Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity Central Index Key | 0000916907 | |
Entity File Number | 0-23406 | |
Registrant Name | SOUTHERN MISSOURI BANCORP, INC. | |
Entity Incorporation, State or Country Code | MO | |
Tax Identification Number (TIN) | 43-1665523 | |
Entity Address, Address Line One | 2991 Oak Grove Road | |
Entity Address, City or Town | Poplar Bluff | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63901 | |
City Area Code | 573 | |
Local Phone Number | 778-1800 | |
Title of 12(b) Security | Common | |
Trading Symbol | SMBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,934,113 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Assets | ||
Cash and cash equivalents | $ 236,896 | $ 54,245 |
Interest-bearing time deposits | 977 | 974 |
Available for sale securities | 190,409 | 176,524 |
Stock in FHLB of Des Moines | 6,163 | 6,390 |
Stock in Federal Reserve Bank of St. Louis | 5,018 | 4,363 |
Loans receivable, net of allowance for credit losses of $35,227 and $25,139 at March 31, 2021 and June 30, 2020, respectively | 2,134,885 | 2,141,929 |
Accrued interest receivable | 10,030 | 12,116 |
Premises and equipment, net | 63,908 | 65,106 |
Bank owned life insurance - cash surrender value | 43,539 | 43,363 |
Goodwill | 14,089 | 14,089 |
Other intangible assets, net | 7,079 | 7,700 |
Prepaid expenses and other assets | 19,064 | 15,358 |
Total assets | 2,732,057 | 2,542,157 |
Liabilities and Stockholders' Equity | ||
Deposits | 2,368,761 | 2,184,847 |
Advances from FHLB | 62,781 | 70,024 |
Accounts payable and other liabilities | 11,440 | 12,151 |
Accrued interest payable | 918 | 1,646 |
Subordinated debt | 15,218 | 15,142 |
Total liabilities | 2,459,118 | 2,283,810 |
Common stock, $.01 par value; 25,000,000 shares authorized; 9,361,629 and 9,345,339 shares issued at March 31, 2021 and June 30, 2020, respectively | 94 | 93 |
Additional paid-in capital | 95,549 | 95,035 |
Retained earnings | 187,878 | 165,709 |
Treasury stock of 402,333 and 217,949 shares at March 31, 2021 and June 30, 2020, respectively, at cost | (12,977) | (6,937) |
Accumulated other comprehensive income | 2,395 | 4,447 |
Total stockholders' equity | 272,939 | 258,347 |
Total liabilities and stockholders' equity | $ 2,732,057 | $ 2,542,157 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Loans receivable, net of allowance for credit losses | $ 35,227 | $ 25,139 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Issued | 9,361,629 | 9,345,339 |
Treasury Stock | 402,333 | 217,949 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST INCOME: | ||||
Loans | $ 26,005 | $ 24,969 | $ 78,737 | $ 76,030 |
Investment securities | 559 | 485 | 1,568 | 1,507 |
Mortgage-backed securities | 466 | 733 | 1,479 | 2,141 |
Other interest-earning assets | 70 | 33 | 159 | 110 |
Total interest income | 27,100 | 26,220 | 81,943 | 79,788 |
INTEREST EXPENSE: | ||||
Deposits | 3,494 | 6,135 | 11,748 | 19,161 |
Advances from FHLB | 325 | 439 | 1,052 | 1,534 |
Note payable | 31 | 102 | ||
Subordinated debt | 132 | 197 | 403 | 636 |
Total interest expense | 3,951 | 6,802 | 13,203 | 21,433 |
NET INTEREST INCOME | 23,149 | 19,418 | 68,740 | 58,355 |
PROVISION FOR CREDIT LOSSES | (409) | 2,850 | 1,591 | 4,134 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 23,558 | 16,568 | 67,149 | 54,221 |
NONINTEREST INCOME: | ||||
Deposit account charges and related fees | 1,275 | 1,538 | 3,974 | 4,593 |
Bank card interchange income | 1,004 | 719 | 2,670 | 2,120 |
Loan late charges | 118 | 149 | 398 | 416 |
Loan servicing fees | 217 | (285) | 895 | (52) |
Other loan fees | 266 | 370 | 898 | 968 |
Net realized gains on sale of loans | 853 | 178 | 3,449 | 653 |
Net realized gains on sale of AFS securities | 90 | 90 | ||
Earnings on bank owned life insurance | 270 | 247 | 1,524 | 755 |
Other income | 431 | 313 | 1,287 | 940 |
Total noninterest income | 4,524 | 3,229 | 15,185 | 10,393 |
NONINTEREST EXPENSE: | ||||
Compensation and benefits | 7,739 | 7,521 | 23,004 | 21,638 |
Occupancy and equipment, net | 1,990 | 1,780 | 5,826 | 5,401 |
Data processing expense | 1,253 | 1,152 | 3,490 | 3,089 |
Telecommunications expense | 317 | 309 | 940 | 949 |
Deposit insurance premiums | 174 | 593 | ||
Legal and professional fees | 256 | 229 | 690 | 651 |
Advertising | 240 | 244 | 689 | 837 |
Postage and office supplies | 198 | 224 | 585 | 585 |
Intangible amortization | 338 | 441 | 1,057 | 1,322 |
Foreclosed property expenses/losses | 48 | 282 | 137 | 355 |
Provision for off balance sheet credit exposure | 300 | 516 | ||
Other operating expense | 975 | 1,087 | 2,836 | 3,601 |
Total noninterest expense | 13,528 | 13,569 | 39,847 | 38,944 |
INCOME BEFORE INCOME TAXES | 14,554 | 6,228 | 42,487 | 25,670 |
INCOME TAXES | 3,096 | 1,129 | 8,996 | 5,026 |
NET INCOME | $ 11,458 | $ 5,099 | $ 33,491 | $ 20,644 |
Basic earnings per common share | $ 1.27 | $ 0.55 | $ 3.69 | $ 2.24 |
Diluted earnings per common share | 1.27 | 0.55 | 3.69 | 2.24 |
Dividends per common share | $ 0.16 | $ 0.15 | $ 0.46 | $ 0.45 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net income | $ 11,458 | $ 5,099 | $ 33,491 | $ 20,644 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available-for-sale | (2,227) | (178) | (2,541) | 335 |
Less: reclassification adjustment for realized gains included in net income | 90 | 90 | ||
Tax benefit (expense) | 511 | 39 | 579 | (74) |
Total other comprehensive income (loss) | (1,806) | (139) | (2,052) | 261 |
Comprehensive income | $ 9,652 | $ 4,960 | $ 31,439 | $ 20,905 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Treasury Stock | AOCI Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning Balance at Jun. 30, 2019 | $ 93 | $ 94,541 | $ 143,677 | $ (1,166) | $ 1,247 | $ 238,392 | ||
Net Income | 20,644 | 20,644 | ||||||
Change in unrealized gain on available for sale securities | 261 | 261 | ||||||
Dividends paid on common stock | (4,144) | (4,144) | ||||||
Stock option expense | 51 | 51 | ||||||
Stock grant expense | 356 | 356 | ||||||
Exercise of stock options | 64 | 64 | ||||||
Treasury stock purchased | (5,771) | (5,771) | ||||||
Ending Balance at Mar. 31, 2020 | 93 | 95,012 | 160,177 | (6,937) | 1,508 | 249,853 | ||
Beginning Balance at Dec. 31, 2019 | 93 | 94,650 | 156,459 | (3,980) | 1,647 | 248,869 | ||
Net Income | 5,099 | 5,099 | ||||||
Change in unrealized gain on available for sale securities | (139) | (139) | ||||||
Dividends paid on common stock | (1,381) | (1,381) | ||||||
Stock option expense | 20 | 20 | ||||||
Stock grant expense | 310 | 310 | ||||||
Exercise of stock options | 32 | 32 | ||||||
Treasury stock purchased | (2,957) | (2,957) | ||||||
Ending Balance at Mar. 31, 2020 | 93 | 95,012 | 160,177 | (6,937) | 1,508 | 249,853 | ||
Beginning Balance at Jun. 30, 2020 | 93 | 95,035 | $ 7,151 | 165,709 | (6,937) | 4,447 | $ 7,151 | 258,347 |
Net Income | 33,491 | 33,491 | ||||||
Change in unrealized gain on available for sale securities | (2,052) | (2,052) | ||||||
Dividends paid on common stock | (4,171) | (4,171) | ||||||
Stock option expense | 514 | 514 | ||||||
Common stock issued | 1 | 1 | ||||||
Treasury stock purchased | (6,040) | (6,040) | ||||||
Ending Balance at Mar. 31, 2021 | 94 | 95,549 | 187,878 | (12,977) | 2,395 | 272,939 | ||
Beginning Balance at Dec. 31, 2020 | 93 | 95,109 | 177,861 | (9,575) | 4,201 | 267,689 | ||
Net Income | 11,458 | 11,458 | ||||||
Change in unrealized gain on available for sale securities | (1,806) | (1,806) | ||||||
Dividends paid on common stock | (1,441) | (1,441) | ||||||
Stock option expense | 440 | 440 | ||||||
Common stock issued | 1 | 1 | ||||||
Treasury stock purchased | (3,402) | (3,402) | ||||||
Ending Balance at Mar. 31, 2021 | $ 94 | $ 95,549 | $ 187,878 | $ (12,977) | $ 2,395 | $ 272,939 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) | ||||
Dividends paid on common stock | $ 0.16 | $ 0.15 | $ 0.46 | $ 0.45 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 33,491 | $ 20,644 |
Items not requiring (providing) cash: | ||
Depreciation | 3,030 | 2,841 |
Loss on disposal of fixed assets | 27 | 295 |
Stock option and stock grant expense | 513 | 471 |
Loss on sale/write-down of REO | 60 | 223 |
Amortization of intangible assets | 1,057 | 1,322 |
Accretion of purchase accounting adjustments | (1,078) | (1,144) |
Increase in cash surrender value of bank owned life insurance (BOLI) | (1,524) | (755) |
Provision for credit losses | 1,591 | 4,134 |
Net amortization of premiums and discounts on securities | 1,349 | 896 |
Gain on sale of AFS securities | (90) | |
Originations of loans held for sale | (131,889) | (25,705) |
Proceeds from sales of loans held for sale | 129,637 | 24,826 |
Gain on sales of loans held for sale | (3,449) | (653) |
Changes in: | ||
Accrued interest receivable | 2,086 | 435 |
Prepaid expenses and other assets | 2,562 | 310 |
Accounts payable and other liabilities | (3,611) | 557 |
Deferred income taxes | (429) | 19 |
Accrued interest payable | (728) | (346) |
Net cash provided by operating activities | 32,605 | 28,370 |
Cash flows from investing activities: | ||
Net decrease (increase) in loans | 2,478 | (123,999) |
Net change in interest-bearing deposits | (6) | (3) |
Proceeds from maturities of available for sale securities | 48,668 | 34,587 |
Proceeds from sales of AFS securities | 16,284 | |
Net redemptions (purchases) of Federal Home Loan Bank stock | 227 | (3,469) |
Net purchases of Federal Reserve Bank of St. Louis stock | (655) | (3) |
Purchases of available-for-sale securities | (82,725) | (50,207) |
Purchases of premises and equipment | (1,389) | (3,409) |
Investments in state & federal tax credits | (1,682) | (4,840) |
Proceeds from sale of fixed assets | 72 | 276 |
Proceeds from sale of foreclosed assets | 978 | 1,317 |
Proceeds from BOLI claims | 1,351 | |
Net cash used in investing activities | (16,399) | (149,750) |
Cash flows from financing activities: | ||
Net increase in demand deposits and savings accounts | 265,514 | 103,450 |
Net decrease in certificates of deposits | (81,572) | (25,439) |
Net decrease in securities sold under agreements to repurchase | (4,376) | |
Proceeds from Federal Home Loan Bank advances | 110,100 | 521,200 |
Repayments of Federal Home Loan Bank advances | (117,386) | (442,835) |
Purchase of treasury stock | (6,040) | (5,771) |
Dividends paid on common stock | (4,171) | (4,144) |
Net cash provided by financing activities | 166,445 | 142,085 |
Increase in cash and cash equivalents | 182,651 | 20,705 |
Cash and cash equivalents at beginning of period | 54,245 | 35,400 |
Cash and cash equivalents at end of period | 236,896 | 56,105 |
Noncash investing and financing activities: | ||
Conversion of loans to foreclosed real estate | 721 | 1,035 |
Conversion of loans to repossessed assets | 428 | 191 |
Right of use assets obtained in exchange for lease obligations: Operating Leases | 599 | 1,996 |
Cash paid during the period for: | ||
Interest (net of interest credited) | 2,129 | 3,084 |
Income taxes | $ 7,736 | $ 1,541 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of June 30, 2020, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and nine- month periods ended March 31, 2021, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2020 Form 10-K, which was filed with the SEC. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | Note 2: Organization and Summary of Significant Accounting Policies Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates. On July 1, 2020, Financial Instruments – Credit Losses which created material changes to the existing critical accounting policy that existed at June 30, 2020 . Effective July 1, 2020 , the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans. Cash and Cash Equivalents. Interest-bearing Time Deposits. Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income (loss). The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation. At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at March 31, 2021, and June 30, 2020. Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Federal Reserve Bank and Federal Home Loan Bank Stock. Loans. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically. Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk. Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received). Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020 . Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven three Bank Owned Life Insurance. Goodwill. Intangible Assets. five 2022 2024 Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31. Incentive Plans. Outside Directors’ Retirement. five year In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. Stock Options. Earnings Per Share. Comprehensive Income. Transfers Between Fair Value Hierarchy Levels. New Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures. Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. The following table illustrates the impact of adoption of ASU 2016-13: July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount. In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency. Reclassifications. Certain reclassifications have been made to the three- and nine- month periods ended March 31, 2020 consolidated financial statements to conform to the three- and nine- month periods ended March 31, 2021 consolidated financial statement presentation. These reclassifications had no effect on net earnings or stockholders’ equity. Revisions. Certain immaterial revisions have been made to the three- and nine- month periods ended March 31, 2020 consolidated financial statements for reporting interchange income and expenses related to an agent relationship. These revisions did not have a significant impact on the consolidated financials statement line items impacted. |
Securities
Securities | 9 Months Ended |
Mar. 31, 2021 | |
Securities | |
