Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 08, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Period End date | Jun. 30, 2023 | ||
Registrant CIK | 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 Stock | ||
Trading Symbol | SMBC | ||
Trading Exchange | NASDAQ | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Current reporting status | Yes | ||
Interactive Data Current | Yes | ||
Filer Category | Accelerated Filer | ||
Small Business | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Shell Company | false | ||
Number of common stock shares outstanding | 11,336,462 | ||
Fiscal Year End | --06-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Public Float | $ 356.8 | ||
Auditor Name | FORVIS | ||
Auditor Firm ID | 686 | ||
Auditor Location | Decatur, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Cash and cash equivalents | $ 53,979 | $ 86,792 |
Interest-bearing time deposits | 1,242 | 4,768 |
Available for sale securities (Note 2) | 417,554 | 235,394 |
Stock in FHLB of Des Moines | 11,540 | 5,893 |
Stock in Federal Reserve Bank of St. Louis | 9,061 | 5,790 |
Loans receivable, net of ACL of $47,820 and $33,192 at June 30, 2023 and June 30, 2022, respectively (Note 3) | 3,571,078 | 2,686,198 |
Accrued interest receivable | 18,871 | 11,052 |
Premises and equipment, net (Note 4) | 92,397 | 71,347 |
Bank owned life insurance - cash surrender value | 71,684 | 48,705 |
Goodwill | 50,773 | 27,288 |
Other intangible assets, net | 30,472 | 8,175 |
Prepaid expenses and other assets | 31,560 | 23,380 |
TOTAL ASSETS | 4,360,211 | 3,214,782 |
Liabilities and Stockholders' Equity | ||
Deposits (Note 5) | 3,725,540 | 2,815,075 |
Advances from FHLB (Note 6) | 133,514 | 37,957 |
Accounts payable and other liabilities | 27,271 | 17,122 |
Accrued interest payable | 4,723 | 801 |
Subordinated debt (Note 7) | 23,105 | 23,055 |
TOTAL LIABILITIES | 3,914,153 | 2,894,010 |
Commitments and contingencies (Note 12) | ||
Common stock, $.01 par value; 25,000,000 shares authorized; 11,919,087 and 9,815,736 shares issued at June 30, 2023 and June 30, 2022, respectively | 119 | 98 |
Additional paid-in capital | 218,260 | 119,162 |
Retained earnings | 270,720 | 240,115 |
Treasury stock of 588,625 shares at June 30, 2023 and June 30, 2022, at cost | (21,116) | (21,116) |
Accumulated other comprehensive loss | (21,925) | (17,487) |
TOTAL STOCKHOLDERS' EQUITY | 446,058 | 320,772 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,360,211 | $ 3,214,782 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Loans And Leases Receivable Allowance | $ 47,820 | $ 33,192 |
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 | 11,919,087 | 9,815,736 |
Treasury Stock | 588,625 | 588,625 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income | |||
Loans | $ 162,224 | $ 111,495 | $ 105,077 |
Investment securities | 5,324 | 2,197 | 2,130 |
Mortgage-backed securities | 6,967 | 2,738 | 2,042 |
Other interest-earning assets | 1,901 | 437 | 226 |
TOTAL INTEREST INCOME | 176,416 | 116,867 | 109,475 |
Interest Expense | |||
Deposits | 44,392 | 11,822 | 14,889 |
Securities sold under agreements to repurchase | 213 | ||
Advances from FHLB | 3,627 | 792 | 1,366 |
Subordinated debt | 1,439 | 686 | 534 |
TOTAL INTEREST EXPENSE | 49,671 | 13,300 | 16,789 |
NET INTEREST INCOME | 126,745 | 103,567 | 92,686 |
Provision (benefit) for credit losses (Note 3) | 17,061 | 1,487 | (1,024) |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 109,684 | 102,080 | 93,710 |
Noninterest Income | |||
Deposit account charges and related fees | 7,671 | 6,450 | 5,254 |
Bank card interchange income | 5,260 | 4,224 | 3,913 |
Loan late charges | 534 | 553 | 587 |
Loan servicing fees | 1,483 | 946 | 1,454 |
Other loan fees | 3,142 | 2,369 | 1,200 |
Net realized gains on sale of loans | 875 | 1,598 | 3,980 |
Net realized gains on sale of AFS securities | 90 | ||
Earnings on bank owned life insurance | 1,516 | 1,168 | 1,800 |
Other income | 5,723 | 3,895 | 1,764 |
TOTAL NONINTEREST INCOME | 26,204 | 21,203 | 20,042 |
Noninterest Expense | |||
Compensation and benefits | 46,896 | 35,611 | 31,010 |
Occupancy and equipment, net | 11,220 | 9,248 | 7,880 |
Data processing expense | 7,756 | 5,996 | 4,812 |
Telecommunications expense | 1,679 | 1,273 | 1,261 |
Deposit insurance premiums | 1,470 | 743 | 766 |
Legal and professional fees | 4,051 | 1,362 | 1,093 |
Advertising | 1,772 | 1,496 | 1,080 |
Postage and office supplies | 1,197 | 823 | 796 |
Intangibles amortization | 2,633 | 1,441 | 1,395 |
Foreclosed property expenses/losses | 90 | 522 | 142 |
Other operating expense | 7,661 | 4,864 | 3,812 |
TOTAL NONINTEREST EXPENSE | 86,425 | 63,379 | 54,047 |
INCOME BEFORE INCOME TAXES | 49,463 | 59,904 | 59,705 |
Income Taxes | |||
Current | 11,200 | 13,352 | 10,844 |
Deferred | (974) | (617) | 1,681 |
TOTAL INCOME TAXES | 10,226 | 12,735 | 12,525 |
NET INCOME | $ 39,237 | $ 47,169 | $ 47,180 |
Basic earnings per share | $ 3.86 | $ 5.22 | $ 5.22 |
Diluted earnings per share | 3.85 | 5.21 | 5.22 |
Dividends paid | $ 0.84 | $ 0.80 | $ 0.62 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
NET INCOME | $ 39,237 | $ 47,169 | $ 47,180 |
Other comprehensive income (loss): | |||
Unrealized losses on securities available-for-sale | (5,696) | (26,100) | (1,925) |
Less: reclassification adjustment for realized gains included in net income | 90 | ||
Defined benefit pension plan net gain (loss) | 5 | (11) | 6 |
Tax benefit | 1,253 | 5,742 | 444 |
Total other comprehensive loss | (4,438) | (20,369) | (1,565) |
COMPREHENSIVE INCOME | $ 34,799 | $ 26,800 | $ 45,615 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Impact of adoption ASU 2016-13 | Retained Earnings | Treasury Stock, Common Stock | Accumulated Other Comprehensive Income (Loss) | Impact of adoption ASU 2016-13 | Total |
BEGINNING BALANCE at Jun. 30, 2020 | $ 93 | $ 95,035 | $ (7,151) | $ 165,709 | $ (6,937) | $ 4,447 | $ (7,151) | $ 258,347 |
Net Income | 47,180 | 47,180 | ||||||
Change in unrealized gain on available for sale securities, net | (1,571) | (1,571) | ||||||
Defined benefit pension plan net gain (loss) | 6 | 6 | ||||||
Dividends paid on common stock | (5,598) | (5,598) | ||||||
Stock option expense | 142 | 142 | ||||||
Stock grant expense | 408 | 408 | ||||||
Common Stock Issued | 1 | 1 | ||||||
Treasury stock purchased | (8,341) | (8,341) | ||||||
ENDING BALANCE at Jun. 30, 2021 | 94 | 95,585 | 200,140 | (15,278) | 2,882 | 283,423 | ||
Net Income | 47,169 | 47,169 | ||||||
Change in unrealized gain on available for sale securities, net | (20,358) | (20,358) | ||||||
Defined benefit pension plan net gain (loss) | (11) | (11) | ||||||
Dividends paid on common stock | (7,194) | (7,194) | ||||||
Stock option expense | 165 | 165 | ||||||
Stock grant expense | 532 | 532 | ||||||
Common Stock Issued | 4 | 22,880 | 22,884 | |||||
Treasury stock purchased | (5,838) | (5,838) | ||||||
ENDING BALANCE at Jun. 30, 2022 | 98 | 119,162 | 240,115 | (21,116) | (17,487) | 320,772 | ||
Net Income | 39,237 | 39,237 | ||||||
Change in unrealized gain on available for sale securities, net | (4,443) | (4,443) | ||||||
Defined benefit pension plan net gain (loss) | 5 | 5 | ||||||
Dividends paid on common stock | (8,632) | (8,632) | ||||||
Stock option expense | 255 | 255 | ||||||
Stock grant expense | 584 | 584 | ||||||
Common Stock Issued | 21 | 98,259 | 98,280 | |||||
ENDING BALANCE at Jun. 30, 2023 | $ 119 | $ 218,260 | $ 270,720 | $ (21,116) | $ (21,925) | $ 446,058 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Dividends paid on common stock | $ 0.84 | $ 0.80 | $ 0.62 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities: | |||
NET INCOME | $ 39,237 | $ 47,169 | $ 47,180 |
Items not requiring (providing) cash: | |||
Depreciation | 4,923 | 4,480 | 4,029 |
(Gain) loss on disposal of fixed assets | (444) | 3 | 80 |
Stock option and stock grant expense | 839 | 697 | 550 |
(Gain) loss on sale/write-down of REO | (44) | 460 | 55 |
Amortization of intangible assets | 2,633 | 1,441 | 1,395 |
Accretion of purchase accounting adjustments | (3,737) | (1,565) | (1,502) |
Increase in cash surrender value of bank owned life insurance (BOLI) | (1,516) | (1,168) | (1,800) |
Provision (benefit) for credit losses | 17,061 | 1,487 | (1,024) |
Gains realized on sale of AFS securities | (90) | ||
Net amortization of premiums and discounts on securities | 776 | 1,198 | 1,633 |
Originations of loans held for sale | (21,419) | (42,808) | (151,171) |
Proceeds from sales of loans held for sale | 21,548 | 44,004 | 151,813 |
Gain on sales of loans held for sale | (875) | (1,598) | (3,980) |
Changes in: | |||
Accrued interest receivable | (5,400) | (391) | 2,037 |
Prepaid expenses and other assets | 5,449 | 9,681 | 1,790 |
Accounts payable and other liabilities | 580 | 5,016 | (47) |
Deferred income taxes | (974) | (617) | 1,681 |
Accrued interest payable | 3,386 | (147) | (867) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 62,023 | 67,342 | 51,762 |
Cash flows from investing activities: | |||
Net increase in loans | (447,208) | (281,544) | (62,864) |
Net change in interest-bearing deposits | 1,227 | (1,488) | (7) |
Proceeds from maturities of available for sale securities | 35,368 | 40,474 | 57,723 |
Proceeds from sales of available for sale securities | 136,714 | 16,284 | |
Net (purchases) redemptions of Federal Home Loan Bank stock | (4,473) | 691 | 517 |
Net purchases of Federal Reserve Bank of St. Louis stock | (3,271) | (759) | (668) |
Purchases of available-for-sale securities | (132,032) | (96,144) | (108,057) |
Purchases of long-term investment | (195) | (383) | (40) |
Purchases of premises and equipment | (6,039) | (4,617) | (2,856) |
Net cash received in acquisition | 208,336 | 48,767 | |
Investments in state & federal tax credits | (7,867) | (11,276) | (5,325) |
Proceeds from sale of fixed assets | 3,724 | 928 | 580 |
Proceeds from sale of foreclosed assets | 2,041 | 1,423 | 1,444 |
Proceeds from BOLI claim | 270 | 1,351 | |
NET CASH USED IN INVESTING ACTIVITIES | (213,405) | (303,928) | (101,918) |
Cash flows from financing activities: | |||
Net (decrease) increase in demand deposits and savings accounts | (245,130) | 273,356 | 257,876 |
Net increase (decrease) in certificates of deposits | 304,494 | (31,221) | (111,885) |
Net decrease in securities sold under agreements to repurchase | (27,629) | ||
Proceeds from Federal Home Loan Bank advances | 1,913,830 | 110,100 | |
Repayments of Federal Home Loan Bank advances | (1,818,381) | (29,300) | (122,649) |
Purchase of treasury stock | (5,838) | (8,341) | |
Dividends paid on common stock | (8,632) | (7,194) | (5,598) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 118,552 | 199,803 | 119,503 |
(Decrease) increase in cash and cash equivalents | (32,830) | (36,783) | 69,347 |
Cash and cash equivalents at beginning of period | 86,809 | 123,592 | 54,245 |
Cash and cash equivalents at end of period | 53,979 | 86,809 | 123,592 |
Noncash investing and financing activities: | |||
