Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2023

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	September 30, 2023		June 30, 2023
Real Estate Loans:
Residential	$	1,134,604	$	1,133,417
Construction		565,525		550,052
Commercial		1,564,147		1,562,379
Consumer loans		135,263		133,515
Commercial loans		633,055		599,030
		4,032,594		3,978,393
Loans in process		(332,633)		(359,196)
Deferred loan fees, net		(282)		(299)
Allowance for credit losses		(49,122)		(47,820)
Total loans	$	3,650,557	$	3,571,078

Schedule of 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 three months ended September 30, 2023
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	15,641	$	2,664	$	22,838	$	909	$	5,768	$	47,820
Provision (benefit) charged to expense		(663)		303		2,166		(12)		(224)		1,570
Losses charged off		(132)		(111)		—		(88)		(4)		(335)
Recoveries		—		—		18		46		3		67
Balance, end of period	$	14,846	$	2,856	$	25,022	$	855	$	5,543	$	49,122

	At period end and for the three months ended September 30, 2022
	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
Provision (benefit) charged to expense		3,030		283		1,048		12		(123)		4,250
Losses charged off		(2)		—		—		(35)		—		(37)
Recoveries		1		—		—		6		6		13
Balance, end of period	$	11,937	$	2,503	$	17,886	$	693	$	4,399	$	37,418

Schedule of Allowance for off-balance credit exposure

	At period end and for the three months ended September 30, 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	$	71	$	4,809	$	475	$	73	$	860	$	6,288
Provision (benefit) charged to expense		7		(616)		(10)		(2)		(49)		(670)
Balance, end of period	$	78	$	4,193	$	465	$	71	$	811	$	5,618

	At period end and for the three months ended September 30, 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	$	58	$	2,178	$	421	$	61	$	640	$	3,358
Provision (benefit) charged to expense		135		719		107		—		(155)		806
Balance, end of period	$	193	$	2,897	$	528	$	61	$	485	$	4,164

Gross charge-offs by loan class and year of origination

													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		loans		Total
Real Estate Loans:
Residential	$	—	$	—	$	—	$	97	$	—	$	35	$	—	$	132
Construction		—		—		—		111		—		—		—		111
Commercial		—		—		—		—		—		—		—		—
Consumer loans		6		41		26		10		—		5		—		88
Commercial loans		—		4		—		—		—		—		—		4
Total current-period gross charge-offs	$	6	$	45	$	26	$	218	$	—	$	40	$	—	$	335

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

													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		loans		Total
Residential Real Estate
Pass	$	54,368	$	318,276	$	301,722	$	242,029	$	93,759	$	109,337	$	10,132	$	1,129,623
Watch		812		249		567		610		105		221		5		2,569
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		896		371		369		—		776		—		2,412
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	55,180	$	319,421	$	302,660	$	243,008	$	93,864	$	110,334	$	10,137	$	1,134,604
Construction Real Estate
Pass	$	22,474	$	156,274	$	40,269	$	12,247	$	—	$	—	$	944	$	232,208
Watch		—		316		—		—		—		—		—		316
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		368		—		—		—		—		368
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	22,474	$	156,590	$	40,637	$	12,247	$	—	$	—	$	944	$	232,892
Commercial Real Estate
Pass	$	63,507	$	416,287	$	477,861	$	272,320	$	85,115	$	137,865	$	39,712	$	1,492,667
Watch		1,267		21,434		4,558		160		4,139		79		20		31,657
Special Mention		—		2,940		—		—		—		—		—		2,940
Substandard		3,312		2,961		26,137		2,412		1		1,092		968		36,883
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	68,086	$	443,622	$	508,556	$	274,892	$	89,255	$	139,036	$	40,700	$	1,564,147
Consumer
Pass	$	10,134	$	30,197	$	11,214	$	4,640	$	1,403	$	1,882	$	75,476	$	134,946
Watch		—		19		—		59		—		—		—		78
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		9		50		12		—		39		129		239
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	10,134	$	30,225	$	11,264	$	4,711	$	1,403	$	1,921	$	75,605	$	135,263
Commercial
Pass	$	44,938	$	131,924	$	73,892	$	66,157	$	9,773	$	15,036	$	284,041	$	625,761
Watch		1,227		576		337		286		55		20		2,222		4,723
Special Mention		—		—		—		—		—		—		—		—
Substandard		402		524		356		69		148		809		263		2,571
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	46,567	$	133,024	$	74,585	$	66,512	$	9,976	$	15,865	$	286,526	$	633,055
Total Loans
Pass	$	195,421	$	1,052,958	$	904,958	$	597,393	$	190,050	$	264,120	$	410,305	$	3,615,205
Watch		3,306		22,594		5,462		1,115		4,299		320		2,247		39,343
Special Mention		—		2,940		—		—		—		—		—		2,940
Substandard		3,714		4,390		27,282		2,862		149		2,716		1,360		42,473
Doubtful		—		—		—		—		—		—		—		—
Total	$	202,441	$	1,082,882	$	937,702	$	601,370	$	194,498	$	267,156	$	413,912	$	3,699,961