Securities | Note 3: Securities The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following: March 31, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Investment and mortgage backed securities: State and political subdivisions $ 42,065 $ 1,332 $ (105) $ — $ 43,292 Other securities 21,000 235 (398) — 20,837 Mortgage-backed GSE residential 124,227 3,188 (1,135) — 126,280 Total investments and mortgage-backed securities $ 187,292 $ 4,755 $ (1,638) $ — $ 190,409 June 30, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: State and political subdivisions $ 40,486 $ 1,502 $ — $ 41,988 Other securities 7,919 48 (343) 7,624 Mortgage-backed GSE residential 122,375 4,576 (39) 126,912 Total investment and mortgage-backed securities $ 170,780 $ 6,126 $ (382) $ 176,524 The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. March 31, 2021 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 2,003 $ 2,025 After one year but less than five years 8,450 8,610 After five years but less than ten years 29,173 29,669 After ten years 23,439 23,825 Total investment securities 63,065 64,129 Mortgage-backed securities 124,227 126,280 Total investment and mortgage-backed securities $ 187,292 $ 190,409 The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $162.5 million at March 31, 2021 and $156.1 million at June 30, 2020. The securities pledged consist of marketable securities, including $120.5 million and $123.9 million of Mortgage-backed Securities, $42.0 million and $32.0 million of State and Political Subdivisions Obligations, and $0 and $200,000 of Other Securities at March 31, 2021 and June 30, 2020, respectively. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at March 31, 2021 and June 30, 2020: March 31, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 7,175 $ 105 $ — $ — $ 7,175 $ 105 Other securities 10,723 157 735 241 11,458 398 Mortgage-backed securities 45,723 1,135 — — 45,723 1,135 Total investment and mortgage-backed securities $ 63,621 $ 1,397 $ 735 $ 241 $ 64,356 $ 1,638 June 30, 2020 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Other securities $ 995 $ 5 $ 643 $ 338 $ 1,638 $ 343 Mortgage-backed securities 9,037 39 — — 9,037 39 Total investments and mortgage-backed securities $ 10,032 $ 44 $ 643 $ 338 $ 10,675 $ 382 Mortgage-backed securities Obligations of state and political subdivisions Other securities. At March 31, 2021 there were two pooled trust preferred securities with an estimated fair value of $735,000 and unrealized losses of $241,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. The March 31, 2021, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.8 percent, annually, annual defaults averaging 220 basis points over the next two years, and 68 basis points thereafter, and a recovery rate averaging seven percent of gross defaults, lagged two years . One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. The Company's cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities. The Company does not believe any other individual unrealized loss as of March 31, 2021, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio. Credit losses recognized on investments. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Mar. 31, 2021 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | Note 4: Loans and Allowance for Credit Losses Classes of loans are summarized as follows: (dollars in thousands) March 31, 2021 June 30, 2020 Real Estate Loans: Residential $ 655,800 $ 627,357 Construction 202,945 185,924 Commercial 897,450 887,419 Consumer loans 76,347 80,767 Commercial loans 421,825 468,448 2,254,367 2,249,915 Loans in process (80,203) (78,452) Deferred loan fees, net (4,052) (4,395) Allowance for credit losses (35,227) (25,139) Total loans $ 2,134,885 $ 2,141,929 The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At March 31, 2021 the Company had purchased participations in 22 loans totaling $75.3 million, as compared to 23 loans totaling $58.2 million at June 30, 2020. Residential Mortgage Lending. The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within our primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage. Commercial Real Estate Lending. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Construction Lending. six While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At March 31, 2021, construction loans outstanding included 52 loans, totaling $28.0 million, for which a modification had been agreed to. At June 30, 2020, construction loans outstanding included 77 loans, totaling $48.8 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above, pursuant to the Company’s normal underwriting and monitoring procedures. As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs); nor were they made pursuant to exemptions provided under the CARES Act. Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans modified under the CARES Act did not include any construction loans with drawn balances at March 31, 2021. Consumer Lending Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values. Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay. Commercial Business Lending Allowance for Credit Losses. ● trailing measures ( 12-month ) of national and state unemployment, which continued to increase in the most recent quarter. This is assessed to be an elevated and increasing risk factor; ● trailing measures ( 2 years ) of GDP growth, which continued to improve in the most recent quarter, but over the lookback period remains very low by historical standards. This is considered to be an elevated and declining risk factor; ● projected GDP growth, which increased in the most recent quarter, and remains quite high by historical standards. This is considered to be a low and stable risk factor; ● the pace of growth of the Company’s loan portfolio, exclusive of acquisitions or government guaranteed loans, relative to overall economic growth. This measure remains elevated, but continued to moderate in the most recent quarter, and is considered to be an elevated and declining risk factor; ● levels and trends for loan delinquencies nationally and in the region. This measure as reported remains relatively stable, but management considers the measure to currently be under-reported due to the availability of modifications under the CARES Act. This is considered to be an elevated and uncertain risk factor; ● exposure to the hotel industry, in particular, metropolitan area hotels more impacted by activity restrictions and a lack of business or convention-related travel. This is considered to be an elevated and stable risk factor. Management considered the impact of the COVID-19 pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels, when making qualitative factor adjustments. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL. The following tables present the balance in the ACL and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment as of March 31, 2021 and June 30, 2020, and activity in the ACL and ALLL for the three- and nine- month periods ended March 31, 2021 and 2020: At period end and for the nine months ended March 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 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 1,536 129 1,319 (929) (670) 1,385 Losses charged off (178) — (90) (130) (276) (674) Recoveries 1 — 1 16 26 44 Balance, end of period $ 9,755 $ 2,018 $ 17,218 $ 1,204 $ 5,032 $ 35,227 For the three months ended March 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 Provision charged to expense (576) (369) 2,070 (107) (1,018) — Losses charged off (68) — (91) (57) (42) (258) Recoveries 1 — — 6 7 14 Balance, end of period $ 9,755 $ 2,018 $ 17,218 $ 1,204 $ 5,032 $ 35,227 At period end and for the nine months ended March 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 $ 3,706 $ 1,365 $ 9,399 $ 1,046 $ 4,387 $ 19,903 Provision charged to expense 1,195 246 2,140 156 397 4,134 Losses charged off (305) — (12) (117) (173) (607) Recoveries 18 — 15 17 28 78 Balance, end of period $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 Ending Balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — For the three months ended March 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 $ 3,712 $ 1,657 $ 9,827 $ 1,050 $ 4,568 $ 20,814 Provision charged to expense 1,035 (46) 1,727 64 70 2,850 Losses charged off (133) — (12) (19) (26) (190) Recoveries — — — 7 27 34 Balance, end of period $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 At June 30, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Ending Balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans: Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 626,085 $ 106,194 $ 872,716 $ 80,767 $ 463,902 $ 2,149,664 Ending Balance: loans acquired with deteriorated credit quality $ 1,272 $ 1,278 $ 14,703 $ — $ 4,546 $ 21,799 Included in the Company’s loan portfolio are certain loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination, which are considered purchased credit deteriorated (PCD) loans. Prior to the July 1, 2020 adoption of ASU 2016-13, these loans were accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were described as purchased credit impaired (PCI) loans. Under ASC 310-30, these loans were written down at acquisition to an amount estimated to be collectible, and, unless there was further deterioration following the acquisition, an ALLL was not recognized for these loans. As a result, certain historical ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s credit quality over time. The ratios particularly affected by accounting under ASC 310-30 include the allowance as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. For more information about the transition from PCI to PCD status of the Company’s acquired loans, see Note 2: Organization and Summary of Significant Accounting Policies Loans Credit Quality Indicators Watch Special Mention Substandard financial condition, and insufficient collateral. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis. The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of March 31, 2021. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: Revolving 2021 2020 2019 2018 2017 Prior loans Total Residential Real Estate Pass $ 247,325 $ 198,404 $ 39,207 $ 36,547 $ 27,142 $ 84,507 $ 5,385 $ 638,517 Watch 125 71 10,994 — 93 817 — 12,100 Special Mention — — — — — — — — Substandard 4,652 48 17 52 — 414 — 5,183 Doubtful — — — — — — — — Total Residential Real Estate $ 252,102 $ 198,523 $ 50,218 $ 36,599 $ 27,235 $ 85,738 $ 5,385 $ 655,800 Construction Real Estate Pass $ 73,397 $ 42,331 $ 6,998 $ — $ — $ — $ — $ 122,726 Watch — — — — — — — — Special Mention — — — — — — — — Substandard 16 — — — — — — 16 Doubtful — — — — — — — — Total Construction Real Estate $ 73,413 $ 42,331 $ 6,998 $ — $ — $ — $ — $ 122,742 Commercial Real Estate Pass $ 264,035 $ 174,218 $ 109,116 $ 105,165 $ 76,865 $ 84,000 $ 25,836 $ 839,235 Watch 4,271 813 10,740 5,393 530 460 819 23,026 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 8,713 1,162 506 6 50 101 69 10,607 Doubtful — — 857 — — — — 857 Total Commercial Real Estate $ 277,019 $ 184,999 $ 121,219 $ 112,357 $ 90,271 $ 84,561 $ 27,024 $ 897,450 Consumer Pass $ 17,990 $ 10,989 $ 4,580 $ 1,584 $ 797 $ 689 $ 39,459 $ 76,088 Watch 83 — — — — — 48 131 Special Mention — — — — — — — — Substandard — 26 — 36 32 — 34 128 Doubtful — — — — — — — — Total Consumer $ 18,073 $ 11,015 $ 4,580 $ 1,620 $ 829 $ 689 $ 39,541 $ 76,347 Commercial Pass $ 152,172 $ 94,604 $ 21,289 $ 8,517 $ 7,831 $ 9,686 $ 118,221 $ 412,320 Watch 1,284 274 1,791 139 — 7 1,991 5,486 Special Mention — — — — — — — — Substandard 449 1,109 321 1 176 4 1,959 4,019 Doubtful — — — — — — — — Total Commercial $ 153,905 $ 95,987 $ 23,401 $ 8,657 $ 8,007 $ 9,697 $ 122,171 $ 421,825 Total Loans Pass $ 754,919 $ 520,546 $ 181,190 $ 151,813 $ 112,635 $ 178,882 $ 188,901 $ 2,088,886 Watch 5,763 1,158 23,525 5,532 623 1,284 2,858 40,743 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 13,830 2,345 844 95 258 519 2,062 19,953 Doubtful — — 857 — — — — 857 Total $ 774,512 $ 532,855 $ 206,416 $ 159,233 $ 126,342 $ 180,685 $ 194,121 $ 2,174,164 At March 31, 2021, PCD loans comprised $3.2 million of credits rated “Pass”; $9.0 million of credits rated “Watch”; none rated “Special Mention”; $3.7 million of credits rated “Substandard”; and none rated “Doubtful”. The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2020. This table includes PCI loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification: June 30, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $ 620,004 $ 103,105 $ 829,276 $ 80,517 $ 457,385 Watch 1,900 4,367 45,262 45 4,708 Special Mention — — 403 25 — Substandard 5,453 — 11,590 180 6,355 Doubtful — — 888 — — Total $ 627,357 $ 107,472 $ 887,419 $ 80,767 $ 468,448 At June 30, 2020, PCI loans comprised $5.9 million of credits rated “Pass”; $10.3 million of credits rated “Watch”, none rated “Special Mention”, $5.6 million of credits rated “Substandard” and none rated “Doubtful”. Past-due Loans March 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 $ 1,270 $ — $ 305 $ 1,575 $ 654,225 $ 655,800 $ — Construction — — — — 122,742 122,742 — Commercial 1,329 12 399 1,740 895,710 897,450 — Consumer loans 322 52 95 469 75,878 76,347 — Commercial loans 333 39 148 520 421,305 421,825 — Total loans $ 3,254 $ 103 $ 947 $ 4,304 $ 2,169,860 $ 2,174,164 $ — June 30, 2020 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 $ 772 $ 378 $ 654 $ 1,804 $ 625,553 $ 627,357 $ — Construction — — — — 107,472 107,472 — Commercial 641 327 1,073 2,041 885,378 887,419 — Consumer loans 180 53 193 426 80,341 80,767 — Commercial loans 93 1,219 810 2,122 466,326 468,448 — Total loans $ 1,686 $ 1,977 $ 2,730 $ 6,393 $ 2,165,070 $ 2,171,463 $ — Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at March 31, 2021, included $40.4 million in loans reported as current in the above table, while none were past due. Loans with such modifications in effect at June 30, 2020, included $380.1 million in loans reported as current in the above table, while an additional $29,000 of consumer loans and $1,000 in residential real estate loans with such modifications were reported as 30-59 days past due, and $66,000 of commercial loans with such modifications were reported as 60-89 days past due at such date. At March 31, 2021 and June 30, 2020 there were no PCD or PCI loans that were greater than 90 days past due. Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses. Collateral-dependent Loans. 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 $ 904 $ 232 Total loans $ 904 $ 232 Impairment The table below presents impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2020. The table includes PCI loans at June 30, 2020 for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, continued to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determined it was probable, for a specific loan, that cash flows received would be less than the amount previously expected, the Company would allocate a specific allowance under the terms of ASC 310-10-35. June 30, 2020 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $ 3,811 $ 4,047 $ — Construction real estate 1,277 1,312 — Commercial real estate 19,271 23,676 — Consumer loans — — — Commercial loans 5,040 6,065 — Loans with a specific valuation allowance: Residential real estate $ — $ — $ — Construction real estate — — — Commercial real estate — — — Consumer loans — — — Commercial loans — — — Total: Residential real estate $ 3,811 $ 4,047 $ — Construction real estate $ 1,277 $ 1,312 $ — Commercial real estate $ 19,271 $ 23,676 $ — Consumer loans $ — $ — $ — Commercial loans $ 5,040 $ 6,065 $ — At June 30, 2020, PCI loans comprised $21.8 million of impaired loans without a specific valuation allowance. The following tables present information regarding interest income recognized on impaired loans: For the three-month period ended March 31, 2020 Average Investment in Interest Income (dollars in thousands) Impaired Loans Recognized Residential Real Estate $ 1,288 $ 22 Construction Real Estate 1,292 30 Commercial Real Estate 15,366 309 Consumer Loans — — Commercial Loans 5,909 115 Total Loans $ 23,855 $ 476 For the nine-month period ended March 31, 2020 Average Investment in Interest Income (dollars in thousands) Impaired Loans Recognized Residential Real Estate $ 1,482 $ 67 Construction Real Estate 1,299 114 Commercial Real Estate 16,544 984 Consumer Loans — — Commercial Loans 5,860 329 Total Loans $ 25,185 $ 1,494 Interest income on impaired loans recognized on a cash basis in the three- and nine- month periods ended March 31, 2020, was immaterial. For the three- and nine- month periods ended March 31, 2020, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $47,000 and $210,000, respectively. Nonaccrual Loans (dollars in thousands) March 31, 2021 June 30, 2020 Residential real estate $ 3,463 $ 4,010 Construction real estate — — Commercial real estate 2,496 3,106 Consumer loans 181 196 Commercial loans 616 1,345 Total loans $ 6,756 $ 8,657 At March 31, 2021, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three- and nine- month periods ended March 31, 2021 and 2020, was immaterial. Troubled Debt Restructurings During the nine- month period ended March 31, 2021, certain loans modified were classified as TDRs. During the three- month periods ended March 31, 2021, and the three- and nine- month periods ended March 31, 2020, there were no loans modified as TDRs. They are shown, segregated by class, in the table below: For the three-month periods ended March 31, 2021 March 31, 2020 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 — — — — Total — $ — — $ — For the nine-month periods ended March 31, 2021 March 31, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 93 — $ — Construction real estate — — — — Commercial real estate 2 1,692 — — Consumer loans — — — — Commercial loans 1 29 — — Total 4 $ 1,814 — $ — Performing loans classified as TDRs and outstanding at March 31, 2021 and June 30, 2020, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans. March 31, 2021 June 30, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 3 $ 1,014 3 $ 791 Construction real estate — — — — Commercial