Conversion of loans to foreclosed real estate | 1,073 | 127 | 748 |
Conversion of foreclosed real estate to loans | 960 | ||
Conversion of loans to repossessed assets | 108 | 26 | 461 |
Right of use assets obtained in exchange for lease obligations: Operating Leases | 216 | 95 | 804 |
Company Purchases - Liabilities were assumed as follows: | |||
Less: common stock issued | 22,885 | ||
Cash paid during the period for: | |||
Interest (net of interest credited) | 5,649 | 2,057 | 2,654 |
Income taxes | 4,307 | 361 | $ 9,240 |
Fortune | |||
Company Purchases - Liabilities were assumed as follows: | |||
Fair value of assets acquired | 1,019,722 | ||
Less: common stock issued | 98,280 | ||
Cash received | 34,889 | ||
Liabilities assumed | $ 886,553 | ||
First National Bank, Cairo | |||
Company Purchases - Liabilities were assumed as follows: | |||
Fair value of assets acquired | 267,913 | ||
Cash received | 12,663 | ||
Liabilities assumed | 232,365 | ||
Central Federal Bancshares | |||
Company Purchases - Liabilities were assumed as follows: | |||
Fair value of assets acquired | 1,707 | ||
Liabilities assumed | 28,859 | ||
Cash paid for the capital stock | $ 27,151 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | NOTE 1: 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. 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. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, and estimated fair values of purchased 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. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers 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 June 30, 2023, or June 30, 2022. 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. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. 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 incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term 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 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. 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. 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. 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 method over the estimated useful lives of the assets. Estimated lives are generally seven three Bank Owned Life Insurance. Goodwill. Intangible Assets. five 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 the 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. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense. Non-Employee Directors’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. Stock Options. C Earnings Per Share. Comprehensive Income. Transfers Between Fair Value Hierarchy Levels. Wealth Management Assets and Fees The following paragraphs summarize the impact of new accounting pronouncements: 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 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 could have been 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. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)," to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates have been widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Originally, an entity could apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. With the issuance of ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2020-04 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In January 2021, the FASB has published ASU 2021-01, “Reference Rate Reform. (Topic 848)”. ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amended the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. Originally, the amendments in this update did not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022 except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). With the issuance of ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2021-01 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors” for entities that have adopted the CECL model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2022-02 also requires that public business entities disclose current-period gross charge offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost.” ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, for entities that have adopted the amendments in ASU 2016-13, and the Company does not expect the ASU to have a material impact on its consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not expect adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Jun. 30, 2023 | |
Available for Sale Securities | |
Available for Sale Securities | NOTE 2: Available for Sale Securities The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available for sale consisted of the following: June 30, 2023 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 45,285 $ 20 $ (2,737) $ — $ 42,568 Corporate obligations 35,700 19 (3,181) — 32,538 Asset backed securities 67,897 1,274 (545) — 68,626 Other securities 3,587 39 (56) — 3,570 Total debt and equity securities 152,469 1,352 (6,519) — 147,302 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 97,612 122 (7,610) — 90,124 Commercial MBS issued by GSEs 60,333 11 (6,959) — 53,385 CMOs issued by GSEs 135,202 9 (8,468) — 126,743 Total MBS and CMOs 293,147 142 (23,037) — 270,252 Total AFS securities $ 445,616 $ 1,494 $ (29,556) $ — $ 417,554 June 30, 2022 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 47,383 $ 77 $ (2,981) $ — $ 44,479 Corporate obligations 20,818 32 (963) — 19,887 Other securities 486 — (43) — 443 Total debt and equity securities 68,687 109 (3,987) — 64,809 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 76,345 — (7,177) — 69,168 Commercial MBS issued by GSEs 51,435 — (5,705) — 45,730 CMOs issued by GSEs 61,293 — (5,606) — 55,687 Total MBS and CMOs 189,073 — (18,488) — 170,585 Total AFS securities $ 257,760 $ 109 $ (22,475) $ — $ 235,394 The amortized cost and fair value of available-for-sale 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 call or prepayment penalties. June 30, 2023 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 3,233 $ 3,221 After one year but less than five years 24,395 23,380 After five years but less than ten years 59,286 56,089 After ten years 65,555 64,612 Total investment securities 152,469 147,302 MBS and CMOs 293,147 270,252 Total AFS securities $ 445,616 $ 417,554 The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to There were no gains or losses recognized from sales of available-for-sale securities in fiscal 2023 or 2022. The Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders’ equity at June 30, 2023. Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2023, was $325.5 million, which is approximately 78.0% of the Company’s available for sale investment portfolio, as compared to $219.3 million or approximately 93.2% of the Company’s available for sale investment portfolio at June 30, 2022. Management believes the declines in fair value for these securities to be temporary. The following tables below 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 ACL has not been recorded at June 30, 2023 and 2022. Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses For the year ended June 30, 2023 Obligations of state and political subdivisions $ 11,574 $ 184 $ 26,763 $ 2,553 $ 38,337 $ 2,737 Corporate obligations 14,709 1,074 13,821 2,107 28,530 3,181 Asset backed securities 22,628 263 698 282 23,326 545 Other securities 1,970 11 350 45 2,320 56 MBS and CMOs 87,354 1,525 145,673 21,512 233,027 23,037 Total AFS securities $ 138,235 $ 3,057 $ 187,305 $ 26,499 $ 325,540 $ 29,556 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses For the year ended June 30, 2022 Obligations of state and political subdivisions $ 31,985 $ 2,639 $ 1,600 $ 342 $ 33,585 $ 2,981 Corporate obligations 10,944 420 6,911 543 17,855 963 Other securities 418 43 — — 418 43 MBS and CMOs 137,590 12,482 29,834 6,006 167,424 18,488 Total AFS securities $ 180,937 $ 15,584 $ 38,345 $ 6,891 $ 219,282 $ 22,475 Obligations of state and political subdivisions Corporate and other Obligations. At June 30, 2023, corporate obligations included two pooled trust preferred securities with an estimated fair value of $698,000 and unrealized losses of $282,000 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, a reduced demand for these securities, and concerns regarding the issuers of the underlying trust preferred securities. A cash flow analysis performed as of June 30, 2023, 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. Because the Company does not intend to sell these securities and it is more likely than not 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. Asset-Backed securities. MBS and CMOs 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 that any individual unrealized loss as of June 30, 2023, 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 | 12 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | NOTE 3: Loans and Allowance for Credit Losses Classes of loans are summarized as follows: (dollars in thousands) June 30, 2023 June 30, 2022 Real Estate Loans: Residential $ 1,133,417 $ 904,160 Construction 550,052 258,072 Commercial 1,562,379 1,146,673 Consumer loans 133,515 92,996 Commercial loans 599,030 441,598 3,978,393 2,843,499 Loans in process (359,196) (123,656) Deferred loan fees, net (299) (453) Allowance for credit losses (47,820) (33,192) Total loans $ 3,571,078 $ 2,686,198 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 June 30, 2023, the Bank had purchased participation interests in 86 loans totaling $155.6 million, as compared to 31 loans totaling $70.0 million at June 30, 2022, with the increase due primarily to participations acquired in the Citizens merger. 