosed and Repossessed Assets Held for Sale. </i>Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.</p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"><b>Unobservable (Level 3) Inputs. </b>The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.</p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:552.3pt"><tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:88.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair value at<br/><b>September 30, 2020</b></p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Valuation<br/>technique</p> </td><td style="width:82.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable<br/>inputs</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Range of<br/>inputs applied</p> </td><td style="width:82pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Weighted-average<br/>inputs applied</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Nonrecurring Measurements</span></p> </td><td style="width:14.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.55pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:159.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets</p> </td><td style="width:88.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                     166 </p> </td><td style="width:75.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Third party appraisal</p> </td><td style="width:82.45pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Marketability discount</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">24.5% - 60.4%</p> </td><td style="width:82pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">41.3%</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:14.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:88.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:88.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair value at<br/>June 30, 2020</p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Valuation<br/>technique</p> </td><td style="width:82.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable<br/>inputs</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Range of<br/>inputs applied</p> </td><td style="width:82pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Weighted-average<br/>inputs applied</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Nonrecurring Measurements</span></p> </td><td style="width:14.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.55pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:159.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets</p> </td><td style="width:88.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  2,211 </p> </td><td style="width:75.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Third party appraisal</p> </td><td style="width:82.45pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Marketability discount</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">8.0% - 56.9%</p> </td><td style="width:82pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">15.7%</p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0;text-align:center"> </p> <p style="font:10pt Calibri;margin:0"><b>Fair Value of Financial Instruments. </b>The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020. </p> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:505.85pt"><tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:312.5pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">in Active</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Markets for</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Carrying</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Amount</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial assets</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Cash and cash equivalents</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                41,875 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                41,875 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Interest-bearing time deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        975 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                975 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     6,939 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             6,939 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in Federal Reserve Bank of St. Louis</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     5,017 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             5,017 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Loans receivable, net</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,150,463 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      2,167,748 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest receivable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   13,766 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           13,766 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial liabilities</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,168,074 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              1,520,675 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         651,528 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Advances from FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   85,637 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           87,514 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest payable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     1,402 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             1,402 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Subordinated debt</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   15,168 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           13,455 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Unrecognized financial instruments (net of contract amount)</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Commitments to originate loans</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Letters of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Lines of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:505.85pt"><tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:312.5pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">in Active</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Markets for</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Carrying</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:76.45pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Amount</p> </td><td style="width:89.8pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:79.1pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:67.15pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial assets</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Cash and cash equivalents</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                54,245 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                54,245 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Interest-bearing time deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        974 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                974 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     6,390 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             6,390 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in Federal Reserve Bank of St. Louis</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     4,363 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             4,363 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Loans receivable, net</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,141,929 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      2,143,823 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest receivable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   12,116 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           12,116 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial liabilities</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,184,847 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              1,508,740 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         676,816 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Advances from FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   70,024 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           72,136 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest payable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     1,646 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             1,646 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Subordinated debt</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   15,142 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           11,511 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Unrecognized financial instruments (net of contract amount)</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Commitments to originate loans</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Letters of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Lines of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:549.5pt"><tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:340.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value Measurements at <b>September 30, 2020</b>, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:87.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Quoted Prices in Active Markets for Identical Assets</p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Other Observable Inputs</p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:87.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:81pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 1)</p> </td><td style="width:83.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 2)</p> </td><td style="width:89.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">State and political subdivisions</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                   44,487 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $        44,487 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Other securities</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                        9,200 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">             9,200 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Mortgage-backed GSE residential</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    121,841 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">         121,841 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:549.5pt"><tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:340.95pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value Measurements at June 30, 2020, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"> </p> </td><td style="width:87.2pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Quoted Prices in Active Markets for Identical Assets</p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Other Observable Inputs</p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Significant Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:87.2pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">Fair Value</p> </td><td style="width:81pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 1)</p> </td><td style="width:83.65pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 2)</p> </td><td style="width:89.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">State and political subdivisions</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                   41,988 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $        41,988 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Other securities</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                        7,624 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">             7,624 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:208.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0">Mortgage-backed GSE residential</p> </td><td style="width:87.2pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                    126,912 </p> </td><td style="width:81pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td><td style="width:83.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0">         126,912 </p> </td><td style="width:89.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0">                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 44487000 0 44487000 0 9200000 0 9200000 0 121841000 0 121841000 0 41988000 0 41988000 0 7624000 0 7624000 0 126912000 0 126912000 0 <p style="font:12pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:545.5pt"><tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:345.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value Measurements at<b> September 30, 2020</b>, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices in</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Active Markets for</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value</p> </td><td style="width:100pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:87.15pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:199.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                     166 </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                          - </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  - </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $             166 </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:545.5pt"><tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:345.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value Measurements at June 30, 2020, Using:</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices in</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Active Markets for</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair Value</p> </td><td style="width:100pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:83.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:87.15pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:185.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">  </p> </td><td style="width:14.5pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:74.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:100pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:199.65pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:74.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  2,211 </p> </td><td style="width:100pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                          - </p> </td><td style="width:83.85pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  - </p> </td><td style="width:87.15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $          2,211 </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 166000 0 0 166000 2211000 0 0 2211000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:456.75pt"><tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:14.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:74.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="2" style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">For the three months ended</p> </td></tr> <tr style="height:7.2pt"><td style="width:188.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:74.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:92.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td><td style="width:85.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">September 30, 2019</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:278.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets held for sale</p> </td><td style="width:92.85pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                      (36)</p> </td><td style="width:85.5pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               (1)</p> </td></tr> <tr style="height:7.2pt"><td colspan="3" style="width:278.4pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000">      Total losses on assets measured on a non-recurring basis</p> </td><td style="width:92.85pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                      (36)</p> </td><td style="width:85.5pt;border-bottom:3px double #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $               (1)</p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> -36000 -1000 <p style="font:10pt Calibri;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:552.3pt"><tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:88.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair value at<br/><b>September 30, 2020</b></p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Valuation<br/>technique</p> </td><td style="width:82.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable<br/>inputs</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Range of<br/>inputs applied</p> </td><td style="width:82pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Weighted-average<br/>inputs applied</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Nonrecurring Measurements</span></p> </td><td style="width:14.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.55pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:159.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets</p> </td><td style="width:88.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                     166 </p> </td><td style="width:75.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Third party appraisal</p> </td><td style="width:82.45pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Marketability discount</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">24.5% - 60.4%</p> </td><td style="width:82pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">41.3%</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> </p> </td><td style="width:14.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:88.55pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:14.8pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:88.55pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Fair value at<br/>June 30, 2020</p> </td><td style="width:75.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Valuation<br/>technique</p> </td><td style="width:82.45pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable<br/>inputs</p> </td><td style="width:64.1pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Range of<br/>inputs applied</p> </td><td style="width:82pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Weighted-average<br/>inputs applied</p> </td></tr> <tr style="height:7.2pt"><td style="width:144.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"><span style="border-bottom:1px solid #000000">Nonrecurring Measurements</span></p> </td><td style="width:14.8pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:88.55pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:75.6pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:64.1pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:82pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td colspan="2" style="width:159.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Foreclosed and repossessed assets</p> </td><td style="width:88.55pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> $                  2,211 </p> </td><td style="width:75.6pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Third party appraisal</p> </td><td style="width:82.45pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000">Marketability discount</p> </td><td style="width:64.1pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">8.0% - 56.9%</p> </td><td style="width:82pt" valign="top"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">15.7%</p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 166000 Third party appraisal Marketability discount 24.5% - 60.4% 41.3% 2211000 Third party appraisal Marketability discount 8.0% - 56.9% 15.7% <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:505.85pt"><tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:312.5pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><b>September 30, 2020</b></p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">in Active</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Markets for</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Carrying</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Amount</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial assets</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Cash and cash equivalents</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                41,875 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                41,875 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;text-align:right"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Interest-bearing time deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        975 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                975 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     6,939 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             6,939 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in Federal Reserve Bank of St. Louis</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     5,017 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             5,017 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Loans receivable, net</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,150,463 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      2,167,748 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest receivable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   13,766 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           13,766 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial liabilities</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,168,074 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              1,520,675 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         651,528 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Advances from FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   85,637 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           87,514 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest payable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     1,402 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             1,402 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Subordinated debt</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   15,168 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           13,455 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Unrecognized financial instruments (net of contract amount)</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Commitments to originate loans</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Letters of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Lines of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> </table> <p style="font:12pt Courier;margin:0"> </p> <table style="margin:0 auto;border-collapse:collapse;width:505.85pt"><tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td colspan="4" style="width:312.5pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">June 30, 2020</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Quoted Prices</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">in Active</p> </td><td style="width:79.1pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Markets for</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Significant Other</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Unobservable</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Carrying</p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Identical Assets</p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Observable Inputs</p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Inputs</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"><i>(dollars in thousands)</i></p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center"> </p> </td><td style="width:76.45pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">Amount</p> </td><td style="width:89.8pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 1)</p> </td><td style="width:79.1pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 2)</p> </td><td style="width:67.15pt;border-bottom:1pt solid #000000" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:center">(Level 3)</p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial assets</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:67.15pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Cash and cash equivalents</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                54,245 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                54,245 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right"> $                  - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Interest-bearing time deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                        974 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                974 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     6,390 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             6,390 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Stock in Federal Reserve Bank of St. Louis</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     4,363 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             4,363 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Loans receivable, net</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,141,929 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">      2,143,823 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest receivable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   12,116 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           12,116 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Financial liabilities</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="top"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Deposits</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              2,184,847 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">              1,508,740 </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">         676,816 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Advances from FHLB</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   70,024 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           72,136 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Accrued interest payable</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     1,646 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">             1,646 </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Subordinated debt</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                   15,142 </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">           11,511 </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">Unrecognized financial instruments (net of contract amount)</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:10pt Times New Roman;margin:0"> </p> </td><td style="width:89.8pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:79.1pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td><td style="width:67.15pt" valign="middle"><p style="font:10pt Times New Roman;margin:0;text-align:right"> </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Commitments to originate loans</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Letters of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> <tr style="height:7.2pt"><td style="width:178.35pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000">      Lines of credit</p> </td><td style="width:15pt" valign="bottom"><p style="font:9pt Calibri;margin:0;color:#000000"> </p> </td><td style="width:76.45pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:89.8pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                             - </p> </td><td style="width:79.1pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td><td style="width:67.15pt" valign="middle"><p style="font:9pt Calibri;margin:0;color:#000000;text-align:right">                     - </p> </td></tr> </table> <p style="font:10pt Calibri;margin:0"> </p> 41875000 41875000 0 0 975000 0 975000 0 6939000 0 6939000 0 5017000 0 5017000 0 2150463000 0 0 2167748000 13766000 0 13766000 0 2168074000 1520675000 0 651528000 85637000 0 87514000 0 1402000 0 1402000 0 15168000 0 0 13455000 0 0 0 0 0 0 0 0 0 0 0 0 54245000 54245000 0 0 974000 0 974000 0 6390000 0 6390000 0 4363000 0 4363000 0 2141929000 0 0 2143823000 12116000 0 12116000 0 2184847000 1508740000 0 676816000 70024000 0 72136000 0 1646000 0 1646000 0 15142000 0 0 11511000 0 0 0 0 0 0 0 0 0 0 0 0 $.15 per share. Includes short-term lease costs. XML 11 R1.htm IDEA: XBRL DOCUMENT v3.20.2
Document and Entity Information - $ / shares
3 Months Ended
Nov. 06, 2020
Sep. 30, 2020
Details    
Registrant CIK   0000916907
Fiscal Year End   --06-30
Registrant Name   SOUTHERN MISSOURI BANCORP, INC.
SEC Form   10-Q
Period End date   Sep. 30, 2020
Trading Symbol   SMBC
Trading Exchange   NASDAQ
Tax Identification Number (TIN)   43-1665523
Number of common stock shares outstanding 9,119,154  
Filer Category   Accelerated Filer
Current with reporting   Yes
Interactive Data Current   Yes
Shell Company   false
Small Business   false
Emerging Growth Company   false
Document Quarterly Report   true
Document Transition Report   false
Entity File Number   0-23406
Entity Incorporation, State or Country Code   MO
Entity Address, Address Line One   2991 Oak Grove Road
Entity Address, City or Town   Poplar Bluff
Entity Address, State or Province   MO
Entity Address, Postal Zip Code   63901
City Area Code   573
Local Phone Number   778-1800
Title of 12(b) Security   Common
Entity Listing, Par Value Per Share $ 0.01  
Amendment Flag   false
Document Fiscal Year Focus   2021
Document Fiscal Period Focus   Q1
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Assets    
Cash and cash equivalents $ 41,875 $ 54,245
Interest-bearing time deposits 975 974
Available for sale securities 175,528 176,524
Stock in FHLB of Des Moines 6,939 6,390
Stock in Federal Reserve Bank of St. Louis 5,017 4,363
Loans receivable, net of allowance for credit losses of $35,084 and $25,139 at September 30, 2020 and June 30, 2020, respectively 2,150,463 2,141,929
Accrued interest receivable 13,766 12,116
Premises and equipment, net 64,430 65,106
Bank owned life insurance - cash surrender value 43,644 43,363
Goodwill 14,089 14,089
Other intangible assets, net 7,493 7,700
Prepaid expenses and other assets 16,515 15,358
Total assets 2,540,734 2,542,157
Liabilities and Stockholders' Equity    
Deposits 2,168,074 2,184,847
Advances from FHLB 85,637 70,024
Accounts payable and other liabilities 10,478 12,151
Accrued interest payable 1,402 1,646
Subordinated debt 15,168 15,142
Total liabilities 2,280,759 2,283,810
Common stock, $.01 par value; 25,000,000 shares authorized; 9,344,574 and 9,345,339 shares issued at September 30, 2020 and June 30, 2020, respectively 93 93
Additional paid-in capital 95,058 95,035
Retained earnings 167,175 165,709
Accumulated other comprehensive income (loss) 4,586 4,447
Total stockholders' equity 259,975 258,347
Total liabilities and stockholders' equity 2,540,734 2,542,157
Treasury Stock of 217,949 shares at September 30, 2020 and June 30, 2020, at cost $ (6,937) $ (6,937)
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Balance Sheets - Parenthetical - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Details    
Loans and Leases Receivable, Allowance $ 35,084 $ 25,139
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 25,000,000 25,000,000
Common Stock, Shares, Issued 9,344,574 9,345,339
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
INTEREST INCOME:    
Loans $ 25,907 $ 25,640
Investment securities 490 520
Mortgage-backed securities 534 716
Other interest-earning assets 41 46
Total interest income 26,972 26,922
INTEREST EXPENSE:    
Deposits 4,390 6,578
Advances from FHLB 380 522
Note Payable 0 37
Subordinated debt 138 225
Total interest expense 4,908 7,362
NET INTEREST INCOME 22,064 19,560
PROVISION FOR CREDIT LOSSES 774 896
Net Interest Income After Provision for Loan Losses 21,290 18,664
NONINTEREST INCOME:    
Deposit Account Charges and Related Fees 1,339 1,423
Bank card interchange income 830 751
Loan Late Charges 141 146
Loan Servicing Fees 310 130
Other Loan Fees 327 243
Net realized gains on sale of loans 1,206 273
Earnings on bank owned life insurance 280 254
Other income 508 270
Total noninterest income 4,941 3,490
NONINTEREST EXPENSE:    
Compensation and benefits 7,720 7,125
Occupancy and equipment, net 1,970 1,852
Data processing expense 1,062 885
Telecommunications expense 315 320
Deposit insurance premiums 201 0
Legal and professional fees 198 184
Advertising 230 309
Postage and office supplies 193 183
Intangible amortization 380 441
Foreclosed property expenses/losses 50 48
Provision (credit) for off balance sheet credit exposure 226 (146)
Other operating expense 953 1,149
Total noninterest expense 13,498 12,350
INCOME BEFORE INCOME TAXES 12,733 9,804
INCOME TAXES 2,747 1,976
NET INCOME $ 9,986 $ 7,828
Basic earnings per common share $ 1.09 $ 0.85
Diluted earnings per common share 1.09 0.85
Dividends per common share $ 0.15 $ 0.15
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Comprehensive Income (Loss), Net $ 9,986 $ 7,828
Other Comprehensive Income    
Unrealized gains on securities available-for-sale 179 263
Tax expense (40) (56)
Total other comprehensive income 139 207
Comprehensive income $ 10,125 $ 8,035
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Stockholders' Equity, Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Treasury Stock
AOCI Attributable to Parent
Equity Balance at Jun. 30, 2019   $ 238,392 $ 93 $ 94,541 $ 143,677 $ (1,166) $ 1,247
Net Income $ 7,828 7,828     7,828    
Change in Unrealized Loss on Available for Sale Securities   207         207
Dividends paid on common stock ($.15 per share) [1]   (1,382) (1,382)
Stock option expense   17   17      
Equity Balance at Sep. 30, 2019   242,262 93 94,572 150,123 (3,980) 1,454
Stock Grant Expense   14   14      
Treasury stock purchased   (2,814)       (2,814)  
Equity Balance at Jun. 30, 2020   258,347 93 95,035 165,709 (6,937) 4,447
Impact of ASU 2016-13 adoption   (7,151)     (7,151)    
Net Income $ 9,986 9,986     9,986    
Change in Unrealized Loss on Available for Sale Securities   139         139
Dividends paid on common stock ($.15 per share) [1]   (1,369) (1,369)
Stock option expense   23   23      
Equity Balance at Sep. 30, 2020   $ 259,975 $ 93 $ 95,058 $ 167,175 $ (6,937) $ 4,586
[1] $.15 per share.
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash Flows From Operating Activities:    
Net Income $ 9,986 $ 7,828
Items not requiring (providing) cash:    
Depreciation 1,011 920
Gain (Loss) on Disposal of Fixed Assets 26 (2)
Stock Option and Stock Grant Expense 23 31
Loss on sale/write-down of REO 36 10
Amortization of intangible assets 380 441
Accretion of purchase accounting adjustments (281) (492)
Increase in cash surrender value of bank owned life insurance (BOLI) (281) (254)
Provision for credit losses 774 896
Net amortization of premiums and discounts on securities 452 264
Originations of loans held for sale (47,888) (10,132)
Proceeds from sales of loans held for sale 45,300 9,986
Gain (loss) on Loans Held for Sale (1,206) (273)
Changes in    
Accrued interest receivable (1,650) (1,459)
Prepaid expenses and other assets 849 (2,638)
Accounts payable and other liabilities (1,392) 276
Deferred income taxes 14 6
Accrued interest payable (245) (199)
Net cash provided by operating activities 5,908 5,209
Cash flows from investing activities:    
Net increase in loans (14,163) (28,472)
Net change in interest-bearing deposits (2) (1)
Proceeds from maturities of available for sale securities 15,715 11,041
Net purchases of Federal Home Loan Bank stock (335) 0
Net purchases of Federal Reserve Bank of St. Louis stock (654) (2,500)
Purchases of available-for-sale securities (14,992) (16,512)
Purchases of premises and equipment (453) (1,687)
Investments in state & federal tax credits (1,051) (10)
Proceeds from sale of fixed assets 71 13
Proceeds from sale of foreclosed assets 129 275
Net cash used in investing activities (15,735) (37,853)
Cash flows from financing activities:    
Net decrease in certificates of deposits (27,073) (12,200)
Net decrease in securities sold under agreements to repurchase 0 (4,376)
Proceeds from Federal Home Loan Bank advances 34,800 147,550
Repayments of Federal Home Loan Bank advances (19,212) (89,162)
Net increase (decrease) in demand deposits and savings accounts 10,311 (8,949)
Purchase of Treasury Stock 0 (2,814)
Dividends paid on common stock (1,369) (1,382)
Net cash (used in) provided by financing activities (2,543) 28,667
Decrease in cash and cash equivalents (12,370) (3,977)
Cash and cash equivalents at beginning of period 54,245 35,400
Cash and cash equivalents at end of period 41,875 31,423
Noncash investing and financing activities:    
Conversion of Loans to Foreclosed Real Estate 69 365
Conversion of foreclosed real estate to loans 0 59
Conversion of Loans to Repossessed Assets 22 1,996
Cash paid during the period for    
Interest (net of interest credited) 678 964
Income taxes $ 1,793 $ 2,856
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Note 1: Basis of Presentation
3 Months Ended
Sep. 30, 2020
Notes  
Note 1: Basis of Presentation

Note 1:  Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company as of June 30, 2020, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three-month period ended September 30, 2020, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2020 Form 10-K, which was filed with the SEC.