real estate 7 3,401 10 4,544 Consumer loans — — — — Commercial loans 8 2,678 7 3,245 Total 18 $ 7,093 20 $ 8,580 Residential Real Estate Foreclosures Purchased Credit Deteriorated Loans The carrying amount of $21.8 million in PCI loans was included in the consolidated balance sheet amount of loans receivable at June 30, 2020, with no associated ACL. In accordance with ASU 2016-13, the Company did not reassess whether the PCI loans met the criteria of PCD loans as of the adoption date. The amortized cost of the PCD loans were adjusted to reflect the addition of $434,000 to the ACL. PCD loans receivable, net of ACL, totaling $15.9 million were included in the balance sheet amount of loans receivable at March 31, 2021. During the three- and nine-month periods ended March 31, 2021, and during the same periods of the prior fiscal year, the Company had no increases to the ALLL or ACL by a charge to the consolidated income statement related to PCI or PCD loans. During the three- and nine-month periods ended March 31, 2021, an ACL of $0 and $209,000, respectively, related to these loans was reversed, while no ALLL related to these loans was reversed during the same periods of the prior fiscal year. |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 5: Premises and Equipment Following is a summary of premises and equipment: (dollars in thousands) March 31, 2021 June 30, 2020 Land $ 12,480 $ 12,585 Buildings and improvements 56,937 56,039 Construction in progress 173 435 Furniture, fixtures, equipment and software 18,730 18,109 Automobiles 120 120 Operating leases ROU asset 2,507 1,965 90,947 89,253 Less accumulated depreciation 27,039 24,147 $ 63,908 $ 65,106 Leases. All of the leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets. With the adoption of ASU 2016-02, these operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets. Because these leases are classified as operating leases, the adoption of the new standard did not have a material effect on lease expense on the Company’s consolidated statements of income. ASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%. The expected lease terms range from 18 months to 20 years. March 31, 2021 June 30, 2020 Consolidated Balance Sheet Operating leases right of use asset $ 2,507 $ 1,965 Operating leases liability $ 2,507 $ 1,965 Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 107 $ 45 $ 242 $ 153 (includes short-term lease costs) Supplemental disclosures of cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 80 $ 39 $ 205 $ 116 ROU assets obtained in exchange for operating lease obligations: $ 599 $ — $ 599 $ 2,004 At March 31, 2021, future expected lease payments for leases with terms exceeding one year were as follows: (dollars in thousands) 2021 $ 76 2022 279 2023 279 2024 279 2025 279 Thereafter 3,126 Future lease payments expected $ 4,318 The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the three- and nine- month periods ended March 31, 2021, income recognized from these lessor agreements was $82,000 and $238,000, , respectively. Income from lessor agreements was included in net occupancy and equipment expense |
Deposits
Deposits | 9 Months Ended |
Mar. 31, 2021 | |
Deposits | |
Deposits | Note 6: Deposits Deposits are summarized as follows: (dollars in thousands) March 31, 2021 June 30, 2020 Non-interest bearing accounts $ 387,416 $ 316,048 NOW accounts 926,488 781,937 Money market deposit accounts 241,933 231,162 Savings accounts 220,025 181,229 Certificates 592,899 674,471 Total Deposit Accounts $ 2,368,761 $ 2,184,847 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 7: Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 (dollars in thousands except per share data) Net income $ 11,458 $ 5,099 $ 33,491 $ 20,644 Less: distributed earnings allocated to participating securities (5) — (13) — Less: undistributed earnings allocated to participating securities (35) — (91) — Net income available to common shareholders $ 11,418 $ 5,099 $ 33,387 $ 20,644 Weighted-average common shares outstanding, including participating securities 9,004,034 9,197,370 9,073,545 9,210,559 Less: weighted-average participating securities outstanding (restricted shares) (31,845) — (28,172) — Weighted-average basic common shares outstanding 8,972,189 9,197,370 9,045,373 9,210,559 Add: effect of dilutive securities, stock options, and awards 4,026 7,422 2,579 10,848 Denominator for diluted earnings per share 8,976,215 9,204,792 9,047,952 9,221,407 Basic earnings per share available to common stockholders $ 1.27 $ 0.55 $ 3.69 $ 2.24 Diluted earnings per share available to common stockholders $ 1.27 $ 0.55 $ 3.69 $ 2.24 Certain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 86,900 and 110,845 were excluded from the computation of diluted earnings per share for the three- and nine-month periods, respectively, ended March 31, 2021, as compared to outstanding options and shares of restricted stock totaling 50,500 and 33,000 for the three and nine-month periods, respectively, ended March 31, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 8: Income Taxes The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state examinations by tax authorities for tax years ending June 30, 2015 and before. The Company recognized no interest or penalties related to income taxes for the periods presented. The Company’s income tax provision is comprised of the following components: For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Income taxes Current $ 3,552 $ 1,116 $ 11,441 $ 5,007 Deferred (456) 13 (2,445) 19 Total income tax provision $ 3,096 $ 1,129 $ 8,996 $ 5,026 The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows: (dollars in thousands) March 31, 2021 June 30, 2020 Deferred tax assets: Provision for losses on loans $ 8,185 $ 5,802 Accrued compensation and benefits 722 825 NOL carry forwards acquired 155 149 Minimum Tax Credit — 130 Unrealized loss on other real estate 180 257 Other 312 26 Total deferred tax assets 9,554 7,189 Deferred tax liabilities: Purchase accounting adjustments 191 64 Depreciation 1,494 1,665 FHLB stock dividends 120 120 Prepaid expenses 326 259 Unrealized gain on available for sale securities 686 1,265 Other — 104 Total deferred tax liabilities 2,817 3,477 Net deferred tax assets $ 6,737 $ 3,712 As of March 31, 2021, the Company had approximately $706,000 and $0 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., and the April 2020 acquisition of Central Federal Savings and Loan. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027. A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Tax at statutory rate $ 3,056 $ 1,308 $ 8,922 $ 5,391 Increase (reduction) in taxes resulting from: Nontaxable municipal income (117) (109) (327) (335) State tax, net of Federal benefit 215 27 717 223 Cash surrender value of Bank-owned life insurance (57) (52) (320) (159) Tax credit benefits (2) (21) (11) (27) Other, net 1 (24) 15 (67) Actual provision $ 3,096 $ 1,129 $ 8,996 $ 5,026 For the three- and nine- month periods ended March 31, 2021 and 2020, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR). Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits. |
401(k) Retirement Plan
401(k) Retirement Plan | 9 Months Ended |
Mar. 31, 2021 | |
401(k) Retirement Plan | |
401(k) Retirement Plan | Note 9: 401(k) Retirement Plan The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank made a “safe harbor” matching contribution to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2020. For fiscal 2021, the Company has maintained the safe harbor matching contribution of up to 4 %, and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and nine- month periods ended March 31, 2021, retirement plan expenses recognized for the Plan totaled approximately $416,000 and$1.3 million, respectively, as compared to $391,000 and $1.1 million, respectively, for the same period of the prior fiscal year. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years . |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Mar. 31, 2021 | |
Subordinated Debt | |
Subordinated Debt | Note 10: Subordinated Debt In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years , and bear interest at a floating rate based on LIBOR. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At March 31, 2021, the Debentures carried an interest rate of 2.93%. The balance of the Debentures outstanding was $7.2 million at March 31, 2021 and June 30, 2020. The Company used its net proceeds for working capital and investment in its subsidiaries. In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At March 31, 2021, the current rate was 2.63%. The carrying value of the debt securities was approximately $2.7 million at March 31, 2021 and June 30, 2020. In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At March 31, 2021, the current rate was 1.98 %. The carrying value of the debt securities was approximately $5.3 million at March 31, 2021 and June 30, 2020. The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $457,000 at March 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11: Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1 Level 2 Level 3 Recurring Measurements. Fair Value Measurements at March 31, 2021, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) State and political subdivisions $ 43,292 $ — $ 43,292 $ — Other securities 20,837 — 20,837 — Mortgage-backed GSE residential 126,280 — 126,280 — Fair Value Measurements at June 30, 2020, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) State and political subdivisions $ 41,988 $ — $ 41,988 $ — Other securities 7,624 — 7,624 — Mortgage-backed GSE residential 126,912 — 126,912 — Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities. Nonrecurring Measurements. Fair Value Measurements at March 31, 2021, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $ 689 $ — $ — $ 689 Fair Value Measurements at June 30, 2020, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $ 2,211 $ — $ — $ 2,211 The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended March 31, 2021 and 2020: For the three months ended (dollars in thousands) March 31, 2021 March 31, 2020 Foreclosed and repossessed assets held for sale $ (49) $ (96) Total losses on assets measured on a non-recurring basis $ (49) $ (96) The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below. Foreclosed and Repossessed Assets Held for Sale. Unobservable (Level 3) Inputs. Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) March 31, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 689 Third party appraisal Marketability discount 0.0% - 64.1 % 26.7 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2020 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 2,211 Third party appraisal Marketability discount 8.0% - 56.9 % 15.7 % Fair Value of Financial Instruments. 30, 2020. March 31, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 236,896 $ 236,896 $ — $ — Interest-bearing time deposits 977 — 977 — Stock in FHLB 6,163 — 6,163 — Stock in Federal Reserve Bank of St. Louis 5,018 — 5,018 — Loans receivable, net 2,134,885 — — 2,156,852 Accrued interest receivable 10,030 — 10,030 — Financial liabilities Deposits 2,368,761 1,775,862 — 595,978 Advances from FHLB 62,781 — 64,088 — Accrued interest payable 918 — 918 — Subordinated debt 15,218 — — 15,016 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2020 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 54,245 $ 54,245 $ — $ — Interest-bearing time deposits 974 — 974 — Stock in FHLB 6,390 — 6,390 — Stock in Federal Reserve Bank of St. Louis 4,363 — 4,363 — Loans receivable, net 2,141,929 — — 2,143,823 Accrued interest receivable 12,116 — 12,116 — Financial liabilities Deposits 2,184,847 1,508,740 — 676,816 Advances from FHLB 70,024 — 72,136 — Accrued interest payable 1,646 — 1,646 — Subordinated debt 15,142 — — 11,511 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Basis of Financial Statement Presentation | Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates. On July 1, 2020, Financial Instruments – Credit Losses which created material changes to the existing critical accounting policy that existed at June 30, 2020 . Effective July 1, 2020 , the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Interest-bearing Time Deposits | Interest-bearing Time Deposits. |
Available for Sale Securities | Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income (loss). The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation. At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company will evaluate impaired AFS securities at the individual level on a quarterly basis, and will consider such factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at March 31, 2021, and June 30, 2020. Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
Federal Reserve Bank and Federal Home Loan Bank Stock | Federal Reserve Bank and Federal Home Loan Bank Stock. |
Loans | Loans. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally assesses past events and current conditions based on the trailing eight quarters of activity, and incorporates a reasonable and supportable forecast period of four quarters, with an immediate reversion to historical averages. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL for all loan pools. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined from the Company’s historical experience over a period of approximately five years. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Prepayments, curtailments, and recovery lag have been determined to not have a material impact on estimated credit losses, historically. Prior to the July 1, 2020, adoption of ASU 2016-13, the allowance for loan and lease losses (ALLL) represented management’s best estimate of probable losses in the existing loan portfolio at the end of the reporting period. Integral to the methodology for determining the adequacy of the ALLL was portfolio segmentation and impairment measurement. Under the Company’s methodology, loans were first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment and 2) all other loans which are individually evaluated. Those loans in the second category were further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. Loans were considered impaired if, based on current information and events, it was considered probable that the Company would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement, and was generally based on the fair value, less estimated costs to sell, of the loan’s collateral. If the loan was not collateral-dependent, the measurement of impairment was based on the present value of expected future cash flows discounted at the historical effective interest rate, or the observable market price of the loan. Impairment identified through this evaluation process was a component of the ALLL. If a loan was not considered impaired, it was grouped together with loans having similar characteristics (i.e., the same risk grade), and an ALLL was based upon a quantitative factor (historical average charge-offs) and qualitative factors such as changes in lending policies; national, regional, and local economic conditions; changes in mix and volume of portfolio; experience, ability, and depth of lending management and staff; entry to new markets; levels and trends of delinquent, nonaccrual, special mention, and classified loans; concentrations of credit; changes in collateral values; agricultural economic conditions; and regulatory risk. Prior to the July 1, 2020, adoption of ASU 2016-13, loans acquired in an acquisition that had evidence of credit quality deterioration since origination and for which it was probable that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial ALLL based on a DCF methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the DCFs expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the DCFs expected at acquisition, or the “non-accretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. ALLL on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received). Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. |
