Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	March 31, 2024		June 30, 2023
Real Estate Loans:
Residential	$	1,200,723	$	1,133,417
Construction		432,030		550,052
Commercial		1,608,935		1,562,379
Consumer loans		140,123		133,515
Commercial loans		616,603		599,030
		3,998,414		3,978,393
Loans in process		(226,969)		(359,196)
Deferred loan fees, net		(251)		(299)
Allowance for credit losses		(51,336)		(47,820)
Total loans	$	3,719,858	$	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 nine months ended March 31, 2024
	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		(151)		(28)		4,250		185		594		4,850
Losses charged off		(133)		(289)		(496)		(263)		(249)		(1,430)
Recoveries		—		—		18		69		9		96
Balance, end of period	$	15,357	$	2,347	$	26,610	$	900	$	6,122	$	51,336

	At period end and for the three months ended March 31, 2024
	Residential		Construction		Commercial
(dollars in thousands)	Real Estate		Real Estate		Real Estate		Consumer		Commercial		Total
Allowance for credit losses:
Balance, beginning of period	$	15,096	$	2,864	$	25,177	$	890	$	6,057	$	50,084
Provision (benefit) charged to expense		262		(517)		1,433		53		127		1,358
Losses charged off		(1)		—		—		(48)		(65)		(114)
Recoveries		—		—		—		5		3		8
Balance, end of period	$	15,357	$	2,347	$	26,610	$	900	$	6,122	$	51,336

	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 credit 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 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

Schedule of allowance for off-balance credit exposure

	At period end and for the nine months ended March 31, 2024
	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		32		(2,179)		(59)		—		56		(2,150)
Balance, end of period	$	103	$	2,630	$	416	$	73	$	916	$	4,138

	At period end and for the three months ended March 31, 2024
	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	$	77	$	3,083	$	469	$	68	$	899	$	4,596
Provision (benefit) charged to expense		26		(453)		(53)		5		17		(458)
Balance, end of period	$	103	$	2,630	$	416	$	73	$	916	$	4,138

	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

Schedule of 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	$	—	$	36	$	—	$	133
Construction		—		100		78		111		—		—		—		289
Commercial		—		496		—		—		—		—		—		496
Consumer loans		7		123		97		29		—		7		—		263
Commercial loans		—		59		180		10		—		—		—		249
Total current-period gross charge-offs	$	7	$	778	$	355	$	247	$	—	$	43	$	—	$	1,430

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	$	144,167	$	321,471	$	291,486	$	240,540	$	88,617	$	99,045	$	11,265	$	1,196,591
Watch		772		248		87		543		100		212		—		1,962
Special Mention		—		—		—		—		—		—		—		—
Substandard		30		869		467		190		94		520		—		2,170
Doubtful		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	144,969	$	322,588	$	292,040	$	241,273	$	88,811	$	99,777	$	11,265	$	1,200,723
Construction Real Estate
Pass	$	53,463	$	131,996	$	19,602	$	—	$	—	$	—	$	—	$	205,061
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Construction Real Estate	$	53,463	$	131,996	$	19,602	$	—	$	—	$	—	$	—	$	205,061
Commercial Real Estate
Pass	$	199,494	$	404,802	$	459,603	$	250,979	$	79,670	$	104,358	$	43,014	$	1,541,920
Watch		1,019		23,038		1,392		155		4,112		77		520		30,313
Special Mention		—		—		—		—		—		—		—		—
Substandard		5,083		1,482		28,198		162		34		929		814		36,702
Doubtful		—		—		—		—		—		—		—		—
Total Commercial Real Estate	$	205,596	$	429,322	$	489,193	$	251,296	$	83,816	$	105,364	$	44,348	$	1,608,935
Consumer
Pass	$	24,221	$	21,497	$	8,513	$	3,436	$	1,002	$	1,175	$	79,919	$	139,763
Watch		3		—		—		—		—		—		—		3
Special Mention		—		—		—		—		—		—		—		—
Substandard		1		23		18		4		20		193		98		357
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	24,225	$	21,520	$	8,531	$	3,440	$	1,022	$	1,368	$	80,017	$	140,123
Commercial
Pass	$	136,749	$	87,926	$	58,761	$	57,240	$	7,220	$	12,207	$	249,891	$	609,994
Watch		1,525		323		101		—		—		17		537		2,503
Special Mention		—		—		—		—		—		—		—		—
Substandard		564		751		1,182		108		261		905		335		4,106
Doubtful		—		—		—		—		—		—		—		—
Total Commercial	$	138,838	$	89,000	$	60,044	$	57,348	$	7,481	$	13,129	$	250,763	$	616,603
Total Loans
Pass	$	558,094	$	967,692	$	837,965	$	552,195	$	176,509	$	216,785	$	384,089	$	3,693,329
Watch		3,319		23,609		1,580		698		4,212		306		1,057		34,781
Special Mention		—		—		—		—		—		—		—		—
Substandard		5,678		3,125		29,865		464		409		2,547		1,247		43,335
Doubtful		—		—		—		—		—		—		—		—
Total	$	567,091	$	994,426	$	869,410	$	553,357	$	181,130	$	219,638	$	386,393	$	3,771,445

													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

	March 31, 2024
					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	$	1,068	$	334	$	879	$	2,281	$	1,198,442	$	1,200,723	$	81
Construction		486		69		—		555		204,506		205,061		—
Commercial		442		129		1,112		1,683		1,607,252		1,608,935		—
Consumer loans		795		257		193		1,245		138,878		140,123		—
Commercial loans		1,613		333		930		2,876		613,727		616,603		—
Total loans	$	4,404	$	1,122	$	3,114	$	8,640	$	3,762,805	$	3,771,445	$	81

	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

	March 31, 2024
	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	$	807	$	126
Commercial real estate		23,230		9,269
Commercial		1,178		494
Total loans	$	25,215	$	9,889

	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

The increase in commercial real estate collateral dependent loans is due primarily to two metropolitan area hotel relationships being individually analyzed as of March 31, 2024; the Company was previously evaluating its non-owner occupied commercial real estate pool for qualitative adjustments related to similar loans.

Schedule of company's nonaccrual loans

(dollars in thousands)	March 31, 2024		June 30, 2023
Residential real estate	$	1,416	$	934
Construction real estate		—		698
Commercial real estate		3,250		4,564
Consumer loans		674		256
Commercial loans		1,989		1,091
Total loans	$	7,329	$	7,543

Schedule of performing loans classified as TDRs and outstanding, segregated by class

	For the nine-month periods ended
	March 31, 2024
	Number of	Recorded
(dollars in thousands)	modifications	Investment
Residential real estate	—	$	—
Construction real estate	—		—
Commercial real estate	—		—
Consumer loans	—		—
Commercial loans	2		859
Total	2	$	859

	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

Schedule of performing loans classified as modifications to borrowers experiencing financial difficulty

	March 31, 2024
					Term		Interest		Total Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
Residential real estate	$	—	$	—	$	807	$	—	0.07	%
Construction real estate		—		—		—		—	—	%
Commercial real estate		—		—		23,627		—	1.47	%
Consumer loans		—		—		—		—	—	%
Commercial loans		—		235		179		—	0.07	%
Total	$	—	$	235	$	24,613	$	—	0.66	%