 

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Southern Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies
3 Months Ended
Sep. 30, 2020
Notes  
Note 2: Organization and Summary of Significant Accounting Policies

Note 2:  Organization and Summary of Significant Accounting Policies

 

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities.  SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC.  Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At September 30, 2020, assets of the REIT were approximately $877 million, and consisted primarily of loan participations acquired from the Bank.

 

The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

 

Basis of Financial Statement Presentation. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

 

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

 

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020. Effective July 1, 2020 through September 30, 2020, the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.

 

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $4.2 million and $6.9 million at September 30 and June 30, 2020, respectively. The deposits are held in various commercial banks with a total of $303,000 and $319,000 exceeding the FDIC’s deposit insurance limits at September 30 and June 30, 2020, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

 

Interest-bearing Time Deposits. Interest bearing deposits in banks mature within seven years and are carried at cost.

 

Available for Sale Securities. Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income, a component of stockholders’ equity. All securities have been classified as available for sale.

 

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

 

The Company does not invest in collateralized mortgage obligations that are considered high risk.

 

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

 

At adoption, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2020, and June 30, 2020.

 

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

 

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.

 

Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.  The Company complies with regulatory guidance which indicates that loans should be placed on nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. At September 30, 2020, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at September 30, 2020. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

 

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

 

Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages.

 

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools.  The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically.

 

Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk.

 

Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received).

 

Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

 

Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.  

 

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

 

Off-Balance Sheet Credit Exposures.   Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is

represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.  The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets.  The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense for off-balance sheet credit exposures included in other non-interest expense in the Company’s consolidated statements of income.

 

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis.  Costs for development and improvement of the property are capitalized.

 

Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.

 

Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.

 

Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

 

Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

 

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value.  Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.

 

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2020, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the decline in the market value of the Company’s common stock, relative to peers; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.  The Company believes there continues to be no impairment of goodwill at September 30, 2020.

 

Intangible Assets.  The Company’s intangible assets at September 30, 2020 included gross core deposit intangibles of $15.3 million with $9.0 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.3 million.  At June 30, 2020, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $8.7 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.1 million.  The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.0 million in the remainder of fiscal 2021, $1.4 million in fiscal 2022 through fiscal 2024, and $807,000 million in fiscal 2025, and $328,000 thereafter. As of June 30, 2020, there was no impairment indicated, and the Company believes there continues to be no impairment of other intangible assets at September 30, 2020.

 

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC

740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

 

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

 

The Company files consolidated income tax returns with its subsidiary.

 

Incentive Plans. The Company accounts for its Management and Recognition Plan (MRP), Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.”  Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

 

Outside Directors’ Retirement.   The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.

 

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

 

Stock Options. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

 

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

 

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities, and changes in the funded status of defined benefit pension plans.

 

Transfers Between Fair Value Hierarchy Levels.  Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

 

The following paragraphs summarize the impact of new accounting pronouncements:

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures.  Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020.  The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACI model and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million.  In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.  On July 1, 2020, the amortized cost basis of the PCD loans were increased to reflect the addition of $434,000 to the ACL.  The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially.

 

 

The following table illustrates the impact of adoption of ASU 2016-13:

 

 

July 1, 2020

 

As reported

As reported

Impact of

 

under

prior to

adoption

(dollars in thousands)

ASU 2016-13

ASU 2016-13

ASU 2016-13

Loans receivable

$              2,142,363

$              2,141,929

$                         434

Allowance for credit losses on loans:

 

 

 

Real Estate Loans:

 

 

 

     Residential

                      8,396

                      4,875

                      3,521

     Construction

                        1,889

                        2,010

                         (121)

     Commercial

                      15,988

                      12,132

                        3,856

Consumer loans

                        2,247

                        1,182

                        1,065

Commercial loans

                        5,952

                        4,940

                        1,012

Total allowance for credit losses on loans

$                    34,472

$                    25,139

$                      9,333

 

 

 

 

Total allowance for credit losses on
    off-balance sheet credit exposures

$                      2,227

$                      1,959

$                         268

 

 

The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.

 

In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of

December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020.

 

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities
3 Months Ended
Sep. 30, 2020
Notes  
Note 3: Securities

Note 3:  Securities

 

The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and approximate fair value of securities available for sale consisted of the following:

 

 

September 30, 2020

 

 

Gross

Gross

Allowance

Estimated

 

Amortized

Unrealized

Unrealized

for

Fair

(dollars in thousands)

Cost

Gains

Losses

Credit Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 

 State and political subdivisions

$             42,880

$               1,608

$                    (1)

$                      -

$             44,487

 Other securities

                 9,358

                    169

                  (327)

                        -

                 9,200

 Mortgage-backed GSE residential

             117,366

                 4,518

                    (43)

                        -

             121,841

    Total investment and mortgage-backed securities

$           169,604

$               6,295

$                (371)

$                      -

$           175,528

 

 

June 30, 2020

 

 

Gross

Gross

Estimated

 

Amortized

Unrealized

Unrealized

Fair

(dollars in thousands)

Cost

Gains

Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 State and political subdivisions

$             40,486

$               1,502

$                      -

$             41,988

 Other securities

                 7,919

                      48

                  (343)

                 7,624

 Mortgage-backed GSE residential

             122,375

                 4,576

                    (39)

             126,912

    Total investment and mortgage-backed securities

$           170,780

$               6,126

$                (382)

$           176,524

 

 

The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

 

 

 

September 30, 2020

 

Amortized

Estimated

(dollars in thousands)

Cost

Fair Value

  Within one year

$                     1,370

$           1,398

  After one year but less than five years

                     10,341

           10,525

  After five years but less than ten years

                     17,180

           17,689

  After ten years

                     23,347

           24,075

     Total investment securities

                     52,238

           53,687

  Mortgage-backed securities

                   117,366

         121,841

    Total investment and mortgage-backed securities

$                 169,604

$       175,528

 

 

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $146.2 million at September 30, 2020 and $156.1 million at June 30, 2020.  The securities pledged consist of marketable securities, including $77.3 million and $82.0 million of Mortgage-Backed Securities, $34.9 million and $41.9 million of Collateralized Mortgage Obligations, $33.0 million and $32.0 million of State and Political Subdivisions Obligations, and $1.0 million and $200,000 of Other Securities at September 30 and June 30, 2020, respectively.

 

The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at September 30 and June 30, 2020:

 

 

September 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Obligations of state and political subdivisions

$        531

$            1

$             -

$             -

$        531

$            1

 Other securities

               -

               -

          839

          327

          839

          327

 Mortgage-backed securities

       8,368

            43

               -

               -

       8,368

            43

   Total investments and mortgage-backed securities

$     8,899

$          44

$        839

$        327

$     9,738

$        371

 

 

June 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Other securities

$        995

$            5

$        643

$        338

$     1,638

$        343

 Mortgage-backed securities

       9,037

            39

               -

               -

       9,037

            39

   Total investments and mortgage-backed securities

$   10,032

$          44

$        643

$        338

$   10,675

$        382

 

 

Mortgage-backed securities. The unrealized losses on the Company’s investments in mortgage-backed securities were caused by variations in market interest rates since purchase or acquisition. The securities are of high credit quality (AA or higher). Because the Company does not intend to sell these securities and it likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

 

Other securities.  At September 30, 2020 there were two pooled trust preferred securities with an estimated fair value of $654,000 and unrealized losses of $322,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

 

The September 30, 2020, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

 

One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

 

The Company does not believe any other individual unrealized loss as of September 30, 2020, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

 

Credit losses recognized on investments.  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three-month periods ended September 30, 2020 and 2019.

 

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses
3 Months Ended
Sep. 30, 2020
Notes  
Note 4: Loans and Allowance for Loan Losses

Note 4:  Loans and Allowance for Credit Losses

 

Classes of loans are summarized as follows:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Real Estate Loans:

 

 

     Residential

$                      635,718

$               627,357

     Construction

                        207,737

                 185,924

     Commercial

                        884,835

                 887,419

Consumer loans

                          80,906

                   80,767

Commercial loans

                        481,582

                 468,448

                     2,290,778

              2,249,915

Loans in process

                      (101,392)

                  (78,452)

Deferred loan fees, net

                          (3,839)

                    (4,395)

Allowance for credit losses

                        (35,084)

                  (25,139)

     Total loans

$                   2,150,463

$            2,141,929

 

The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At September 30, 2020, the Bank had purchased participations in 22 loans totaling $55.7 million, as compared to 23 loans totaling $58.2 million at June 30, 2020.

 

Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences.  This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied.  Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property.  Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

 

The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area.  The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.

 

Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.

 

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

 

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multifamily or commercial construction loans typically mature in 12 to 24 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

 

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At September 30, 2020, construction loans outstanding included 78 loans, totaling $36.1 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above.  As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs).  Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included drawn balances of $4.4 million in construction loans which were modified at the borrower’s request due to the current situation of heightened economic uncertainty triggered by the pandemic.

 

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

 

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable.  Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

 

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles

have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

 

Commercial Business Lending. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.

 

Allowance for Credit Losses. The provision for credit losses for the three-month period ended September 30, 2020, was $774,000, relatively low as compared to earlier quarters in calendar year 2020, or as compared to the same period of the prior fiscal year. The charge was based on the estimated required ACL, reflecting management’s estimate of the current expected credit losses in the Company’s loan portfolio at September 30, 2020, and as of that date the Company’s ACL was $35.1 million. The relatively low provision was attributable primarily to the current quarter’s relatively low loan growth and stable credit quality indicators quarter-over-quarter. While uncertainty remains regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, the Company assesses that the economic outlook is little changed as compared to June 30, 2020. However, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and the Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be somewhat offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL.

 

The following tables present the balance in the ACL and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment as of September 30 and June 30, 2020, and activity in the ACL and ALLL for the three-month periods ended September 30, 2020 and 2019:

 

 

 

 

 

At period end and for the three months ended September 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for credit losses:

 

 

 

 

 

 

     Balance, beginning of period
          prior to adoption of CECL

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Impact of CECL adoption

                 3,521

                  (121)

                 3,856

               1,065

                   1,012

                 9,333

     Provision charged to expense

                    252

                        3

                      61

                      61

                    397

                    774

     Losses charged off

                    (19)

                        -

                        -

                      (6)

                  (145)

                  (170)

     Recoveries

                        -

                        -

                        1

                        3

                        4

                        8

     Balance, end of period

$            8,629

$               1,892

$             16,050

$               2,305

$               6,208

$             35,084

 

 

 

At period end and for the three months ended September 30, 2019

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, beginning of period

$               3,706

$               1,365

$               9,399

$               1,046

$               4,387

$             19,903

     Provision charged to expense

                  (134)

                    174

                    376

                      96

                    384

                    896

     Losses charged off

                        -

                        -

                        -

                    (72)

                    (35)

                  (107)

     Recoveries

                        -

                        -

                      14

                        4

                        -

                      18

     Balance, end of period

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

 

 

At June 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, end of period

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

Loans:

 

 

 

 

 

 

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$           626,085

$           106,194

$           872,716

$             80,767

$           463,902

$        2,149,664

     Ending Balance: loans acquired
           with deteriorated credit quality

$               1,272

$               1,278

$             14,703

$                      -

$               4,546

$             21,799

 

 

Included in the Company’s loan portfolio are certain loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination, which are considered purchased credit deteriorated (PCD) loans. Prior to the July 1, 2020 adoption of ASU 2016-13, these loans were accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were described as purchased credit impaired (PCI) loans. Under ASC 310-30, these loans were written down at acquisition to an amount estimated to be collectible, and, unless there was further deterioration following the acquisition, an ALLL was not recognized for these loans. As a result, certain historical ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s credit quality over time. The ratios particularly affected by accounting under ASC 310-30 include the allowance as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. For more information about the transition from PCI to PCD status of the Company’s acquired loans, see Note 2: Organization and Summary of Significant Accounting Policies, Loans.

 

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of

single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

 

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring.  Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

 

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days.  This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

 

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding.  These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

 

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

 

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades.  The primary responsibility for this review rests with loan administration personnel.  This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies.  The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of September 30, 2020. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

 

 

 

 

 

 

 

 

 

Revolving

 

2021

2020

2019

2018

2017

Prior

loans

Total

Residential Real Estate

 

 

 

 

 

 

 

 

Pass

$ 123,469

$ 225,522

$   65,243

$   53,150

$   38,183

$ 117,755

$     5,416

$    628,738

Watch

          125

          122

          419

               -

            98

          876

               -

          1,640

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

          145

          1,007

          227

            73

               -

       3,818

               -

          5,270

Doubtful

               -

               -

               -

               -

               -

            32

               -

               32

Total Residential Real Estate

$ 123,739

$ 226,651

$   65,889

$   53,237

$   38,281

$ 122,505

$     5,416

$    635,718

 

 

 

 

 

 

 

 

 

Construction Real Estate

 

 

 

 

 

 

 

 

Pass

$   42,502

$   52,358

$     6,914

$             -

$             -

$             -

$        205

$    101,979

Watch

               -

               -

          417

       3,949

               -

               -

               -

          4,366

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

               -

               -

               -

               -

               -

               -

                  -

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Construction Real Estate

$   42,502

$   52,358

$     7,331

$     3,949

$             -

$             -

$        205

$    106,345

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

Pass

$   64,829

$ 222,926

$ 151,121

$ 158,268

$   87,699

$ 117,612

$   27,117

$    829,572

Watch

          508

       9,348

     10,611

       4,956

     14,252

       1,493

          904

        42,072

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

       1,222

       6,149

          560

          285

       2,718

       1,369

               -

        12,303

Doubtful

               -

               -

          888

               -

               -

               -

               -

             888

Total Commercial Real Estate

$   66,559

$ 238,423

$ 163,180

$ 163,509

$ 104,669

$ 120,474

$   28,021

$    884,835

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

Pass

$     7,540

$   17,077

$     7,148

$     2,512

$     1,289

$        788

$   44,316

$      80,670

Watch

               -

               -

               -

               -

               -

               -

               -

                  -

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

            42

            15

            41

            25

            42

            71

             236

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Consumer

$     7,540

$   17,119

$     7,163

$     2,553

$     1,314

$        830

$   44,387

$      80,906

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

Pass

$   27,116

$ 232,331

$   37,049

$   21,354

$   10,050

$   13,662

$ 130,547

$    472,109

Watch

       1,009

          162

            64

              8

            12

               -

       1,725

          2,980

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

            35

       1,584

       1,640

          462

          180

              8

       2,584

          6,493

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Commercial

$   28,160

$ 234,077

$   38,753

$   21,824

$   10,242

$   13,670

$ 134,856

$    481,582

 

 

 

 

 

 

 

 

Total Loans

 

 

 

 

 

 

 

 

Pass

$ 265,456

$ 750,214

$ 267,475

$ 235,284

$ 137,221

$ 249,817

$ 207,601

$ 2,113,068

Watch

       1,642

       9,632

     11,511

       8,913

     14,362

       2,369

       2,629

        51,058

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

       1,402

       8,782

       2,442

          861

       2,923

       5,237

       2,655

        24,302

Doubtful

               -

               -

          888

               -

               -

            32

               -

             920

Total

$ 268,500

$ 768,628

$ 282,316

$ 245,072

$ 154,506

$ 257,479

$ 212,885

$ 2,189,386

 

 

 

At September 30, 2020, PCD loans comprised $5.6 million of credits rated “Pass”; $10.1 million of credits rated “Watch”; none rated “Special Mention”; $5.7 million of credits rated “Substandard”; and none rated “Doubtful”.