Off-Balance Sheet Credit Exposures | Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020 . |
Foreclosed Real Estate | Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. |
Premises and Equipment | Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven three |
Bank Owned Life Insurance | Bank Owned Life Insurance. |
Goodwill | Goodwill. |
Intangible Assets | Intangible Assets. five 2022 2024 |
Income Taxes | Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31. |
Incentive Plans | Incentive Plans. |
Outside Directors' Retirement | Outside Directors’ Retirement. five year In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. |
Stock Options | Stock Options. |
Earnings Per Share | Earnings Per Share. |
Comprehensive Income | Comprehensive Income. |
Transfers Between Fair Value Hierarchy Levels | Transfers Between Fair Value Hierarchy Levels. |
New Accounting Pronouncements | New Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures. Adoption of this standard did not have a significant impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. The following table illustrates the impact of adoption of ASU 2016-13: July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount. In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency. |
Reclassifications | Reclassifications. Certain reclassifications have been made to the three- and nine- month periods ended March 31, 2020 consolidated financial statements to conform to the three- and nine- month periods ended March 31, 2021 consolidated financial statement presentation. These reclassifications had no effect on net earnings or stockholders’ equity. |
Revisions | Revisions. Certain immaterial revisions have been made to the three- and nine- month periods ended March 31, 2020 consolidated financial statements for reporting interchange income and expenses related to an agent relationship. These revisions did not have a significant impact on the consolidated financials statement line items impacted. |
Repurchase Agreements, Collateral | The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $162.5 million at March 31, 2021 and $156.1 million at June 30, 2020. The securities pledged consist of marketable securities, including $120.5 million and $123.9 million of Mortgage-backed Securities, $42.0 million and $32.0 million of State and Political Subdivisions Obligations, and $0 and $200,000 of Other Securities at March 31, 2021 and June 30, 2020, respectively. |
Other Securities | Other securities. At March 31, 2021 there were two pooled trust preferred securities with an estimated fair value of $735,000 and unrealized losses of $241,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. The March 31, 2021, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.8 percent, annually, annual defaults averaging 220 basis points over the next two years, and 68 basis points thereafter, and a recovery rate averaging seven percent of gross defaults, lagged two years . One of these two securities has continued to receive cash interest payments in full since the Company’s purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. The Company's cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities. The Company does not believe any other individual unrealized loss as of March 31, 2021, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio. |
Credit Losses Recognized on Investments | Credit losses recognized on investments. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Schedule of Adoption of ASU 2016-13 | July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Securities | |
Schedule of Available for Sale Securities | March 31, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Investment and mortgage backed securities: State and political subdivisions $ 42,065 $ 1,332 $ (105) $ — $ 43,292 Other securities 21,000 235 (398) — 20,837 Mortgage-backed GSE residential 124,227 3,188 (1,135) — 126,280 Total investments and mortgage-backed securities $ 187,292 $ 4,755 $ (1,638) $ — $ 190,409 June 30, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: State and political subdivisions $ 40,486 $ 1,502 $ — $ 41,988 Other securities 7,919 48 (343) 7,624 Mortgage-backed GSE residential 122,375 4,576 (39) 126,912 Total investment and mortgage-backed securities $ 170,780 $ 6,126 $ (382) $ 176,524 |
Investments Classified by Contractual Maturity Date | March 31, 2021 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 2,003 $ 2,025 After one year but less than five years 8,450 8,610 After five years but less than ten years 29,173 29,669 After ten years 23,439 23,825 Total investment securities 63,065 64,129 Mortgage-backed securities 124,227 126,280 Total investment and mortgage-backed securities $ 187,292 $ 190,409 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | March 31, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 7,175 $ 105 $ — $ — $ 7,175 $ 105 Other securities 10,723 157 735 241 11,458 398 Mortgage-backed securities 45,723 1,135 — — 45,723 1,135 Total investment and mortgage-backed securities $ 63,621 $ 1,397 $ 735 $ 241 $ 64,356 $ 1,638 June 30, 2020 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Other securities $ 995 $ 5 $ 643 $ 338 $ 1,638 $ 343 Mortgage-backed securities 9,037 39 — — 9,037 39 Total investments and mortgage-backed securities $ 10,032 $ 44 $ 643 $ 338 $ 10,675 $ 382 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Schedule of Accounts, Notes, Loans and Financing Receivable | (dollars in thousands) March 31, 2021 June 30, 2020 Real Estate Loans: Residential $ 655,800 $ 627,357 Construction 202,945 185,924 Commercial 897,450 887,419 Consumer loans 76,347 80,767 Commercial loans 421,825 468,448 2,254,367 2,249,915 Loans in process (80,203) (78,452) Deferred loan fees, net (4,052) (4,395) Allowance for credit losses (35,227) (25,139) Total loans $ 2,134,885 $ 2,141,929 |
Schedule of Balance in the Allowance for Loan Losses and Recorded Investment | At period end and for the nine months ended March 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 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 1,536 129 1,319 (929) (670) 1,385 Losses charged off (178) — (90) (130) (276) (674) Recoveries 1 — 1 16 26 44 Balance, end of period $ 9,755 $ 2,018 $ 17,218 $ 1,204 $ 5,032 $ 35,227 For the three months ended March 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 Provision charged to expense (576) (369) 2,070 (107) (1,018) — Losses charged off (68) — (91) (57) (42) (258) Recoveries 1 — — 6 7 14 Balance, end of period $ 9,755 $ 2,018 $ 17,218 $ 1,204 $ 5,032 $ 35,227 At period end and for the nine months ended March 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 $ 3,706 $ 1,365 $ 9,399 $ 1,046 $ 4,387 $ 19,903 Provision charged to expense 1,195 246 2,140 156 397 4,134 Losses charged off (305) — (12) (117) (173) (607) Recoveries 18 — 15 17 28 78 Balance, end of period $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 Ending Balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — For the three months ended March 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 $ 3,712 $ 1,657 $ 9,827 $ 1,050 $ 4,568 $ 20,814 Provision charged to expense 1,035 (46) 1,727 64 70 2,850 Losses charged off (133) — (12) (19) (26) (190) Recoveries — — — 7 27 34 Balance, end of period $ 4,614 $ 1,611 $ 11,542 $ 1,102 $ 4,639 $ 23,508 At June 30, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Ending Balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — $ — $ — Loans: Ending Balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending Balance: collectively evaluated for impairment $ 626,085 $ 106,194 $ 872,716 $ 80,767 $ 463,902 $ 2,149,664 Ending Balance: loans acquired with deteriorated credit quality $ 1,272 $ 1,278 $ 14,703 $ — $ 4,546 $ 21,799 |
Schedule Of Financing Receivable Credit Quality Indicators | Revolving 2021 2020 2019 2018 2017 Prior loans Total Residential Real Estate Pass $ 247,325 $ 198,404 $ 39,207 $ 36,547 $ 27,142 $ 84,507 $ 5,385 $ 638,517 Watch 125 71 10,994 — 93 817 — 12,100 Special Mention — — — — — — — — Substandard 4,652 48 17 52 — 414 — 5,183 Doubtful — — — — — — — — Total Residential Real Estate $ 252,102 $ 198,523 $ 50,218 $ 36,599 $ 27,235 $ 85,738 $ 5,385 $ 655,800 Construction Real Estate Pass $ 73,397 $ 42,331 $ 6,998 $ — $ — $ — $ — $ 122,726 Watch — — — — — — — — Special Mention — — — — — — — — Substandard 16 — — — — — — 16 Doubtful — — — — — — — — Total Construction Real Estate $ 73,413 $ 42,331 $ 6,998 $ — $ — $ — $ — $ 122,742 Commercial Real Estate Pass $ 264,035 $ 174,218 $ 109,116 $ 105,165 $ 76,865 $ 84,000 $ 25,836 $ 839,235 Watch 4,271 813 10,740 5,393 530 460 819 23,026 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 8,713 1,162 506 6 50 101 69 10,607 Doubtful — — 857 — — — — 857 Total Commercial Real Estate $ 277,019 $ 184,999 $ 121,219 $ 112,357 $ 90,271 $ 84,561 $ 27,024 $ 897,450 Consumer Pass $ 17,990 $ 10,989 $ 4,580 $ 1,584 $ 797 $ 689 $ 39,459 $ 76,088 Watch 83 — — — — — 48 131 Special Mention — — — — — — — — Substandard — 26 — 36 32 — 34 128 Doubtful — — — — — — — — Total Consumer $ 18,073 $ 11,015 $ 4,580 $ 1,620 $ 829 $ 689 $ 39,541 $ 76,347 Commercial Pass $ 152,172 $ 94,604 $ 21,289 $ 8,517 $ 7,831 $ 9,686 $ 118,221 $ 412,320 Watch 1,284 274 1,791 139 — 7 1,991 5,486 Special Mention — — — — — — — — Substandard 449 1,109 321 1 176 4 1,959 4,019 Doubtful — — — — — — — — Total Commercial $ 153,905 $ 95,987 $ 23,401 $ 8,657 $ 8,007 $ 9,697 $ 122,171 $ 421,825 Total Loans Pass $ 754,919 $ 520,546 $ 181,190 $ 151,813 $ 112,635 $ 178,882 $ 188,901 $ 2,088,886 Watch 5,763 1,158 23,525 5,532 623 1,284 2,858 40,743 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 13,830 2,345 844 95 258 519 2,062 19,953 Doubtful — — 857 — — — — 857 Total $ 774,512 $ 532,855 $ 206,416 $ 159,233 $ 126,342 $ 180,685 $ 194,121 $ 2,174,164 |
Schedule Of Loan Portfolio Aging Analysis | March 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 $ 1,270 $ — $ 305 $ 1,575 $ 654,225 $ 655,800 $ — Construction — — — — 122,742 122,742 — Commercial 1,329 12 399 1,740 895,710 897,450 — Consumer loans 322 52 95 469 75,878 76,347 — Commercial loans 333 39 148 520 421,305 421,825 — Total loans $ 3,254 $ 103 $ 947 $ 4,304 $ 2,169,860 $ 2,174,164 $ — June 30, 2020 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 $ 772 $ 378 $ 654 $ 1,804 $ 625,553 $ 627,357 $ — Construction — — — — 107,472 107,472 — Commercial 641 327 1,073 2,041 885,378 887,419 — Consumer loans 180 53 193 426 80,341 80,767 — Commercial loans 93 1,219 810 2,122 466,326 468,448 — Total loans $ 1,686 $ 1,977 $ 2,730 $ 6,393 $ 2,165,070 $ 2,171,463 $ — |
Schedule of company's collateral dependent loans and related ACL | 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 $ 904 $ 232 Total loans $ 904 $ 232 |
Schedule Of Impaired Loans | June 30, 2020 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $ 3,811 $ 4,047 $ — Construction real estate 1,277 1,312 — Commercial real estate 19,271 23,676 — Consumer loans — — — Commercial loans 5,040 6,065 — Loans with a specific valuation allowance: Residential real estate $ — $ — $ — Construction real estate — — — Commercial real estate — — — Consumer loans — — — Commercial loans — — — Total: Residential real estate $ 3,811 $ 4,047 $ — Construction real estate $ 1,277 $ 1,312 $ — Commercial real estate $ 19,271 $ 23,676 $ — Consumer loans $ — $ — $ — Commercial loans $ 5,040 $ 6,065 $ — |
Schedule Of Interest Income Recognized On Impaired Loans | For the three-month period ended March 31, 2020 Average Investment in Interest Income (dollars in thousands) Impaired Loans Recognized Residential Real Estate $ 1,288 $ 22 Construction Real Estate 1,292 30 Commercial Real Estate 15,366 309 Consumer Loans — — Commercial Loans 5,909 115 Total Loans $ 23,855 $ 476 For the nine-month period ended March 31, 2020 Average Investment in Interest Income (dollars in thousands) Impaired Loans Recognized Residential Real Estate $ 1,482 $ 67 Construction Real Estate 1,299 114 Commercial Real Estate 16,544 984 Consumer Loans — — Commercial Loans 5,860 329 Total Loans $ 25,185 $ 1,494 |
Schedule of Financing Receivables, Non Accrual Status | (dollars in thousands) March 31, 2021 June 30, 2020 Residential real estate $ 3,463 $ 4,010 Construction real estate — — Commercial real estate 2,496 3,106 Consumer loans 181 196 Commercial loans 616 1,345 Total loans $ 6,756 $ 8,657 |
Schedule of Debtor Troubled Debt Restructuring, Current Period | For the three-month periods ended March 31, 2021 March 31, 2020 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 — — — — Total — $ — — $ — For the nine-month periods ended March 31, 2021 March 31, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 93 — $ — Construction real estate — — — — Commercial real estate 2 1,692 — — Consumer loans — — — — Commercial loans 1 29 — — Total 4 $ 1,814 — $ — |
Schedule Of Performing Loans Classified As Troubled Debt Restructuring Loans | March 31, 2021 June 30, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 3 $ 1,014 3 $ 791 Construction real estate — — — — Commercial real estate 7 3,401 10 4,544 Consumer loans — — — — Commercial loans 8 2,678 7 3,245 Total 18 $ 7,093 20 $ 8,580 |
Purchase Credit Impaired | |
Schedule of Credit Risk Profile of the Company's Loan Portfolio | June 30, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $ 620,004 $ 103,105 $ 829,276 $ 80,517 $ 457,385 Watch 1,900 4,367 45,262 45 4,708 Special Mention — — 403 25 — Substandard 5,453 — 11,590 180 6,355 Doubtful — — 888 — — Total $ 627,357 $ 107,472 $ 887,419 $ 80,767 $ 468,448 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Premises and Equipment | |
Summary of premises and equipment | (dollars in thousands) March 31, 2021 June 30, 2020 Land $ 12,480 $ 12,585 Buildings and improvements 56,937 56,039 Construction in progress 173 435 Furniture, fixtures, equipment and software 18,730 18,109 Automobiles 120 120 Operating leases ROU asset 2,507 1,965 90,947 89,253 Less accumulated depreciation 27,039 24,147 $ 63,908 $ 65,106 |
Schedule of calculated amount of right of use assets and lease liabilities | March 31, 2021 June 30, 2020 Consolidated Balance Sheet Operating leases right of use asset $ 2,507 $ 1,965 Operating leases liability $ 2,507 $ 1,965 Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 107 $ 45 $ 242 $ 153 (includes short-term lease costs) Supplemental disclosures of cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 80 $ 39 $ 205 $ 116 ROU assets obtained in exchange for operating lease obligations: $ 599 $ — $ 599 $ 2,004 |
Schedule of future minimum rental payments for operating leases | (dollars in thousands) 2021 $ 76 2022 279 2023 279 2024 279 2025 279 Thereafter 3,126 Future lease payments expected $ 4,318 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Deposits | |
Schedule of Deposit Liabilities | (dollars in thousands) March 31, 2021 June 30, 2020 Non-interest bearing accounts $ 387,416 $ 316,048 NOW accounts 926,488 781,937 Money market deposit accounts 241,933 231,162 Savings accounts 220,025 181,229 Certificates 592,899 674,471 Total Deposit Accounts $ 2,368,761 $ 2,184,847 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 (dollars in thousands except per share data) Net income $ 11,458 $ 5,099 $ 33,491 $ 20,644 Less: distributed earnings allocated to participating securities (5) — (13) — Less: undistributed earnings allocated to participating securities (35) — (91) — Net income available to common shareholders $ 11,418 $ 5,099 $ 33,387 $ 20,644 Weighted-average common shares outstanding, including participating securities 9,004,034 9,197,370 9,073,545 9,210,559 Less: weighted-average participating securities outstanding (restricted shares) (31,845) — (28,172) — Weighted-average basic common shares outstanding 8,972,189 9,197,370 9,045,373 9,210,559 Add: effect of dilutive securities, stock options, and awards 4,026 7,422 2,579 10,848 Denominator for diluted earnings per share 8,976,215 9,204,792 9,047,952 9,221,407 Basic earnings per share available to common stockholders $ 1.27 $ 0.55 $ 3.69 $ 2.24 Diluted earnings per share available to common stockholders $ 1.27 $ 0.55 $ 3.69 $ 2.24 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Schedule of Effective Income Tax Rate Reconciliation | For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Income taxes Current $ 3,552 $ 1,116 $ 11,441 $ 5,007 Deferred (456) 13 (2,445) 19 Total income tax provision $ 3,096 $ 1,129 $ 8,996 $ 5,026 |