													Revolving
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		loans		Total
Residential Real Estate
Pass	$	328,142	$	312,853	$	252,077	$	103,735	$	25,651	$	96,035	$	9,100	$	1,127,593
Watch		1,214		1,136		616		108		198		27		5		3,304
Special Mention		—		—		—		—		—		—		—		—
Substandard		837		316		510		—		—		857		—		2,520
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	330,193	$	314,305	$	253,203	$	103,843	$	25,849	$	96,919	$	9,105	$	1,133,417
Construction Real Estate
Pass	$	124,479	$	50,011	$	10,946	$	3,190	$	—	$	—	$	941	$	189,567
Watch		280		—		—		—		—		—		—		280
Special Mention		—		—		—		—		—		—		—		—
Substandard		330		679		—		—		—		—		—		1,009
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	125,089	$	50,690	$	10,946	$	3,190	$	—	$	—	$	941	$	190,856
Commercial Real Estate
Pass	$	462,643	$	474,140	$	279,921	$	89,272	$	74,653	$	83,871	$	37,443	$	1,501,943
Watch		8,122		5,382		163		3,879		—		117		—		17,663
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		7,690		26,465		2,425		288		473		1,735		757		39,833
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	481,395	$	505,987	$	282,509	$	93,439	$	75,126	$	85,723	$	38,200	$	1,562,379
Consumer
Pass	$	36,003	$	14,530	$	5,446	$	1,692	$	717	$	1,379	$	73,225	$	132,992
Watch		71		—		62		—		—		—		—		133
Special Mention		—		—		—		—		—		—		—		—
Substandard		33		2		1		—		—		41		313		390
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	36,107	$	14,532	$	5,509	$	1,692	$	717	$	1,420	$	73,538	$	133,515
Commercial
Pass	$	138,500	$	83,011	$	71,054	$	10,723	$	6,239	$	10,657	$	272,710	$	592,894
Watch		698		211		91		3		—		—		2,549		3,552
Special Mention		—		—		—		—		—		—		—		—
Substandard		860		329		128		184		175		574		334		2,584
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	140,058	$	83,551	$	71,273	$	10,910	$	6,414	$	11,231	$	275,593	$	599,030
Total Loans
Pass	$	1,089,767	$	934,545	$	619,444	$	208,612	$	107,260	$	191,942	$	393,419	$	3,544,989
Watch		10,385		6,729		932		3,990		198		144		2,554		24,932
Special Mention		2,940		—		—		—		—		—		—		2,940
Substandard		9,750		27,791		3,064		472		648		3,207		1,404		46,336
Doubtful		—		—		—		—		—		—		—		—
Total	$	1,112,842	$	969,065	$	623,440	$	213,074	$	108,106	$	195,293	$	397,377	$	3,619,197

Schedule of company's loan portfolio aging analysis

	September 30, 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	$	1,221	$	120	$	501	$	1,842	$	1,132,762	$	1,134,604	$	—
Construction		160		—		368		528		232,364		232,892		—
Commercial		840		14,534		61		15,435		1,548,712		1,564,147		—
Consumer loans		592		166		165		923		134,340		135,263		—
Commercial loans		7,662		1,413		641		9,716		623,339		633,055		—
Total loans	$	10,475	$	16,233	$	1,736	$	28,444	$	3,671,517	$	3,699,961	$	—

	June 30, 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	$	1,984	$	401	$	483	$	2,868	$	1,130,549	$	1,133,417	$	109
Construction		443		311		698		1,452		189,404		190,856		—
Commercial		616		1,854		1,580		4,050		1,558,329		1,562,379		—
Consumer loans		456		124		212		792		132,723		133,515		—
Commercial loans		713		77		789		1,579		597,451		599,030		—
Total loans	$	4,212	$	2,767	$	3,762	$	10,741	$	3,608,456	$	3,619,197	$	109

Schedule of company's collateral dependent loans and related ACL

	September 30, 2023
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Real estate loans
1- to 4-family residential real estate	$	822	$	141
Commercial real estate		2,140		316
Total loans	$	2,962	$	457

	June 30, 2023
	Amortized cost basis of
	loans determined to be		Related allowance
(dollars in thousands)	collateral dependent		for credit losses
Real estate loans
1- to 4-family residential	$	837	$	156
Construction real estate		642		79
Commercial real estate		4,897		666
Total loans	$	6,376	$	901

Schedule of Company's nonaccrual loans

(dollars in thousands)	September 30, 2023		June 30, 2023
Residential real estate	$	949	$	934
Construction real estate		368		698
Commercial real estate		3,361		4,564
Consumer loans		164		256
Commercial loans		896		1,091
Total loans	$	5,738	$	7,543

Performing loans classified as modifications to borrowers experiencing financial difficulty

	September 30, 2023
									Total
					Term		Interest		Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
Residential real estate	$	—	$	—	$	3,397	$	—	0.09	%
Construction real estate		—		—		—		—	—	%
Commercial real estate		—		—		23,838		—	0.64	%
Consumer loans		—		—		—		—	—	%
Commercial loans		—		241		1,824		—	0.06	%
Total	$	—	$	241	$	29,059	$	—	0.79	%

Performing loans classified as TDRs and outstanding , segregated by class

	June 30, 2023
	Number of	Recorded
(dollars in thousands)	modifications	Investment
Residential real estate	10	$	3,438
Construction real estate	—		—
Commercial real estate	6		24,017
Consumer loans	—		—
Commercial loans	6		2,310
Total	22	$	29,765