Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Mar. 31, 2023

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	March 31, 2023		June 30, 2022
Real Estate Loans:
Residential	$	1,120,970	$	904,160
Construction		517,967		258,072
Commercial		1,460,314		1,146,673
Consumer loans		125,483		92,996
Commercial loans		560,979		441,598
		3,785,713		2,843,499
Loans in process		(305,193)		(123,656)
Deferred loan fees, net		(316)		(453)
Allowance for credit losses		(45,685)		(33,192)
Total loans	$	3,434,519	$	2,686,198

Loans that the Company acquired from Fortune, PCD loans

(dollars in thousands)	January 20, 2023
PCD Loans - Citizens
Purchase price of PCD loans at acquisition	$	27,481
Allowance for credit losses at acquisition		(1,121)
Fair value of PCD loans at acquisition	$	26,360

(dollars in thousands)	February 25, 2022
PCD Loans - Fortune
Purchase price of PCD loans at acquisition	$	15,055
Allowance for credit losses at acquisition		(120)
Fair value of PCD loans at acquisition	$	14,935

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 nine months ended March 31, 2023
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	8,908	$	2,220	$	16,838	$	710	$	4,516	$	33,192
Initial ACL on PCD loans		96		12		628		164		221		1,121
Provision charged to expense		4,462		1,406		1,324		283		4,325		11,800
Losses charged off		(2)		—		(245)		(189)		(17)		(453)
Recoveries		1		—		—		18		6		25
Balance, end of period	$	13,465	$	3,638	$	18,545	$	986	$	9,051	$	45,685

	At period end and for the three months ended March 31, 2023
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for loan losses:
Balance, beginning of period	$	12,499	$	2,754	$	16,806	$	761	$	4,663	$	37,483
Initial ACL on PCD loans		96		12		628		164		221		1,121
Provision (benefit) charged to expense		870		872		1,111		165		4,167		7,185
Losses charged off		—		—		—		(113)		—		(113)
Recoveries		—		—		—		9		—		9
Balance, end of period	$	13,465	$	3,638	$	18,545	$	986	$	9,051	$	45,685

	At period end and for the nine months ended March 31, 2022
	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
Initial ACL on PCD loans		23		4		52		—		41		120
Provision (benefit) charged to expense		30		(187)		963		(93)		(340)		373
Losses charged off		(62)		—		—		(57)		(17)		(136)
Recoveries		3		—		—		57		2		62
Balance, end of period	$	11,186	$	1,987	$	15,550	$	823	$	4,095	$	33,641

	At period end and for the three months ended March 31, 2022
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	10,757	$	2,126	$	14,727	$	830	$	4,089	$	32,529
Initial ACL on PCD loans		23		4		52		—		41		120
Provision (benefit) charged to expense		434		(143)		771		19		(29)		1,052
Losses charged off		(30)		—		—		(32)		(6)		(68)
Recoveries		2		—		—		6		—		8
Balance, end of period	$	11,186	$	1,987	$	15,550	$	823	$	4,095	$	33,641

Schedule of Allowance for off-balance credit exposure

	At period end and for the nine months ended March 31, 2023
	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	$	58	$	2,178	$	421	$	61	$	640	$	3,358
Provision (benefit) charged to expense		47		3,400		(80)		41		1,058		4,466
Balance, end of period	$	105	$	5,578	$	341	$	102	$	1,698	$	7,824

	At period end and for the three months ended March 31, 2023
	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	$	70	$	3,629	$	480	$	56	$	702	$	4,937
Provision (benefit) charged to expense		35		1,949		(139)		46		996		2,887
Balance, end of period	$	105	$	5,578	$	341	$	102	$	1,698	$	7,824

	At period end and for the nine months ended March 31, 2022
	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		46		1,221		147		(144)		(396)		874
Balance, end of period	$	83	$	1,723	$	335	$	74	$	464	$	2,679

	At period end and for the three months ended March 31, 2022
	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		49		50		165		16		220		500
Balance, end of period	$	83	$	1,723	$	335	$	74	$	464	$	2,679