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2020. This table includes PCI loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification:

 

 

June 30, 2020

 

Residential

Construction

Commercial

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Pass

$                   620,004

$           103,105

$                  829,276

$             80,517

$           457,385

Watch

                         1,900

                 4,367

                      45,262

                      45

                 4,708

Special Mention

                               -   

                      -   

                           403

                      25

                      -   

Substandard

                         5,453

                      -   

                      11,590

                    180

                 6,355

Doubtful

                               -   

                      -   

                           888

                      -   

                      -   

     Total

$                   627,357

$           107,472

$                  887,419

$             80,767

$           468,448

 

 

At June 30, 2020, PCI loans comprised $5.9 million of credits rated “Pass”; $10.3 million of credits rated “Watch”, none rated “Special Mention”, $5.6 million of credits rated “Substandard” and none rated “Doubtful”.

 

Past-due Loans.  The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of September 30 and June 30, 2020.  These tables include PCD and PCI loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

 

 

September 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  974

$                    37

$               1,343

$               2,354

$           633,364

$           635,718

$                     -

     Construction

                    200

                        -

                        -

                    200

             106,145

             106,345

                       -

     Commercial

                 1,008

                        9

                    760

                 1,777

             883,058

             884,835

                       -

Consumer loans

                    761

                      78

                    248

                 1,087

               79,819

               80,906

                       -

Commercial loans

                    756

                    243

                    490

                 1,489

             480,093

             481,582

                       -

     Total loans

$               3,699

$                  367

$               2,841

$               6,907

$        2,182,479

$        2,189,386

$                     -

 

 

June 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  772

$                  378

$                  654

$               1,804

$           625,553

$           627,357

$                     -

     Construction

                        -

                        -

                        -

                        -

             107,472

             107,472

                       -

     Commercial

                    641

                    327

                 1,073

                 2,041

             885,378

             887,419

                       -

Consumer loans

                    180

                      53

                    193

                    426

               80,341

               80,767

                       -

Commercial loans

                      93

                 1,219

                    810

                 2,122

             466,326

             468,448

                       -

     Total loans

$               1,686

$               1,977

$               2,730

$               6,393

$        2,165,070

$        2,171,463

$                     -

 

 

Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included $93.6 million in loans reported as current in the above table, none of which were past due.  Loans with such modifications in effect at June 30, 2020, included $380.1 million in loans reported as current in the above table, while an additional $29,000 of consumer loans and $1,000 in residential real estate loans with such modifications were reported as 30-59 days past due, and $66,000 of commercial loans with such modifications were reported as 60-89 days past due.

 

At September 30, and June 30, 2020 there were no PCD or PCI loans that were greater than 90 days past due.  

 

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

 

Collateral-dependent Loans. At September 30, 2020, there were no collateral-dependent loans that were individually evaluated to determine expected credit losses.

 

Impairment. Prior to the July 1, 2020, adoption of ASU 2016-13, a loan was considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it was probable the Company would be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans included nonperforming loans, as well as performing loans modified in troubled debt restructurings where concessions were granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.

 

The table below presents impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2020. The table includes PCI loans at June 30, 2020 for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, continued to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would be less than the amount previously expected, the Company would allocate a specific allowance under the terms of ASC 310-10-35.

 

 

June 30, 2020

 

Recorded

Unpaid Principal

Specific

(dollars in thousands)

Balance

Balance

Allowance

Loans without a specific valuation allowance:

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

                 1,277

                 1,312

                        -

     Commercial real estate

               19,271

               23,676

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                 5,040

                 6,065

                        -

Loans with a specific valuation allowance:

 

 

 

     Residential real estate

$                      -

$                      -

$                      -

     Construction real estate

                        -

                        -

                        -

     Commercial real estate

                        -

                        -

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                        -

                        -

                        -

Total:

 

 

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

$               1,277

$               1,312

$                      -

     Commercial real estate

$             19,271

$             23,676

$                      -

     Consumer loans

$                      -

$                      -

$                      -

     Commercial loans

$               5,040

$               6,065

$                      -

 

 

At June 30, 2020, PCI loans comprised $21.8 million of impaired loans without a specific valuation allowance.

The following table presents information regarding interest income recognized on impaired loans:

 

 

For the three-month period ended

 

September 30, 2019

 

Average

 

(dollars in thousands)

Investment in

Interest Income

Impaired Loans

Recognized

Residential Real Estate

$                   1,677

$                         23

Construction Real Estate

                     1,306

                           48

Commercial Real Estate

                   17,721

                         335

Consumer Loans

                             -

                              -

Commercial Loans

                     5,812

                           93

   Total Loans

$                 26,516

$                       499

 

 

Interest income on impaired loans recognized on a cash basis in the three-month period ended September 30, 2019, was immaterial. For the three-month period ended September 30, 2019, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $83,000.

 

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at September 30 and June 30, 2020.  The table excludes performing TDRs.

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Residential real estate

$               4,339

$               4,010

Construction real estate

                      -   

                      -   

Commercial real estate

                 3,052

                 3,106

Consumer loans

                    255

                    196

Commercial loans

                 1,129

                 1,345

     Total loans

$               8,775

$               8,657

 

 

At September 30, 2020, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three-month periods ended September 30, 2019 and 2020, was immaterial.

 

Troubled Debt Restructurings. Prior to the July 1, 2020, adoption of ASU 2016-13, loans restructured as TDRs were included in certain loan categories classified as impaired loans, where economic concessions have been granted to borrowers who have experienced financial difficulties. Subsequent to the adoption of ASU 2016-13, TDRs are evaluated to determine whether they share similar risk characteristics with collectively evaluated loan pools, or must be individually evaluated. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. In general, the Company’s loans that have been subject to classification as TDRs are the result of guidance under ASU No. 2011-02, which indicates that the Company may not consider the borrower’s effective borrowing rate on the old debt immediately before the restructuring in determining whether a concession has been granted. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

 

During the three-month periods ended September 30, 2020 and 2019, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below:

 

 

 

 

For the three-month periods ended

 

 

September 30, 2020

September 30, 2019

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

1

$                 98

-

$                          -

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

2

              1,840

-

                            -

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

1

                   36

-

                            -

           Total

 

4

$            1,974

-

$                          -

 

 

Performing loans classified as TDRs and outstanding at September 30 and June 30, 2020, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans.

 

 

 

September 30, 2020

June 30, 2020

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

3

$               1,015

3

$                     791

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

7

              3,904

10

                    4,544

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

8

              3,229

7

                    3,245

           Total

 

18

$            8,148

20

$                  8,580

 

 

Residential Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of September 30, and June 30, 2020, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $565,000 and $563,000, respectively. In addition, as of September 30 and June 30, 2020, the Company had residential mortgage loans and home equity loans with a carrying value of $329,000 and $435,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

 

Purchased Credit Deteriorated Loans. Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered PCI. Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. All loans considered to be PCI prior to July 1, 2020, were converted to PCD on that date.

 

The carrying amount of $21.8 million in PCI loans was included in the balance sheet amount of loans receivable at June 30, 2020, with no associated ACL. In accordance with ASU 2016-13, the Company did not reassess whether the PCI loans met the criteria of PCD loans as of the adoption date. The amortized cost of the PCD loans were adjusted to reflect the addition of $434,000 to the ACL. PCD loans receivable, net of ACL, totaling $20.9 million were included in the balance sheet amount of loans receivable at September 30, 2020.

 

During the three-month periods ended September 30, 2019 and 2020, the Company did not increase or reverse ALLL or ACL related to PCI or PCD loans.

 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment
3 Months Ended
Sep. 30, 2020
Notes  
NOTE 5: Premises and Equipment

Note 5:  Premises and Equipment

 

Following is a summary of premises and equipment:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Land

$                    12,514

$                    12,585

Buildings and improvements

                      56,675

                      56,039

Construction in progress

                             35

                           435

Furniture, fixtures, equipment and software

                      18,276

                      18,109

Automobiles

                           120

                           120

Operating leases ROU asset

                        1,944

                        1,965

                      89,564

                      89,253

Less accumulated depreciation

                      25,134

                      24,147

$                    64,430

$                    65,106

 

 

Leases.  The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2019, using the modified retrospective transition approach whereby comparative periods were not restated.  The Company also elected certain relief options under the ASU, including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less).  The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.   

 

All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets.  With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets.  The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.  Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income.

 

ASU 2016-02 also requires certain other accounting elections.  The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months.  ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease

liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%.  The expected lease terms range from 18 months to 20 years.   

 

September 30, 2020

June 30, 2020

Consolidated Balance Sheet

 

 

Operating leases right of use asset

$                      1,944

$                      1,965

Operating leases liability

$                      1,944

$                      1,965

 

 

Three Months Ended September 30,

2020

2019

Consolidated Statement of Income

 

 

Operating lease costs classified as occupancy and equipment expense

$                           72

$                           57

    (includes short-term lease costs)

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

    Operating cash flows from operating leases

$                           67

$                           39

ROU assets obtained in exchange for operating lease obligations:

$                           -   

$                      2,004

 

 

 

For the three months ended September 30, 2020 and 2019, lease expense was $72,000 and $57,000, respectively. At September 30, 2020, future expected lease payments for leases with terms exceeding one year were as follows:

 

(dollars in thousands)

 

2021

$                  269

2022

                    243

2023

                    243

2024

                    243

2025

                    242

Thereafter

                 2,134

Future lease payments expected

$               3,374

 

 

The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases.   For the three month periods ended September 30, 2020 and 2019, income recognized from these lessor agreements was $75,000 and $82,000, respectively, and was included in net occupancy and equipment expense.

 

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Note 6: Deposits
3 Months Ended
Sep. 30, 2020
Notes  
Note 6: Deposits

Note 6:  Deposits

 

Deposits are summarized as follows:

 

 

 

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Non-interest bearing accounts

$                  307,023

$                  316,048

NOW accounts

                    789,486

                    781,937

Money market deposit accounts

                    234,948

                    231,162

Savings accounts

                    189,218

                    181,229

Certificates

                    647,399

                    674,471

    Total Deposit Accounts

$               2,168,074

$               2,184,847

 

 

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7: Earnings Per Share
3 Months Ended
Sep. 30, 2020
Notes  
Note 7: Earnings Per Share

Note 7:  Earnings Per Share

 

The following table sets forth the computation of basic and diluted earnings per share:

 

 

Three months ended

 

September 30,

 

2020

2019

(dollars in thousands except per share data)

 

 

Net income

$                 9,986

$                 7,828

  Less: distributed earnings allocated to participating securities

                        (4)

                           -

  Less: undistributed earnings allocated to participating securities

                      (26)

                           -

Net income available to common shareholders

                   9,956

                   7,828

 

 

 

Weighted-average common shares outstanding, including participating securities

            9,126,866

            9,232,257

  Less: weighted-average participating securities outstanding (restricted shares)

               (27,260)

                         -   

Weighted-average basic common shares outstanding

            9,099,606

            9,232,257

  Add: effect of dilutive securities, stock options, and awards

                   2,191

                 11,891

Denominator for diluted earnings per share

$          9,101,797

$          9,244,148

 

 

 

Basic earnings per share available to common stockholders

$                   1.09

$                   0.85

Diluted earnings per share available to common stockholders

$                   1.09

$                   0.85

 

 

Options outstanding at September 30, 2020 and 2019, to purchase 50,500, and 15,500 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2020 and 2019, respectively.

 

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes
3 Months Ended
Sep. 30, 2020
Notes  
Note 8: Income Taxes

Note 8: Income Taxes   

 

The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state examinations by tax authorities for tax years ending June 30, 2015 and before.  The Company recognized no interest or penalties related to income taxes.

 

The Company’s income tax provision is comprised of the following components:

 

 

For the three-month periods ended

(dollars in thousands)

09/30/2020

September 30, 2019

Income taxes

 

 

     Current

$                      4,750

$                      1,970

     Deferred

                      (2,003)

                               6

Total income tax provision

$                      2,747

$                      1,976

 

 

The components of net deferred tax assets are summarized as follows:

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Deferred tax assets:

     Provision for losses on loans

$                      8,023

$                      5,802

     Accrued compensation and benefits

                           539

                           825

     NOL carry forwards acquired

                           136

                           149

     Minimum Tax Credit

                           130

                           130

     Unrealized loss on other real estate

                           187

                           257

    Other

                           120

                             26

Total deferred tax assets

                        9,135

                        7,189

 

 

 

Deferred tax liabilities:

 

 

     Purchase accounting adjustments

                             42

                             64

     Depreciation

                        1,785

                        1,665

     FHLB stock dividends

                           120

                           120

     Prepaid expenses

                           208

                           259

     Unrealized gain on available for sale securities

                        1,304

                        1,265

     Other

                             -   

                           104

Total deferred tax liabilities

                        3,459

                        3,477

 

 

 

     Net deferred tax asset

$                      5,676

$                      3,712

 

 

As of September 30, 2020, the Company had approximately $675,000 and $119,000 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., the August 2014 acquisition of Peoples Service Company, and the June 2017 acquisition of Tammcorp, Inc.  The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027.

 

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

 

 

For the three-month periods ended

(dollars in thousands)

September 30, 2020

September 30, 2019

Tax at statutory rate

$                      2,674

$                      2,059

Increase (reduction) in taxes
     resulting from:

 

 

           Nontaxable municipal income

                         (103)

                         (113)

           State tax, net of Federal benefit

                           241

                           109

           Cash surrender value of
                 Bank-owned life insurance

                           (59)

                           (53)

           Tax credit benefits

                             26

                             -   

           Other, net

                           (32)

                           (26)

Actual provision

$                      2,747

$                      1,976

 

For the three month periods ended September 30, 2020 and 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).  

 

Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.

 

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Note 9: 401(k) Retirement Plan
3 Months Ended
Sep. 30, 2020
Notes  
Note 9: 401(k) Retirement Plan

Note 9:  401(k) Retirement Plan

 

The Bank has a 401(k) retirement plan that covers substantially all eligible employees.  The Bank made a “safe harbor” matching contribution to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2020; for fiscal 2021, the Company has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions.   During the three-month period ended September 30, 2020, retirement plan expenses recognized for the Plan totaled approximately $457,000, as compared to $381,000 for the same period of the prior fiscal year.  Employee deferrals and safe harbor contributions are fully vested.  Profit-sharing or other contributions vest over a period of five years.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10: Subordinated Debt
3 Months Ended
Sep. 30, 2020
Notes  
Note 10: Subordinated Debt

Note 10:  Subordinated Debt

 

Southern Missouri Statutory Trust I issued $7.0 million of Floating Rate Capital Securities (the “Trust Preferred Securities”) with a liquidation value of $1,000 per share in March 2004. The securities are due in 30 years, redeemable after five years and bear interest at a floating rate based on LIBOR. At September 30, 2020, the current rate was 3.00%. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act.  The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

 

Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries.

 

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.70%. The carrying value of the debt securities was approximately $2.7 million at September 30 and June 30, 2020.

 

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At September 30, 2020, the current rate was 2.05%.  The carrying value of the debt securities was approximately $5.3 million at September 30, and June 30, 2020.

 

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements
3 Months Ended
Sep. 30, 2020
Notes  
Note 11: Fair Value Measurements

Note 11:  Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

 

Level 1Quoted prices in active markets for identical assets or liabilities 

 

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities 

 

Level 3Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities 

 

Recurring Measurements. The following table presents the fair value measurements recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30 and June 30, 2020:

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   44,487

$                  -

$        44,487

$                  -

Other securities

                       9,200

                    -

            9,200

                    -

Mortgage-backed GSE residential

                   121,841

                    -

        121,841

                    -

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   41,988

$                  -

$        41,988

$                  -

Other securities

                       7,624

                    -

            7,624

                    -

Mortgage-backed GSE residential

                   126,912

                    -

        126,912

                    -

 

 

 

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

 

Available-for-sale Securities. When quoted market prices are available in an active market, securities are classified within Level 1.  If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics.  For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.   In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

 

Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020:

 

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                     166

$                          -

$                  -

$             166

 

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                  2,211

$                          -

$                  -

$          2,211

 

 

The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended September 30, 2020 and 2019:

 

 

 

 

For the three months ended

(dollars in thousands)

 

 

September 30, 2020

September 30, 2019

Foreclosed and repossessed assets held for sale

$                      (36)

$               (1)

     Total losses on assets measured on a non-recurring basis

$                      (36)

$               (1)

 

The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

 

Foreclosed and Repossessed Assets Held for Sale. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

 

Unobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

 

(dollars in thousands)

 

Fair value at
September 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                     166

Third party appraisal

Marketability discount

24.5% - 60.4%

41.3%

 

 

 

 

 

 

 

(dollars in thousands)

 

Fair value at
June 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                  2,211

Third party appraisal

Marketability discount

8.0% - 56.9%

15.7%

 

 

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at September 30 and June 30, 2020.

 

 

 

September 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                41,875

$                41,875

$                  -

$                  -

     Interest-bearing time deposits

 

                       975

                            -

               975

                    -

     Stock in FHLB

 

                    6,939

                            -

            6,939

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    5,017

                            -

            5,017

                    -

     Loans receivable, net

 

             2,150,463

                            -

                    -

     2,167,748

     Accrued interest receivable

 

                  13,766

                            -

          13,766

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,168,074

             1,520,675

                    -

        651,528

     Advances from FHLB

 

                  85,637

                            -

          87,514

                    -

     Accrued interest payable

 

                    1,402

                            -

            1,402

                    -

     Subordinated debt

 

                  15,168

                            -

                    -

          13,455

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

 

 

June 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                54,245

$                54,245

$                  -

$                  -

     Interest-bearing time deposits

 

                       974

                            -

               974

                    -

     Stock in FHLB

 

                    6,390

                            -

            6,390

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    4,363

                            -

            4,363

                    -

     Loans receivable, net

 

             2,141,929

                            -

                    -

     2,143,823

     Accrued interest receivable

 

                  12,116

                            -

          12,116

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,184,847

             1,508,740

                    -

        676,816

     Advances from FHLB

 

                  70,024

                            -

          72,136

                    -

     Accrued interest payable

 

                    1,646

                            -

            1,646

                    -

     Subordinated debt

 

                  15,142

                            -

                    -

          11,511

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

 

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities.  SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC.  Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At September 30, 2020, assets of the REIT were approximately $877 million, and consisted primarily of loan participations acquired from the Bank.