Schedule of Deferred Tax Assets and Liabilities | (dollars in thousands) March 31, 2021 June 30, 2020 Deferred tax assets: Provision for losses on loans $ 8,185 $ 5,802 Accrued compensation and benefits 722 825 NOL carry forwards acquired 155 149 Minimum Tax Credit — 130 Unrealized loss on other real estate 180 257 Other 312 26 Total deferred tax assets 9,554 7,189 Deferred tax liabilities: Purchase accounting adjustments 191 64 Depreciation 1,494 1,665 FHLB stock dividends 120 120 Prepaid expenses 326 259 Unrealized gain on available for sale securities 686 1,265 Other — 104 Total deferred tax liabilities 2,817 3,477 Net deferred tax assets $ 6,737 $ 3,712 |
Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax | For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Tax at statutory rate $ 3,056 $ 1,308 $ 8,922 $ 5,391 Increase (reduction) in taxes resulting from: Nontaxable municipal income (117) (109) (327) (335) State tax, net of Federal benefit 215 27 717 223 Cash surrender value of Bank-owned life insurance (57) (52) (320) (159) Tax credit benefits (2) (21) (11) (27) Other, net 1 (24) 15 (67) Actual provision $ 3,096 $ 1,129 $ 8,996 $ 5,026 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at March 31, 2021, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) State and political subdivisions $ 43,292 $ — $ 43,292 $ — Other securities 20,837 — 20,837 — Mortgage-backed GSE residential 126,280 — 126,280 — Fair Value Measurements at June 30, 2020, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) State and political subdivisions $ 41,988 $ — $ 41,988 $ — Other securities 7,624 — 7,624 — Mortgage-backed GSE residential 126,912 — 126,912 — |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at March 31, 2021, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $ 689 $ — $ — $ 689 Fair Value Measurements at June 30, 2020, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $ 2,211 $ — $ — $ 2,211 |
Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis | For the three months ended (dollars in thousands) March 31, 2021 March 31, 2020 Foreclosed and repossessed assets held for sale $ (49) $ (96) Total losses on assets measured on a non-recurring basis $ (49) $ (96) |
Fair Value Option, Disclosures | Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) March 31, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 689 Third party appraisal Marketability discount 0.0% - 64.1 % 26.7 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2020 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 2,211 Third party appraisal Marketability discount 8.0% - 56.9 % 15.7 % |
Schedule of Financial Instruments | March 31, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 236,896 $ 236,896 $ — $ — Interest-bearing time deposits 977 — 977 — Stock in FHLB 6,163 — 6,163 — Stock in Federal Reserve Bank of St. Louis 5,018 — 5,018 — Loans receivable, net 2,134,885 — — 2,156,852 Accrued interest receivable 10,030 — 10,030 — Financial liabilities Deposits 2,368,761 1,775,862 — 595,978 Advances from FHLB 62,781 — 64,088 — Accrued interest payable 918 — 918 — Subordinated debt 15,218 — — 15,016 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2020 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 54,245 $ 54,245 $ — $ — Interest-bearing time deposits 974 — 974 — Stock in FHLB 6,390 — 6,390 — Stock in Federal Reserve Bank of St. Louis 4,363 — 4,363 — Loans receivable, net 2,141,929 — — 2,143,823 Accrued interest receivable 12,116 — 12,116 — Financial liabilities Deposits 2,184,847 1,508,740 — 676,816 Advances from FHLB 70,024 — 72,136 — Accrued interest payable 1,646 — 1,646 — Subordinated debt 15,142 — — 11,511 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional information (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Organization and Summary of Significant Accounting Policies | ||
Entity Incorporation, State or Country Code | MO | |
Real Estate Investments, Net | $ 1,000,000,000 | |
Interest-bearing deposits in other depository institutions | 199,000,000 | $ 7,000,000 |
Deposits held in various commercial banks | $ 2,000,000 | $ 319,000 |
Interest bearing deposits maturity period (in yeras) | 7 years |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Loans (Details) | Jul. 01, 2020USD ($) |
Cumulative Effect, Period of Adoption, Adjustment | Purchased credit deteriorated ("PCD") loans | |
Increase (decrease) to ACL | $ 434,000 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Premises and Equipment and Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Impairment loss on goodwill | $ 0 | $ 0 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated lives (in years) | P3Y | |
Minimum | Premises | ||
Property, Plant and Equipment [Line Items] | ||
Estimated lives (in years) | P7Y | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated lives (in years) | P3Y | |
Maximum | Premises | ||
Property, Plant and Equipment [Line Items] | ||
Estimated lives (in years) | P40Y | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated lives (in years) | P7Y |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Intangible Assets, Finite-Lived (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Core Deposits, Gross | $ 15,300,000 | $ 15,300,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 9,700,000 | 8,700,000 |
Other Finite-Lived Intangible Assets, Gross | 3,800,000 | 3,800,000 |
Other Finite Lived Intangible Assets Gross Accumulated Amortization | 3,800,000 | 3,800,000 |
Amortization of Mortgage Servicing Rights (MSRs) | 1,500,000 | 1,100,000 |
Remainder of fiscal 2021 | 338,000 | |
2022 | 1,400,000 | |
2023 | 1,400,000 | |
2024 | 1,400,000 | |
2025 | 807,000 | |
Thereafter | 328,000 | |
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core Deposits and Intangible Assets, Remaining Amortization Period | P5Y | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core Deposits and Intangible Assets, Remaining Amortization Period | P7Y |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Outside Directors' Retirement (Details) | 9 Months Ended |
Mar. 31, 2021age | |
Organization and Summary of Significant Accounting Policies | |
Requisite period | 60 |
Vesting period | 5 years |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - New Accounting Pronouncements - Schedule of Adoption of ASU 2016-13 (Details) - USD ($) | Jul. 01, 2020 | Mar. 31, 2021 | Jun. 30, 2020 |
Loans receivable | $ 2,254,367,000 | $ 2,249,915,000 | |
Allowance for Credit Loss on loans | 35,227,000 | 25,139,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 1,959,000 | ||
As reported prior to ASU 2016-13 | |||
Loans receivable | 2,141,929,000 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | $ 34,472,000 | ||
Total allowance for credit losses on off-balance sheet credit exposures | 2,227,000 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | As reported under ASU 2016-13 | |||
Loans receivable | 2,142,363,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | 9,333,000 | ||
Total allowance for credit losses on off-balance sheet credit exposures | 268,000 | ||
Retained earnings | 7,200,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Impact of adoption ASU 2016-13 | |||
Loans receivable | 434,000 | ||
Allowance for Credit Loss on loans | 8,900,000 | ||
Adjustment to the reserve for unfunded commitments | 268,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Purchased credit deteriorated ("PCD") loans | |||
Increase (decrease) to ACL | 434,000 | ||
Residential and commercial real estate loans | Purchased credit deteriorated ("PCD") loans | Impact of adoption ASU 2016-13 | |||
Loans receivable | 434,000 | ||
Residential | |||
Loans receivable | 655,800,000 | 627,357,000 | |
Allowance for Credit Loss on loans | 4,875,000 | ||
Residential | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | 8,396,000 | ||
Residential | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | 3,521,000 | ||
Construction | |||
Loans receivable | 202,945,000 | 185,924,000 | |
Allowance for Credit Loss on loans | 2,010,000 | ||
Construction | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | 1,889,000 | ||
Construction | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | (121,000) | ||
Commercial | |||
Loans receivable | 897,450,000 | 887,419,000 | |
Allowance for Credit Loss on loans | 12,132,000 | ||
Commercial | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | 15,988,000 | ||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | 3,856,000 | ||
Consumer loans | |||
Loans receivable | 76,347,000 | 80,767,000 | |
Allowance for Credit Loss on loans | 1,182,000 | ||
Consumer loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | 2,247,000 | ||
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | 1,065,000 | ||
Commercial loans | |||
Loans receivable | $ 421,825,000 | 468,448,000 | |
Allowance for Credit Loss on loans | $ 4,940,000 | ||
Commercial loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Allowance for Credit Loss on loans | 5,952,000 | ||
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Credit Loss on loans | $ 1,012,000 |
Securities - Schedule of availa
Securities - Schedule of available for sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Other securities | ||
Available-for-sale Securities, Amortized Cost | $ 21,000 | $ 7,919 |
Available-for-sale Securities, Gross Unrealized Gain | 235 | 48 |
Available-for-sale Securities, Gross Unrealized Losses | (398) | (343) |
Available-for-sale Securities Estimated Fair Value | 20,837 | 7,624 |
Mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost | 124,227 | 122,375 |
Available-for-sale Securities, Gross Unrealized Gain | 3,188 | 4,576 |
Available-for-sale Securities, Gross Unrealized Losses | (1,135) | (39) |
Available-for-sale Securities Estimated Fair Value | 126,280 | 126,912 |
Total investments and mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost | 187,292 | 170,780 |
Available-for-sale Securities, Gross Unrealized Gain | 4,755 | 6,126 |
Available-for-sale Securities, Gross Unrealized Losses | (1,638) | (382) |
Available-for-sale Securities Estimated Fair Value | 190,409 | 176,524 |
State and political subdivisions | ||
Available-for-sale Securities, Amortized Cost | 42,065 | 40,486 |
Available-for-sale Securities, Gross Unrealized Gain | 1,332 | 1,502 |
Available-for-sale Securities, Gross Unrealized Losses | (105) | |
Available-for-sale Securities Estimated Fair Value | $ 43,292 | $ 41,988 |
Securities - Investments Classi
Securities - Investments Classified by Contractual Maturity Date (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Securities | |
Amortized Cost, Within one year | $ 2,003 |
Estimated Fair Value, Within one year | 2,025 |
Amortized Cost, After one year but less than five years | 8,450 |
Estimated Fair Value, After one year but less than five years | 8,610 |
Amortized Cost, After five years but less than ten years | 29,173 |
Estimated Fair Value, After five years but less than ten years | 29,669 |
Amortized Cost, After ten years | 23,439 |
Estimated Fair Value, After ten years | 23,825 |
Amortized Cost, Total investment securities | 63,065 |
Estimated Fair Value, Total investment securities | 64,129 |
Mortgage-backed securities GSE residential amortized cost | 124,227 |
Mortgage-backed securities GSE residential fair value | 126,280 |
Amortized Cost, Total investment and mortgage-backed securities | 187,292 |
Estimated Fair Value, Total investment and mortgage-backed securities | $ 190,409 |
Securities - Available-for-sale
Securities - Available-for-sale securities, continuous unrealized loss position, Fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
State and political subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 7,175 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 105 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 7,175 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 105 | |
Other securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 10,723 | $ 995 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 157 | 5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value | 735 | 643 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses | 241 | 338 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,458 | 1,638 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 398 | 343 |
Mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 45,723 | 9,037 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,135 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 45,723 | 9,037 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 1,135 | 39 |
Total investments and mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 63,621 | 10,032 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,397 | 44 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value | 735 | 643 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses | 241 | 338 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 64,356 | 10,675 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 1,638 | $ 382 |
Securities - Security owned and
Securities - Security owned and pledged as collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Security Owned and Pledged as Collateral, Fair Value | $ 162,500 | $ 156,100 |
State and political subdivisions | ||
Security Owned and Pledged as Collateral, Fair Value | 42,000 | 32,000 |
Mortgage-backed securities | ||
Security Owned and Pledged as Collateral, Fair Value | 120,500 | 123,900 |
Other securities | ||
Security Owned and Pledged as Collateral, Fair Value | $ 0 | $ 200 |
Securities - Other securities p
Securities - Other securities policy (Details) | Mar. 31, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of Pooled Trust Preferred Securities | 2 |
Fair Value of Pooled Trust Preferred Securities Held | $ 735,000 |
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More | $ 241,000 |
Prepayments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, Input rate | 1.8 |
Annual defaults | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, Input rate | 2.20 |
Basis points thereafter | 0.68 |
Recovery rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, Input rate | 7 |
Lagged years | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securities, Input term | 2 years |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Classes of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 2,254,367 | $ 2,249,915 |
Loans in Process | (80,203) | (78,452) |
Deferred loan fees, net | (4,052) | (4,395) |
Allowance for credit losses | (35,227) | (25,139) |
Total loans | 2,134,885 | 2,141,929 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 655,800 | 627,357 |
Allowance for credit losses | (4,875) | |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 202,945 | 185,924 |
Allowance for credit losses | (2,010) | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 897,450 | 887,419 |
Allowance for credit losses | (12,132) | |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 76,347 | 80,767 |
Allowance for credit losses | (1,182) | |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 421,825 | 468,448 |
Allowance for credit losses | $ (4,940) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Purchased participation and loans with modifications (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of purchased participation loans | 22 | 23 |