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 and supply, 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 12 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 12 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 provide the Company an opportunity to assess risk. At June 30, 2023, construction loans outstanding included 53 loans, totaling $33.4 million, for which a modification had been agreed to. At June 30, 2022, construction loans outstanding included 57 loans, totaling $13.8 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). Consumer Lending Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 90% 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 66 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 compared to less than one basis point (annualized) during the same period of the prior fiscal year. Specifically, management considered the following primary items in its estimate of the ACL: ● economic conditions and projections as provided by Moody’s Analytics, including baseline and downside scenarios, were utilized in the Company’s estimate at June 30, 2023. Economic factors considered in the projections included national and state levels of unemployment, and national and state rates of inflation-adjusted growth in the gross domestic product. Economic conditions are considered to be a moderate and stable risk factor, relative to June 30, 2022; ● the pace of growth of the Company’s loan portfolio, exclusive of acquisitions or government guaranteed loans, relative to overall economic growth. This measure is considered to be a moderate and increasing risk factor, relative to June 30, 2022; ● levels and trends for loan delinquencies nationally and in the region. This measure as reported remains relatively stable, and the level of uncertainty about loan delinquencies is considered to be diminishing. This is considered to be a moderate and stable risk factor, relative to June 30, 2022; ● exposure to the hotel industry, in particular, metropolitan area hotels which were negatively impacted by activity restrictions and a lack of business or convention-related travel. This is considered to be an elevated and stable risk factor, relative to June 30, 2022. PCD Loans. The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s allowance for credit losses recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans. Loans that the Company acquired from Citizens and Fortune that, at the time of acquisition, had more-than-insignificant deterioration of credit quality since origination are classified as PCD loans and presented in the table below at acquisition carrying value: (dollars in thousands) January 20, 2023 PCD Loans - Citizens Purchase price of PCD loans at acquisition $ 27,481 Allowance for credit losses at acquisition (1,121) Fair value of PCD loans at acquisition $ 26,360 (dollars in thousands) February 25, 2022 PCD Loans - Fortune Purchase price of PCD loans at acquisition $ 15,055 Allowance for credit losses at acquisition (120) Fair value of PCD loans at acquisition $ 14,935 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 June 30, 2023 and 2022, and activity in the ACL for the fiscal years ended June 30, 2023, 2022, and 2021: (dollars in thousands) Residential Construction Commercial June 30, 2023 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 6,655 432 5,605 334 1,105 14,131 Losses charged off (19) — (245) (327) (82) (673) Recoveries 1 — 12 28 8 49 Balance, end of period $ 15,641 $ 2,664 $ 22,838 $ 909 $ 5,768 $ 47,820 (dollars in thousands) Residential Construction Commercial June 30, 2022 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 Impact of CECL adoption 23 4 52 — 41 120 Provision (benefit) charged to expense (2,238) 46 2,251 (205) 80 (66) Losses charged off (72) — — (65) (16) (153) Recoveries 3 — — 64 2 69 Balance, end of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 (dollars in thousands) Residential Construction Commercial June 30, 2021 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 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 (benefit) charged to expense 2,973 281 (1,364) (1,232) (1,260) (602) Losses charged off (180) — (90) (146) (318) (734) Recoveries 3 — 1 47 35 86 Balance, end of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 The following tables present the balance in the allowance for off-balance credit exposure based on portfolio segment as of June 30, 2023 and 2022, and activity in allowance for the fiscal years ended June 30, 2023, 2022 and 2021: (dollars in thousands) Residential Construction Commercial June 30, 2023 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 Provision charged to expense 13 2,631 54 12 220 2,930 Balance, end of period $ 71 $ 4,809 $ 475 $ 73 $ 860 $ 6,288 (dollars in thousands) Residential Construction Commercial June 30, 2022 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 Provision (benefit) charged to expense 21 1,676 233 (157) (220) 1,553 Balance, end of period $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 (dollars in thousands) Residential Construction Commercial June 30, 2021 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 19 $ 769 $ 172 $ 153 $ 846 $ 1,959 Impact of CECL adoption 35 (167) 95 197 108 268 Provision (benefit) charged to expense (17) (100) (79) (132) (94) (422) Balance, end of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 Credit Quality Indicators Watch Special Mention Substandard 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 June 30, 2023. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: (dollars in thousands) Revolving June 30, 2023 2022 2021 2020 2019 Prior loans Total Residential Real Estate Pass $ 328,142 $ 312,853 $ 252,077 $ 103,735 $ 25,651 $ 96,035 $ 9,100 $ 1,127,593 Watch 1,214 1,136 616 108 198 27 5 3,304 Special Mention — — — — — — — — Substandard 837 316 510 — — 857 — 2,520 Doubtful — — — — — — — — Total Residential Real Estate $ 330,193 $ 314,305 $ 253,203 $ 103,843 $ 25,849 $ 96,919 $ 9,105 $ 1,133,417 Construction Real Estate Pass $ 124,479 $ 50,011 $ 10,946 $ 3,190 $ — $ — $ 941 $ 189,567 Watch 280 — — — — — — 280 Special Mention — — — — — — — — Substandard 330 679 — — — — — 1,009 Doubtful — — — — — — — — Total Construction Real Estate $ 125,089 $ 50,690 $ 10,946 $ 3,190 $ — $ — $ 941 $ 190,856 Commercial Real Estate Pass $ 462,643 $ 474,140 $ 279,921 $ 89,272 $ 74,653 $ 83,871 $ 37,443 $ 1,501,943 Watch 8,122 5,382 163 3,879 — 117 — 17,663 Special Mention 2,940 — — — — — — 2,940 Substandard 7,690 26,465 2,425 288 473 1,735 757 39,833 Doubtful — — — — — — — — Total Commercial Real Estate $ 481,395 $ 505,987 $ 282,509 $ 93,439 $ 75,126 $ 85,723 $ 38,200 $ 1,562,379 Consumer Pass $ 36,003 $ 14,530 $ 5,446 $ 1,692 $ 717 $ 1,379 $ 73,225 $ 132,992 Watch 71 — 62 — — — — 133 Special Mention — — — — — — — — Substandard 33 2 1 — — 41 313 390 Doubtful — — — — — — — — Total Consumer $ 36,107 $ 14,532 $ 5,509 $ 1,692 $ 717 $ 1,420 $ 73,538 $ 133,515 Commercial Pass $ 138,500 $ 83,011 $ 71,054 $ 10,723 $ 6,239 $ 10,657 $ 272,710 $ 592,894 Watch 698 211 91 3 — — 2,549 3,552 Special Mention — — — — — — — — Substandard 860 329 128 184 175 574 334 2,584 Doubtful — — — — — — — — Total Commercial $ 140,058 $ 83,551 $ 71,273 $ 10,910 $ 6,414 $ 11,231 $ 275,593 $ 599,030 Total Loans Pass $ 1,089,767 $ 934,545 $ 619,444 $ 208,612 $ 107,260 $ 191,942 $ 393,419 $ 3,544,989 Watch 10,385 6,729 932 3,990 198 144 2,554 24,932 Special Mention 2,940 — — — — — — 2,940 Substandard 9,750 27,791 3,064 472 648 3,207 1,404 46,336 Doubtful — — — — — — — — Total $ 1,112,842 $ 969,065 $ 623,440 $ 213,074 $ 108,106 $ 195,293 $ 397,377 $ 3,619,197 At June 30, 2023, PCD loans comprised $37.4 million of credits rated “Pass”; $12.7 million of credits rated “Watch”; none rated “Special Mention”; $6.3 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 year of origination as of June 30, 2022. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: (dollars in thousands) Revolving June 30, 2022 2021 2020 2019 2018 Prior loans Total Residential Real Estate Pass $ 380,502 $ 295,260 $ 118,464 $ 19,383 $ 22,143 $ 58,545 $ 6,074 $ 900,371 Watch 44 242 1,083 56 — 30 — 1,455 Special Mention — — — — — — — — Substandard 266 918 87 440 18 605 — 2,334 Doubtful — — — — — — — — Total Residential Real Estate $ 380,812 $ 296,420 $ 119,634 $ 19,879 $ 22,161 $ 59,180 $ 6,074 $ 904,160 Construction Real Estate Pass $ 100,114 $ 34,082 $ — $ — $ — $ — $ 220 $ 134,416 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total Construction Real Estate $ 100,114 $ 34,082 $ — $ — $ — $ — $ 220 $ 134,416 Commercial Real Estate Pass $ 487,486 $ 284,736 $ 105,893 $ 71,380 $ 51,804 $ 78,115 $ 23,669 $ 1,103,083 Watch 4,763 769 1,818 — 668 2,000 548 10,566 Special Mention 9,297 — — — — — — 9,297 Substandard 22,086 481 140 13 22 93 65 22,900 Doubtful 827 — — — — — — 827 Total Commercial Real Estate $ 524,459 $ 285,986 $ 107,851 $ 71,393 $ 52,494 $ 80,208 $ 24,282 $ 1,146,673 Consumer Pass $ 28,519 $ 10,989 $ 3,662 $ 1,524 $ 916 $ 676 $ 46,521 $ 92,807 Watch 21 71 — — — — — 92 Special Mention — — — — — — — — Substandard 23 6 4 — 10 31 23 97 Doubtful — — — — — — — — Total Consumer $ 28,563 $ 11,066 $ 3,666 $ 1,524 $ 926 $ 707 $ 46,544 $ 92,996 Commercial Pass $ 111,370 $ 93,906 $ 20,795 $ 10,496 $ 3,253 $ 7,612 $ 190,235 $ 437,667 Watch 1,319 194 38 6 — 186 1,206 2,949 Special Mention — — — — — — — — Substandard 295 11 — 186 — 167 323 982 Doubtful — — — — — — — — Total Commercial $ 112,984 $ 94,111 $ 20,833 $ 10,688 $ 3,253 $ 7,965 $ 191,764 $ 441,598 Total Loans Pass $ 1,107,991 $ 718,973 $ 248,814 $ 102,783 $ 78,116 $ 144,948 $ 266,719 $ 2,668,344 Watch 6,147 1,276 2,939 62 668 2,216 1,754 15,062 Special Mention 9,297 — — — — — — 9,297 Substandard 22,670 1,416 231 639 50 896 411 26,313 Doubtful 827 — — — — — — 827 Total $ 1,146,932 $ 721,665 $ 251,984 $ 103,484 $ 78,834 $ 148,060 $ 268,884 $ 2,719,843 At June 30, 2022, PCD loans comprised $23.1 million of credits rated “Pass”; $4.7 million of credits rated “Watch”; none rated “Special Mention”; $1.1 million of credits rated “Substandard”; and none rated “Doubtful”. Past Due Loans. 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 June 30, 2023 Real Estate Loans: Residential $ 1,984 $ 401 $ 483 $ 2,868 $ 1,130,549 $ 1,133,417 $ 109 Construction 443 311 698 1,452 189,404 190,856 — Commercial 616 1,854 1,580 4,050 1,558,329 1,562,379 — Consumer loans 456 124 212 792 132,723 133,515 — Commercial loans 713 77 789 1,579 597,451 599,030 — Total loans $ 4,212 $ 2,767 $ 3,762 $ 10,741 $ 3,608,456 $ 3,619,197 $ 109 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 June 30, 2022 Real Estate Loans: Residential $ 1,402 $ — $ 1,064 $ 2,466 $ 901,694 $ 904,160 $ — Construction — — — — 134,416 134,416 — Commercial 416 615 288 1,319 1,145,354 1,146,673 — Consumer loans 340 45 57 442 92,554 92,996 — Commercial loans 274 72 13 359 441,239 441,598 — Total loans $ 2,432 $ 732 $ 1,422 $ 4,586 $ 2,715,257 $ 2,719,843 $ — At June 30, 2023 and 2022 there were no PCD 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 (dollars in thousands) loans determined to be Related allowance June 30, 2023 collateral dependent for credit losses Residential real estate loans 1- to 4-family residential loans $ 6,376 $ 901 Total loans $ 6,376 $ 901 Amortized cost basis of (dollars in thousands) loans determined to be Related allowance June 30, 2022 collateral dependent for credit losses Residential real estate loans 1- to 4-family residential loans $ 864 $ 193 Total loans $ 864 $ 193 Nonaccrual Loans (dollars in thousands) June 30, 2023 June 30, 2022 Residential real estate $ 934 $ 1,647 Construction real estate 698 — Commercial real estate 4,564 2,259 Consumer loans 256 73 Commercial loans 1,091 139 Total loans $ 7,543 $ 4,118 At June 30, 2023, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the periods ended June 30, 2023 and 2022, was immaterial. Troubled Debt Restructurings During fiscal 2023, there were no loans modified as TDRs. During fiscal 2022, there were six loans modified as TDRs totaling $24.5 million. Performing loans classified as TDRs at June 30, 2023 and June 30, 2022 segregated by class, are shown in the table below. Nonperforming TDRs are shown in nonaccrual loans. June 30, 2023 June 30, 2022 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 10 $ 3,438 11 $ 3,625 Construction real estate — — — — Commercial real estate 6 24,017 8 25,132 Consumer loans — — — — Commercial loans 6 2,310 8 1,849 Total 22 $ 29,765 27 $ 30,606 Real Estate Foreclosures Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2023 and 2022, respectively: June 30, (dollars in thousands) 2023 2022 Beginning Balance $ 10,614 $ 10,624 Additions 6,374 6,393 Repayments (7,223) (6,403) Change in related party 782 — Ending Balance $ 10,547 $ 10,614 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Premises and Equipment | |
