Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2021

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	September 30, 2021		June 30, 2021
Real Estate Loans:
Residential	$	762,204	$	721,216
Construction		235,501		208,824
Commercial		901,281		889,793
Consumer loans		80,467		77,674
Commercial loans		411,402		414,124
		2,390,855		2,311,631
Loans in process		(107,555)		(74,540)
Deferred loan fees, net		(1,279)		(3,625)
Allowance for loan losses		(32,543)		(33,222)
Total loans	$	2,249,478	$	2,200,244

Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods

	At period end and for the three months ended September 30, 2021
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	11,192	$	2,170	$	14,535	$	916	$	4,409	$	33,222
Provision (benefit) charged to expense		(528)		(125)		348		(72)		(302)		(679)
Losses charged off		(31)		—		—		(13)		—		(44)
Recoveries		1		—		—		42		1		44
Balance, end of period	$	10,634	$	2,045	$	14,883	$	873	$	4,108	$	32,543

	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

Schedule of Allowance for off-balance credit exposure

	At period end and for the three months ended September 30, 2021
	Residential			Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for off-balance sheet credit exposure:
Balance, beginning of period	$	37	$	502	$	188	$	218	$	860	$	1,805
Provision (benefit) charged to expense		(3)		1,171		(18)		(160)		(616)		374
Balance, end of period	$	34	$	1,673	$	170	$	58	$	244	$	2,179

	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 off-balance sheet credit exposure:
Balance, beginning of period prior to CECL adoption	$	19	$	769	$	172	$	153	$	846	$	1,959
Impact of CECL adoption		35		(167)		95		197		108		268
Provision (benefit) charged to expense		5		166		32		4		19		226
Balance, end of period	$	59	$	768	$	299	$	354	$	973	$	2,453

Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity

(dollars in thousands)													Revolving
	2022		2021		2020		2019		2018		Prior		loans		Total
Residential Real Estate
Pass	$	83,975	$	348,844	$	165,830	$	38,339	$	30,770	$	82,928	$	5,513	$	756,199
Watch		86		326		70		407		—		801		—		1,690
Special Mention		—		—		—		—		—		—		—		—
Substandard		488		3,224		151		86		53		313		—		4,315
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	84,549	$	352,394	$	166,051	$	38,832	$	30,823	$	84,042	$	5,513	$	762,204
Construction Real Estate
Pass	$	40,324	$	57,553	$	29,945	$	—	$	—	$	—	$	—	$	127,822
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		124		—		—		—		—		—		124
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	40,324	$	57,677	$	29,945	$	—	$	—	$	—	$	—	$	127,946
Commercial Real Estate
Pass	$	87,878	$	326,200	$	124,280	$	103,953	$	71,713	$	117,116	$	24,716	$	855,856
Watch		291		4,614		2,202		1,718		873		721		810		11,229
Special Mention		—		—		8,806		—		1,793		12,826		300		23,725
Substandard		3,307		4,733		1,129		269		27		101		69		9,635
Doubtful		—		—		—		836		—		—		—		836
Total Commercial Real Estate	$	91,476	$	335,547	$	136,417	$	106,776	$	74,406	$	130,764	$	25,895	$	901,281
Consumer
Pass	$	9,322	$	19,800	$	6,871	$	2,767	$	857	$	1,037	$	39,609	$	80,263
Watch		1		78		—		—		—		—		48		127
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		31		14		2		—		30		—		77
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	9,323	$	19,909	$	6,885	$	2,769	$	857	$	1,067	$	39,657	$	80,467
Commercial
Pass	$	29,032	$	158,480	$	28,738	$	16,176	$	4,934	$	13,914	$	155,439	$	406,713
Watch		429		1,350		262		53		7		—		458		2,559
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		564		48		291		—		172		1,055		2,130
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	29,461	$	160,394	$	29,048	$	16,520	$	4,941	$	14,086	$	156,952	$	411,402
Total Loans
Pass	$	250,531	$	910,877	$	355,664	$	161,235	$	108,274	$	214,995	$	225,277	$	2,226,853
Watch		807		6,368		2,534		2,178		880		1,522		1,316		15,605
Special Mention		—		—		8,806		—		1,793		12,826		300		23,725
Substandard		3,795		8,676		1,342		648		80		616		1,124		16,281
Doubtful		—		—		—		836		—		—		—		836
Total	$	255,133	$	925,921	$	368,346	$	164,897	$	111,027	$	229,959	$	228,017	$	2,283,300