Purchased participation loans | $ 75.3 | $ 58.2 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of Loans Modified for Other Than TDR | $ 28 | $ 48.8 |
Number of Loans Modified for Other Than TDR | 52 | 77 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Classes of loans information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Provision for credit losses | $ | $ (409) | $ 2,850 | $ 1,591 | $ 4,134 | |
ACL | $ | $ 35,227 | $ 35,227 | $ 25,139 | ||
Management Trailing Measures, Period Of National And State Unemployment | 12 months | ||||
Management Trailing Measures, Period Of G D P Growth | 2 years | ||||
Consumer Loan | |||||
Amortization period of loans | 5 years | ||||
Consumer Loans, Home Equity Lines Of Credit | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100.00% | ||||
Amortization period of loans | 10 years | ||||
Consumer Loans, Other Than Home Equity Lines Of Credit | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100.00% | ||||
Amortization period of loans | 60 months | ||||
Commercial Loan | |||||
Amortization period of loans | 5 years | ||||
Amortization period for commercial operating lines of credit or agricultural production lines | 1 year | ||||
Construction Real Estate | Minimum | |||||
Maturities of single-family residential construction loans | 6 months | ||||
Maturities of multifamily or commercial construction loans | 12 months | ||||
Construction Real Estate | Maximum | |||||
Maturities of single-family residential construction loans | 12 months | ||||
Maturities of multifamily or commercial construction loans | 24 months | ||||
Residential real estate loans | |||||
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years) | 30 years | ||||
Amortization period of multi-family residential loans if balloon maturities | 10 years | ||||
Residential real estate loans | Minimum | |||||
Number of family residences | item | 1 | ||||
Residential real estate loans | Maximum | |||||
Number of family residences | item | 4 | ||||
Residential real estate loans | Construction Real Estate | |||||
Amortization period of loans | 30 years | ||||
Residential real estate loans | Single Family [Member] | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90.00% | ||||
Residential real estate loans | Multifamily [Member] | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 85.00% | ||||
Amortization period of loans | 25 years | ||||
Commercial Real Estate | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 80.00% | ||||
Amortization period of loans | 25 years | ||||
Term of fixed interest applicability on loans | 10 years | ||||
Term of variable interest applicability on loans | 7 years | ||||
Agricultural real estate terms if 80% loan-to-value ratio | 25 years | ||||
Agricultural real estate terms if 75% loan-to-value ratio | 30 years | ||||
Commercial Real Estate | Construction Real Estate | |||||
Amortization period of loans | 25 years |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of balance in the ACL and the recorded investment in loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Beginning balance of allowance for loan losses | $ 35,471 | $ 20,814 | $ 25,139 | ||
Impact of CECL adoption | 9,333 | ||||
Provision charged to expense | 2,850 | 1,385 | $ 4,134 | ||
Losses charged off | (258) | (190) | (674) | (607) | |
Recoveries | 14 | 34 | 44 | 78 | |
Ending balance of allowance for loan losses | 35,227 | 23,508 | 35,227 | 23,508 | $ 25,139 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 23,508 | 23,508 | 25,139 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 2,149,664 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 21,799 | ||||
Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | 25,139 | 19,903 | 19,903 | ||
Ending balance of allowance for loan losses | 25,139 | ||||
Consumer Loan | |||||
Beginning balance of allowance for loan losses | 1,362 | 1,050 | 1,182 | ||
Impact of CECL adoption | 1,065 | ||||
Provision charged to expense | (107) | 64 | (929) | 156 | |
Losses charged off | (57) | (19) | (130) | (117) | |
Recoveries | 6 | 7 | 16 | 17 | |
Ending balance of allowance for loan losses | 1,204 | 1,102 | 1,204 | 1,102 | 1,182 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 1,102 | 1,102 | 1,182 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 80,767 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Consumer Loan | Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | 1,182 | 1,046 | 1,046 | ||
Ending balance of allowance for loan losses | 1,182 | ||||
Commercial Loan | |||||
Beginning balance of allowance for loan losses | 6,085 | 4,568 | 4,940 | ||
Impact of CECL adoption | 1,012 | ||||
Provision charged to expense | (1,018) | 70 | (670) | 397 | |
Losses charged off | (42) | (26) | (276) | (173) | |
Recoveries | 7 | 27 | 26 | 28 | |
Ending balance of allowance for loan losses | 5,032 | 4,639 | 5,032 | 4,639 | 4,940 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 4,639 | 4,639 | 4,940 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 463,902 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 4,546 | ||||
Commercial Loan | Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | 4,940 | 4,387 | 4,387 | ||
Ending balance of allowance for loan losses | 4,940 | ||||
Construction Real Estate | |||||
Beginning balance of allowance for loan losses | 2,387 | 1,657 | 2,010 | ||
Impact of CECL adoption | (121) | ||||
Provision charged to expense | (369) | (46) | 129 | 246 | |
Ending balance of allowance for loan losses | 2,018 | 1,611 | 2,018 | 1,611 | 2,010 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 1,611 | 1,611 | 2,010 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 106,194 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 1,278 | ||||
Construction Real Estate | Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | 2,010 | 1,365 | 1,365 | ||
Ending balance of allowance for loan losses | 2,010 | ||||
Residential real estate loans | |||||
Beginning balance of allowance for loan losses | 10,398 | 3,712 | 4,875 | ||
Impact of CECL adoption | 3,521 | ||||
Provision charged to expense | (576) | 1,035 | 1,536 | 1,195 | |
Losses charged off | (68) | (133) | (178) | (305) | |
Recoveries | 1 | 1 | 18 | ||
Ending balance of allowance for loan losses | 9,755 | 4,614 | 9,755 | 4,614 | 4,875 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 4,614 | 4,614 | 4,875 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 626,085 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 1,272 | ||||
Residential real estate loans | Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | 4,875 | 3,706 | 3,706 | ||
Ending balance of allowance for loan losses | 4,875 | ||||
Commercial Real Estate | |||||
Beginning balance of allowance for loan losses | 15,239 | 9,827 | 12,132 | ||
Impact of CECL adoption | 3,856 | ||||
Provision charged to expense | 2,070 | 1,727 | 1,319 | 2,140 | |
Losses charged off | (91) | (12) | (90) | (12) | |
Recoveries | 1 | 15 | |||
Ending balance of allowance for loan losses | $ 17,218 | 11,542 | 17,218 | 11,542 | 12,132 |
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | $ 11,542 | 11,542 | 12,132 | ||
Ending Balance: loans acquired with deteriorated credit quality | 0 | ||||
Ending Balance: individually evaluated for impairment | 0 | ||||
Ending Balance: collectively evaluated for impairment | 872,716 | ||||
Ending Balance: loans acquired with deteriorated credit quality | 14,703 | ||||
Commercial Real Estate | Prior to adoption of CECL | |||||
Beginning balance of allowance for loan losses | $ 12,132 | $ 9,399 | 9,399 | ||
Ending balance of allowance for loan losses | $ 12,132 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Financing receivable credit quality indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Purchase Credit Deteriorated | Pass | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | $ 17,990 | $ 10,989 | $ 4,580 | $ 1,584 | $ 797 |
Purchase Credit Deteriorated | Pass | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 152,172 | 94,604 | 21,289 | 8,517 | 7,831 |
Purchase Credit Deteriorated | Pass | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 73,397 | 42,331 | 6,998 | ||
Purchase Credit Deteriorated | Watch | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 83 | ||||
Purchase Credit Deteriorated | Watch | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 1,284 | 274 | 1,791 | 139 | |
Purchase Credit Deteriorated | Substandard | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 26 | 36 | 32 | ||
Purchase Credit Deteriorated | Substandard | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 449 | 1,109 | 321 | 1 | 176 |
Purchase Credit Deteriorated | Substandard | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 16 | ||||
Purchase Credit Deteriorated | Residential real estate loans | Pass | |||||
Financing Receivable Credit Quality Indicators | 247,325 | 198,404 | 39,207 | 36,547 | 27,142 |
Purchase Credit Deteriorated | Residential real estate loans | Watch | |||||
Financing Receivable Credit Quality Indicators | 125 | 71 | 10,994 | 93 | |
Purchase Credit Deteriorated | Residential real estate loans | Substandard | |||||
Financing Receivable Credit Quality Indicators | 4,652 | 48 | 17 | 52 | |
Purchase Credit Deteriorated | Commercial Real Estate | Pass | |||||
Financing Receivable Credit Quality Indicators | 264,035 | 174,218 | 109,116 | 105,165 | 76,865 |
Purchase Credit Deteriorated | Commercial Real Estate | Watch | |||||
Financing Receivable Credit Quality Indicators | 4,271 | 813 | 10,740 | 5,393 | 530 |
Purchase Credit Deteriorated | Commercial Real Estate | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 8,806 | 1,793 | 12,826 | ||
Purchase Credit Deteriorated | Commercial Real Estate | Substandard | |||||
Financing Receivable Credit Quality Indicators | 8,713 | 1,162 | 506 | 6 | 50 |
Purchase Credit Deteriorated | Commercial Real Estate | Doubtful | |||||
Financing Receivable Credit Quality Indicators | 857 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Pass | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 689 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Pass | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 9,686 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Watch | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 7 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Substandard | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 4 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Residential real estate loans | Pass | |||||
Financing Receivable Credit Quality Indicators | 84,507 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Residential real estate loans | Watch | |||||
Financing Receivable Credit Quality Indicators | 817 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Residential real estate loans | Substandard | |||||
Financing Receivable Credit Quality Indicators | 414 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Pass | |||||
Financing Receivable Credit Quality Indicators | 84,000 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Watch | |||||
Financing Receivable Credit Quality Indicators | 460 | ||||
Purchase Credit Deteriorated | Prior to 2017 | Commercial Real Estate | Substandard | |||||
Financing Receivable Credit Quality Indicators | 101 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Pass | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 39,459 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Pass | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 118,221 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Watch | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 48 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Watch | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 1,991 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Substandard | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 34 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Substandard | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 1,959 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Residential real estate loans | Pass | |||||
Financing Receivable Credit Quality Indicators | 5,385 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Pass | |||||
Financing Receivable Credit Quality Indicators | 25,836 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Watch | |||||
Financing Receivable Credit Quality Indicators | 819 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 300 | ||||
Purchase Credit Deteriorated | Revolving Credit Facility | Commercial Real Estate | Substandard | |||||
Financing Receivable Credit Quality Indicators | 69 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 76,088 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 412,320 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Pass | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 122,726 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Watch | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 131 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Watch | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 5,486 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 128 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 4,019 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Substandard | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 16 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential real estate loans | Pass | |||||
Financing Receivable Credit Quality Indicators | 638,517 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential real estate loans | Watch | |||||
Financing Receivable Credit Quality Indicators | 12,100 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Residential real estate loans | Substandard | |||||
Financing Receivable Credit Quality Indicators | 5,183 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Pass | |||||
Financing Receivable Credit Quality Indicators | 839,235 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Watch | |||||
Financing Receivable Credit Quality Indicators | 23,026 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 23,725 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Substandard | |||||
Financing Receivable Credit Quality Indicators | 10,607 | ||||
Purchase Credit Deteriorated | Total Credit Quality Indicator for Years | Commercial Real Estate | Doubtful | |||||
Financing Receivable Credit Quality Indicators | 857 | ||||
Total Loans | |||||
Financing Receivable Credit Quality Indicators | 774,512 | 532,855 | 206,416 | 159,233 | 126,342 |
Total Loans | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 18,073 | 11,015 | 4,580 | 1,620 | 829 |
Total Loans | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 153,905 | 95,987 | 23,401 | 8,657 | 8,007 |
Total Loans | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 73,413 | 42,331 | 6,998 | ||
Total Loans | Pass | |||||
Financing Receivable Credit Quality Indicators | 754,919 | 520,546 | 181,190 | 151,813 | 112,635 |
Total Loans | Watch | |||||
Financing Receivable Credit Quality Indicators | 5,763 | 1,158 | 23,525 | 5,532 | 623 |
Total Loans | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 8,806 | 1,793 | 12,826 | ||
Total Loans | Substandard | |||||
Financing Receivable Credit Quality Indicators | 13,830 | 2,345 | 844 | 95 | 258 |
Total Loans | Doubtful | |||||
Financing Receivable Credit Quality Indicators | 857 | ||||
Total Loans | Residential real estate loans | |||||
Financing Receivable Credit Quality Indicators | 252,102 | 198,523 | 50,218 | 36,599 | 27,235 |
Total Loans | Commercial Real Estate | |||||
Financing Receivable Credit Quality Indicators | 277,019 | $ 184,999 | $ 121,219 | $ 112,357 | $ 90,271 |
Total Loans | Prior to 2017 | |||||
Financing Receivable Credit Quality Indicators | 180,685 | ||||
Total Loans | Prior to 2017 | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 689 | ||||
Total Loans | Prior to 2017 | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 9,697 | ||||
Total Loans | Prior to 2017 | Pass | |||||
Financing Receivable Credit Quality Indicators | 178,882 | ||||