Premises and Equipment | NOTE 4: Premises and Equipment Following is a summary of premises and equipment: (dollars in thousands) June 30, 2023 June 30, 2022 Land $ 15,415 $ 13,532 Buildings and improvements 79,661 64,730 Construction in progress 450 142 Furniture, fixtures, equipment and software 26,404 20,838 Automobiles 122 120 Operating leases ROU asset 6,125 3,849 128,177 103,211 Less accumulated depreciation 35,780 31,864 $ 92,397 $ 71,347 Leases and ground leases, and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months. 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 years ended June 30, 2023 and 2022, income recognized from these lessor agreements was In the February 2022 Fortune merger, the Company assumed a ground lease with an entity that is controlled by a Company insider. This property is in St. Louis County, MO and is in its third year of a twenty year term. 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. At or for the Twelve Months Ended June 30, (dollars in thousands) 2023 2022 Consolidated Balance Sheet Operating leases right of use asset $ 6,125 $ 3,849 Operating leases liability $ 6,125 $ 3,849 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 720 $ 451 (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 $ 524 $ 382 ROU assets obtained in exchange for operating lease obligations: $ — $ — For the years ended June 30, 2023 and 2022, lease expense was $720,000 and $451,000, respectively. At June 30, 2023, future expected lease payments for leases with terms exceeding one year were as follows: (dollars in thousands) 2024 $ 721 2025 711 2026 707 2027 694 2028 623 Thereafter 7,359 Future lease payments expected $ 10,815 |
Deposits
Deposits | 12 Months Ended |
Jun. 30, 2023 | |
Deposits | |
Deposits | NOTE 5: Deposits Deposits are summarized as follows: (dollars in thousands) June 30, 2023 June 30, 2022 Non-interest bearing accounts $ 597,600 $ 426,929 NOW accounts 1,328,423 1,171,620 Money market deposit accounts 452,728 303,612 Savings accounts 282,753 274,283 TOTAL NON-MATURITY DEPOSITS 2,661,504 2,176,444 Certificates 0.00-0.99% 92,533 408,479 1.00-1.99% 109,564 171,997 2.00-2.99% 186,538 51,692 3.00-3.99% 109,780 6,298 4.00-4.99% 472,546 165 5.00-5.99% 93,057 — 6.00% and above 18 — TOTAL CERTIFICATES 1,064,036 638,631 TOTAL DEPOSITS $ 3,725,540 $ 2,815,075 The aggregate amount of deposits with a minimum denomination of $250,000 was $1.2 billion and $848.9 million at June 30, 2023 and 2022, respectively. Certificate maturities are summarized as follows: (dollars in thousands) July 1, 2023 to June 30, 2024 $ 690,500 July 1, 2024 to June 30, 2025 208,578 July 1, 2025 to June 30, 2026 69,336 July 1, 2026 to June 30, 2027 49,439 July 1, 2027 to June 30, 2028 46,083 Thereafter 100 TOTAL $ 1,064,036 Brokered certificates totaled $146.5 million and $10.8 million at June 30, 2023 and 2022, respectively. Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2023 and 2022 totaled approximately $6.6 million and $6.0 million, respectively. |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 12 Months Ended |
Jun. 30, 2023 | |
Advances from Federal Home Loan Bank | |
Advances from Federal Home Loan Bank | NOTE 6: Advances from Federal Home Loan Bank Advances from Federal Home Loan Bank are summarized as follows: Interest June 30, Maturity Rate 2023 2022 (dollars in thousands) 08/15/22 1.89 % $ — $ 3,000 11/16/22 0.51 % — 1,994 03/06/23 0.99 % — 3,000 07/24/23 0.59 % 998 987 11/15/23 0.57 % 993 980 03/06/24 0.95 % 3,000 3,000 03/28/24 2.56 % 8,000 8,000 07/24/24 0.66 % 1,966 1,940 08/13/24 1.88 % 3,000 3,000 02/21/25 1.53 % — 5,000 03/06/25 1.01 % 3,000 3,000 07/15/25 0.77 % 1,939 1,913 07/22/26 1.10 % 1,929 1,909 12/14/26 2.65 % 189 234 04/20/26 4.39 % 5,000 — 06/22/26 4.55 % 5,000 — 06/26/26 4.49 % 5,000 — 04/12/27 4.04 % 5,000 — 04/27/27 4.07 % 5,000 — 05/03/27 3.95 % 5,000 — 05/12/27 3.86 % 5,000 — 06/22/27 4.38 % 5,000 — 06/25/27 4.34 % 5,000 — 03/23/28 3.85 % 10,000 — 03/24/28 3.93 % 10,000 — 06/22/28 4.21 % 5,000 — 06/26/28 4.18 % 5,000 — Overnight 5.35 % 33,500 — TOTAL $ 133,514 $ 37,957 Weighted-average rate 3.95 % 1.47 % Of the advances outstanding at June 30, 2023, none are callable by the FHLB prior to maturity. In addition to the above advance, the Bank had additional available credit amounting to $541.3 million and $500.6 million with the FHLB at June 30, 2023 and 2022, respectively. Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate and one- to four-family mortgage loans pledged. To secure outstanding advances and the Bank’s line of credit, loans totaling $1.1 billion and $889.7 million were pledged to the FHLB at June 30, 2023 and 2022, respectively. The principal maturities of FHLB advances at June 30, 2023, are below: June 30, 2023 FHLB Advance Maturities (dollars in thousands) July 1, 2023 to June 30, 2024 $ 46,491 July 1, 2024 to June 30, 2025 7,966 July 1, 2025 to June 30, 2026 1,939 July 1, 2026 to June 30, 2027 47,118 July 1, 2027 to June 30, 2028 30,000 TOTAL $ 133,514 |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Jun. 30, 2023 | |
Subordinated Debt. | |
Subordinated Debt | NOTE 7: 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 June 30, 2023, the Debentures carried an interest rate of 8.26%. The balance of the Debentures outstanding was $7.2 million at June 30, 2023 and June 30, 2022. The Company used its net proceeds for working capital and investment in its subsidiaries. In connection with the October 2013 Ozarks Legacy Community Financial, Inc. (OLCF) merger, 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 June 30, 2023, the current rate was 8.00%. The carrying value of the debt securities was approximately $2.7 million at June 30, 2023 and 2022. In connection with the August 2014 Peoples Service Company, Inc. (PSC) merger, 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 June 30, 2023, the current rate was 7.35%. The carrying value of the debt securities was approximately $5.5 million and $5.4 million at June 30, 2023 and 2022, respectively. 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 $464,000 at June 30, 2023. In connection with the February 2022 Fortune merger, the Company assumed $7.5 million in fixed-to-floating rate subordinated notes. The notes had been issued in May 2021 by Fortune to a multi-lender group, bear interest through May 2026 at a fixed rate of 4.5%, and will bear interest thereafter at SOFR plus 3.77%. The notes will be redeemable at par beginning in May 2026, and mature in May 2031. The carrying value of the notes was approximately $7.7 million at June 30, 2023 and 2022. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jun. 30, 2023 | |
Employee Benefits | |
Employee Benefits | NOTE 8: Employee Benefits 401(k) Retirement Plan. 2008 Equity Incentive Plan 2003 Stock Option Plan As of June 30, 2023, there was no remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan. The aggregate intrinsic value of stock options outstanding, all of which were exercisable at June 30, 2023, was $209,000. No options to purchase shares were vested or exercised in fiscal 2023, 2022 or 2021. 2017 Omnibus Incentive Plan Under the 2017 Plan, options to purchase 138,000 shares have been issued to employees and directors, of which none have been exercised or forfeited, and 138,000 remain outstanding. As of June 30, 2023, there was $1.1 million in remaining unrecognized compensation expense related to unvested stock options under the 2017 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2017 Plan at June 30, 2023, was $419,000, and 2,900 options were exercisable at June 30, 2023, at a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2023, 2022, and 2021 was $42,000, $150,000, and $87,000, respectively. Full value awards totaling 28,650, 22,350, and 18,925 shares, respectively, were issued to employees and directors in fiscal 2023, 2022, and 2021. All full value awards were in the form of either: ● restricted stock vesting at the rate of one -fifth of such shares per year, ● performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period, or ● restricted stock vesting at the rate of one-third of such shares per year, ● restricted stock vesting after a three-year service requirement. During fiscal 2023, 2022, and 2021, full value awards of 15,140, 12,860, and 9,770 shares were vested, respectively. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the vesting period. Compensation expense for full value awards under the 2017 Plan for fiscal 2023, 2022, and 2021 was $833,000, $548,000, and $351,000, respectively. At June 30, 2023, unvested compensation expense related to full value awards under the 2017 Plan was approximately $2.4 million. Changes in options outstanding under the 2003 Plan and the 2017 Plan were as follows: 2023 2022 2021 Weighted Weighted Weighted Average Average Average Price Number Price Number Price Number Outstanding at beginning of year $ 36.56 104,000 $ 33.77 89,500 $ 33.22 60,500 Granted 38.58 44,000 53.82 14,500 34.91 29,000 Exercised — — — — — — Forfeited — — — — — — Outstanding at year-end $ 39.63 148,000 $ 36.56 104,000 $ 33.77 89,500 Options exercisable at year-end $ 33.89 63,700 $ 31.92 44,900 $ 29.79 29,000 The following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal years 2023, 2022, and 2021: 2023 2022 2021 Assumptions: Expected dividend yield 1.79 % 1.49 % 1.83 % Expected volatility 29.67 % 28.02 % 27.72 % Risk-free interest rate 3.79 % 1.82 % 1.14 % Weighted-average expected life (years) 10.00 10.00 10.00 Weighted-average fair value of options granted during the year $ 16.68 $ 16.38 $ 9.19 The table below summarizes information about stock options outstanding under the 2003 Plan and 2017 Plan at June 30, 2023: Weighted Options Outstanding Options Exercisable Average Weighted Weighted Remaining Average Average Contractual Number Exercise Number Exercise Life Outstanding Price Exercisable Price 14 mo. 10,000 $ 17.55 10,000 $ 17.55 55 mo. 13,500 37.31 13,500 37.31 66 mo. 17,500 34.35 14,000 34.35 80 mo. 19,500 37.40 11,700 37.40 91 mo. 29,000 34.91 11,600 34.91 103 mo. 14,500 53.82 2,900 53.82 109 mo. 7,500 46.59 — 46.59 116 mo. 36,500 46.94 — 46.94 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Income Taxes. | NOTE 9: Income Taxes The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state tax examinations by tax authorities for tax years ending June 30, 2017 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented. The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows: (dollars in thousands) June 30, 2023 June 30, 2022 Deferred tax assets: Provision for losses on loans $ 12,101 $ 7,761 Accrued compensation and benefits 974 828 NOL carry forwards acquired 709 57 Low income tax credit carry forward 1,192 — Unrealized loss on other real estate 818 72 Unrealized loss on available for sale securities 6,174 4,921 Total deferred tax assets 21,968 13,639 Deferred tax liabilities: Purchase accounting adjustments 2,348 224 Depreciation 4,276 1,974 FHLB stock dividends 120 120 Prepaid expenses 728 415 Other 1,636 181 Total deferred tax liabilities 9,108 2,914 Net deferred tax asset $ 12,860 $ 10,725 As of June 30, 2023, the Company had approximately $3.2 million and $0 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 Southern Bank of Commerce merger, the February 2014 Citizens State Bankshares of Bald Knob, Inc. merger, the April 2020 Central Federal Savings and Loan merger, the February 2022 Fortune Bank merger, and the January 2023 Citizens Bank and Trust merger. 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 2030. A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: For the year ended June 30 (dollars in thousands) 2023 2022 2021 Tax at statutory rate $ 10,387 $ 12,580 $ 12,538 Increase (reduction) in taxes resulting from: Nontaxable municipal income (327) (349) (453) State tax, net of Federal benefit 46 812 1,018 Cash surrender value of Bank-owned life insurance (318) (245) (378) Tax credit benefits (19) (45) (11) Other, net 457 (18) (189) Actual provision $ 10,226 $ 12,735 $ 12,525 For the years ended June 30, 2023, 2022, and 2021, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (AOCI) | 12 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (AOCI) | |