 

The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

 

Basis of Financial Statement Presentation. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Principles of Consolidation Policy

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

XML 31 R21.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Use of Estimates Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Use of Estimates Policy

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020. Effective July 1, 2020 through September 30, 2020, the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.

XML 32 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Cash and Cash Equivalents, Policy

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $4.2 million and $6.9 million at September 30 and June 30, 2020, respectively. The deposits are held in various commercial banks with a total of $303,000 and $319,000 exceeding the FDIC’s deposit insurance limits at September 30 and June 30, 2020, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

XML 33 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Interest Bearing Time Deposits (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Interest Bearing Time Deposits

Interest-bearing Time Deposits. Interest bearing deposits in banks mature within seven years and are carried at cost.

XML 34 R24.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Marketable Securities, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Marketable Securities, Policy

Available for Sale Securities. Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income, a component of stockholders’ equity. All securities have been classified as available for sale.

 

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

 

The Company does not invest in collateralized mortgage obligations that are considered high risk.

 

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

 

At adoption, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at September 30, 2020, and June 30, 2020.

 

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

XML 35 R25.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Federal Home Loan Bank and Federal Reserve Bank Stock (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Federal Home Loan Bank and Federal Reserve Bank Stock

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.

XML 36 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Loans Policy

Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL.  The Company complies with regulatory guidance which indicates that loans should be placed on nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. At September 30, 2020, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at September 30, 2020. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

 

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

 

Management estimates the ACL balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages.

 

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools.  The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically.

 

Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk.

 

Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received).

 

Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

 

Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.  

 

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

XML 37 R27.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Off-Balance Sheet Credit Exposures (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Off-Balance Sheet Credit Exposures

Off-Balance Sheet Credit Exposures.   Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is

represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.  The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets.  The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense for off-balance sheet credit exposures included in other non-interest expense in the Company’s consolidated statements of income.

XML 38 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Foreclosed Real Estate Policy

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis.  Costs for development and improvement of the property are capitalized.

 

Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.

 

Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.

XML 39 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Property, Plant and Equipment, Policy

Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

 

Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

XML 40 R30.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Bank Owned Life Insurance Policy

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value.  Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.

XML 41 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Goodwill Policy

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2020, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the decline in the market value of the Company’s common stock, relative to peers; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.  The Company believes there continues to be no impairment of goodwill at September 30, 2020.

XML 42 R32.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Intangible Assets, Finite-Lived, Policy

Intangible Assets.  The Company’s intangible assets at September 30, 2020 included gross core deposit intangibles of $15.3 million with $9.0 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.3 million.  At June 30, 2020, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $8.7 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.1 million.  The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.0 million in the remainder of fiscal 2021, $1.4 million in fiscal 2022 through fiscal 2024, and $807,000 million in fiscal 2025, and $328,000 thereafter. As of June 30, 2020, there was no impairment indicated, and the Company believes there continues to be no impairment of other intangible assets at September 30, 2020.

XML 43 R33.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Income Tax, Policy

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC

740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

 

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

 

The Company files consolidated income tax returns with its subsidiary.

XML 44 R34.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Share-based Compensation, Option and Incentive Plans Policy

Incentive Plans. The Company accounts for its Management and Recognition Plan (MRP), Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.”  Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

XML 45 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Outside Directors Retirement Plan Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Outside Directors Retirement Plan Policy

Outside Directors’ Retirement.   The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.

 

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

XML 46 R36.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Stock Option Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Stock Option Policy

Stock Options. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

XML 47 R37.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Earnings Per Share, Policy

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

XML 48 R38.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Comprehensive Income (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Comprehensive Income

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities, and changes in the funded status of defined benefit pension plans.

XML 49 R39.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Fair Value Transfer Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Fair Value Transfer Policy

Transfers Between Fair Value Hierarchy Levels.  Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

XML 50 R40.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
New Accounting Pronouncements

The following paragraphs summarize the impact of new accounting pronouncements:

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures.  Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020.  The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACI model and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million.  In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.  On July 1, 2020, the amortized cost basis of the PCD loans were increased to reflect the addition of $434,000 to the ACL.  The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially.

 

 

The following table illustrates the impact of adoption of ASU 2016-13:

 

 

July 1, 2020

 

As reported

As reported

Impact of

 

under

prior to

adoption

(dollars in thousands)

ASU 2016-13

ASU 2016-13

ASU 2016-13

Loans receivable

$              2,142,363

$              2,141,929

$                         434

Allowance for credit losses on loans:

 

 

 

Real Estate Loans:

 

 

 

     Residential

                      8,396

                      4,875

                      3,521

     Construction

                        1,889

                        2,010

                         (121)

     Commercial

                      15,988

                      12,132

                        3,856

Consumer loans

                        2,247

                        1,182

                        1,065

Commercial loans

                        5,952

                        4,940

                        1,012

Total allowance for credit losses on loans

$                    34,472

$                    25,139

$                      9,333

 

 

 

 

Total allowance for credit losses on
    off-balance sheet credit exposures

$                      2,227

$                      1,959

$                         268

 

 

The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.

 

In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of

December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020.

XML 51 R41.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Repurchase Agreements, Collateral, Policy

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $146.2 million at September 30, 2020 and $156.1 million at June 30, 2020.  The securities pledged consist of marketable securities, including $77.3 million and $82.0 million of Mortgage-Backed Securities, $34.9 million and $41.9 million of Collateralized Mortgage Obligations, $33.0 million and $32.0 million of State and Political Subdivisions Obligations, and $1.0 million and $200,000 of Other Securities at September 30 and June 30, 2020, respectively.

XML 52 R42.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Other Securities Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Other Securities Policy

Other securities.  At September 30, 2020 there were two pooled trust preferred securities with an estimated fair value of $654,000 and unrealized losses of $322,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

 

The September 30, 2020, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

 

One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

 

The Company does not believe any other individual unrealized loss as of September 30, 2020, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

XML 53 R43.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Credit Losses Recognized on Investments Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Credit Losses Recognized on Investments Policy

Credit losses recognized on investments.  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three-month periods ended September 30, 2020 and 2019.

XML 54 R44.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Residential Mortgage Lending Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Residential Mortgage Lending Policy

Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences.  This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied.  Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property.  Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

 

The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area.  The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.

XML 55 R45.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Commercial Real Estate Lending Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Commercial Real Estate Lending Policy

Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.

 

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

XML 56 R46.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Construction Lending Policy

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multifamily or commercial construction loans typically mature in 12 to 24 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

 

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At September 30, 2020, construction loans outstanding included 78 loans, totaling $36.1 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above.  As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs).  Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at September 30, 2020, included drawn balances of $4.4 million in construction loans which were modified at the borrower’s request due to the current situation of heightened economic uncertainty triggered by the pandemic.

XML 57 R47.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Consumer Lending Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Consumer Lending Policy

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

 

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable.  Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

 

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles

have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

XML 58 R48.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Commercial Business Lending Policy (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Commercial Business Lending Policy

Commercial Business Lending. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.

XML 59 R49.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Credit Quality Indicators (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Credit Quality Indicators

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of

single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

 

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring.  Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

 

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days.  This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

 

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding.  These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

 

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

 

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades.  The primary responsibility for this review rests with loan administration personnel.  This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies.  The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

XML 60 R50.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Lessee, Operating Lease, Disclosure (Policies)
3 Months Ended
Sep. 30, 2020
Policies  
Lessee, Operating Lease, Disclosure

Leases.  The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2019, using the modified retrospective transition approach whereby comparative periods were not restated.  The Company also elected certain relief options under the ASU, including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less).  The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.   

 

All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets.  With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets.  The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.  Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income.

XML 61 R51.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements: Schedule of Adoption of ASU 2016-30 (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Adoption of ASU 2016-30

 

 

July 1, 2020

 

As reported

As reported

Impact of

 

under

prior to

adoption

(dollars in thousands)

ASU 2016-13

ASU 2016-13

ASU 2016-13

Loans receivable

$              2,142,363

$              2,141,929

$                         434

Allowance for credit losses on loans:

 

 

 

Real Estate Loans:

 

 

 

     Residential

                      8,396

                      4,875

                      3,521

     Construction

                        1,889

                        2,010

                         (121)

     Commercial

                      15,988

                      12,132

                        3,856

Consumer loans

                        2,247

                        1,182

                        1,065

Commercial loans

                        5,952

                        4,940

                        1,012

Total allowance for credit losses on loans

$                    34,472

$                    25,139

$                      9,333

 

 

 

 

Total allowance for credit losses on
    off-balance sheet credit exposures

$                      2,227

$                      1,959

$                         268

 

XML 62 R52.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Schedule of Available for Sale Securities (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Available for Sale Securities

 

 

September 30, 2020

 

 

Gross

Gross

Allowance

Estimated

 

Amortized

Unrealized

Unrealized

for

Fair

(dollars in thousands)

Cost

Gains

Losses

Credit Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 

 State and political subdivisions

$             42,880

$               1,608

$                    (1)

$                      -

$             44,487

 Other securities

                 9,358

                    169

                  (327)

                        -

                 9,200

 Mortgage-backed GSE residential

             117,366

                 4,518

                    (43)

                        -

             121,841

    Total investment and mortgage-backed securities

$           169,604

$               6,295

$                (371)

$                      -

$           175,528

 

 

June 30, 2020

 

 

Gross

Gross

Estimated

 

Amortized

Unrealized

Unrealized

Fair

(dollars in thousands)

Cost

Gains

Losses

Value

Investment and mortgage backed securities:

 

 

 

 

 State and political subdivisions

$             40,486

$               1,502

$                      -

$             41,988

 Other securities

                 7,919

                      48

                  (343)

                 7,624

 Mortgage-backed GSE residential

             122,375

                 4,576

                    (39)

             126,912

    Total investment and mortgage-backed securities

$           170,780

$               6,126

$                (382)

$           176,524

 

XML 63 R53.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Investments Classified by Contractual Maturity Date (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Investments Classified by Contractual Maturity Date

 

 

September 30, 2020

 

Amortized

Estimated

(dollars in thousands)

Cost

Fair Value

  Within one year

$                     1,370

$           1,398

  After one year but less than five years

                     10,341

           10,525

  After five years but less than ten years

                     17,180

           17,689

  After ten years

                     23,347

           24,075

     Total investment securities

                     52,238

           53,687

  Mortgage-backed securities

                   117,366

         121,841

    Total investment and mortgage-backed securities

$                 169,604

$       175,528

 

XML 64 R54.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

 

 

September 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Obligations of state and political subdivisions

$        531

$            1

$             -

$             -

$        531

$            1

 Other securities

               -

               -

          839

          327

          839

          327

 Mortgage-backed securities

       8,368

            43

               -

               -

       8,368

            43

   Total investments and mortgage-backed securities

$     8,899

$          44

$        839

$        327

$     9,738

$        371

 

 

June 30, 2020

 

Less than 12 months

12 months or more

Total

 

 

Unrealized

 

Unrealized

 

Unrealized

(dollars in thousands)

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

 Other securities

$        995

$            5

$        643

$        338

$     1,638

$        343

 Mortgage-backed securities

       9,037

            39

               -

               -

       9,037

            39

   Total investments and mortgage-backed securities

$   10,032

$          44

$        643

$        338

$   10,675

$        382

 

XML 65 R55.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Accounts, Notes, Loans and Financing Receivable

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Real Estate Loans:

 

 

     Residential

$                      635,718

$               627,357

     Construction

                        207,737

                 185,924

     Commercial

                        884,835

                 887,419

Consumer loans

                          80,906

                   80,767

Commercial loans

                        481,582

                 468,448

                     2,290,778

              2,249,915

Loans in process

                      (101,392)

                  (78,452)

Deferred loan fees, net

                          (3,839)

                    (4,395)

Allowance for credit losses

                        (35,084)

                  (25,139)

     Total loans

$                   2,150,463

$            2,141,929

 

XML 66 R56.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Investment (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Balance in the Allowance for Loan Losses and Recorded Investment

 

 

 

 

At period end and for the three months ended September 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for credit losses:

 

 

 

 

 

 

     Balance, beginning of period
          prior to adoption of CECL

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Impact of CECL adoption

                 3,521

                  (121)

                 3,856

               1,065

                   1,012

                 9,333

     Provision charged to expense

                    252

                        3

                      61

                      61

                    397

                    774

     Losses charged off

                    (19)

                        -

                        -

                      (6)

                  (145)

                  (170)

     Recoveries

                        -

                        -

                        1

                        3

                        4

                        8

     Balance, end of period

$            8,629

$               1,892

$             16,050

$               2,305

$               6,208

$             35,084

 

 

 

At period end and for the three months ended September 30, 2019

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, beginning of period

$               3,706

$               1,365

$               9,399

$               1,046

$               4,387

$             19,903

     Provision charged to expense

                  (134)

                    174

                    376

                      96

                    384

                    896

     Losses charged off

                        -

                        -

                        -

                    (72)

                    (35)

                  (107)

     Recoveries

                        -

                        -

                      14

                        4

                        -

                      18

     Balance, end of period

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               3,572

$               1,539

$               9,789

$               1,074

$               4,736

$             20,710

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

 

 

At June 30, 2020

 

Residential

Construction

Commercial

 

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Total

Allowance for loan losses:

 

 

 

 

 

 

     Balance, end of period

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$               4,875

$               2,010

$             12,132

$               1,182

$               4,940

$             25,139

     Ending Balance: loans acquired
           with deteriorated credit quality

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

Loans:

 

 

 

 

 

 

     Ending Balance: individually
           evaluated for impairment

$                      -

$                      -

$                      -

$                      -

$                      -

$                      -

     Ending Balance: collectively
           evaluated for impairment

$           626,085

$           106,194

$           872,716

$             80,767

$           463,902

$        2,149,664

     Ending Balance: loans acquired
           with deteriorated credit quality

$               1,272

$               1,278

$             14,703

$                      -

$               4,546

$             21,799

 

XML 67 R57.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Tables)
3 Months Ended
Sep. 30, 2020
Purchase Credit Deteriorated  
Financing Receivable Credit Quality Indicators

 

 

 

 

 

 

 

 

Revolving

 

2021

2020

2019

2018

2017

Prior

loans

Total

Residential Real Estate

 

 

 

 

 

 

 

 

Pass

$ 123,469

$ 225,522

$   65,243

$   53,150

$   38,183

$ 117,755

$     5,416

$    628,738

Watch

          125

          122

          419

               -

            98

          876

               -

          1,640

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

          145

          1,007

          227

            73

               -

       3,818

               -

          5,270

Doubtful

               -

               -

               -

               -

               -

            32

               -

               32

Total Residential Real Estate

$ 123,739

$ 226,651

$   65,889

$   53,237

$   38,281

$ 122,505

$     5,416

$    635,718

 

 

 

 

 

 

 

 

 

Construction Real Estate

 

 

 

 

 

 

 

 

Pass

$   42,502

$   52,358

$     6,914

$             -

$             -

$             -

$        205

$    101,979

Watch

               -

               -

          417

       3,949

               -

               -

               -

          4,366

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

               -

               -

               -

               -

               -

               -

                  -

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Construction Real Estate

$   42,502

$   52,358

$     7,331

$     3,949

$             -

$             -

$        205

$    106,345

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

Pass

$   64,829

$ 222,926

$ 151,121

$ 158,268

$   87,699

$ 117,612

$   27,117

$    829,572

Watch

          508

       9,348

     10,611

       4,956

     14,252

       1,493

          904

        42,072

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

       1,222

       6,149

          560

          285

       2,718

       1,369

               -

        12,303

Doubtful

               -

               -

          888

               -

               -

               -

               -

             888

Total Commercial Real Estate

$   66,559

$ 238,423

$ 163,180

$ 163,509

$ 104,669

$ 120,474

$   28,021

$    884,835

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

Pass

$     7,540

$   17,077

$     7,148

$     2,512

$     1,289

$        788

$   44,316

$      80,670

Watch

               -

               -

               -

               -

               -

               -

               -

                  -

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

               -

            42

            15

            41

            25

            42

            71

             236

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Consumer

$     7,540

$   17,119

$     7,163

$     2,553

$     1,314

$        830

$   44,387

$      80,906

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

Pass

$   27,116

$ 232,331

$   37,049

$   21,354

$   10,050

$   13,662

$ 130,547

$    472,109

Watch

       1,009

          162

            64

              8

            12

               -

       1,725

          2,980

Special Mention

               -

               -

               -

               -

               -

               -

               -

                  -

Substandard

            35

       1,584

       1,640

          462

          180

              8

       2,584

          6,493

Doubtful

               -

               -

               -

               -

               -

               -

               -

                  -

Total Commercial

$   28,160

$ 234,077

$   38,753

$   21,824

$   10,242

$   13,670

$ 134,856

$    481,582

 

 

 

 

 

 

 

 

Total Loans

 

 

 

 

 

 

 

 

Pass

$ 265,456

$ 750,214

$ 267,475

$ 235,284

$ 137,221

$ 249,817

$ 207,601

$ 2,113,068

Watch

       1,642

       9,632

     11,511

       8,913

     14,362

       2,369

       2,629

        51,058

Special Mention

               -

               -

               -

            14

               -

            24

               -

               38

Substandard

       1,402

       8,782

       2,442

          861

       2,923

       5,237

       2,655

        24,302

Doubtful

               -

               -

          888

               -

               -

            32

               -

             920

Total

$ 268,500

$ 768,628

$ 282,316

$ 245,072

$ 154,506

$ 257,479

$ 212,885

$ 2,189,386

 

XML 68 R58.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Credit Risk Profile (Tables)
3 Months Ended
Sep. 30, 2020
Purchase Credit Impaired  
Credit Risk Profile