Total Loans | Prior to 2017 | Watch | |||||
Financing Receivable Credit Quality Indicators | 1,284 | ||||
Total Loans | Prior to 2017 | Substandard | |||||
Financing Receivable Credit Quality Indicators | 519 | ||||
Total Loans | Prior to 2017 | Residential real estate loans | |||||
Financing Receivable Credit Quality Indicators | 85,738 | ||||
Total Loans | Prior to 2017 | Commercial Real Estate | |||||
Financing Receivable Credit Quality Indicators | 84,561 | ||||
Total Loans | Revolving Credit Facility | |||||
Financing Receivable Credit Quality Indicators | 194,121 | ||||
Total Loans | Revolving Credit Facility | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 39,541 | ||||
Total Loans | Revolving Credit Facility | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 122,171 | ||||
Total Loans | Revolving Credit Facility | Pass | |||||
Financing Receivable Credit Quality Indicators | 188,901 | ||||
Total Loans | Revolving Credit Facility | Watch | |||||
Financing Receivable Credit Quality Indicators | 2,858 | ||||
Total Loans | Revolving Credit Facility | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 300 | ||||
Total Loans | Revolving Credit Facility | Substandard | |||||
Financing Receivable Credit Quality Indicators | 2,062 | ||||
Total Loans | Revolving Credit Facility | Residential real estate loans | |||||
Financing Receivable Credit Quality Indicators | 5,385 | ||||
Total Loans | Revolving Credit Facility | Commercial Real Estate | |||||
Financing Receivable Credit Quality Indicators | 27,024 | ||||
Total Loans | Total Credit Quality Indicator for Years | |||||
Financing Receivable Credit Quality Indicators | 2,174,164 | ||||
Total Loans | Total Credit Quality Indicator for Years | Consumer Loan | |||||
Financing Receivable Credit Quality Indicators | 76,347 | ||||
Total Loans | Total Credit Quality Indicator for Years | Commercial Loan | |||||
Financing Receivable Credit Quality Indicators | 421,825 | ||||
Total Loans | Total Credit Quality Indicator for Years | Construction Real Estate | |||||
Financing Receivable Credit Quality Indicators | 122,742 | ||||
Total Loans | Total Credit Quality Indicator for Years | Pass | |||||
Financing Receivable Credit Quality Indicators | 2,088,886 | ||||
Total Loans | Total Credit Quality Indicator for Years | Watch | |||||
Financing Receivable Credit Quality Indicators | 40,743 | ||||
Total Loans | Total Credit Quality Indicator for Years | Special Mention | |||||
Financing Receivable Credit Quality Indicators | 23,725 | ||||
Total Loans | Total Credit Quality Indicator for Years | Substandard | |||||
Financing Receivable Credit Quality Indicators | 19,953 | ||||
Total Loans | Total Credit Quality Indicator for Years | Doubtful | |||||
Financing Receivable Credit Quality Indicators | 857 | ||||
Total Loans | Total Credit Quality Indicator for Years | Residential real estate loans | |||||
Financing Receivable Credit Quality Indicators | 655,800 | ||||
Total Loans | Total Credit Quality Indicator for Years | Commercial Real Estate | |||||
Financing Receivable Credit Quality Indicators | $ 897,450 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - PCD loans credit quality indicators (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Pass | |
Purchased Credit Deteriorated Loans | $ 3,200 |
Watch | |
Purchased Credit Deteriorated Loans | 9,000 |
Special Mention | |
Purchased Credit Deteriorated Loans | 0 |
Substandard | |
Purchased Credit Deteriorated Loans | 3,700 |
Doubtful | |
Purchased Credit Deteriorated Loans | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Credit risk profile (Details) - Purchase Credit Impaired $ in Thousands | Jun. 30, 2020USD ($) |
Consumer Loan | Pass | |
Credit Risk Profile | $ 80,517 |
Consumer Loan | Watch | |
Credit Risk Profile | 45 |
Consumer Loan | Special Mention | |
Credit Risk Profile | 25 |
Consumer Loan | Substandard | |
Credit Risk Profile | 180 |
Consumer Loan | Doubtful | |
Credit Risk Profile | 0 |
Consumer Loan | Total by Credit Quality Indicator | |
Credit Risk Profile | 80,767 |
Commercial Loan | Pass | |
Credit Risk Profile | 457,385 |
Commercial Loan | Watch | |
Credit Risk Profile | 4,708 |
Commercial Loan | Special Mention | |
Credit Risk Profile | 0 |
Commercial Loan | Substandard | |
Credit Risk Profile | 6,355 |
Commercial Loan | Doubtful | |
Credit Risk Profile | 0 |
Commercial Loan | Total by Credit Quality Indicator | |
Credit Risk Profile | 468,448 |
Construction Real Estate | Pass | |
Credit Risk Profile | 103,105 |
Construction Real Estate | Watch | |
Credit Risk Profile | 4,367 |
Construction Real Estate | Special Mention | |
Credit Risk Profile | 0 |
Construction Real Estate | Substandard | |
Credit Risk Profile | 0 |
Construction Real Estate | Doubtful | |
Credit Risk Profile | 0 |
Construction Real Estate | Total by Credit Quality Indicator | |
Credit Risk Profile | 107,472 |
Residential real estate loans | Pass | |
Credit Risk Profile | 620,004 |
Residential real estate loans | Watch | |
Credit Risk Profile | 1,900 |
Residential real estate loans | Special Mention | |
Credit Risk Profile | 0 |
Residential real estate loans | Substandard | |
Credit Risk Profile | 5,453 |
Residential real estate loans | Doubtful | |
Credit Risk Profile | 0 |
Residential real estate loans | Total by Credit Quality Indicator | |
Credit Risk Profile | 627,357 |
Commercial Real Estate | Pass | |
Credit Risk Profile | 829,276 |
Commercial Real Estate | Watch | |
Credit Risk Profile | 45,262 |
Commercial Real Estate | Special Mention | |
Credit Risk Profile | 403 |
Commercial Real Estate | Substandard | |
Credit Risk Profile | 11,590 |
Commercial Real Estate | Doubtful | |
Credit Risk Profile | 888 |
Commercial Real Estate | Total by Credit Quality Indicator | |
Credit Risk Profile | $ 887,419 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - PCI loans credit quality indicators (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Pass | |
Purchased Credit Impaired Loans | $ 5,900 |
Watch | |
Purchased Credit Impaired Loans | 10,300 |
Special Mention | |
Purchased Credit Impaired Loans | 0 |
Substandard | |
Purchased Credit Impaired Loans | 5,600 |
Doubtful | |
Purchased Credit Impaired Loans | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Schedule of loan portfolio aging analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financing Receivables Past Due | ||
Financing Receivable Recorded Investment | $ 4,304 | $ 6,393 |
Financing Receivables Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 469 | 426 |
Financing Receivables Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 520 | 2,122 |
Financing Receivables Past Due | Residential real estate loans | ||
Financing Receivable Recorded Investment | 1,575 | 1,804 |
Financing Receivables Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 1,740 | 2,041 |
Loans Receivable | ||
Financing Receivable Recorded Investment | 2,171,463 | |
Loans Receivable | Consumer Loan | ||
Financing Receivable Recorded Investment | 76,347 | 80,767 |
Loans Receivable | Commercial Loan | ||
Financing Receivable Recorded Investment | 421,825 | 468,448 |
Loans Receivable | Construction Real Estate | ||
Financing Receivable Recorded Investment | 122,742 | 107,472 |
Loans Receivable | Residential real estate loans | ||
Financing Receivable Recorded Investment | 655,800 | 627,357 |
Loans Receivable | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 897,450 | 887,419 |
Total Loans | ||
Financing Receivable Recorded Investment | 2,174,164 | |
Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment | 1,686 | |
Financial Asset, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 322 | 180 |
Financial Asset, 30 to 59 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 333 | 93 |
Financial Asset, 30 to 59 Days Past Due | Residential real estate loans | ||
Financing Receivable Recorded Investment | 1,270 | 772 |
Financial Asset, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 1,329 | 641 |
Financial Asset, 30 to 59 Days Past Due | Total Loans | ||
Financing Receivable Recorded Investment | 3,254 | |
Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment | 1,977 | |
Financial Asset, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 52 | 53 |
Financial Asset, 60 to 89 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 39 | 1,219 |
Financial Asset, 60 to 89 Days Past Due | Residential real estate loans | ||
Financing Receivable Recorded Investment | 378 | |
Financial Asset, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 12 | 327 |
Financial Asset, 60 to 89 Days Past Due | Total Loans | ||
Financing Receivable Recorded Investment | 103 | |
Financial Asset, Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment | 2,730 | |
Financial Asset, Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 95 | 193 |
Financial Asset, Greater than 90 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 148 | 810 |
Financial Asset, Greater than 90 Days Past Due | Residential real estate loans | ||
Financing Receivable Recorded Investment | 305 | 654 |
Financial Asset, Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 399 | 1,073 |
Financial Asset, Greater than 90 Days Past Due | Total Loans | ||
Financing Receivable Recorded Investment | 947 | |
Financing Receivables, Current | ||
Financing Receivable Recorded Investment | 2,165,070 | |
Financing Receivables, Current | Consumer Loan | ||
Financing Receivable Recorded Investment | 75,878 | 80,341 |
Financing Receivables, Current | Commercial Loan | ||
Financing Receivable Recorded Investment | 421,305 | 466,326 |
Financing Receivables, Current | Construction Real Estate | ||
Financing Receivable Recorded Investment | 122,742 | 107,472 |
Financing Receivables, Current | Residential real estate loans | ||
Financing Receivable Recorded Investment | 654,225 | 625,553 |
Financing Receivables, Current | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 895,710 | $ 885,378 |
Financing Receivables, Current | Total Loans | ||
Financing Receivable Recorded Investment | $ 2,169,860 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - CARES Act (Details) - COVID-19 - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Financing Receivables, Current | ||
Temporarily suspended loans | $ 40,400,000 | $ 380,100,000 |
Financial Asset, 30 to 59 Days Past Due | Residential real estate loans | ||
Temporarily suspended loans | 1,000 | |
Financial Asset, 30 to 59 Days Past Due | Consumer Loan | ||
Temporarily suspended loans | 29,000 | |
Financial Asset, 60 to 89 Days Past Due | Commercial Loan | ||
Temporarily suspended loans | $ 66,000 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Related allowance for credit losses | $ 35,227 | $ 25,139 |
Residential | ||
Related allowance for credit losses | $ 4,875 | |
Residential | Collateral-dependent Loans | ||
Amortized cost | 904 | |
Related allowance for credit losses | 232 | |
1- to 4-family residential loans | Collateral-dependent Loans | ||
Amortized cost | 904 | |
Related allowance for credit losses | $ 232 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
PCI loans | $ 21,800 |
Commercial Loan | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,040 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 6,065 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 5,040 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 6,065 |
Construction Real Estate | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,277 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,312 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1,277 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 1,312 |
Residential real estate loans | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,811 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 4,047 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 3,811 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 4,047 |
Commercial Real Estate | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 19,271 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 23,676 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 19,271 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | $ 23,676 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Regarding interest income recognized on impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time | $ 47 | $ 210 |
Total Loans | ||
Impaired Financing Receivable, Average Recorded Investment | 23,855 | 25,185 |
Impaired Financing Receivable Interest Income Recognized | 476 | 1,494 |
Commercial Loan | ||
Impaired Financing Receivable, Average Recorded Investment | 5,909 | 5,860 |
Impaired Financing Receivable Interest Income Recognized | 115 | 329 |
Construction Real Estate | ||
Impaired Financing Receivable, Average Recorded Investment | 1,292 | 1,299 |
Impaired Financing Receivable Interest Income Recognized | 30 | 114 |
Residential real estate loans | ||
Impaired Financing Receivable, Average Recorded Investment | 1,288 | 1,482 |
Impaired Financing Receivable Interest Income Recognized | 22 | 67 |
Commercial Real Estate | ||
Impaired Financing Receivable, Average Recorded Investment | 15,366 | 16,544 |
Impaired Financing Receivable Interest Income Recognized | $ 309 | $ 984 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - Schedule of financing receivables, Nonaccrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Total loans | $ 6,756 | $ 8,657 |
Consumer Loan | ||
Total loans | 181 | 196 |
Commercial Loan | ||
Total loans | 616 | 1,345 |
Construction Real Estate | ||
Total loans | 0 | 0 |
Residential real estate loans | ||
Total loans | 3,463 | 4,010 |
Commercial Real Estate | ||
Total loans | $ 2,496 | $ 3,106 |
Loans and Allowance for Cred_17
Loans and Allowance for Credit Losses - Schedule of Debtor Troubled Debt Restructuring, Current Period (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Total Loans | ||||
Number of modifications | loan | 0 | 0 | 4 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 1,814 | $ 0 |
Consumer Loan | ||||
Number of modifications | loan | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Loan | ||||
Number of modifications | loan | 0 | 0 | 1 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 29 | $ 0 |
Construction Real Estate | ||||
Number of modifications | loan | 0 | 0 | 0 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Residential real estate loans | ||||
Number of modifications | loan | 0 | 0 | 1 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 93 | $ 0 |
Commercial Real Estate | ||||
Number of modifications | loan | 0 | 0 | 2 | 0 |
Recorded investment | $ | $ 0 | $ 0 | $ 1,692 | $ 0 |
Loans and Allowance for Cred_18
Loans and Allowance for Credit Losses - Performing Loans Classified as Troubled Debt Restructuring Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021loan | Mar. 31, 2020loan | Mar. 31, 2021USD ($)loan | Mar. 31, 2020loan | Jun. 30, 2020USD ($)loan | |
Consumer Loan | |||||
Number of modifications | 0 | 0 | 0 | 0 | |
Commercial Loan | |||||
Number of modifications | 0 | 0 | 1 | 0 | |
Construction Real Estate | |||||
Number of modifications | 0 | 0 | 0 | 0 | |
Residential real estate loans | |||||
Number of modifications | 0 | 0 | 1 | 0 | |
Commercial Real Estate | |||||
Number of modifications | 0 | 0 | 2 | 0 | |
Performing Loans | |||||
Number of modifications | 18 | 20 | |||
Recorded Investment | $ | $ 7,093 | ||||
Recorded Investment | $ | $ 8,580 | ||||
Performing Loans | Commercial Loan | |||||
Number of modifications | 8 | 7 | |||
Recorded Investment | $ | $ 2,678 | ||||
Recorded Investment | $ | $ 3,245 | ||||
Performing Loans | Residential real estate loans | |||||
Number of modifications | 3 | 3 | |||
Recorded Investment | $ | $ 1,014 | ||||
Recorded Investment | $ | $ 791 | ||||
Performing Loans | Commercial Real Estate | |||||
Number of modifications | 7 | 10 | |||
Recorded Investment | $ | $ 3,401 | ||||
Recorded Investment | $ | $ 4,544 | ||||
Total Loans | |||||
Number of modifications | 0 | 0 | 4 | 0 |