Accumulated Other Comprehensive Income (AOCI) | NOTE 10: Accumulated Other Comprehensive Income (AOCI) The components of AOCI, included in stockholders’ equity, are as follows: June 30, (dollars in thousands) 2023 2022 Net unrealized loss on securities available-for-sale $ (28,062) $ (22,366) Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income (1) (1) Unrealized gain from defined benefit pension plan (32) (37) (28,095) (22,404) Tax effect 6,170 4,917 Net of tax amount $ (21,925) $ (17,487) Amounts reclassified from AOCI and the affected line items in the consolidated statements of income during the years ended June 30, 2023 and 2022, were as follows: Amounts Reclassified From AOCI (dollars in thousands) Affected Line Item in the Condensed 2023 2022 Consolidated Statements of Income Amortization of defined benefit pension items $ 5 $ (11) Compensation and benefits (included in computation of net periodic pension costs) Total reclassified amount before tax 5 (11) Tax benefit 1 (2) Provision for income tax Total reclassification out of AOCI $ 4 $ (9) Net Income |
Stockholders' Equity and Regula
Stockholders' Equity and Regulatory Capital | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity and Regulatory Capital | |
Stockholders' Equity and Regulatory Capital | NOTE 11: Stockholders’ Equity and Regulatory Capital The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Company and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company and Bank’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Additionally, to make distributions or discretionary bonus payments, the Company and Bank must maintain a capital conservation buffer of 2.5% of risk-weighted assets. Management believes, as of June 30, 2023 and 2022, that the Company and the Bank met all capital adequacy requirements to which they are subject. Effective January 1, 2020, depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a tier 1 leverage ratio of greater than 9 percent, are considered qualifying community banking organizations and are eligible to opt into an alternative, simplified regulatory capital framework, which utilizes a newly-defined “Community Bank Leverage Ratio” (CBLR). The CBLR framework is an optional framework that is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9 percent are considered to have satisfied the risk-based and leverage capital requirements in the agencies’ generally applicable capital rule. In April 2020, the federal bank regulatory agencies announced the issuance of two interim final rules to provide temporary relief to community banking organizations. Under the rules, CBLR requirement was a minimum of 8.5% for calendar year 2021, and 9% thereafter. The Company and the Bank have not made an election to utilize the CBLR framework, but will continue to monitor the available option, and could do so in the future. In August 2020, the Federal banking agencies adopted a final rule updating a December 2018 rule regarding the impact on regulatory capital of adoption of the CECL standard. The rule now allows institutions that adopt the CECL standard in 2020 a five-year transition period to recognize the estimated impact of adoption on regulatory capital. The Company and the Bank elected to exercise the option to recognize the impact of adoption over the five-year period. As of June 30, 2023, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The tables below summarize the Company and Bank’s actual and required regulatory capital: To Be Well Capitalized Under Prompt Corrective Action Actual For Capital Adequacy Purposes Provisions As of June 30, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 481,236 12.52 % $ 307,528 8.00 % $ n/a n/a Southern Bank 454,699 11.77 % 308,932 8.00 % 386,166 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 426,644 11.10 % 230,646 6.00 % n/a n/a Southern Bank 407,764 10.56 % 231,699 6.00 % 308,932 8.00 % Tier I Capital (to Average Assets) Consolidated 426,644 9.95 % 171,470 4.00 % n/a n/a Southern Bank 407,764 9.54 % 170,942 4.00 % 213,677 5.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 411,196 10.70 % 172,985 4.50 % n/a n/a Southern Bank 407,764 10.56 % 173,774 4.50 % 251,008 6.50 % To Be Well Capitalized Under Prompt Corrective Action Actual For Capital Adequacy Purposes Provisions As of June 30, 2022 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 370,013 13.42 % $ 220,558 8.00 % $ n/a n/a Southern Bank 352,169 12.90 % 218,397 8.00 % 272,996 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 335,316 12.16 % 165,418 6.00 % n/a n/a Southern Bank 325,183 11.91 % 163,797 6.00 % 218,397 8.00 % Tier I Capital (to Average Assets) Consolidated 335,316 10.41 % 128,822 4.00 % n/a n/a Southern Bank 325,183 10.22 % 127,333 4.00 % 159,167 5.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 319,971 11.61 % 124,064 4.50 % n/a n/a Southern Bank 325,183 11.91 % 122,848 4.50 % 177,447 6.50 % The Bank’s ability to pay dividends on its common stock to the Company is restricted to maintain adequate capital as shown in the above tables. Additionally, prior regulatory approval is required for the declaration of any dividends generally in excess of the sum of net income for that calendar year and retained net income for the preceding two calendar years. At June 30, 2023, approximately $29.9 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12: Commitments and Contingencies Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Company had total outstanding standby letters of credit amounting to $7.1 million at June 30, 2023, and $3.7 million at June 30, 2022, with terms ranging from 12 Off-balance-sheet and Credit Risk These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments. The Company had $912.0 million in commitments to extend credit at June 30, 2023, and $707.7 million at June 30, 2022. At June 30, 2023, total commitments to originate fixed-rate loans with terms in excess of one year were $213.3 million at rates ranging from 3.95% to 11.0%, with a weighted-average rate of 6.07%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Company’s policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period. The Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri, Arkansas, and Illinois. Although the Company has a diversified portfolio, loans aggregating $1.5 billion at June 30, 2023, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area. Legal proceedings |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | NOTE 13: Earnings Per Share The following table sets forth the computations of basic and diluted earnings per common share: June 30, (dollars in thousands except per share data) 2023 2022 2021 Net income $ 39,237 $ 47,169 $ 47,180 Less: distributed earnings allocated to participating securities (42) (30) (18) Less: undistributed earnings allocated to participating securities (150) (165) (135) Net income available to common shareholders $ 39,045 $ 46,974 $ 47,027 Denominator for basic earnings per share - Weighted-average shares outstanding 10,124,766 8,994,022 9,007,814 Effect of dilutive securities stock options or awards 17,033 17,122 2,923 Denominator for diluted earnings per share 10,141,799 9,011,144 9,010,737 Basic earnings per share available to common stockholders $ 3.86 $ 5.22 $ 5.22 Diluted earnings per share available to common stockholders $ 3.85 $ 5.21 $ 5.22 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 restricted stock |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations | |
Business Combinations | NOTE 14: Business Combinations On January 20, 2023, the Company completed the merger with Citizens and its wholly owned subsidiary, Citizens Bank and Trust Company (“Citizens Bank”), in a stock and cash transaction. In late February 2023, the Company merged Citizens Bank with and into the Bank, coincident to the data systems conversion. For the fiscal year ended June 30, 2023, the Company incurred $4.9 million of third-party acquisition-related costs, which are included in noninterest expense in the Company’s condensed consolidated statements of income. Under the acquisition method of accounting, the total purchase price is allocated to the net tangible and intangible assets acquired based on their estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Citizens merger is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the merger date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Citizens Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $ 34,889 Common stock, at fair value 98,280 Total consideration $ 133,169 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 243,225 Investment securities 226,451 Loans 447,388 Premises and equipment 23,430 BOLI 21,733 Identifiable intangible assets 24,645 Miscellaneous other assets 9,366 Deposits (851,140) Securities sold under agreements to repurchase (27,629) Miscellaneous other liabilities (7,784) Total identifiable net assets 109,685 Goodwill $ 23,484 Of the total purchase price, $22.1 million was allocated to core deposit intangible, and will be amortized over ten years on a straight line basis, $2.6 million was allocated to the intangible related to the acquired trust and wealth management business line and will be amortized over ten years on a straight line basis, and $23.5 million was allocated to goodwill. None of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and Citizens Bank. To the extent that management revises any of the fair value of the above fair value adjustments as a result of continuing evaluation, the amount of goodwill recorded in the merger will change. The Company acquired the $461.5 million loan portfolio at an estimated fair value discount of $14.1 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Loans acquired that were not subject to guidance relating to PCD loans include loans with a fair value and gross contractual amounts receivable of $419.5 . million and $520.0 million at the date of acquisition. Management identified 48 PCD loans, with a book balance of $27.5 million, associated with the Citizens merger(ASC 310-30). The Company utilized an outside valuation expert to estimate the fair value of acquired assets and assumed liabilities. This work related primarily to loans, the core deposit intangible, and the intangible related to the acquired trust and wealth management business lin e. The acquired business contributed revenues of $11.6 million and earnings of $3.3 million for the period from January 20, 2023 through June 30, 2023. The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on the first day of each period: Pro Forma For the twelve months ended June 30, (dollars in thousands) 2023 2022 Revenue $ 183,878 $ 166,101 Earnings $ 51,156 $ 56,856 On February 25, 2022, the Company completed its merger with Fortune and its wholly owned subsidiary, FortuneBank (“FB”), in a stock and cash transaction valued at approximately $35.5 million. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Fortune merger is detailed in the following table. Fortune Financial Corporation Fair Value of Consideration Transferred (dollars in thousands) Cash $ 12,664 Common stock, at fair value 22,884 Total consideration $ 35,548 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 34,280 Interest bearing time deposits 2,300 Loans 202,053 Premises and equipment 7,690 BOLI 3,720 Identifiable intangible assets 1,602 Miscellaneous other assets 3,512 Deposits (213,670) FHLB Advances (9,681) Subordinated debt (7,800) Miscellaneous other liabilities (1,214) Total identifiable net assets 22,792 Goodwill $ 12,756 Of the total purchase price, $1.6 million has been allocated to core deposit intangible, and will be amortized over seven years on a straight line basis. Additionally, $12.8 million has been allocated to goodwill, and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and FB. The Company acquired the $204.1 million loan portfolio at an estimated fair value discount of $2.1 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Loans acquired that were not subject to guidance relating to purchase credit deteriorated (PCD) loans include loans with a fair value and gross contractual amounts receivable of $187.0 million and $211.0 million at the date of merger. Management identified 31 PCD loans, with a book balance of $15.1 million, associated with the Fortune merger (ASC 310-30). On December 15, 2021, the Company completed its acquisition of the Cairo, Illinois, branch (“Cairo”) of First National Bank, Oldham, South Dakota. The deal resulted in the Bank relocating its facility from its prior location to the First National Bank location in Cairo. The Company views the acquisition and updates to the new facility as an expression of its continuing commitment to the Cairo community. For the fiscal years ended June 30, 2023 and 2022, the Company incurred Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Cairo acquisition is detailed in the following table. First National Bank - Cairo Branch Fair Value of Consideration Transferred (dollars in thousands) Cash received $ (26,932) Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 220 Loans 408 Premises and equipment 468 Identifiable intangible assets 168 Miscellaneous other assets 1 Deposits (28,540) Miscellaneous other liabilities (99) Total identifiable net liabilities (27,374) Goodwill $ 442 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 15: Fair Value Measurements ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Recurring Measurements Fair Value Measurements at June 30, 2023, 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) Obligations of state and political subdivisions $ 42,568 $ — $ 42,568 $ — Corporate obligations 32,538 — 32,538 — Asset backed securities 68,626 — 68,626 — Other securities 3,570 — 3,570 — MBS and CMOs 270,252 — 270,252 — Fair Value Measurements at June 30, 2022, 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) Obligations of state and political subdivisions $ 44,479 $ — $ 44,479 $ — Corporate obligations 19,887 — 19,887 — Other securities 443 — 443 — MBS and CMOs 170,585 — 170,585 — 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. There have been no significant changes in the valuation techniques during the year ended June 30, 2023. Available-for-sale Securities Nonrecurring Measurements Fair Value Measurements at June 30, 2023 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 $ 1,472 $ — $ — $ 1,472 Fair Value Measurements at June 30, 2022, 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 $ — $ — $ — $ — The following table presents losses recognized on assets measured on a non-recurring basis for the years ended June 30, 2023 and 2022: (dollars in thousands) 2023 2022 Foreclosed and repossessed assets held for sale $ 60 $ (503) Total gains (losses) on assets measured on a non-recurring basis $ 60 $ (503) 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 pursuant to the valuation hierarch. 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) June 30, 2023 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,472 Third party appraisal Marketability discount 14.9 - 14.9 % 14.9 % Fair Value of Financial Instruments June 30, 2023 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 $ 53,979 $ 53,979 $ — $ — Interest-bearing time deposits 1,242 — 1,242 — Stock in FHLB 11,540 — 11,540 — Stock in Federal Reserve Bank of St. Louis 9,061 — 9,061 — Loans receivable, net 3,571,078 — — 3,393,791 Accrued interest receivable 18,871 — 18,871 — Financial liabilities Deposits 3,725,540 2,661,479 — 1,053,650 Advances from FHLB 133,514 — 131,821 — Accrued interest payable 4,723 — 4,723 — Subordinated debt 23,105 — — 20,318 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2022 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 $ 86,792 $ 86,792 $ — $ — Interest-bearing time deposits 4,768 — 4,768 — Stock in FHLB 5,893 — 5,893 — Stock in Federal Reserve Bank of St. Louis 5,790 — 5,790 — Loans receivable, net 2,686,198 — — 2,655,882 Accrued interest receivable 11,052 — 11,052 — Financial liabilities Deposits 2,815,075 2,176,444 — 637,163 Securities sold under agreements to repurchase — — — — Advances from FHLB 37,957 — 35,916 — Note payable — — — — Accrued interest payable 801 — 801 — Subordinated debt 23,055 — — 22,070 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Significant Estimates
Significant Estimates | 12 Months Ended |
Jun. 30, 2023 | |
Significant Estimates. | |
Significant Estimates | NOTE 16: Significant Estimates Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1. |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Statements | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Parent Company Only Financial Statements | |
Condensed Parent Company Only Financial Statements | NOTE 17: Condensed Parent Company Only Financial Statements The following condensed balance sheets, statements of income and comprehensive income and cash flows for Southern Missouri Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto: June 30, (dollars in thousands) 2023 2022 Condensed Balance Sheets Assets Cash and cash equivalents $ 13,442 $ 8,964 Other assets 52,178 28,691 Investment in common stock of Bank 404,247 306,549 TOTAL ASSETS $ 469,867 $ 344,204 Liabilities and Stockholders' Equity Accrued expenses and other liabilities $ 704 $ 377 Subordinated debt 23,105 23,055 TOTAL LIABILITIES 23,809 23,432 Stockholders' equity 446,058 320,772 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 469,867 $ 344,204 Year ended June 30, (dollars in thousands) 2023 2022 2021 Condensed Statements of Income Interest income $ 32 $ 14 $ 13 Interest expense 1,439 686 534 Net interest expense (1,407) (672) (521) Dividends from Bank 48,000 31,000 12,000 Operating expenses 3,041 1,124 599 Income before income taxes and equity in undistributed income of the Bank 43,552 29,204 10,880 Income tax benefit 552 321 235 Income before equity in undistributed income of the Bank 44,104 29,525 11,115 Equity in undistributed income of the Bank (4,867) 17,644 36,065 NET INCOME $ 39,237 $ 47,169 $ 47,180 COMPREHENSIVE INCOME $ 34,799 $ 26,800 $ 45,615 Year ended June 30, (dollars in thousands) 2023 2022 2021 Condensed Statements of Cash Flow Cash Flows from operating activities: Net income $ 39,237 $ 47,169 $ 47,180 Changes in: Equity in undistributed income of the Bank 4,867 (17,644) (36,065) Other adjustments, net 388 (698) (559) NET CASH PROVIDED BY OPERATING ACTIVITES 44,492 28,827 10,556 Investments in Bank subsidiaries (31,382) (8,024) — NET CASH USED IN INVESTING ACTIVITIES (31,382) (8,024) — Cash flows from financing activities: Dividends on common stock (8,632) (7,194) (5,598) Payments to acquire treasury stock — (5,838) (8,341) NET CASH USED IN FINANCING ACTIVITIES (8,632) (13,032) (13,939) Net increase (decrease) in cash and cash equivalents 4,478 7,771 (3,383) Cash and cash equivalents at beginning of year 8,964 1,193 4,576 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 13,442 $ 8,964 $ 1,193 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2023 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | NOTE 18: Quarterly Financial Data (Unaudited) Quarterly operating data is summarized as follows (in thousands): June 30, 2023 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 34,996 $ 38,851 $ 48,286 $ 54,283 Interest expense 6,487 10,600 14,519 18,065 Net interest income 28,509 28,251 33,767 36,218 Provision for credit losses 5,056 1,138 10,072 795 Noninterest income 5,513 5,456 6,284 8,951 Noninterest expense 16,920 17,638 26,992 24,875 Income before income taxes 12,046 14,931 2,987 19,499 Income tax expense 2,442 3,267 578 3,939 NET INCOME $ 9,604 $ 11,664 $ 2,409 $ 15,560 Basic earnings per share $ 1.04 $ 1.26 $ 0.22 $ 1.37 Diluted earnings per share $ 1.04 $ 1.26 $ 0.22 $ 1.37 June 30, 2022 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 28,860 $ 28,096 $ 28,339 $ 31,572 Interest expense 3,223 3,038 3,225 3,814 Net interest income 25,637 25,058 25,114 27,758 Provision for loan losses (305) — 1,552 240 Noninterest income 4,515 5,285 4,904 6,499 Noninterest expense 14,221 15,070 16,757 17,331 Income before income taxes 16,236 15,273 11,709 16,686 Income tax expense 3,487 3,288 2,358 3,602 NET INCOME $ 12,749 $ 11,985 $ 9,351 $ 13,084 Basic earnings per share $ 1.43 $ 1.35 $ 1.03 $ 1.41 Diluted earnings per share $ 1.43 $ 1.34 $ 1.03 $ 1.41 June 30, 2021 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 26,972 $ 27,871 $ 27,100 $ 27,532 Interest expense 4,908 4,344 3,951 3,586 Net interest income 22,064 23,527 23,149 23,946 Provision for loan losses 1,000 1,000 (409) (2,615) Noninterest income 4,941 5,720 4,524 4,857 Noninterest expense 13,272 13,046 13,528 14,201 Income before income taxes 12,733 15,201 14,554 17,217 Income tax expense 2,747 3,153 3,096 3,529 NET INCOME $ 9,986 $ 12,048 $ 11,458 $ 13,688 Basic earnings per share $ 1.09 $ 1.33 $ 1.27 $ 1.53 Diluted earnings per share $ 1.09 $ 1.32 $ 1.27 $ 1.53 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Organization and Summary of Significant Accounting Policies | |