 

 

June 30, 2020

 

Residential

Construction

Commercial

 

 

(dollars in thousands)

Real Estate

Real Estate

Real Estate

Consumer

Commercial

Pass

$                   620,004

$           103,105

$                  829,276

$             80,517

$           457,385

Watch

                         1,900

                 4,367

                      45,262

                      45

                 4,708

Special Mention

                               -   

                      -   

                           403

                      25

                      -   

Substandard

                         5,453

                      -   

                      11,590

                    180

                 6,355

Doubtful

                               -   

                      -   

                           888

                      -   

                      -   

     Total

$                   627,357

$           107,472

$                  887,419

$             80,767

$           468,448

 

XML 69 R59.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Loan Portfolio Aging Analysis

 

 

September 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  974

$                    37

$               1,343

$               2,354

$           633,364

$           635,718

$                     -

     Construction

                    200

                        -

                        -

                    200

             106,145

             106,345

                       -

     Commercial

                 1,008

                        9

                    760

                 1,777

             883,058

             884,835

                       -

Consumer loans

                    761

                      78

                    248

                 1,087

               79,819

               80,906

                       -

Commercial loans

                    756

                    243

                    490

                 1,489

             480,093

             481,582

                       -

     Total loans

$               3,699

$                  367

$               2,841

$               6,907

$        2,182,479

$        2,189,386

$                     -

 

 

June 30, 2020

 

 

 

Greater Than

 

 

 

Greater Than 90

 

30-59 Days

60-89 Days

90 Days

Total

 

Total Loans

Days Past Due

(dollars in thousands)

Past Due

Past Due

Past Due

Past Due

Current

Receivable

and Accruing

Real Estate Loans:

 

 

 

 

 

 

 

     Residential

$                  772

$                  378

$                  654

$               1,804

$           625,553

$           627,357

$                     -

     Construction

                        -

                        -

                        -

                        -

             107,472

             107,472

                       -

     Commercial

                    641

                    327

                 1,073

                 2,041

             885,378

             887,419

                       -

Consumer loans

                    180

                      53

                    193

                    426

               80,341

               80,767

                       -

Commercial loans

                      93

                 1,219

                    810

                 2,122

             466,326

             468,448

                       -

     Total loans

$               1,686

$               1,977

$               2,730

$               6,393

$        2,165,070

$        2,171,463

$                     -

 

XML 70 R60.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Impaired Loans (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Impaired Loans

 

 

June 30, 2020

 

Recorded

Unpaid Principal

Specific

(dollars in thousands)

Balance

Balance

Allowance

Loans without a specific valuation allowance:

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

                 1,277

                 1,312

                        -

     Commercial real estate

               19,271

               23,676

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                 5,040

                 6,065

                        -

Loans with a specific valuation allowance:

 

 

 

     Residential real estate

$                      -

$                      -

$                      -

     Construction real estate

                        -

                        -

                        -

     Commercial real estate

                        -

                        -

                        -

     Consumer loans

                        -

                        -

                        -

     Commercial loans

                        -

                        -

                        -

Total:

 

 

 

     Residential real estate

$               3,811

$               4,047

$                      -

     Construction real estate

$               1,277

$               1,312

$                      -

     Commercial real estate

$             19,271

$             23,676

$                      -

     Consumer loans

$                      -

$                      -

$                      -

     Commercial loans

$               5,040

$               6,065

$                      -

 

XML 71 R61.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Interest Income Recognized on Impaired Loans

 

 

For the three-month period ended

 

September 30, 2019

 

Average

 

(dollars in thousands)

Investment in

Interest Income

Impaired Loans

Recognized

Residential Real Estate

$                   1,677

$                         23

Construction Real Estate

                     1,306

                           48

Commercial Real Estate

                   17,721

                         335

Consumer Loans

                             -

                              -

Commercial Loans

                     5,812

                           93

   Total Loans

$                 26,516

$                       499

 

XML 72 R62.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Financing Receivables, Non Accrual Status

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Residential real estate

$               4,339

$               4,010

Construction real estate

                      -   

                      -   

Commercial real estate

                 3,052

                 3,106

Consumer loans

                    255

                    196

Commercial loans

                 1,129

                 1,345

     Total loans

$               8,775

$               8,657

 

XML 73 R63.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Debtor Troubled Debt Restructuring, Current Period

 

 

 

For the three-month periods ended

 

 

September 30, 2020

September 30, 2019

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

1

$                 98

-

$                          -

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

2

              1,840

-

                            -

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

1

                   36

-

                            -

           Total

 

4

$            1,974

-

$                          -

 

XML 74 R64.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Performing Loans Classified as Troubled Debt Restructuring Loans

 

 

 

September 30, 2020

June 30, 2020

 

 

Number of

Recorded

Number of

Recorded

(dollars in thousands)

 

modifications

Investment

modifications

Investment

     Residential real estate

 

3

$               1,015

3

$                     791

     Construction real estate

 

-

                      -

-

                            -

     Commercial real estate

 

7

              3,904

10

                    4,544

     Consumer loans

 

-

                      -

-

                            -

     Commercial loans

 

8

              3,229

7

                    3,245

           Total

 

18

$            8,148

20

$                  8,580

 

XML 75 R65.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Property, Plant and Equipment (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Property, Plant and Equipment

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Land

$                    12,514

$                    12,585

Buildings and improvements

                      56,675

                      56,039

Construction in progress

                             35

                           435

Furniture, fixtures, equipment and software

                      18,276

                      18,109

Automobiles

                           120

                           120

Operating leases ROU asset

                        1,944

                        1,965

                      89,564

                      89,253

Less accumulated depreciation

                      25,134

                      24,147

$                    64,430

$                    65,106

 

XML 76 R66.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Calculated Amount of Right of Use Assets and Lease Liabilities (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Calculated Amount of Right of Use Assets and Lease Liabilities

 

September 30, 2020

June 30, 2020

Consolidated Balance Sheet

 

 

Operating leases right of use asset

$                      1,944

$                      1,965

Operating leases liability

$                      1,944

$                      1,965

 

 

Three Months Ended September 30,

2020

2019

Consolidated Statement of Income

 

 

Operating lease costs classified as occupancy and equipment expense

$                           72

$                           57

    (includes short-term lease costs)

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

    Operating cash flows from operating leases

$                           67

$                           39

ROU assets obtained in exchange for operating lease obligations:

$                           -   

$                      2,004

 

XML 77 R67.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Future Minimum Rental Payments for Operating Leases

 

(dollars in thousands)

 

2021

$                  269

2022

                    243

2023

                    243

2024

                    243

2025

                    242

Thereafter

                 2,134

Future lease payments expected

$               3,374

 

XML 78 R68.htm IDEA: XBRL DOCUMENT v3.20.2
Note 6: Deposits: Schedule of Deposit Liabilities (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Deposit Liabilities

 

 

 

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Non-interest bearing accounts

$                  307,023

$                  316,048

NOW accounts

                    789,486

                    781,937

Money market deposit accounts

                    234,948

                    231,162

Savings accounts

                    189,218

                    181,229

Certificates

                    647,399

                    674,471

    Total Deposit Accounts

$               2,168,074

$               2,184,847

 

XML 79 R69.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Earnings Per Share, Basic and Diluted

 

 

Three months ended

 

September 30,

 

2020

2019

(dollars in thousands except per share data)

 

 

Net income

$                 9,986

$                 7,828

  Less: distributed earnings allocated to participating securities

                        (4)

                           -

  Less: undistributed earnings allocated to participating securities

                      (26)

                           -

Net income available to common shareholders

                   9,956

                   7,828

 

 

 

Weighted-average common shares outstanding, including participating securities

            9,126,866

            9,232,257

  Less: weighted-average participating securities outstanding (restricted shares)

               (27,260)

                         -   

Weighted-average basic common shares outstanding

            9,099,606

            9,232,257

  Add: effect of dilutive securities, stock options, and awards

                   2,191

                 11,891

Denominator for diluted earnings per share

$          9,101,797

$          9,244,148

 

 

 

Basic earnings per share available to common stockholders

$                   1.09

$                   0.85

Diluted earnings per share available to common stockholders

$                   1.09

$                   0.85

 

XML 80 R70.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Effective Income Tax Rate Reconciliation

 

 

For the three-month periods ended

(dollars in thousands)

09/30/2020

September 30, 2019

Income taxes

 

 

     Current

$                      4,750

$                      1,970

     Deferred

                      (2,003)

                               6

Total income tax provision

$                      2,747

$                      1,976

 

XML 81 R71.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Deferred Tax Assets and Liabilities

 

(dollars in thousands)

September 30, 2020

June 30, 2020

Deferred tax assets:

     Provision for losses on loans

$                      8,023

$                      5,802

     Accrued compensation and benefits

                           539

                           825

     NOL carry forwards acquired

                           136

                           149

     Minimum Tax Credit

                           130

                           130

     Unrealized loss on other real estate

                           187

                           257

    Other

                           120

                             26

Total deferred tax assets

                        9,135

                        7,189

 

 

 

Deferred tax liabilities:

 

 

     Purchase accounting adjustments

                             42

                             64

     Depreciation

                        1,785

                        1,665

     FHLB stock dividends

                           120

                           120

     Prepaid expenses

                           208

                           259

     Unrealized gain on available for sale securities

                        1,304

                        1,265

     Other

                             -   

                           104

Total deferred tax liabilities

                        3,459

                        3,477

 

 

 

     Net deferred tax asset

$                      5,676

$                      3,712

 

XML 82 R72.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax

 

 

For the three-month periods ended

(dollars in thousands)

September 30, 2020

September 30, 2019

Tax at statutory rate

$                      2,674

$                      2,059

Increase (reduction) in taxes
     resulting from:

 

 

           Nontaxable municipal income

                         (103)

                         (113)

           State tax, net of Federal benefit

                           241

                           109

           Cash surrender value of
                 Bank-owned life insurance

                           (59)

                           (53)

           Tax credit benefits

                             26

                             -   

           Other, net

                           (32)

                           (26)

Actual provision

$                      2,747

$                      1,976

 

XML 83 R73.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Fair Value, Assets Measured on Recurring Basis

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   44,487

$                  -

$        44,487

$                  -

Other securities

                       9,200

                    -

            9,200

                    -

Mortgage-backed GSE residential

                   121,841

                    -

        121,841

                    -

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

(dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

State and political subdivisions

$                   41,988

$                  -

$        41,988

$                  -

Other securities

                       7,624

                    -

            7,624

                    -

Mortgage-backed GSE residential

                   126,912

                    -

        126,912

                    -

 

XML 84 R74.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Fair Value Measurements, Nonrecurring

 

 

 

Fair Value Measurements at September 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                     166

$                          -

$                  -

$             166

 

 

 

Fair Value Measurements at June 30, 2020, Using:

 

 

 

Quoted Prices in

 

 

 

 

 

Active Markets for

Significant Other

Significant

 

 

 

Identical Assets

Observable Inputs

Unobservable Inputs

(dollars in thousands)

 

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

 

 

 

 

 

Foreclosed and repossessed assets held for sale

$                  2,211

$                          -

$                  -

$          2,211

 

XML 85 R75.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis

 

 

 

 

For the three months ended

(dollars in thousands)

 

 

September 30, 2020

September 30, 2019

Foreclosed and repossessed assets held for sale

$                      (36)

$               (1)

     Total losses on assets measured on a non-recurring basis

$                      (36)

$               (1)

 

XML 86 R76.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Fair Value Option, Disclosures

 

(dollars in thousands)

 

Fair value at
September 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                     166

Third party appraisal

Marketability discount

24.5% - 60.4%

41.3%

 

 

 

 

 

 

 

(dollars in thousands)

 

Fair value at
June 30, 2020

Valuation
technique

Unobservable
inputs

Range of
inputs applied

Weighted-average
inputs applied

Nonrecurring Measurements

 

 

 

 

 

 

Foreclosed and repossessed assets

$                  2,211

Third party appraisal

Marketability discount

8.0% - 56.9%

15.7%

 

XML 87 R77.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Tables)
3 Months Ended
Sep. 30, 2020
Tables/Schedules  
Schedule of Financial Instruments

 

 

 

September 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                41,875

$                41,875

$                  -

$                  -

     Interest-bearing time deposits

 

                       975

                            -

               975

                    -

     Stock in FHLB

 

                    6,939

                            -

            6,939

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    5,017

                            -

            5,017

                    -

     Loans receivable, net

 

             2,150,463

                            -

                    -

     2,167,748

     Accrued interest receivable

 

                  13,766

                            -

          13,766

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,168,074

             1,520,675

                    -

        651,528

     Advances from FHLB

 

                  85,637

                            -

          87,514

                    -

     Accrued interest payable

 

                    1,402

                            -

            1,402

                    -

     Subordinated debt

 

                  15,168

                            -

                    -

          13,455

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

 

 

June 30, 2020

 

 

 

Quoted Prices

 

 

 

 

 

in Active

 

Significant

 

 

 

Markets for

Significant Other

Unobservable

 

 

Carrying

Identical Assets

Observable Inputs

Inputs

(dollars in thousands)

 

Amount

(Level 1)

(Level 2)

(Level 3)

Financial assets

 

 

 

 

 

     Cash and cash equivalents

 

$                54,245

$                54,245

$                  -

$                  -

     Interest-bearing time deposits

 

                       974

                            -

               974

                    -

     Stock in FHLB

 

                    6,390

                            -

            6,390

                    -

     Stock in Federal Reserve Bank of St. Louis

 

                    4,363

                            -

            4,363

                    -

     Loans receivable, net

 

             2,141,929

                            -

                    -

     2,143,823

     Accrued interest receivable

 

                  12,116

                            -

          12,116

                    -

Financial liabilities

 

 

 

 

 

     Deposits

 

             2,184,847

             1,508,740

                    -

        676,816

     Advances from FHLB

 

                  70,024

                            -

          72,136

                    -

     Accrued interest payable

 

                    1,646

                            -

            1,646

                    -

     Subordinated debt

 

                  15,142

                            -

                    -

          11,511

Unrecognized financial instruments (net of contract amount)

 

 

 

 

 

     Commitments to originate loans

 

                            -

                            -

                    -

                    -

     Letters of credit

 

                            -

                            -

                    -

                    -

     Lines of credit

 

                            -

                            -

                    -

                    -

 