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

(dollars in thousands)													Revolving
March 31,	2023		2022		2021		2020		2019		Prior		loans		Total
Residential Real Estate
Pass	$	283,090	$	329,020	$	260,233	$	106,337	$	26,467	$	100,592	$	7,511	$	1,113,250
Watch		283		1,147		580		2,307		201		27		56		4,601
Special Mention		—		—		—		—		—		—		—		—
Substandard		799		724		448		85		—		1,063		—		3,119
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	284,172	$	330,891	$	261,261	$	108,729	$	26,668	$	101,682	$	7,567	$	1,120,970
Construction Real Estate
Pass	$	112,913	$	68,069	$	11,896	$	9,193	$	94	$	—	$	5,616	$	207,781
Watch		155		—		—		3,190		—		—		—		3,345
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,280		368		—		—		—		—		—		1,648
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	114,348	$	68,437	$	11,896	$	12,383	$	94	$	—	$	5,616	$	212,774
Commercial Real Estate
Pass	$	272,653	$	480,124	$	290,963	$	98,101	$	86,394	$	132,560	$	33,128	$	1,393,923
Watch		7,251		9,895		165		6,874		—		119		—		24,304
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		3,141		29,623		2,438		303		478		1,913		1,251		39,147
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	285,985	$	519,642	$	293,566	$	105,278	$	86,872	$	134,592	$	34,379	$	1,460,314
Consumer
Pass	$	27,171	$	17,498	$	6,581	$	2,048	$	854	$	1,510	$	68,727	$	124,389
Watch		74		596		64		10		—		—		—		744
Special Mention		—		—		—		—		—		—		—		—
Substandard		15		4		81		8		—		95		147		350
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	27,260	$	18,098	$	6,726	$	2,066	$	854	$	1,605	$	68,874	$	125,483
Commercial
Pass	$	106,504	$	87,601	$	77,257	$	12,466	$	9,302	$	11,427	$	245,911	$	550,468
Watch		667		1,876		121		78		6		—		5,107		7,855
Special Mention		—		—		—		—		—		—		—		—
Substandard		466		798		137		155		192		621		287		2,656
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	107,637	$	90,275	$	77,515	$	12,699	$	9,500	$	12,048	$	251,305	$	560,979
Total Loans
Pass	$	802,331	$	982,312	$	646,930	$	228,145	$	123,111	$	246,089	$	360,893	$	3,389,811
Watch		8,430		13,514		930		12,459		207		146		5,163		40,849
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		5,701		31,517		3,104		551		670		3,692		1,685		46,920
Doubtful		—		—		—		—		—		—		—		—
Total	$	819,402	$	1,027,343	$	650,964	$	241,155	$	123,988	$	249,927	$	367,741	$	3,480,520

(dollars in thousands)													Revolving
June 30,	2022		2021		2020		2019		2018		Prior		loans		Total
Residential Real Estate
Pass	$	380,502	$	295,260	$	118,464	$	19,383	$	22,143	$	58,545	$	6,074	$	900,371
Watch		44		242		1,083		56		—		30		—		1,455
Special Mention		—		—		—		—		—		—		—		—
Substandard		266		918		87		440		18		605		—		2,334
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	380,812	$	296,420	$	119,634	$	19,879	$	22,161	$	59,180	$	6,074	$	904,160
Construction Real Estate
Pass	$	100,114	$	34,082	$	—	$	—	$	—	$	—	$	220	$	134,416
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	100,114	$	34,082	$	—	$	—	$	—	$	—	$	220	$	134,416
Commercial Real Estate
Pass	$	487,486	$	284,736	$	105,893	$	71,380	$	51,804	$	78,115	$	23,669	$	1,103,083
Watch		4,763		769		1,818		—		668		2,000		548		10,566
Special Mention		9,297		—		—		—		—		—		—		9,297
Substandard		22,086		481		140		13		22		93		65		22,900
Doubtful		827		—		—		—		—		—		—		827
Total Commercial Real Estate	$	524,459	$	285,986	$	107,851	$	71,393	$	52,494	$	80,208	$	24,282	$	1,146,673
Consumer
Pass	$	28,519	$	10,989	$	3,662	$	1,524	$	916	$	676	$	46,521	$	92,807
Watch		21		71		—		—		—		—		—		92
Special Mention		—		—		—		—		—		—		—		—
Substandard		23		6		4		—		10		31		23		97
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	28,563	$	11,066	$	3,666	$	1,524	$	926	$	707	$	46,544	$	92,996
Commercial
Pass	$	111,370	$	93,906	$	20,795	$	10,496	$	3,253	$	7,612	$	190,235	$	437,667
Watch		1,319		194		38		6		—		186		1,206		2,949
Special Mention		—		—		—		—		—		—		—		—
Substandard		295		11		—		186		—		167		323		982
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	112,984	$	94,111	$	20,833	$	10,688	$	3,253	$	7,965	$	191,764	$	441,598
Total Loans
Pass	$	1,107,991	$	718,973	$	248,814	$	102,783	$	78,116	$	144,948	$	266,719	$	2,668,344
Watch		6,147		1,276		2,939		62		668		2,216		1,754		15,062
Special Mention		9,297		—		—		—		—		—		—		9,297
Substandard		22,670		1,416		231		639		50		896		411		26,313
Doubtful		827		—		—		—		—		—		—		827
Total	$	1,146,932	$	721,665	$	251,984	$	103,484	$	78,834	$	148,060	$	268,884	$	2,719,843