(dollars in thousands)													Revolving
	2021		2020		2019		2018		2017		Prior		loans		Total
Residential Real Estate
Pass	$	361,876	$	175,772	$	43,576	$	32,929	$	23,267	$	71,592	$	5,557	$	714,569
Watch		328		70		410		—		89		809		—		1,706
Special Mention		—		—		—		—		—		—		—		—
Substandard		4,288		89		—		92		—		472		—		4,941
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	366,492	$	175,931	$	43,986	$	33,021	$	23,356	$	72,873	$	5,557	$	721,216
Construction Real Estate
Pass	$	88,371	$	45,866	$	—	$	—	$	—	$	—	$	—	$	134,237
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		47		—		—		—		—		—		—		47
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	88,418	$	45,866	$	—	$	—	$	—	$	—	$	—	$	134,284
Commercial Real Estate
Pass	$	351,732	$	147,670	$	104,746	$	75,967	$	70,927	$	61,194	$	23,699	$	835,935
Watch		4,456		2,365		9,502		1,377		726		10		810		19,246
Special Mention		—		8,806		—		1,793		12,826		—		300		23,725
Substandard		8,191		1,137		505		31		5		99		69		10,037
Doubtful		—		—		850		—		—		—		—		850
Total Commercial Real Estate	$	364,379	$	159,978	$	115,603	$	79,168	$	84,484	$	61,303	$	24,878	$	889,793
Consumer
Pass	$	23,858	$	8,626	$	3,597	$	1,126	$	534	$	650	$	39,071	$	77,462
Watch		80		—		—		—		—		—		48		128
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		30		30		—		24		84
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	23,938	$	8,626	$	3,597	$	1,156	$	564	$	650	$	39,143	$	77,674
Commercial
Pass	$	189,280	$	42,549	$	17,960	$	5,591	$	7,265	$	9,120	$	136,603	$	408,368
Watch		1,551		262		1,323		22		—		—		463		3,621
Special Mention		—		—		—		—		—		—		—		—
Substandard		594		81		305		—		176		—		979		2,135
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	191,425	$	42,892	$	19,588	$	5,613	$	7,441	$	9,120	$	138,045	$	414,124
Total Loans
Pass	$	1,015,117	$	420,483	$	169,879	$	115,613	$	101,993	$	142,556	$	204,930	$	2,170,571
Watch		6,415		2,697		11,235		1,399		815		819		1,321		24,701
Special Mention		—		8,806		—		1,793		12,826		—		300		23,725
Substandard		13,120		1,307		810		153		211		571		1,072		17,244
Doubtful		—		—		850		—		—		—		—		850
Total	$	1,034,652	$	433,293	$	182,774	$	118,958	$	115,845	$	143,946	$	207,623	$	2,237,091

Schedule of company's loan portfolio aging analysis

	September 30, 2021
					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	$	1,475	$	84	$	499	$	2,058	$	760,146	$	762,204	$	—
Construction		—		—		—		—		127,946		127,946		—
Commercial		598		671		—		1,269		900,012		901,281		—
Consumer loans		193		87		56		336		80,131		80,467		—
Commercial loans		283		43		817		1,143		410,259		411,402		—
Total loans	$	2,549	$	885	$	1,372	$	4,806	$	2,278,494	$	2,283,300	$	—

	June 30, 2021
					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	$	312	$	364	$	613	$	1,289	$	719,927	$	721,216	$	—
Construction		—		—		30		30		134,254		134,284		—
Commercial		363		—		374		737		889,056		889,793		—
Consumer loans		195		66		84		345		77,329		77,674		—
Commercial loans		368		939		110		1,417		412,707		414,124		—
Total loans	$	1,238	$	1,369	$	1,211	$	3,818	$	2,233,273	$	2,237,091	$	—

Schedule of company's collateral dependent loans and related ACL

	September 30, 2021
	Amortized cost basis of
	loans determined to be		Related allowance
	collateral dependent		for credit losses
(dollars in thousands)
Residential real estate loans
1- to 4-family residential loans	$	889	$	217
Total loans	$	889	$	217

	June 30, 2021
	Amortized cost basis of
	loans determined to be		Related allowance
	collateral dependent		for credit losses
(dollars in thousands)
Residential real estate loans
1- to 4-family residential loans	$	895	$	223
Total loans	$	895	$	223

Schedule of Company's nonaccrual loans

(dollars in thousands)	September 30, 2021		June 30, 2021
Residential real estate	$	3,059	$	3,235
Construction real estate		—		30
Commercial real estate		1,950		1,914
Consumer loans		65		100
Commercial loans		1,059		589
Total loans	$	6,133	$	5,868

Schedule of Debtor Troubled Debt Restructuring, Current Period

	For the three-month periods ended
	September 30, 2021			September 30, 2020
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	1	$	151	1	$	98
Construction real estate	—		—	—		—
Commercial real estate	—		—	2		1,840
Consumer loans	—		—	—		—
Commercial loans	—		—	1		36
Total	1	$	151	4	$	1,974

Schedule of Performing loans classified as troubled debt restructuring loans

	September 30, 2021			June 30, 2021
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	3	$	1,133	1	$	895
Construction real estate	—		—	—		—
Commercial real estate	5		988	4		949
Consumer loans	—		—	—		—
Commercial loans	7		1,464	7		1,397
Total	15	$	3,585	12	$	3,241