XML 88 R78.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2020
USD ($)
Details  
Entity Incorporation, State or Country Code MO
Real Estate Investments, Net $ 877,000
XML 89 R79.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Sep. 30, 2020
Jun. 30, 2020
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Details                  
Finite-Lived Core Deposits, Gross $ 15,300 $ 15,300 $ 15,300 $ 15,300          
Finite-Lived Intangible Assets, Accumulated Amortization 9,000 8,700 9,000 8,700          
Other Finite-Lived Intangible Assets, Gross 3,800 3,800 $ 3,800 3,800          
Other Finite Lived Intangible Assets Gross Accumulated Amortization 3,800 3,800              
Amortization of Mortgage Servicing Rights (MSRs) $ 1,300 1,100              
Core Deposits and Intangible Assets, Remaining Amortization Period     five to seven years            
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year   $ 1,000   1,000          
Finite-Lived Intangible Asset, Expected Amortization, Year Two           $ 1,400 $ 1,400 $ 1,400 $ 1,400
Finite-Lived Intangible Asset, Expected Amortization, after Year Five         $ 807 $ 328      
Impairment of Intangible Assets, Finite-lived       $ 0          
XML 90 R80.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements: Schedule of Adoption of ASU 2016-30 (Details)
$ in Thousands
Jul. 01, 2020
USD ($)
As reported under ASU 2016-13 | Allowance for credit losses on loans | Consumer Loan  
Impact of adoption of ASU 2016-13 $ 2,247
As reported under ASU 2016-13 | Allowance for credit losses on loans | Commercial Loan  
Impact of adoption of ASU 2016-13 5,952
As reported under ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Construction Loan Payable  
Impact of adoption of ASU 2016-13 1,889
As reported under ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Residential Real Estate  
Impact of adoption of ASU 2016-13 8,396
As reported under ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Commercial Real Estate  
Impact of adoption of ASU 2016-13 15,988
As reported under ASU 2016-13 | Total allowance for credit losses on loans  
Impact of adoption of ASU 2016-13 34,472
As reported under ASU 2016-13 | Total allowance for credit losses on off-balance sheet credit exposures  
Impact of adoption of ASU 2016-13 2,227
As reported prior to ASU 2016-13 | Allowance for credit losses on loans | Consumer Loan  
Impact of adoption of ASU 2016-13 1,182
As reported prior to ASU 2016-13 | Allowance for credit losses on loans | Commercial Loan  
Impact of adoption of ASU 2016-13 4,940
As reported prior to ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Construction Loan Payable  
Impact of adoption of ASU 2016-13 2,010
As reported prior to ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Residential Real Estate  
Impact of adoption of ASU 2016-13 4,875
As reported prior to ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Commercial Real Estate  
Impact of adoption of ASU 2016-13 12,132
As reported prior to ASU 2016-13 | Total allowance for credit losses on loans  
Impact of adoption of ASU 2016-13 25,139
As reported prior to ASU 2016-13 | Total allowance for credit losses on off-balance sheet credit exposures  
Impact of adoption of ASU 2016-13 1,959
Impact of adoption ASU 2016-13 | Allowance for credit losses on loans | Consumer Loan  
Impact of adoption of ASU 2016-13 1,065
Impact of adoption ASU 2016-13 | Allowance for credit losses on loans | Commercial Loan  
Impact of adoption of ASU 2016-13 1,012
Impact of adoption ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Construction Loan Payable  
Impact of adoption of ASU 2016-13 (121)
Impact of adoption ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Residential Real Estate  
Impact of adoption of ASU 2016-13 3,521
Impact of adoption ASU 2016-13 | Allowance for credit losses on loans | Real Estate Loan | Commercial Real Estate  
Impact of adoption of ASU 2016-13 3,856
Impact of adoption ASU 2016-13 | Total allowance for credit losses on loans  
Impact of adoption of ASU 2016-13 9,333
Impact of adoption ASU 2016-13 | Total allowance for credit losses on off-balance sheet credit exposures  
Impact of adoption of ASU 2016-13 $ 268
XML 91 R81.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Schedule of Available for Sale Securities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Other securities    
Available-for-sale Securities, Amortized Cost Basis $ 9,358 $ 7,919
Available for sale Securities Gross Unrealized Gain 169 48
Available For Sale Securities Gross Unrealized Losses (327) (343)
Securities Borrowed, Allowance for Credit Loss 0 7,624
Available-for-sale Securities Estimated Fair Value 9,200  
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Available-for-sale Securities, Amortized Cost Basis 117,366 122,375
Available for sale Securities Gross Unrealized Gain 4,518 4,576
Available For Sale Securities Gross Unrealized Losses (43) (39)
Securities Borrowed, Allowance for Credit Loss 0 126,912
Available-for-sale Securities Estimated Fair Value 121,841  
Total investments and mortgage-backed securities    
Available-for-sale Securities, Amortized Cost Basis 169,604 170,780
Available for sale Securities Gross Unrealized Gain 6,295 6,126
Available For Sale Securities Gross Unrealized Losses (371) (382)
Securities Borrowed, Allowance for Credit Loss 0 176,524
Available-for-sale Securities Estimated Fair Value 175,528  
US States and Political Subdivisions Debt Securities    
Available-for-sale Securities, Amortized Cost Basis 42,880 40,486
Available for sale Securities Gross Unrealized Gain 1,608 1,502
Available For Sale Securities Gross Unrealized Losses (1) 0
Securities Borrowed, Allowance for Credit Loss 0 $ 41,988
Available-for-sale Securities Estimated Fair Value $ 44,487  
XML 92 R82.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Investments Classified by Contractual Maturity Date (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Details  
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One $ 1,370
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One 1,398
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five 10,341
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five 10,525
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 17,180
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 17,689
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10 23,347
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 24,075
Debt and equity securities amortized cost 52,238
Debt and equity securities fair value 53,687
Mortgage-backed securities GSE residential amortized cost 117,366
Mortgage-backed securities GSE residential fair value 121,841
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost 169,604
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value $ 175,528
XML 93 R83.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Security Owned and Pledged as Collateral, Fair Value $ 146,200 $ 156,100
US States and Political Subdivisions Debt Securities    
Security Owned and Pledged as Collateral, Fair Value 33,000 32,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Security Owned and Pledged as Collateral, Fair Value 77,300 82,000
Collateralized Mortgage Obligations    
Security Owned and Pledged as Collateral, Fair Value 34,900 41,900
Other securities    
Security Owned and Pledged as Collateral, Fair Value $ 1,000 $ 200
XML 94 R84.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
US States and Political Subdivisions Debt Securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value $ 531  
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 1  
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 0  
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 0  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 531  
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss 1  
Other Debt Obligations    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 0 $ 995
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 0 5
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 839 643
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 327 338
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 839 1,638
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss 327 343
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 8,368 9,037
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 43 39
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 0 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 0 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 8,368 9,037
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss 43 39
Total investments and mortgage-backed securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 8,899 10,032
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 44 44
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 839 643
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 327 338
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 9,738 10,675
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss $ 371 $ 382
XML 95 R85.htm IDEA: XBRL DOCUMENT v3.20.2
Note 3: Securities: Other Securities Policy (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Details  
Number of Pooled Trust Preferred Securities 2
Fair Value of Pooled Trust Preferred Securities Held $ 654
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More $ 322
XML 96 R86.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Loans Receivable Gross    
Loans Receivable $ 2,290,778 $ 2,249,915
Loans in process    
Loans Receivable (101,392) (78,452)
Deferred loan fees, net    
Loans Receivable (3,839) (4,395)
Allowance for loan losses    
Loans Receivable (35,084) (25,139)
Loans Receivable    
Loans Receivable 2,150,463 2,141,929
Consumer Loan    
Loans Receivable 80,906 80,767
Commercial Loan    
Loans Receivable 481,582 468,448
Construction Loan Payable    
Loans Receivable 207,737 185,924
Residential Real Estate    
Loans Receivable 635,718 627,357
Commercial Real Estate    
Loans Receivable $ 884,835 $ 887,419
XML 97 R87.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
Details      
Number of Purchased Participation Loans 22 23  
Purchased Participation Loans $ 55,700 $ 58,200 $ 55,700
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time     83
Foreclosed residential real estate properties physical possession 565 563 565
Residential mortgage loans and home equity loans formal foreclosure proceedings in process $ 329 $ 435 $ 329
XML 98 R88.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy: Construction Loans Modified for other than TDR (Details) - Construction Loans
$ in Thousands
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Number of Loans Modified for Other Than TDR 78 77
Amount of Loans Modified for Other Than TDR $ 36,100 $ 48,800
COVID-19    
Amount of Loans Modified for Other Than TDR $ 4,400  
XML 99 R89.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Investment (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2020
Loans Receivable      
Impact of CECL adoption $ 9,333    
Financing Receivable, Credit Loss, Expense (Reversal) 774 $ 896  
Allowance for Loan and Lease Losses, Write-offs (170) (107)  
Accounts Receivable, Allowance for Credit Loss, Recovery 8 18  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 $ 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   20,710 25,139
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     2,149,664
Financing Receivables Acquired with Deteriorated Credit Quality     21,799
Loans Receivable | Beginning of Period      
Allowance for Loan Losses   19,903 25,139
Loans Receivable | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 25,139    
Loans Receivable | End of Period      
Allowance for Loan Losses 35,084 20,710  
Consumer Loan      
Impact of CECL adoption 1,065    
Financing Receivable, Credit Loss, Expense (Reversal) 61 96  
Allowance for Loan and Lease Losses, Write-offs (6) (72)  
Accounts Receivable, Allowance for Credit Loss, Recovery 3 4  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   1,074 1,182
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     80,767
Financing Receivables Acquired with Deteriorated Credit Quality     0
Consumer Loan | Beginning of Period      
Allowance for Loan Losses   1,046 1,182
Consumer Loan | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 1,182    
Consumer Loan | End of Period      
Allowance for Loan Losses 2,305 1,074  
Commercial Loan      
Impact of CECL adoption 1,012    
Financing Receivable, Credit Loss, Expense (Reversal) 397 384  
Allowance for Loan and Lease Losses, Write-offs (145) (35)  
Accounts Receivable, Allowance for Credit Loss, Recovery 4 0  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   4,736 4,940
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     463,902
Financing Receivables Acquired with Deteriorated Credit Quality     4,546
Commercial Loan | Beginning of Period      
Allowance for Loan Losses   4,387 4,940
Commercial Loan | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 4,940    
Commercial Loan | End of Period      
Allowance for Loan Losses 6,208 4,736  
Construction Loan Payable      
Impact of CECL adoption (121)    
Financing Receivable, Credit Loss, Expense (Reversal) 3 174  
Allowance for Loan and Lease Losses, Write-offs 0 0  
Accounts Receivable, Allowance for Credit Loss, Recovery 0 0  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   1,539 2,010
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     106,194
Financing Receivables Acquired with Deteriorated Credit Quality     1,278
Construction Loan Payable | Beginning of Period      
Allowance for Loan Losses   1,365 2,010
Construction Loan Payable | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 2,010    
Construction Loan Payable | End of Period      
Allowance for Loan Losses 1,892 1,539  
Residential Real Estate      
Impact of CECL adoption 3,521    
Financing Receivable, Credit Loss, Expense (Reversal) 252 (134)  
Allowance for Loan and Lease Losses, Write-offs (19) 0  
Accounts Receivable, Allowance for Credit Loss, Recovery 0 0  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   3,572 4,875
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     626,085
Financing Receivables Acquired with Deteriorated Credit Quality     1,272
Residential Real Estate | Beginning of Period      
Allowance for Loan Losses   3,706 4,875
Residential Real Estate | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 4,875    
Residential Real Estate | End of Period      
Allowance for Loan Losses 8,629 3,572  
Commercial Real Estate      
Impact of CECL adoption 3,856    
Financing Receivable, Credit Loss, Expense (Reversal) 61 376  
Allowance for Loan and Lease Losses, Write-offs 0 0  
Accounts Receivable, Allowance for Credit Loss, Recovery 1 14  
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment   0 0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment   9,789 12,132
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality   0 0
Financing Receivable, Individually Evaluated for Impairment     0
Financing Receivable, Collectively Evaluated for Impairment     872,716
Financing Receivables Acquired with Deteriorated Credit Quality     14,703
Commercial Real Estate | Beginning of Period      
Allowance for Loan Losses   9,399 $ 12,132
Commercial Real Estate | Beginning of Period | Prior to adoption of CECL      
Allowance for Loan Losses 12,132    
Commercial Real Estate | End of Period      
Allowance for Loan Losses $ 16,050 $ 9,789  
XML 100 R90.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Sep. 30, 2020
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Purchase Credit Deteriorated | Consumer Loan            
Financing Receivable Credit Quality Indicators $ 7,540   $ 17,119 $ 7,163 $ 2,553 $ 1,314
Purchase Credit Deteriorated | Commercial Loan            
Financing Receivable Credit Quality Indicators 28,160   234,077 38,753 21,824 10,242
Purchase Credit Deteriorated | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 42,502   52,358 7,331 3,949 0
Purchase Credit Deteriorated | Pass | Consumer Loan            
Financing Receivable Credit Quality Indicators 7,540   17,077 7,148 2,512 1,289
Purchase Credit Deteriorated | Pass | Commercial Loan            
Financing Receivable Credit Quality Indicators 27,116   232,331 37,049 21,354 10,050
Purchase Credit Deteriorated | Pass | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 42,502   52,358 6,914 0 0
Purchase Credit Deteriorated | Watch | Consumer Loan            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Watch | Commercial Loan            
Financing Receivable Credit Quality Indicators 1,009   162 64 8 12
Purchase Credit Deteriorated | Watch | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 0   0 417 3,949 0
Purchase Credit Deteriorated | Special Mention | Consumer Loan            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Special Mention | Commercial Loan            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Special Mention | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Substandard | Consumer Loan            
Financing Receivable Credit Quality Indicators 0   42 15 41 25
Purchase Credit Deteriorated | Substandard | Commercial Loan            
Financing Receivable Credit Quality Indicators 35   1,584 1,640 462 180
Purchase Credit Deteriorated | Substandard | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Doubtful | Consumer Loan            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Doubtful | Commercial Loan            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Doubtful | Construction Loan Payable            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Total by Credit Quality Indicator            
Financing Receivable Credit Quality Indicators 268,500   768,628 282,316 245,072 154,506
Purchase Credit Deteriorated | Residential Real Estate            
Financing Receivable Credit Quality Indicators 123,739   226,651 65,889 53,237 38,281
Purchase Credit Deteriorated | Residential Real Estate | Pass            
Financing Receivable Credit Quality Indicators 123,469   225,522 65,243 53,150 38,183
Purchase Credit Deteriorated | Residential Real Estate | Watch            
Financing Receivable Credit Quality Indicators 125   122 419 0 98
Purchase Credit Deteriorated | Residential Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators 0   0 0 14 0
Purchase Credit Deteriorated | Residential Real Estate | Substandard            
Financing Receivable Credit Quality Indicators 145   1,007 227 73 0
Purchase Credit Deteriorated | Residential Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Commercial Real Estate            
Financing Receivable Credit Quality Indicators 66,559   238,423 163,180 163,509 104,669
Purchase Credit Deteriorated | Commercial Real Estate | Pass            
Financing Receivable Credit Quality Indicators 64,829   222,926 151,121 158,268 87,699
Purchase Credit Deteriorated | Commercial Real Estate | Watch            
Financing Receivable Credit Quality Indicators 508   9,348 10,611 4,956 14,252
Purchase Credit Deteriorated | Commercial Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators 0   0 0 0 0
Purchase Credit Deteriorated | Commercial Real Estate | Substandard            
Financing Receivable Credit Quality Indicators 1,222   6,149 560 285 2,718
Purchase Credit Deteriorated | Commercial Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators 0   0 888 0 0
Purchase Credit Deteriorated | Prior to 2017 | Consumer Loan            
Financing Receivable Credit Quality Indicators   $ 830        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Loan            
Financing Receivable Credit Quality Indicators   13,670        
Purchase Credit Deteriorated | Prior to 2017 | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Pass | Consumer Loan            
Financing Receivable Credit Quality Indicators   788        
Purchase Credit Deteriorated | Prior to 2017 | Pass | Commercial Loan            
Financing Receivable Credit Quality Indicators   13,662        
Purchase Credit Deteriorated | Prior to 2017 | Pass | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Watch | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Watch | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Watch | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Special Mention | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Special Mention | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Special Mention | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Substandard | Consumer Loan            
Financing Receivable Credit Quality Indicators   42        
Purchase Credit Deteriorated | Prior to 2017 | Substandard | Commercial Loan            
Financing Receivable Credit Quality Indicators   8        
Purchase Credit Deteriorated | Prior to 2017 | Substandard | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Doubtful | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Doubtful | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Doubtful | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Total by Credit Quality Indicator            
Financing Receivable Credit Quality Indicators   257,479        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate            
Financing Receivable Credit Quality Indicators   122,505        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate | Pass            
Financing Receivable Credit Quality Indicators   117,755        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate | Watch            
Financing Receivable Credit Quality Indicators   876        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   24        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   3,818        
Purchase Credit Deteriorated | Prior to 2017 | Residential Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   32        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate            
Financing Receivable Credit Quality Indicators   120,474        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Pass            
Financing Receivable Credit Quality Indicators   117,612        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Watch            
Financing Receivable Credit Quality Indicators   1,493        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   1,369        
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Consumer Loan            
Financing Receivable Credit Quality Indicators   44,387        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Loan            
Financing Receivable Credit Quality Indicators   134,856        
Purchase Credit Deteriorated | Revolving Credit Facility | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   205        
Purchase Credit Deteriorated | Revolving Credit Facility | Pass | Consumer Loan            
Financing Receivable Credit Quality Indicators   44,316        
Purchase Credit Deteriorated | Revolving Credit Facility | Pass | Commercial Loan            
Financing Receivable Credit Quality Indicators   130,547        
Purchase Credit Deteriorated | Revolving Credit Facility | Pass | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   205        
Purchase Credit Deteriorated | Revolving Credit Facility | Watch | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Watch | Commercial Loan            
Financing Receivable Credit Quality Indicators   1,725        
Purchase Credit Deteriorated | Revolving Credit Facility | Watch | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Special Mention | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Special Mention | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Special Mention | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Substandard | Consumer Loan            
Financing Receivable Credit Quality Indicators   71        
Purchase Credit Deteriorated | Revolving Credit Facility | Substandard | Commercial Loan            
Financing Receivable Credit Quality Indicators   2,584        
Purchase Credit Deteriorated | Revolving Credit Facility | Substandard | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Doubtful | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Doubtful | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Doubtful | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Total by Credit Quality Indicator            
Financing Receivable Credit Quality Indicators   212,885        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate            
Financing Receivable Credit Quality Indicators   5,416        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate | Pass            
Financing Receivable Credit Quality Indicators   5,416        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate | Watch            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Residential Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate            