Schedule of company's loan portfolio aging analysis

	March 31, 2023
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
(dollars in thousands)
Real Estate Loans:
Residential	$	2,110	$	203	$	636	$	2,949	$	1,118,021	$	1,120,970	$	—
Construction		141		368		—		509		212,265		212,774		—
Commercial		281		97		1,675		2,053		1,458,261		1,460,314		—
Consumer loans		536		244		176		956		124,527		125,483		—
Commercial loans		185		96		634		915		560,064		560,979		—
Total loans	$	3,253	$	1,008	$	3,121	$	7,382	$	3,473,138	$	3,480,520	$	—

	June 30, 2022
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
(dollars in thousands)
Real Estate Loans:
Residential	$	1,402	$	—	$	1,064	$	2,466	$	901,694	$	904,160	$	—
Construction		—		—		—		—		134,416		134,416		—
Commercial		416		615		288		1,319		1,145,354		1,146,673		—
Consumer loans		340		45		57		442		92,554		92,996		—
Commercial loans		274		72		13		359		441,239		441,598		—
Total loans	$	2,432	$	732	$	1,422	$	4,586	$	2,715,257	$	2,719,843	$	—

Schedule of company's collateral dependent loans and related ACL

	March 31, 2023
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Residential real estate loans
1- to 4-family residential loans	$	841	$	170
Total loans	$	841	$	170

	June 30, 2022
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Residential real estate loans
1- to 4-family residential loans	$	864	$	193
Total loans	$	864	$	193

Schedule of Company's nonaccrual loans

(dollars in thousands)	March 31, 2023		June 30, 2022
Residential real estate	$	1,175	$	1,647
Construction real estate		368		—
Commercial real estate		4,741		2,259
Consumer loans		183		73
Commercial loans		930		139
Total loans	$	7,397	$	4,118

Certain loans modified classified as TDRs

	For the three-month periods ended
	March 31, 2023			March 31, 2022
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	—	$	—	—	$	—
Construction real estate	—		—	—		—
Commercial real estate	—		—	—		—
Consumer loans	—		—	—		—
Commercial loans	—		—	1		185
Total	—	$	—	1	$	185

	For the nine-month periods ended
	March 31, 2023			March 31, 2022
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	—	$	—	1	$	150
Construction real estate	—		—	—		—
Commercial real estate	—		—	—		—
Consumer loans	—		—	—		—
Commercial loans	—		—	1		185
Total	—	$	—	2	$	335

Performing loans classified as TDRs and outstanding , segregated by class

	March 31, 2023			June 30, 2022
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	modifications	Investment		modifications	Investment
Residential real estate	10	$	3,383	11	$	3,625
Construction real estate	—		—	—		—
Commercial real estate	6		24,241	8		25,132
Consumer loans	—		—	—		—
Commercial loans	6		2,735	8		1,849
Total	22	$	30,359	27	$	30,606