Loans and Allowance for Cred_19
Loans and Allowance for Credit Losses - Residential Real Estate Foreclosures and Purchased Credit Deteriorated Loans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Loans and Allowance for Credit Losses | |||||
Foreclosed residential real estate properties physical possession | $ 775,000 | $ 775,000 | $ 563,000 | ||
Residential mortgage loans and home equity loans formal foreclosure proceedings in process | 261,000 | 261,000 | 435,000 | ||
PCI loans | $ 21,800,000 | ||||
ACL | 434,000 | ||||
PCD loans receivable, net of ACL | 15,900,000 | ||||
ALLL or ACL by a charge to the income statement related to PCI or PCD loans | 0 | $ 0 | 0 | $ 0 | |
ACL reversed | $ 0 | $ 0 | $ 209,000 | $ 0 |
Premises and Equipment - Summar
Premises and Equipment - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Premises and Equipment | ||
Land | $ 12,480 | $ 12,585 |
Buildings and improvements | 56,937 | 56,039 |
Construction in progress | 173 | 435 |
Furniture, fixtures, equipment and software | 18,730 | 18,109 |
Automobiles | 120 | 120 |
Operating leases ROU asset | 2,507 | 1,965 |
Premises and equipment, gross | 90,947 | 89,253 |
Less accumulated depreciation | 27,039 | 24,147 |
Premises and equipment, net | $ 63,908 | $ 65,106 |
Premises and Equipment - Leases
Premises and Equipment - Leases (Details) | 9 Months Ended |
Mar. 31, 2021property | |
Number of lease properties | 5 |
Discount rate, lease | 5.00% |
Minimum | |
Expected lease terms range | 18 months |
Maximum | |
Expected lease terms range | 20 years |
Premises and Equipment - Calcul
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
ROU assets obtained in exchange for operating lease obligations: | $ 599 | $ 1,996 | |||
Consolidated Balance Sheet | |||||
Operating leases right of use asset | $ 2,507 | 2,507 | $ 1,965 | ||
Operating leases liability | 2,507 | 2,507 | $ 1,965 | ||
Consolidated Statement of Income | |||||
Operating lease costs classified as occupancy and equipment expense | 107 | $ 45 | 242 | 153 | |
Supplemental disclosures of cash flow information | |||||
ROU assets obtained in exchange for operating lease obligations: | 599 | 599 | 2,004 | ||
Supplemental disclosures of cash flow information | Cash paid for amounts included in the measurement of lease liabilities | |||||
Operating cash flows from operating leases | $ 80 | $ 39 | $ 205 | $ 116 |
Premises and Equipment - Future
Premises and Equipment - Future expected lease payments for leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Premises and Equipment | |
2021 | $ 76 |
2022 | 279 |
2023 | 279 |
2024 | 279 |
2025 | 279 |
Thereafter | 3,126 |
Future lease payments expected | $ 4,318 |
Premises and Equipment - Lessor
Premises and Equipment - Lessor Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Premises and Equipment | ||||
Income recognized from lessor agreements | $ 82,000 | $ 80,000 | $ 238,000 | $ 242,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Deposits | ||
Non-interest bearing accounts | $ 387,416 | $ 316,048 |
NOW accounts | 926,488 | 781,937 |
Money market deposit accounts | 241,933 | 231,162 |
Savings accounts | 220,025 | 181,229 |
Certificates | 592,899 | 674,471 |
Total Deposit Accounts | $ 2,368,761 | $ 2,184,847 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share | ||||
Net income | $ 11,458 | $ 5,099 | $ 33,491 | $ 20,644 |
Less: distributed earnings allocated to participating securities | (5) | (13) | ||
Less: undistributed earnings allocated to participating securities | (35) | (91) | ||
Net income available to common shareholders | $ 11,418 | $ 5,099 | $ 33,387 | $ 20,644 |
Weighted-average common shares outstanding, including participating securities | 9,004,034 | 9,197,370 | 9,073,545 | 9,210,559 |
Less: weighted-average participating securities outstanding (restricted shares) | (31,845) | (28,172) | ||
Weighted-average basic common shares outstanding | 8,972,189 | 9,197,370 | 9,045,373 | 9,210,559 |
Add: effect of dilutive securities, stock options, and awards | 4,026 | 7,422 | 2,579 | 10,848 |
Denominator for diluted earnings per share | 8,976,215 | 9,204,792 | 9,047,952 | 9,221,407 |
Basic earnings per share available to common stockholders | $ 1.27 | $ 0.55 | $ 3.69 | $ 2.24 |
Diluted earnings per share available to common stockholders | $ 1.27 | $ 0.55 | $ 3.69 | $ 2.24 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the computation of diluted earnings per share | 86,900 | 50,500 | 86,900 | 50,500 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the computation of diluted earnings per share | 110,845 | 33,000 | 110,845 | 33,000 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||||
Current | $ 3,552 | $ 1,116 | $ 11,441 | $ 5,007 |
Deferred | (456) | 13 | (2,445) | 19 |
Total income tax provision | $ 3,096 | $ 1,129 | $ 8,996 | $ 5,026 |
Income Taxes - Schedule of net
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Income Taxes | ||
Provision for losses on loans | $ 8,185 | $ 5,802 |
Accrued compensation and benefits | 722 | 825 |
NOL carry forwards acquired | 155 | 149 |
Minimum Tax Credit | 0 | 130 |
Unrealized loss on other real estate | 180 | 257 |
Other | 312 | 26 |
Total deferred tax assets | 9,554 | 7,189 |
Purchase accounting adjustments | 191 | 64 |
Depreciation | 1,494 | 1,665 |
FHLB stock dividends | 120 | 120 |
Prepaid expenses | 326 | 259 |
Unrealized gain on available for sale securities | 686 | 1,265 |
Other | 0 | 104 |
Total deferred tax liabilities | 2,817 | 3,477 |
Net deferred tax assets | $ 6,737 | $ 3,712 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Tax at statutory rate | $ 3,056 | $ 1,308 | $ 8,922 | $ 5,391 |
Other, net | 1 | (24) | 15 | (67) |
Actual provision | 3,096 | 1,129 | 8,996 | 5,026 |
Increase (reduction) in taxes | ||||
Nontaxable municipal income | (117) | (109) | (327) | (335) |
State tax, net of Federal benefit | 215 | 27 | 717 | 223 |
Cash surrender value of Bank-owned life insurance | (57) | (52) | (320) | (159) |
Tax credit benefits | $ (2) | $ (21) | $ (11) | $ (27) |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||||
Interest or penalties related to income taxes | $ 0 | |||
Federal net operating loss carryforwards | 706 | |||
State net operating loss carryforwards | $ 0 | |||
Effective tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 21.00% |
401(k) Retirement Plan (Details
401(k) Retirement Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Retirement plan expenses | $ 416 | $ 391 | $ 1,300 | $ 1,100 |
Vesting period | 5 years | |||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contribution (in percent) | 4.00% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Oct. 31, 2013 | Mar. 31, 2004 | Mar. 31, 2021 | Jun. 30, 2020 | |
Subordinated debt | $ 15,218 | $ 15,142 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Investment, face amount | 505,000 | ||||
Investment, carrying value | 457,000 | ||||
Trust Preferred Securities | |||||
Subordinated debt | $ 7,200 | 7,200 | |||
Redeemable term (in years) | 5 years | ||||
Interest rate (as a percent) | 2.93% | ||||
Ozarks Legacy Community Financial, Inc | |||||
Interest rate (as a percent) | 2.63% | ||||
Floating rate | $ 3,100 | ||||
Ozarks Legacy Community Financial, Inc | Reported Value Measurement | |||||
Floating rate | $ 2,700 | 2,700 | |||
Peoples Service Company, Inc | |||||
Interest rate (as a percent) | 1.98% | ||||
Floating rate | $ 6,500 | ||||
Peoples Service Company, Inc | Reported Value Measurement | |||||
Floating rate | $ 5,300 | $ 5,300 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value on a recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
State and political subdivisions | ||
Fair value measurement, recurring basis | $ 43,292 | $ 41,988 |
Other securities | ||
Fair value measurement, recurring basis | 20,837 | 7,624 |
Mortgage-backed securities | ||
Fair value measurement, recurring basis | 126,280 | 126,912 |
Fair Value, Inputs, Level 1 | State and political subdivisions | ||
Fair value measurement, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | Other securities | ||
Fair value measurement, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | Mortgage-backed securities | ||
Fair value measurement, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 | State and political subdivisions | ||
Fair value measurement, recurring basis | 43,292 | 41,988 |
Fair Value, Inputs, Level 2 | Other securities | ||
Fair value measurement, recurring basis | 20,837 | 7,624 |
Fair Value, Inputs, Level 2 | Mortgage-backed securities | ||
Fair value measurement, recurring basis | 126,280 | 126,912 |
Fair Value, Inputs, Level 3 | State and political subdivisions | ||
Fair value measurement, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Other securities | ||
Fair value measurement, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Mortgage-backed securities | ||
Fair value measurement, recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair value on a nonrecurring basis (Details) - Foreclosed and repossessed assets held for sale - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Fair value measurement, non-recurring basis | $ 689 | $ 2,211 |
Fair Value, Inputs, Level 1 | ||
Fair value measurement, non-recurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair value measurement, non-recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair value measurement, non-recurring basis | $ 689 | $ 2,211 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses recognized on assets measured on a non-recurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2021 | |
Foreclosed and repossessed assets held for sale | ||
Gains (losses) on assets measured on a non-recurring basis | $ (96) | $ (49) |
Total losses on assets measured on a non-recurring basis | ||
Gains (losses) on assets measured on a non-recurring basis | $ (96) | $ (49) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Fair Value Measurements Nonrecurring Unobservable Inputs | $ 689 | $ 2,211 |
Third party appraisal | ||
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal | Third party appraisal |
Third party appraisal | Marketability discount | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount | Marketability discount |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 26.7 | 15.7 |
Third party appraisal | Marketability discount | Minimum | ||
Fair Value Measurements Nonrecurring Range of discounts Applied | 0.00% | 8.00% |
Third party appraisal | Marketability discount | Maximum | ||
Fair Value Measurements Nonrecurring Range of discounts Applied | 64.10% | 56.90% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Letter of Credit | ||
Carrying amount of financial instruments | $ 0 | $ 0 |
Line of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Financial liabilities | Subordinated Debt | ||
Carrying amount of financial instruments | 15,218 | 15,142 |
Financial liabilities | Federal Home Loan Bank Advances | ||
Carrying amount of financial instruments | 62,781 | 70,024 |
Financial assets | Loans Receivable | ||
Carrying amount of financial instruments | 2,134,885 | 2,141,929 |
Financial assets | Cash and Cash Equivalents | ||
Carrying amount of financial instruments | 236,896 | 54,245 |
Financial assets | Interest-bearing time deposits | ||
Carrying amount of financial instruments | 977 | 974 |
Financial assets | Investment in Federal Home Loan Bank Stock | ||
Carrying amount of financial instruments | 6,163 | 6,390 |
Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis | ||
Carrying amount of financial instruments | 5,018 | 4,363 |
Financial assets | Accrued interest receivable | ||
Carrying amount of financial instruments | 10,030 | 12,116 |
Deposits | Financial liabilities | ||
Carrying amount of financial instruments | 2,368,761 | 2,184,847 |
Accrued interest payable | Financial liabilities | ||
Carrying amount of financial instruments | 918 | 1,646 |
Commitments to Extend Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Letter of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Line of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial liabilities | Subordinated Debt | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial liabilities | Federal Home Loan Bank Advances | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial assets | Loans Receivable | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial assets | Cash and Cash Equivalents | ||
Carrying amount of financial instruments | 236,896 | 54,245 |
Fair Value, Inputs, Level 1 | Financial assets | Interest-bearing time deposits | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial assets | Investment in Federal Home Loan Bank Stock | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Financial assets | Accrued interest receivable | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Deposits | Financial liabilities | ||
Carrying amount of financial instruments | 1,775,862 | 1,508,740 |
Fair Value, Inputs, Level 1 | Accrued interest payable | Financial liabilities | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | Commitments to Extend Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Letter of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Line of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Financial liabilities | Subordinated Debt | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Financial liabilities | Federal Home Loan Bank Advances | ||
Carrying amount of financial instruments | 64,088 | 72,136 |
Fair Value, Inputs, Level 2 | Financial assets | Loans Receivable | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Financial assets | Cash and Cash Equivalents | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Financial assets | Interest-bearing time deposits | ||
Carrying amount of financial instruments | 977 | 974 |
Fair Value, Inputs, Level 2 | Financial assets | Investment in Federal Home Loan Bank Stock | ||
Carrying amount of financial instruments | 6,163 | 6,390 |
Fair Value, Inputs, Level 2 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis | ||
Carrying amount of financial instruments | 5,018 | 4,363 |
Fair Value, Inputs, Level 2 | Financial assets | Accrued interest receivable | ||
Carrying amount of financial instruments | 10,030 | 12,116 |
Fair Value, Inputs, Level 2 | Deposits | Financial liabilities | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 2 | Accrued interest payable | Financial liabilities | ||
Carrying amount of financial instruments | 918 | 1,646 |
Fair Value, Inputs, Level 2 | Commitments to Extend Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Letter of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Line of Credit | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial liabilities | Subordinated Debt | ||
Carrying amount of financial instruments | 15,016 | 11,511 |
Fair Value, Inputs, Level 3 | Financial liabilities | Federal Home Loan Bank Advances | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial assets | Loans Receivable | ||
Carrying amount of financial instruments | 2,156,852 | 2,143,823 |
Fair Value, Inputs, Level 3 | Financial assets | Cash and Cash Equivalents | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial assets | Interest-bearing time deposits | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial assets | Investment in Federal Home Loan Bank Stock | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial assets | Investment in Stock of Federal Reserve Bank of St. Louis | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Financial assets | Accrued interest receivable | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Deposits | Financial liabilities | ||
Carrying amount of financial instruments | 595,978 | 676,816 |
Fair Value, Inputs, Level 3 | Accrued interest payable | Financial liabilities | ||
Carrying amount of financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 | Commitments to Extend Credit | ||
Carrying amount of financial instruments | $ 0 | $ 0 |