Financing Receivable Credit Quality Indicators   28,021        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Pass            
Financing Receivable Credit Quality Indicators   27,117        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Watch            
Financing Receivable Credit Quality Indicators   904        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Consumer Loan            
Financing Receivable Credit Quality Indicators   80,906        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Loan            
Financing Receivable Credit Quality Indicators   481,582        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   106,345        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Consumer Loan            
Financing Receivable Credit Quality Indicators   80,670        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Commercial Loan            
Financing Receivable Credit Quality Indicators   472,109        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   101,979        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Watch | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Watch | Commercial Loan            
Financing Receivable Credit Quality Indicators   2,980        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Watch | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   4,366        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Special Mention | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Special Mention | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Special Mention | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Consumer Loan            
Financing Receivable Credit Quality Indicators   236        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Commercial Loan            
Financing Receivable Credit Quality Indicators   6,493        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Doubtful | Consumer Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Doubtful | Commercial Loan            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Doubtful | Construction Loan Payable            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Total by Credit Quality Indicator            
Financing Receivable Credit Quality Indicators   2,189,386        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate            
Financing Receivable Credit Quality Indicators   635,718        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate | Pass            
Financing Receivable Credit Quality Indicators   628,738        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate | Watch            
Financing Receivable Credit Quality Indicators   1,640        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   38        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   5,270        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   32        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate            
Financing Receivable Credit Quality Indicators   884,835        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Pass            
Financing Receivable Credit Quality Indicators   829,572        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Watch            
Financing Receivable Credit Quality Indicators   42,072        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Special Mention            
Financing Receivable Credit Quality Indicators   0        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Substandard            
Financing Receivable Credit Quality Indicators   12,303        
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Doubtful            
Financing Receivable Credit Quality Indicators   888        
Total Loans | Pass            
Financing Receivable Credit Quality Indicators 265,456   750,214 267,475 235,284 137,221
Total Loans | Watch            
Financing Receivable Credit Quality Indicators 1,642   9,632 11,511 8,913 14,362
Total Loans | Special Mention            
Financing Receivable Credit Quality Indicators 0   0 0 14 0
Total Loans | Substandard            
Financing Receivable Credit Quality Indicators 1,402   8,782 2,442 861 2,923
Total Loans | Doubtful            
Financing Receivable Credit Quality Indicators $ 0   $ 0 $ 888 $ 0 $ 0
Total Loans | Prior to 2017 | Pass            
Financing Receivable Credit Quality Indicators   249,817        
Total Loans | Prior to 2017 | Watch            
Financing Receivable Credit Quality Indicators   2,369        
Total Loans | Prior to 2017 | Special Mention            
Financing Receivable Credit Quality Indicators   24        
Total Loans | Prior to 2017 | Substandard            
Financing Receivable Credit Quality Indicators   5,237        
Total Loans | Prior to 2017 | Doubtful            
Financing Receivable Credit Quality Indicators   32        
Total Loans | Revolving Credit Facility | Pass            
Financing Receivable Credit Quality Indicators   207,601        
Total Loans | Revolving Credit Facility | Watch            
Financing Receivable Credit Quality Indicators   2,629        
Total Loans | Revolving Credit Facility | Special Mention            
Financing Receivable Credit Quality Indicators   0        
Total Loans | Revolving Credit Facility | Substandard            
Financing Receivable Credit Quality Indicators   2,655        
Total Loans | Revolving Credit Facility | Doubtful            
Financing Receivable Credit Quality Indicators   0        
Total Loans | Total Credit Quality Indicator for Years | Pass            
Financing Receivable Credit Quality Indicators   2,113,068        
Total Loans | Total Credit Quality Indicator for Years | Watch            
Financing Receivable Credit Quality Indicators   51,058        
Total Loans | Total Credit Quality Indicator for Years | Special Mention            
Financing Receivable Credit Quality Indicators   38        
Total Loans | Total Credit Quality Indicator for Years | Substandard            
Financing Receivable Credit Quality Indicators   24,302        
Total Loans | Total Credit Quality Indicator for Years | Doubtful            
Financing Receivable Credit Quality Indicators   $ 920        
XML 101 R91.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Purchased Credit Deteriorated Loans Credit Quality Indicators (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Pass  
Purchased Credit Deteriorated Loans $ 5,600
Watch  
Purchased Credit Deteriorated Loans 10,100
Special Mention  
Purchased Credit Deteriorated Loans 0
Substandard  
Purchased Credit Deteriorated Loans 5,700
Doubtful  
Purchased Credit Deteriorated Loans $ 0
XML 102 R92.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Credit Risk Profile (Details) - Purchase Credit Impaired
$ in Thousands
Jun. 30, 2020
USD ($)
Consumer Loan | Pass  
Credit Risk Profile $ 80,517
Consumer Loan | Watch  
Credit Risk Profile 45
Consumer Loan | Special Mention  
Credit Risk Profile 25
Consumer Loan | Substandard  
Credit Risk Profile 180
Consumer Loan | Doubtful  
Credit Risk Profile 0
Consumer Loan | Total by Credit Quality Indicator  
Credit Risk Profile 80,767
Commercial Loan | Pass  
Credit Risk Profile 457,385
Commercial Loan | Watch  
Credit Risk Profile 4,708
Commercial Loan | Special Mention  
Credit Risk Profile 0
Commercial Loan | Substandard  
Credit Risk Profile 6,355
Commercial Loan | Doubtful  
Credit Risk Profile 0
Commercial Loan | Total by Credit Quality Indicator  
Credit Risk Profile 468,448
Construction Loan Payable | Pass  
Credit Risk Profile 103,105
Construction Loan Payable | Watch  
Credit Risk Profile 4,367
Construction Loan Payable | Special Mention  
Credit Risk Profile 0
Construction Loan Payable | Substandard  
Credit Risk Profile 0
Construction Loan Payable | Doubtful  
Credit Risk Profile 0
Construction Loan Payable | Total by Credit Quality Indicator  
Credit Risk Profile 107,472
Residential Real Estate | Pass  
Credit Risk Profile 620,004
Residential Real Estate | Watch  
Credit Risk Profile 1,900
Residential Real Estate | Special Mention  
Credit Risk Profile 0
Residential Real Estate | Substandard  
Credit Risk Profile 5,453
Residential Real Estate | Doubtful  
Credit Risk Profile 0
Residential Real Estate | Total by Credit Quality Indicator  
Credit Risk Profile 627,357
Commercial Real Estate | Pass  
Credit Risk Profile 829,276
Commercial Real Estate | Watch  
Credit Risk Profile 45,262
Commercial Real Estate | Special Mention  
Credit Risk Profile 403
Commercial Real Estate | Substandard  
Credit Risk Profile 11,590
Commercial Real Estate | Doubtful  
Credit Risk Profile 888
Commercial Real Estate | Total by Credit Quality Indicator  
Credit Risk Profile $ 887,419
XML 103 R93.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Purchased Credit Impaired Loans Credit Quality Indicators (Details)
$ in Thousands
Jun. 30, 2020
USD ($)
Pass  
Purchased Credit Impaired Loans $ 5,900
Watch  
Purchased Credit Impaired Loans 10,300
Special Mention  
Purchased Credit Impaired Loans 0
Substandard  
Purchased Credit Impaired Loans 5,600
Doubtful  
Purchased Credit Impaired Loans $ 0
XML 104 R94.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Financing Receivables Past Due    
Financing Receivable Recorded Investment $ 6,907 $ 6,393
Financing Receivables Past Due | Consumer Loan    
Financing Receivable Recorded Investment 1,087 426
Financing Receivables Past Due | Commercial Loan    
Financing Receivable Recorded Investment 1,489 2,122
Financing Receivables Past Due | Construction Loan Payable    
Financing Receivable Recorded Investment 200 0
Financing Receivables Past Due | Residential Real Estate    
Financing Receivable Recorded Investment 2,354 1,804
Financing Receivables Past Due | Commercial Real Estate    
Financing Receivable Recorded Investment 1,777 2,041
Loans Receivable    
Financing Receivable Recorded Investment 2,189,386 2,171,463
Loans Receivable | Consumer Loan    
Financing Receivable Recorded Investment 80,906 80,767
Loans Receivable | Commercial Loan    
Financing Receivable Recorded Investment 481,582 468,448
Loans Receivable | Construction Loan Payable    
Financing Receivable Recorded Investment 106,345 107,472
Loans Receivable | Residential Real Estate    
Financing Receivable Recorded Investment 635,718 627,357
Loans Receivable | Commercial Real Estate    
Financing Receivable Recorded Investment 884,835 887,419
Financial Asset, 30 to 59 Days Past Due | Consumer Loan    
Financing Receivable Recorded Investment 761 180
Financial Asset, 30 to 59 Days Past Due | Commercial Loan    
Financing Receivable Recorded Investment 756 93
Financial Asset, 30 to 59 Days Past Due | Construction Loan Payable    
Financing Receivable Recorded Investment 200 0
Financial Asset, 30 to 59 Days Past Due | Residential Real Estate    
Financing Receivable Recorded Investment 974 772
Financial Asset, 30 to 59 Days Past Due | Commercial Real Estate    
Financing Receivable Recorded Investment 1,008 641
Financial Asset, 30 to 59 Days Past Due | Total Loans    
Financing Receivable Recorded Investment 3,699 1,686
Financial Asset, 60 to 89 Days Past Due | Consumer Loan    
Financing Receivable Recorded Investment 78 53
Financial Asset, 60 to 89 Days Past Due | Commercial Loan    
Financing Receivable Recorded Investment 243 1,219
Financial Asset, 60 to 89 Days Past Due | Construction Loan Payable    
Financing Receivable Recorded Investment 0 0
Financial Asset, 60 to 89 Days Past Due | Residential Real Estate    
Financing Receivable Recorded Investment 37 378
Financial Asset, 60 to 89 Days Past Due | Commercial Real Estate    
Financing Receivable Recorded Investment 9 327
Financial Asset, 60 to 89 Days Past Due | Total Loans    
Financing Receivable Recorded Investment 367 1,977
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer Loan    
Financing Receivable Recorded Investment 248 193
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Loan    
Financing Receivable Recorded Investment 490 810
Financial Asset, Equal to or Greater than 90 Days Past Due | Construction Loan Payable    
Financing Receivable Recorded Investment 0 0
Financial Asset, Equal to or Greater than 90 Days Past Due | Residential Real Estate    
Financing Receivable Recorded Investment 1,343 654
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Real Estate    
Financing Receivable Recorded Investment 760 1,073
Financial Asset, Equal to or Greater than 90 Days Past Due | Total Loans    
Financing Receivable Recorded Investment 2,841 2,730
Financing Receivables Current | Consumer Loan    
Financing Receivable Recorded Investment 79,819 80,341
Financing Receivables Current | Commercial Loan    
Financing Receivable Recorded Investment 480,093 466,326
Financing Receivables Current | Construction Loan Payable    
Financing Receivable Recorded Investment 106,145 107,472
Financing Receivables Current | Residential Real Estate    
Financing Receivable Recorded Investment 633,364 625,553
Financing Receivables Current | Commercial Real Estate    
Financing Receivable Recorded Investment 883,058 885,378
Financing Receivables Current | Total Loans    
Financing Receivable Recorded Investment 2,182,479 2,165,070
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Consumer Loan    
Financing Receivable Recorded Investment 0 0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Commercial Loan    
Financing Receivable Recorded Investment 0 0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Construction Loan Payable    
Financing Receivable Recorded Investment 0 0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Residential Real Estate    
Financing Receivable Recorded Investment 0 0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Commercial Real Estate    
Financing Receivable Recorded Investment 0 0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Total Loans    
Financing Receivable Recorded Investment $ 0 $ 0
XML 105 R95.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: CARES Act (Details) - COVID-19 - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Financing Receivables Past Due    
Loans With Option to Temporarily suspended loans $ 0  
Financing Receivables Current    
Loans With Option to Temporarily suspended loans $ 93,600 $ 380,100
Financial Asset, 30 to 59 Days Past Due | Residential Real Estate    
Loans With Option to Temporarily suspended loans   1
Financial Asset, 30 to 59 Days Past Due | Consumer Loan    
Loans With Option to Temporarily suspended loans   29,000
Financial Asset, 60 to 89 Days Past Due | Commercial Loan    
Loans With Option to Temporarily suspended loans   $ 66
XML 106 R96.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Impaired Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Consumer Loan    
Impaired Financing Receivable, with No Related Allowance, Recorded Investment $ 0  
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With No Related Allowance Specific Allowance 0  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 0  
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With Related Allowance Specific Allowance   $ 0
Impaired Financing Receivable With and Without Related Allowance Recorded Investment 0  
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance 0  
Impaired Financing Receivable With and Without Related Allowance Specific Allowance 0  
Commercial Loan    
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 5,040  
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance 6,065  
Impaired Financing Receivable With No Related Allowance Specific Allowance 0  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 0  
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With Related Allowance Specific Allowance 0  
Impaired Financing Receivable With and Without Related Allowance Recorded Investment 5,040  
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance 6,065  
Impaired Financing Receivable With and Without Related Allowance Specific Allowance 0  
Construction Loan Payable    
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 1,277  
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance 1,312  
Impaired Financing Receivable With No Related Allowance Specific Allowance 0 $ 0
Impaired Financing Receivable, with Related Allowance, Recorded Investment 0  
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With Related Allowance Specific Allowance 0  
Impaired Financing Receivable With and Without Related Allowance Recorded Investment 1,277  
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance 1,312  
Impaired Financing Receivable With and Without Related Allowance Specific Allowance 0  
Residential Real Estate    
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 3,811  
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance 4,047  
Impaired Financing Receivable With No Related Allowance Specific Allowance 0  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 0  
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With Related Allowance Specific Allowance 0  
Impaired Financing Receivable With and Without Related Allowance Recorded Investment 3,811  
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance 4,047  
Impaired Financing Receivable With and Without Related Allowance Specific Allowance 0  
Commercial Real Estate    
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 19,271  
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance 23,676  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 0  
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance 0  
Impaired Financing Receivable With Related Allowance Specific Allowance 0  
Impaired Financing Receivable With and Without Related Allowance Recorded Investment 19,271  
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance 23,676  
Impaired Financing Receivable With and Without Related Allowance Specific Allowance $ 0  
XML 107 R97.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2020
USD ($)
Total Loans  
Impaired Financing Receivable, Average Recorded Investment $ 26,516
Impaired Financing Receivable Interest Income Recognized 499
Consumer Loan  
Impaired Financing Receivable, Average Recorded Investment 0
Impaired Financing Receivable Interest Income Recognized 0
Commercial Loan  
Impaired Financing Receivable, Average Recorded Investment 5,812
Impaired Financing Receivable Interest Income Recognized 93
Construction Loan Payable  
Impaired Financing Receivable, Average Recorded Investment 1,306
Impaired Financing Receivable Interest Income Recognized 48
Residential Real Estate  
Impaired Financing Receivable, Average Recorded Investment 1,677
Impaired Financing Receivable Interest Income Recognized 23
Commercial Real Estate  
Impaired Financing Receivable, Average Recorded Investment 17,721
Impaired Financing Receivable Interest Income Recognized $ 335
XML 108 R98.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Total Loans    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest $ 8,775 $ 8,657
Consumer Loan    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest 255 196
Commercial Loan    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest 1,129 1,345
Construction Loan Payable    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest 0 0
Residential Real Estate    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest 4,339 4,010
Commercial Real Estate    
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest $ 3,052 $ 3,106
XML 109 R99.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Total Loans    
Number of modifications 4 0
Recorded investment $ 1,974 $ 0
Consumer Loan    
Number of modifications 0 0
Recorded investment $ 0 $ 0
Commercial Loan    
Number of modifications 1 0
Recorded investment $ 36 $ 0
Construction Loan Payable    
Number of modifications 0 0
Recorded investment $ 0 $ 0
Residential Real Estate    
Number of modifications 1 0
Recorded investment $ 98 $ 0
Commercial Real Estate    
Number of modifications 2 0
Recorded investment $ 1,840 $ 0
XML 110 R100.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
Jun. 30, 2020
USD ($)
Consumer Loan      
Number of modifications 0 0  
Commercial Loan      
Number of modifications 1 0  
Construction Loan Payable      
Number of modifications 0 0  
Residential Real Estate      
Number of modifications 1 0  
Commercial Real Estate      
Number of modifications 2 0  
Performing Loans      
Number of modifications 18   20
Recorded Investment $ 8,148    
Recorded Investment     $ 8,580
Performing Loans | Consumer Loan      
Number of modifications 0   0
Recorded Investment $ 0    
Recorded Investment     $ 0
Performing Loans | Commercial Loan      
Number of modifications 8   7
Recorded Investment $ 3,229    
Recorded Investment     $ 3,245
Performing Loans | Construction Loan Payable      
Number of modifications 0   0
Recorded Investment $ 0    
Recorded Investment     $ 0
Performing Loans | Residential Real Estate      
Number of modifications 3   3
Recorded Investment $ 1,015    
Recorded Investment     $ 791
Performing Loans | Commercial Real Estate      
Number of modifications 7   10
Recorded Investment $ 3,904    
Recorded Investment     $ 4,544
Total Loans      
Number of modifications 4 0  
XML 111 R101.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Details    
Land $ 12,514 $ 12,585
Buildings and improvements 56,675 56,039
Construction in progress 35 435
Furniture, fixtures, equipment and software 18,276 18,109
Automobiles 120 120
Operating leases ROU asset 1,944 1,965
Property, Plant and Equipment, Gross 89,564 89,253
Less accumulated depreciation 25,134 24,147
Premises and equipment, net $ 64,430 $ 65,106
XML 112 R102.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment (Details)
3 Months Ended
Sep. 30, 2020
Operating Lease, Weighted Average Discount Rate, Percent 5.00%
Minimum  
Lessee Expected Lease Terms 18 months
Maximum  
Lessee Expected Lease Terms 20 years
XML 113 R103.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Calculated Amount of Right of Use Assets and Lease Liabilities (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2020
Consolidated Balance Sheet      
Right of Use Asset, Operating Leases $ 1,944   $ 1,965
Liability, Operating Leases 1,944   $ 1,965
Consolidated Statement of Income      
Operating Lease Costs Classified as Occupancy and Equipment Expense [1] 72 $ 57  
Supplemental Disclosures of Cash Flow Information      
ROU assets obtained in exchange for operating lease obligations: 0 2,004  
Supplemental Disclosures of Cash Flow Information | Cash paid for amounts included in the measurement of lease liabilities      
Operating Cash Flows from Operating Leases $ 67 $ 39  
[1] Includes short-term lease costs.
XML 114 R104.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Operating Lease Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Operating Lease, Expense $ 72 $ 57
XML 115 R105.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Schedule of Future Minimum Rental Payments for Operating Leases (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Details  
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year $ 269
Operating Leases, Future Minimum Payments, Due in Two Years 243
Operating Leases, Future Minimum Payments, Due in Three Years 243
Operating Leases, Future Minimum Payments, Due in Four Years 243
Operating Leases, Future Minimum Payments, Due in Five Years 242
Operating Leases, Future Minimum Payments, Due Thereafter 2,134
Operating Lease, Payments $ 3,374
XML 116 R106.htm IDEA: XBRL DOCUMENT v3.20.2
NOTE 5: Premises and Equipment: Lessor Agreements (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Income Recognized From Lessor Agreements $ 75 $ 82
XML 117 R107.htm IDEA: XBRL DOCUMENT v3.20.2
Note 6: Deposits: Schedule of Deposit Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Details    
Noninterest-bearing Deposit Liabilities $ 307,023 $ 316,048
Deposits, Negotiable Order of Withdrawal (NOW) 789,486 781,937
Deposits, Money Market Deposits 234,948 231,162
Deposits, Savings Deposits 189,218 181,229
Interest-bearing Domestic Deposit, Certificates of Deposits 647,399 674,471
Deposits, Domestic $ 2,168,074 $ 2,184,847
XML 118 R108.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Net income $ 9,986 $ 7,828
Less: distributed earnings allocated to participating securities (4) 0
Less: undistributed earnings allocated to participating securities (26) 0
Net income available to common shareholders $ 9,956 $ 7,828
Weighted-average common shares outstanding, including participating securities 9,126,866 9,232,257
Less: weighted-average participating securities outstanding (restricted shares) (27,260) 0
Weighted-average basic common shares outstanding 9,099,606 9,232,257
Effect of dilutive securities, stock options, and awards 2,191 11,891
Denominator for diluted earnings per share 9,101,797 9,244,148
Basic earnings per common share $ 1.09 $ 0.85
Diluted earnings per common share $ 1.09 $ 0.85
