Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Dec. 31, 2021

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	December 31, 2021		June 30, 2021
Real Estate Loans:
Residential	$	809,196	$	721,216
Construction		247,968		208,824
Commercial		963,299		889,793
Consumer loans		81,049		77,674
Commercial loans		390,262		414,124
		2,491,774		2,311,631
Loans in process		(100,351)		(74,540)
Deferred loan fees, net		(309)		(3,625)
Allowance for credit losses		(32,529)		(33,222)
Total loans	$	2,358,585	$	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 six months ended December 31, 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		(404)		(44)		192		(112)		(311)		(679)
Losses charged off		(32)		—		—		(25)		(11)		(68)
Recoveries		1		—		—		51		2		54
Balance, end of period	$	10,757	$	2,126	$	14,727	$	830	$	4,089	$	32,529

	At period end and for the three months ended December 31, 2021
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	10,634	$	2,045	$	14,883	$	873	$	4,108	$	32,543
Provision charged to expense		123		81		(156)		(40)		(8)		—
Losses charged off		—		—		—		(13)		(11)		(24)
Recoveries		—		—		—		10		—		10
Balance, end of period	$	10,757	$	2,126	$	14,727	$	830	$	4,089	$	32,529

	At period end and for the six months ended December 31, 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		2,112		498		(750)		(823)		348		1,385
Losses charged off		(110)		—		—		(72)		(234)		(416)
Recoveries		—		—		1		10		19		30
Balance, end of period	$	10,398	$	2,387	$	15,239	$	1,362	$	6,085	$	35,471

	At period end and for the three months ended December 31, 2020
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for loan losses:
Balance, beginning of period	$	8,629	$	1,892	$	16,050	$	2,305	$	6,208	$	35,084
Provision charged to expense		1,859		495		(811)		(882)		(49)		612
Losses charged off		(90)		—		—		(67)		(89)		(246)
Recoveries		—		—		—		6		15		21
Balance, end of period	$	10,398	$	2,387	$	15,239	$	1,362	$	6,085	$	35,471

Schedule of Allowance for off-balance credit exposure

	At period end and for the six months ended December 31, 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 December 31, 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	$	34	$	1,673	$	170	$	58	$	244	$	2,179
Provision (benefit) charged to expense		—		—		—		—		—		—
Balance, end of period	$	34	$	1,673	$	170	$	58	$	244	$	2,179

	At period end and for the six months ended December 31, 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)		340		18		(100)		362		615
Balance, end of period	$	49	$	942	$	285	$	250	$	1,316	$	2,842

	At period end and for the three months ended December 31, 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	$	59	$	768	$	299	$	354	$	973	$	2,453
Provision (benefit) charged to expense		(10)		174		(14)		(105)		343		388
Balance, end of period	$	49	$	942	$	285	$	250	$	1,316	$	2,842

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	$	208,789	$	311,065	$	155,440	$	27,199	$	25,075	$	72,099	$	6,572	$	806,239
Watch		84		323		—		384		—		10		—		801
Special Mention		—		—		—		—		—		—		—		—
Substandard		483		1,038		151		192		52		240		—		2,156
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	209,356	$	312,426	$	155,591	$	27,775	$	25,127	$	72,349	$	6,572	$	809,196
Construction Real Estate
Pass	$	65,140	$	50,291	$	31,935	$	—	$	—	$	—	$	65	$	147,431
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		186		—		—		—		—		—		186
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	65,140	$	50,477	$	31,935	$	—	$	—	$	—	$	65	$	147,617
Commercial Real Estate
Pass	$	257,283	$	285,607	$	97,132	$	93,309	$	57,468	$	106,491	$	22,931	$	920,221
Watch		288		3,968		2,340		22		694		245		1,261		8,818
Special Mention		23,425		—		—		—		—		—		300		23,725
Substandard		3,982		4,399		1,124		13		25		96		69		9,708
Doubtful		—		—		—		827		—		—		—		827
Total Commercial Real Estate	$	284,978	$	293,974	$	100,596	$	94,171	$	58,187	$	106,832	$	24,561	$	963,299
Consumer
Pass	$	16,295	$	16,061	$	5,706	$	2,091	$	657	$	841	$	39,166	$	80,817
Watch		—		76		—		—		—		—		48		124
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		64		—		1		—		31		12		108
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	16,295	$	16,201	$	5,706	$	2,092	$	657	$	872	$	39,226	$	81,049
Commercial
Pass	$	59,615	$	130,942	$	26,276	$	14,196	$	4,119	$	11,757	$	138,619	$	385,524
Watch		697		1,072		58		40		—		197		326		2,390
Special Mention		—		—		—		—		—		—		—		—
Substandard		22		524		38		258		—		172		1,334		2,348
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	60,334	$	132,538	$	26,372	$	14,494	$	4,119	$	12,126	$	140,279	$	390,262
Total Loans
Pass	$	607,122	$	793,966	$	316,489	$	136,795	$	87,319	$	191,188	$	207,353	$	2,340,232
Watch		1,069		5,439		2,398		446		694		452		1,635		12,133
Special Mention		23,425		—		—		—		—		—		300		23,725
Substandard		4,487		6,211		1,313		464		77		539		1,415		14,506
Doubtful		—		—		—		827		—		—		—		827
Total	$	636,103	$	805,616	$	320,200	$	138,532	$	88,090	$	192,179	$	210,703	$	2,391,423

(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

	December 31, 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	$	601	$	520	$	638	$	1,759	$	807,437	$	809,196	$	—
Construction		—		—		—		—		147,617		147,617		—
Commercial		397		471		—		868		962,431		963,299		—
Consumer loans		326		120		69		515		80,534		81,049		—
Commercial loans		171		6		27		204		390,058		390,262		—
Total loans	$	1,495	$	1,117	$	734	$	3,346	$	2,388,077	$	2,391,423	$	—

	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

	December 31, 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	$	880	$	208
Total loans	$	880	$	208

	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)	December 31, 2021		June 30, 2021
Residential real estate	$	1,011	$	3,235
Construction real estate		—		30
Commercial real estate		1,631		1,914
Consumer loans		76		100
Commercial loans		245		589
Total loans	$	2,963	$	5,868

Certain loans modified classified as TDRs

	For the six-month periods ended
	December 31, 2021			December 31, 2020
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	1	$	151	1	$	96
Construction real estate	—		—	—		—
Commercial real estate	—		—	2		1,798
Consumer loans	—		—	—		—
Commercial loans	—		—	1		33
Total	1	$	151	4	$	1,927

Performing loans classified as TDRs and outstanding , segregated by class

	December 31, 2021			June 30, 2021
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	11	$	3,696	1	$	895
Construction real estate	—		—	—		—
Commercial real estate	5		984	4		949
Consumer loans	—		—	—		—
Commercial loans	7		1,707	7		1,397
Total	23	$	6,387	12	$	3,241