XML 119 R109.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7: Earnings Per Share (Details)
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Options Outstanding With An Exercise Price In Excess of the Market Price 50,500 15,500
XML 120 R110.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Current Income Tax Expense (Benefit) $ 4,750 $ 1,970
Deferred Income Taxes and Tax Credits (2,003) 6
Income tax provision, total $ 2,747 $ 1,976
XML 121 R111.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Details    
Deferred Tax Assets Provision for Losses on Loans $ 8,023 $ 5,802
Deferred Tax Assets Accrued Compensation and Benefits 539 825
Deferred Tax Assets NOL Carry Forwards Acquired 136 149
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax 130 130
Deferred Tax Assets Unrealized Loss on Other Real Estate 187 257
Other 120 26
Deferred Tax Assets, Gross 9,135 7,189
Deferred tax liabilities purchase accounting adjustments 42 64
Deferred Tax Liabilities Depreciation 1,785 1,665
Deferred Tax Liabilities FHLB Stock Dividends 120 120
Deferred Tax Liabilities, Prepaid Expenses 208 259
Unrealized gain on available for sale securities 1,304 1,265
Other 0 104
Deferred Tax Liabilities, Net 3,459 3,477
Deferred Tax Assets, Net of Valuation Allowance $ 5,676 $ 3,712
XML 122 R112.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes (Details)
$ in Thousands
3 Months Ended
Sep. 30, 2020
USD ($)
Details  
Federal Net Operating Loss Carryforwards $ 675
State Net Operating Loss Carryforwards $ 119
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%
XML 123 R113.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount $ 2,674 $ 2,059
Other, net (32) (26)
Income Tax Expense, Actual 2,747 1,976
Increase (reduction) in taxes    
Nontaxable Municipal Income (103) (113)
Current State and Local Tax Expense (Benefit) 241 109
Cash Surrender Value Of Bank-owned Life Insurance (59) (53)
Tax Credit Benefits $ 26 $ 0
XML 124 R114.htm IDEA: XBRL DOCUMENT v3.20.2
Note 9: 401(k) Retirement Plan: 401(k) Retirement Plan (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Details    
Defined Contribution Plan, Administrative Expense $ 457 $ 381
XML 125 R115.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10: Subordinated Debt (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2013
Sep. 30, 2020
Jun. 30, 2020
Ozarks Legacy Community Financial, Inc      
Assumed floating rate junior subordinated debt securities $ 3,100    
Ozarks Legacy Community Financial, Inc | Reported Value Measurement      
Assumed floating rate junior subordinated debt securities   $ 2,700 $ 2,700
Peoples Service Company, Inc      
Assumed floating rate junior subordinated debt securities $ 6,500    
Peoples Service Company, Inc | Reported Value Measurement      
Assumed floating rate junior subordinated debt securities   $ 5,300 $ 5,300
XML 126 R116.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
US States and Political Subdivisions Debt Securities    
Fair value on a recurring basis $ 44,487 $ 41,988
Other Debt Obligations    
Fair value on a recurring basis 9,200 7,624
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Fair value on a recurring basis 121,841 126,912
Fair Value, Inputs, Level 1 | US States and Political Subdivisions Debt Securities    
Fair value on a recurring basis 0 0
Fair Value, Inputs, Level 1 | Other Debt Obligations    
Fair value on a recurring basis 0 0
Fair Value, Inputs, Level 1 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Fair value on a recurring basis 0 0
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities    
Fair value on a recurring basis 44,487 41,988
Fair Value, Inputs, Level 2 | Other Debt Obligations    
Fair value on a recurring basis 9,200 7,624
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Fair value on a recurring basis 121,841 126,912
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities    
Fair value on a recurring basis 0 0
Fair Value, Inputs, Level 3 | Other Debt Obligations    
Fair value on a recurring basis 0 0
Fair Value, Inputs, Level 3 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Fair value on a recurring basis $ 0 $ 0
XML 127 R117.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Details) - Foreclosed and repossessed assets held for sale - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Fair value on a nonrecurring basis $ 166 $ 2,211
Fair Value, Inputs, Level 1    
Fair value on a nonrecurring basis 0 0
Fair Value, Inputs, Level 2    
Fair value on a nonrecurring basis 0 0
Fair Value, Inputs, Level 3    
Fair value on a nonrecurring basis $ 166 $ 2,211
XML 128 R118.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Foreclosed and repossessed assets held for sale    
Gains (losses) recognized on assets measured on a non-recurring basis $ (36) $ (1)
XML 129 R119.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Details) - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs $ 166 $ 2,211
Third party appraisal    
Fair Value Measurements, Valuation Processes, Description Third party appraisal Third party appraisal
Third party appraisal | Marketable discount    
Unobservable Measurement Input, Uncertainty, Description Marketability discount Marketability discount
Fair Value Measurements Nonrecurring Range of discounts Applied 24.5% - 60.4% 8.0% - 56.9%
Fair Value Measurements Nonrecurring Weighted Average Discount Applied 41.3% 15.7%
XML 130 R120.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Jun. 30, 2020
Letter of Credit    
Financial Instruments Owned Carrying Amount $ 0 $ 0
Line of Credit    
Financial Instruments Owned Carrying Amount 0 0
Financial liabilities | Subordinated Debt    
Financial Instruments Owned Carrying Amount 15,168 15,142
Financial liabilities | Federal Home Loan Bank Advances    
Financial Instruments Owned Carrying Amount 85,637 70,024
Financial assets | Loans Receivable    
Financial Instruments Owned Carrying Amount 2,150,463 2,141,929
Financial assets | Cash and Cash Equivalents    
Financial Instruments Owned Carrying Amount 41,875 54,245
Financial assets | Interest-bearing time deposits    
Financial Instruments Owned Carrying Amount 975 974
Financial assets | Investment in Federal Home Loan Bank Stock    
Financial Instruments Owned Carrying Amount 6,939 6,390
Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis    
Financial Instruments Owned Carrying Amount 5,017 4,363
Financial assets | Accrued interest receivable    
Financial Instruments Owned Carrying Amount 13,766 12,116
Deposits | Financial liabilities    
Financial Instruments Owned Carrying Amount 2,168,074 2,184,847
Accrued interest payable | Financial liabilities    
Financial Instruments Owned Carrying Amount 1,402 1,646
Commitments to Extend Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Letter of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Line of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial liabilities | Subordinated Debt    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial liabilities | Federal Home Loan Bank Advances    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial assets | Loans Receivable    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial assets | Cash and Cash Equivalents    
Financial Instruments Owned Carrying Amount 41,875 54,245
Fair Value, Inputs, Level 1 | Financial assets | Interest-bearing time deposits    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial assets | Investment in Federal Home Loan Bank Stock    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Financial assets | Accrued interest receivable    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Deposits | Financial liabilities    
Financial Instruments Owned Carrying Amount 1,520,675 1,508,740
Fair Value, Inputs, Level 1 | Accrued interest payable | Financial liabilities    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 1 | Commitments to Extend Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Letter of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Line of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Financial liabilities | Subordinated Debt    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Financial liabilities | Federal Home Loan Bank Advances    
Financial Instruments Owned Carrying Amount 87,514 72,136
Fair Value, Inputs, Level 2 | Financial assets | Loans Receivable    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Financial assets | Cash and Cash Equivalents    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Financial assets | Interest-bearing time deposits    
Financial Instruments Owned Carrying Amount 975 974
Fair Value, Inputs, Level 2 | Financial assets | Investment in Federal Home Loan Bank Stock    
Financial Instruments Owned Carrying Amount 6,939 6,390
Fair Value, Inputs, Level 2 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis    
Financial Instruments Owned Carrying Amount 5,017 4,363
Fair Value, Inputs, Level 2 | Financial assets | Accrued interest receivable    
Financial Instruments Owned Carrying Amount 13,766 12,116
Fair Value, Inputs, Level 2 | Deposits | Financial liabilities    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 2 | Accrued interest payable | Financial liabilities    
Financial Instruments Owned Carrying Amount 1,402 1,646
Fair Value, Inputs, Level 2 | Commitments to Extend Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Letter of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Line of Credit    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial liabilities | Subordinated Debt    
Financial Instruments Owned Carrying Amount 13,455 11,511
Fair Value, Inputs, Level 3 | Financial liabilities | Federal Home Loan Bank Advances    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial assets | Loans Receivable    
Financial Instruments Owned Carrying Amount 2,167,748 2,143,823
Fair Value, Inputs, Level 3 | Financial assets | Cash and Cash Equivalents    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial assets | Interest-bearing time deposits    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial assets | Investment in Federal Home Loan Bank Stock    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Financial assets | Accrued interest receivable    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Deposits | Financial liabilities    
Financial Instruments Owned Carrying Amount 651,528 676,816
Fair Value, Inputs, Level 3 | Accrued interest payable | Financial liabilities    
Financial Instruments Owned Carrying Amount 0 0
Fair Value, Inputs, Level 3 | Commitments to Extend Credit    
Financial Instruments Owned Carrying Amount $ 0 $ 0
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Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesLoansPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 26 false false R27.htm 000270 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Off-Balance Sheet Credit Exposures (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesOffBalanceSheetCreditExposuresPolicies Note 2: Organization and Summary of Significant Accounting Policies: Off-Balance Sheet Credit Exposures (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 27 false false R28.htm 000280 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesForeclosedRealEstatePolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 28 false false R29.htm 000290 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesPropertyPlantAndEquipmentPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 29 false false R30.htm 000300 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesBankOwnedLifeInsurancePolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 30 false false R31.htm 000310 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesGoodwillPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 31 false false R32.htm 000320 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesIntangibleAssetsFiniteLivedPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 32 false false R33.htm 000330 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesIncomeTaxPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 33 false false R34.htm 000340 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesShareBasedCompensationOptionAndIncentivePlansPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 34 false false R35.htm 000350 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Outside Directors Retirement Plan Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesOutsideDirectorsRetirementPlanPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Outside Directors Retirement Plan Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 35 false false R36.htm 000360 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Stock Option Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesStockOptionPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Stock Option Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 36 false false R37.htm 000370 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesEarningsPerSharePolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 37 false false R38.htm 000380 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Comprehensive Income (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesComprehensiveIncomePolicies Note 2: Organization and Summary of Significant Accounting Policies: Comprehensive Income (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 38 false false R39.htm 000390 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Fair Value Transfer Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesFairValueTransferPolicyPolicies Note 2: Organization and Summary of Significant Accounting Policies: Fair Value Transfer Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 39 false false R40.htm 000400 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesNewAccountingPronouncementsPolicies Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 40 false false R41.htm 000410 - Disclosure - Note 3: Securities: Repurchase Agreements, Collateral, Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesRepurchaseAgreementsCollateralPolicyPolicies Note 3: Securities: Repurchase Agreements, Collateral, Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 41 false false R42.htm 000420 - Disclosure - Note 3: Securities: Other Securities Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesOtherSecuritiesPolicyPolicies Note 3: Securities: Other Securities Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 42 false false R43.htm 000430 - Disclosure - Note 3: Securities: Credit Losses Recognized on Investments Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesCreditLossesRecognizedOnInvestmentsPolicyPolicies Note 3: Securities: Credit Losses Recognized on Investments Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 43 false false R44.htm 000440 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Residential Mortgage Lending Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesResidentialMortgageLendingPolicyPolicies Note 4: Loans and Allowance for Loan Losses: Residential Mortgage Lending Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 44 false false R45.htm 000450 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Commercial Real Estate Lending Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesCommercialRealEstateLendingPolicyPolicies Note 4: Loans and Allowance for Loan Losses: Commercial Real Estate Lending Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 45 false false R46.htm 000460 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesConstructionLendingPolicyPolicies Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 46 false false R47.htm 000470 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Consumer Lending Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesConsumerLendingPolicyPolicies Note 4: Loans and Allowance for Loan Losses: Consumer Lending Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 47 false false R48.htm 000480 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Commercial Business Lending Policy (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesCommercialBusinessLendingPolicyPolicies Note 4: Loans and Allowance for Loan Losses: Commercial Business Lending Policy (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 48 false false R49.htm 000490 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Credit Quality Indicators (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesCreditQualityIndicatorsPolicies Note 4: Loans and Allowance for Loan Losses: Credit Quality Indicators (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 49 false false R50.htm 000500 - Disclosure - NOTE 5: Premises and Equipment: Lessee, Operating Lease, Disclosure (Policies) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote5PremisesAndEquipmentLesseeOperatingLeaseDisclosurePolicies NOTE 5: Premises and Equipment: Lessee, Operating Lease, Disclosure (Policies) Policies http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPolicies 50 false false R51.htm 000510 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements: Schedule of Adoption of ASU 2016-30 (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesNewAccountingPronouncementsScheduleOfAdoptionOfAsu201630Tables Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements: Schedule of Adoption of ASU 2016-30 (Tables) Tables 51 false false R52.htm 000520 - Disclosure - Note 3: Securities: Schedule of Available for Sale Securities (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesScheduleOfAvailableForSaleSecuritiesTables Note 3: Securities: Schedule of Available for Sale Securities (Tables) Tables 52 false false R53.htm 000530 - Disclosure - Note 3: Securities: Investments Classified by Contractual Maturity Date (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesInvestmentsClassifiedByContractualMaturityDateTables Note 3: Securities: Investments Classified by Contractual Maturity Date (Tables) Tables 53 false false R54.htm 000540 - Disclosure - Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote3SecuritiesAvailableForSaleSecuritiesContinuousUnrealizedLossPositionFairValueTables Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) Tables 54 false false R55.htm 000550 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) Notes http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfAccountsNotesLoansAndFinancingReceivableTables Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) Tables 55 false false R56.htm 000560 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Investment (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfBalanceInTheAllowanceForLoanLossesAndRecordedInvestmentTables Note 4: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Investment (Tables) Tables 56 false false R57.htm 000570 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesFinancingReceivableCreditQualityIndicatorsTables Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Tables) Tables 57 false false R58.htm 000580 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Credit Risk Profile (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesCreditRiskProfileTables Note 4: Loans and Allowance for Loan Losses: Credit Risk Profile (Tables) Tables 58 false false R59.htm 000590 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfLoanPortfolioAgingAnalysisTables Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables) Tables 59 false false R60.htm 000600 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Impaired Loans (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesImpairedLoansTables Note 4: Loans and Allowance for Loan Losses: Impaired Loans (Tables) Tables 60 false false R61.htm 000610 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfInterestIncomeRecognizedOnImpairedLoansTables Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables) Tables 61 false false R62.htm 000620 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfFinancingReceivablesNonAccrualStatusTables Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables) Tables 62 false false R63.htm 000630 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesScheduleOfDebtorTroubledDebtRestructuringCurrentPeriodTables Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables) Tables 63 false false R64.htm 000640 - Disclosure - Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote4LoansAndAllowanceForLoanLossesPerformingLoansClassifiedAsTroubledDebtRestructuringLoansTables Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Tables) Tables 64 false false R65.htm 000650 - Disclosure - NOTE 5: Premises and Equipment: Property, Plant and Equipment (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote5PremisesAndEquipmentPropertyPlantAndEquipmentTables NOTE 5: Premises and Equipment: Property, Plant and Equipment (Tables) Tables 65 false false R66.htm 000660 - Disclosure - NOTE 5: Premises and Equipment: Calculated Amount of Right of Use Assets and Lease Liabilities (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote5PremisesAndEquipmentCalculatedAmountOfRightOfUseAssetsAndLeaseLiabilitiesTables NOTE 5: Premises and Equipment: Calculated Amount of Right of Use Assets and Lease Liabilities (Tables) Tables 66 false false R67.htm 000670 - Disclosure - NOTE 5: Premises and Equipment: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote5PremisesAndEquipmentScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTables NOTE 5: Premises and Equipment: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) Tables 67 false false R68.htm 000680 - Disclosure - Note 6: Deposits: Schedule of Deposit Liabilities (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote6DepositsScheduleOfDepositLiabilitiesTables Note 6: Deposits: Schedule of Deposit Liabilities (Tables) Tables 68 false false R69.htm 000690 - Disclosure - Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote7EarningsPerShareScheduleOfEarningsPerShareBasicAndDilutedTables Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) Tables 69 false false R70.htm 000700 - Disclosure - Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote8IncomeTaxesScheduleOfEffectiveIncomeTaxRateReconciliationTables Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) Tables 70 false false R71.htm 000710 - Disclosure - Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote8IncomeTaxesScheduleOfDeferredTaxAssetsAndLiabilitiesTables Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) Tables 71 false false R72.htm 000720 - Disclosure - Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote8IncomeTaxesScheduleOfReconciliationOfIncomeTaxExpenseAtTheStatutoryRateToActualIncomeTaxTables Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables) Tables 72 false false R73.htm 000730 - Disclosure - Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurementsFairValueAssetsMeasuredOnRecurringBasisTables Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables) Tables 73 false false R74.htm 000740 - Disclosure - Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurementsFairValueMeasurementsNonrecurringTables Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables) Tables 74 false false R75.htm 000750 - Disclosure - Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurementsGainsLossesRecognizedOnAssetsMeasuredOnANonrecurringBasisTables Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables) Tables http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurements 75 false false R76.htm 000760 - Disclosure - Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurementsFairValueOptionDisclosuresTables Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Tables) Tables 76 false false R77.htm 000770 - Disclosure - Note 11: Fair Value Measurements: Schedule of Financial Instruments (Tables) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote11FairValueMeasurementsScheduleOfFinancialInstrumentsTables Note 11: Fair Value Measurements: Schedule of Financial Instruments (Tables) Tables 77 false false R78.htm 000780 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Details) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesOrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesDetails Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Details) Details http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesOrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesPolicies 78 false false R79.htm 000790 - Disclosure - Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Details) Sheet http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesIntangibleAssetsFiniteLivedPolicyDetails Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Details) Details http://www.bankwithsouthern.com/20200930/role/idr_DisclosureNote2OrganizationAndSummaryOfSignificantAccountingPoliciesIntangibleAssetsFiniteLivedPolicyPolicies 79 false false R80.htm 000800 - 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