Organization | 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 | Basis of Financial Statement Presentation. |
Principles of Consolidation | Principles of Consolidation. |
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. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, and estimated fair values of purchased 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. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers 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 June 30, 2023, or June 30, 2022. 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. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. 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 incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term 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 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. 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. 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. |
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 method 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 |
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 the 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. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense. |
Non-Employee Directors' Retirement | Non-Employee Directors’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. |
Stock Options | Stock Options. C |
Earnings Per Share | Earnings Per Share. |
Comprehensive Income | Comprehensive Income. |
Transfers Between Fair Value Hierarchy Levels | Transfers Between Fair Value Hierarchy Levels. |
Wealth Management Assets and Fees | Wealth Management Assets and Fees |
New Accounting Pronouncements | The following paragraphs summarize the impact of new accounting pronouncements: 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 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 could have been 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. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)," to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates have been widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Originally, an entity could apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. With the issuance of ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2020-04 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In January 2021, the FASB has published ASU 2021-01, “Reference Rate Reform. (Topic 848)”. ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amended the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. Originally, the amendments in this update did not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022 except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). With the issuance of ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2021-01 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors” for entities that have adopted the CECL model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2022-02 also requires that public business entities disclose current-period gross charge offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost.” ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, for entities that have adopted the amendments in ASU 2016-13, and the Company does not expect the ASU to have a material impact on its consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not expect adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. |
Significant Estimates | Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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 |
Available for Sale Securities (
Available for Sale Securities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Available for Sale Securities | |
Schedule of Available for Sale Securities | June 30, 2023 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 45,285 $ 20 $ (2,737) $ — $ 42,568 Corporate obligations 35,700 19 (3,181) — 32,538 Asset backed securities 67,897 1,274 (545) — 68,626 Other securities 3,587 39 (56) — 3,570 Total debt and equity securities 152,469 1,352 (6,519) — 147,302 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 97,612 122 (7,610) — 90,124 Commercial MBS issued by GSEs 60,333 11 (6,959) — 53,385 CMOs issued by GSEs 135,202 9 (8,468) — 126,743 Total MBS and CMOs 293,147 142 (23,037) — 270,252 Total AFS securities $ 445,616 $ 1,494 $ (29,556) $ — $ 417,554 June 30, 2022 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 47,383 $ 77 $ (2,981) $ — $ 44,479 Corporate obligations 20,818 32 (963) — 19,887 Other securities 486 — (43) — 443 Total debt and equity securities 68,687 109 (3,987) — 64,809 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 76,345 — (7,177) — 69,168 Commercial MBS issued by GSEs 51,435 — (5,705) — 45,730 CMOs issued by GSEs 61,293 — (5,606) — 55,687 Total MBS and CMOs 189,073 — (18,488) — 170,585 Total AFS securities $ 257,760 $ 109 $ (22,475) $ — $ 235,394 |
Schedule of amortized cost and fair value of available-for-sale securities, by contractual maturity | June 30, 2023 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 3,233 $ 3,221 After one year but less than five years 24,395 23,380 After five years but less than ten years 59,286 56,089 After ten years 65,555 64,612 Total investment securities 152,469 147,302 MBS and CMOs 293,147 270,252 Total AFS securities $ 445,616 $ 417,554 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses For the year ended June 30, 2023 Obligations of state and political subdivisions $ 11,574 $ 184 $ 26,763 $ 2,553 $ 38,337 $ 2,737 Corporate obligations 14,709 1,074 13,821 2,107 28,530 3,181 Asset backed securities 22,628 263 698 282 23,326 545 Other securities 1,970 11 350 45 2,320 56 MBS and CMOs 87,354 1,525 145,673 21,512 233,027 23,037 Total AFS securities $ 138,235 $ 3,057 $ 187,305 $ 26,499 $ 325,540 $ 29,556 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses For the year ended June 30, 2022 Obligations of state and political subdivisions $ 31,985 $ 2,639 $ 1,600 $ 342 $ 33,585 $ 2,981 Corporate obligations 10,944 420 6,911 543 17,855 963 Other securities 418 43 — — 418 43 MBS and CMOs 137,590 12,482 29,834 6,006 167,424 18,488 Total AFS securities $ 180,937 $ 15,584 $ 38,345 $ 6,891 $ 219,282 $ 22,475 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses | |
Schedule of classes of loans | (dollars in thousands) June 30, 2023 June 30, 2022 Real Estate Loans: Residential $ 1,133,417 $ 904,160 Construction 550,052 258,072 Commercial 1,562,379 1,146,673 Consumer loans 133,515 92,996 Commercial loans 599,030 441,598 3,978,393 2,843,499 Loans in process (359,196) (123,656) Deferred loan fees, net (299) (453) Allowance for credit losses (47,820) (33,192) Total loans $ 3,571,078 $ 2,686,198 |
Schedule of PCD loans | (dollars in thousands) January 20, 2023 PCD Loans - Citizens Purchase price of PCD loans at acquisition $ 27,481 Allowance for credit losses at acquisition (1,121) Fair value of PCD loans at acquisition $ 26,360 (dollars in thousands) February 25, 2022 PCD Loans - Fortune Purchase price of PCD loans at acquisition $ 15,055 Allowance for credit losses at acquisition (120) Fair value of PCD loans at acquisition $ 14,935 |
Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods | (dollars in thousands) Residential Construction Commercial June 30, 2023 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 6,655 432 5,605 334 1,105 14,131 Losses charged off (19) — (245) (327) (82) (673) Recoveries 1 — 12 28 8 49 Balance, end of period $ 15,641 $ 2,664 $ 22,838 $ 909 $ 5,768 $ 47,820 (dollars in thousands) Residential Construction Commercial June 30, 2022 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 Impact of CECL adoption 23 4 52 — 41 120 Provision (benefit) charged to expense (2,238) 46 2,251 (205) 80 (66) Losses charged off (72) — — (65) (16) (153) Recoveries 3 — — 64 2 69 Balance, end of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 (dollars in thousands) Residential Construction Commercial June 30, 2021 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 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 (benefit) charged to expense 2,973 281 (1,364) (1,232) (1,260) (602) Losses charged off (180) — (90) (146) (318) (734) Recoveries 3 — 1 47 35 86 Balance, end of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 |
Schedule of Allowance for off-balance credit exposure | (dollars in thousands) Residential Construction Commercial June 30, 2023 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 Provision charged to expense 13 2,631 54 12 220 2,930 Balance, end of period $ 71 $ 4,809 $ 475 $ 73 $ 860 $ 6,288 (dollars in thousands) Residential Construction Commercial June 30, 2022 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 Provision (benefit) charged to expense 21 1,676 233 (157) (220) 1,553 Balance, end of period $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 (dollars in thousands) Residential Construction Commercial June 30, 2021 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 19 $ 769 $ 172 $ 153 $ 846 $ 1,959 Impact of CECL adoption 35 (167) 95 197 108 268 Provision (benefit) charged to expense (17) (100) (79) (132) (94) (422) Balance, end of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 |
Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity | (dollars in thousands) Revolving June 30, 2023 2022 2021 2020 2019 Prior loans Total Residential Real Estate Pass $ 328,142 $ 312,853 $ 252,077 $ 103,735 $ 25,651 $ 96,035 $ 9,100 $ 1,127,593 Watch 1,214 1,136 616 108 198 27 5 3,304 Special Mention — — — — — — — — Substandard 837 316 510 — — 857 — 2,520 Doubtful — — — — — — — — Total Residential Real Estate $ 330,193 $ 314,305 $ 253,203 $ 103,843 $ 25,849 $ 96,919 $ 9,105 $ 1,133,417 Construction Real Estate Pass $ 124,479 $ 50,011 $ 10,946 $ 3,190 $ — $ — $ 941 $ 189,567 Watch 280 — — — — — — 280 Special Mention — — — — — — — — Substandard 330 679 — — — — — 1,009 Doubtful — — — — — — — — Total Construction Real Estate $ 125,089 $ 50,690 $ 10,946 $ 3,190 $ — $ — $ 941 $ 190,856 Commercial Real Estate Pass $ 462,643 $ 474,140 $ 279,921 $ 89,272 $ 74,653 $ 83,871 $ 37,443 $ 1,501,943 Watch 8,122 5,382 163 3,879 — 117 — 17,663 Special Mention 2,940 — — — — — — 2,940 Substandard 7,690 26,465 2,425 288 473 1,735 757 39,833 Doubtful — — — — — — — — Total Commercial Real Estate $ 481,395 $ 505,987 $ 282,509 $ 93,439 $ 75,126 $ 85,723 $ 38,200 $ 1,562,379 Consumer Pass $ 36,003 $ 14,530 $ 5,446 $ 1,692 $ 717 $ 1,379 $ 73,225 $ 132,992 Watch 71 — 62 — — — — 133 Special Mention — — — — — — — — Substandard 33 2 1 — — 41 313 390 Doubtful — — — — — — — — Total Consumer $ 36,107 $ 14,532 $ 5,509 $ 1,692 $ 717 $ 1,420 $ 73,538 $ 133,515 Commercial Pass $ 138,500 $ 83,011 $ 71,054 $ 10,723 $ 6,239 $ 10,657 $ 272,710 $ 592,894 Watch 698 211 91 3 — — 2,549 3,552 Special Mention — — — — — — — — Substandard 860 329 128 184 175 574 334 2,584 Doubtful — — — — — — — — Total Commercial $ 140,058 $ 83,551 $ 71,273 $ 10,910 $ 6,414 $ 11,231 $ 275,593 $ 599,030 Total Loans Pass $ 1,089,767 $ 934,545 $ 619,444 $ 208,612 $ 107,260 $ 191,942 $ 393,419 $ 3,544,989 Watch 10,385 6,729 932 3,990 198 144 2,554 24,932 Special Mention 2,940 — — — — — — 2,940 Substandard 9,750 27,791 3,064 472 648 3,207 1,404 46,336 Doubtful — — — — — — — — Total $ 1,112,842 $ 969,065 $ 623,440 $ 213,074 $ 108,106 $ 195,293 $ 397,377 $ 3,619,197 (dollars in thousands) Revolving June 30, 2022 2021 2020 2019 2018 Prior loans Total Residential Real Estate Pass $ 380,502 $ 295,260 $ 118,464 $ 19,383 $ 22,143 $ 58,545 $ 6,074 $ 900,371 Watch 44 242 1,083 56 — 30 — 1,455 Special Mention — — — — — — — — Substandard 266 918 87 440 18 605 — 2,334 Doubtful — — — — — — — — Total Residential Real Estate $ 380,812 $ 296,420 $ 119,634 $ 19,879 $ 22,161 $ 59,180 $ 6,074 $ 904,160 Construction Real Estate Pass $ 100,114 $ 34,082 $ — $ — $ — $ — $ 220 $ 134,416 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total Construction Real Estate $ 100,114 $ 34,082 $ — $ — $ — $ — $ 220 $ 134,416 Commercial Real Estate Pass $ 487,486 $ 284,736 $ 105,893 $ 71,380 $ 51,804 $ 78,115 $ 23,669 $ 1,103,083 Watch 4,763 769 1,818 — 668 2,000 548 10,566 Special Mention 9,297 — — — — — — 9,297 Substandard 22,086 481 140 13 22 93 65 22,900 Doubtful 827 — — — — — — 827 Total Commercial Real Estate $ 524,459 $ 285,986 $ 107,851 $ 71,393 $ 52,494 $ 80,208 $ 24,282 $ 1,146,673 Consumer Pass $ 28,519 $ 10,989 $ 3,662 $ 1,524 $ 916 $ 676 $ 46,521 $ 92,807 Watch 21 71 — — — — — 92 Special Mention — — — — — — — — Substandard 23 6 4 — 10 31 23 97 Doubtful — — — — — — — — Total Consumer $ 28,563 $ 11,066 $ 3,666 $ 1,524 $ 926 $ 707 $ 46,544 $ 92,996 Commercial Pass $ 111,370 $ 93,906 $ 20,795 $ 10,496 $ 3,253 $ 7,612 $ 190,235 $ 437,667 Watch 1,319 194 38 6 — 186 1,206 2,949 Special Mention — — — — — — — — Substandard 295 11 — 186 — 167 323 982 Doubtful — — — — — — — — Total Commercial $ 112,984 $ 94,111 $ 20,833 $ 10,688 $ 3,253 $ 7,965 $ 191,764 $ 441,598 Total Loans Pass $ 1,107,991 $ 718,973 $ 248,814 $ 102,783 $ 78,116 $ 144,948 $ 266,719 $ 2,668,344 Watch 6,147 1,276 2,939 62 668 2,216 1,754 15,062 Special Mention 9,297 — — — — — — 9,297 Substandard 22,670 1,416 231 639 50 896 411 26,313 Doubtful 827 — — — — — — 827 Total $ 1,146,932 $ 721,665 $ 251,984 $ 103,484 $ 78,834 $ 148,060 $ 268,884 $ 2,719,843 |
Schedule of company's loan portfolio aging analysis | 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 June 30, 2023 Real Estate Loans: Residential $ 1,984 $ 401 $ 483 $ 2,868 $ 1,130,549 $ 1,133,417 $ 109 Construction 443 311 698 1,452 189,404 190,856 — Commercial 616 1,854 1,580 4,050 1,558,329 1,562,379 — Consumer loans 456 124 212 792 132,723 133,515 — Commercial loans 713 77 789 1,579 597,451 599,030 — Total loans $ 4,212 $ 2,767 $ 3,762 $ 10,741 $ 3,608,456 $ 3,619,197 $ 109 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 June 30, 2022 Real Estate Loans: Residential $ 1,402 $ — $ 1,064 $ 2,466 $ 901,694 $ 904,160 $ — Construction — — — — 134,416 134,416 — Commercial 416 615 288 1,319 1,145,354 1,146,673 — Consumer loans 340 45 57 442 92,554 92,996 — Commercial loans 274 72 13 359 441,239 441,598 — Total loans $ 2,432 $ 732 $ 1,422 $ 4,586 $ 2,715,257 $ 2,719,843 $ — |
Schedule of company's collateral dependent loans and related ACL | Amortized cost basis of (dollars in thousands) loans determined to be Related allowance June 30, 2023 collateral dependent for credit losses Residential real estate loans 1- to 4-family residential loans $ 6,376 $ 901 Total loans $ 6,376 $ 901 Amortized cost basis of (dollars in thousands) loans determined to be Related allowance June 30, 2022 collateral dependent for credit losses Residential real estate loans 1- to 4-family residential loans $ 864 $ 193 Total loans $ 864 $ 193 |
Schedule of Company's nonaccrual loans | (dollars in thousands) June 30, 2023 June 30, 2022 Residential real estate $ 934 $ 1,647 Construction real estate 698 — Commercial real estate 4,564 2,259 Consumer loans 256 73 Commercial loans 1,091 139 Total loans $ 7,543 $ 4,118 |
Performing loans classified as TDRs and outstanding , segregated by class | June 30, 2023 June 30, 2022 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 10 $ 3,438 11 $ 3,625 Construction real estate — — — — Commercial real estate 6 24,017 8 25,132 Consumer loans — — — — Commercial loans 6 2,310 8 1,849 Total 22 $ 29,765 27 $ 30,606 |
Schedule of loans to executive officers, directors, significant shareholders and their affiliates held by the Company | June 30, (dollars in thousands) 2023 2022 Beginning Balance $ 10,614 $ 10,624 Additions 6,374 6,393 Repayments (7,223) (6,403) Change in related party 782 — Ending Balance $ 10,547 $ 10,614 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Premises and Equipment | |
Schedule of summary of premises and equipment | (dollars in thousands) June 30, 2023 June 30, 2022 Land $ 15,415 $ 13,532 Buildings and improvements 79,661 64,730 Construction in progress 450 142 Furniture, fixtures, equipment and software 26,404 20,838 Automobiles 122 120 Operating leases ROU asset 6,125 3,849 128,177 103,211 Less accumulated depreciation 35,780 31,864 $ 92,397 $ 71,347 |
Schedule of calculated amount of right of use assets and lease liabilities | At or for the Twelve Months Ended June 30, (dollars in thousands) 2023 2022 Consolidated Balance Sheet Operating leases right of use asset $ 6,125 $ 3,849 Operating leases liability $ 6,125 $ 3,849 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 720 $ 451 (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 $ 524 $ 382 ROU assets obtained in exchange for operating lease obligations: $ — $ — |
Schedule of Future Minimum Rental Payments for Operating Leases | (dollars in thousands) 2024 $ 721 2025 711 2026 707 2027 694 2028 623 Thereafter 7,359 Future lease payments expected $ 10,815 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Deposits | |
Schedule of deposits | (dollars in thousands) June 30, 2023 June 30, 2022 Non-interest bearing accounts $ 597,600 $ 426,929 NOW accounts 1,328,423 1,171,620 Money market deposit accounts 452,728 303,612 Savings accounts 282,753 274,283 TOTAL NON-MATURITY DEPOSITS 2,661,504 2,176,444 Certificates 0.00-0.99% 92,533 408,479 1.00-1.99% 109,564 171,997 2.00-2.99% 186,538 51,692 3.00-3.99% 109,780 6,298 4.00-4.99% 472,546 165 5.00-5.99% 93,057 — 6.00% and above 18 — TOTAL CERTIFICATES 1,064,036 638,631 TOTAL DEPOSITS $ 3,725,540 $ 2,815,075 |
Schedule of Certificate maturities | (dollars in thousands) July 1, 2023 to June 30, 2024 $ 690,500 July 1, 2024 to June 30, 2025 208,578 July 1, 2025 to June 30, 2026 69,336 July 1, 2026 to June 30, 2027 49,439 July 1, 2027 to June 30, 2028 46,083 Thereafter 100 TOTAL $ 1,064,036 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Advances from Federal Home Loan Bank | |
Schedule of Advances from Federal Home Loan Bank | Interest June 30, Maturity Rate 2023 2022 (dollars in thousands) 08/15/22 1.89 % $ — $ 3,000 11/16/22 0.51 % — 1,994 03/06/23 0.99 % — 3,000 07/24/23 0.59 % 998 987 11/15/23 0.57 % 993 980 03/06/24 0.95 % 3,000 3,000 03/28/24 2.56 % 8,000 8,000 07/24/24 0.66 % 1,966 1,940 08/13/24 1.88 % 3,000 3,000 02/21/25 1.53 % — 5,000 03/06/25 1.01 % 3,000 3,000 07/15/25 0.77 % 1,939 1,913 07/22/26 1.10 % 1,929 1,909 12/14/26 2.65 % 189 234 04/20/26 4.39 % 5,000 — 06/22/26 4.55 % 5,000 — 06/26/26 4.49 % 5,000 — 04/12/27 4.04 % 5,000 — 04/27/27 4.07 % 5,000 — 05/03/27 3.95 % 5,000 — 05/12/27 3.86 % 5,000 — 06/22/27 4.38 % 5,000 — 06/25/27 4.34 % 5,000 — 03/23/28 3.85 % 10,000 — 03/24/28 3.93 % 10,000 — 06/22/28 4.21 % 5,000 — 06/26/28 4.18 % 5,000 — Overnight 5.35 % 33,500 — TOTAL $ 133,514 $ 37,957 Weighted-average rate 3.95 % 1.47 % |
Schedule of Principal Maturities of Federal Home Loan Bank | June 30, 2023 FHLB Advance Maturities (dollars in thousands) July 1, 2023 to June 30, 2024 $ 46,491 July 1, 2024 to June 30, 2025 7,966 July 1, 2025 to June 30, 2026 1,939 July 1, 2026 to June 30, 2027 47,118 July 1, 2027 to June 30, 2028 30,000 TOTAL $ 133,514 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Employee Benefits | |
Schedule of changes in options outstanding under the 2003 Plan and the 2017 Plan | 2023 2022 2021 Weighted Weighted Weighted Average Average Average Price Number Price Number Price Number Outstanding at beginning of year $ 36.56 104,000 $ 33.77 89,500 $ 33.22 60,500 Granted 38.58 44,000 53.82 14,500 34.91 29,000 Exercised — — — — — — Forfeited — — — — — — Outstanding at year-end $ 39.63 148,000 $ 36.56 104,000 $ 33.77 89,500 Options exercisable at year-end $ 33.89 63,700 $ 31.92 44,900 $ 29.79 29,000 |
Schedule of values of options granted | 2023 2022 2021 Assumptions: Expected dividend yield 1.79 % 1.49 % 1.83 % Expected volatility 29.67 % 28.02 % 27.72 % Risk-free interest rate 3.79 % 1.82 % 1.14 % Weighted-average expected life (years) 10.00 10.00 10.00 Weighted-average fair value of options granted during the year $ 16.68 $ 16.38 $ 9.19 |
Schedule of stock options under the 2003 Plan and 2017 Plan | Weighted Options Outstanding Options Exercisable Average Weighted Weighted Remaining Average Average Contractual Number Exercise Number Exercise Life Outstanding Price Exercisable Price 14 mo. 10,000 $ 17.55 10,000 $ 17.55 55 mo. 13,500 37.31 13,500 37.31 66 mo. 17,500 34.35 14,000 34.35 80 mo. 19,500 37.40 11,700 37.40 91 mo. 29,000 34.91 11,600 34.91 103 mo. 14,500 53.82 2,900 53.82 109 mo. 7,500 46.59 — 46.59 116 mo. 36,500 46.94 — 46.94 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Schedule of components of net deferred tax assets | (dollars in thousands) June 30, 2023 June 30, 2022 Deferred tax assets: Provision for losses on loans $ 12,101 $ 7,761 Accrued compensation and benefits 974 828 NOL carry forwards acquired 709 57 Low income tax credit carry forward 1,192 — Unrealized loss on other real estate 818 72 Unrealized loss on available for sale securities 6,174 4,921 Total deferred tax assets 21,968 13,639 Deferred tax liabilities: Purchase accounting adjustments 2,348 224 Depreciation 4,276 1,974 FHLB stock dividends 120 120 Prepaid expenses 728 415 Other 1,636 181 Total deferred tax liabilities 9,108 2,914 Net deferred tax asset $ 12,860 $ 10,725 |
Schedule of reconciliation of income tax expense at the statutory rate | For the year ended June 30 (dollars in thousands) 2023 2022 2021 Tax at statutory rate $ 10,387 $ 12,580 $ 12,538 Increase (reduction) in taxes resulting from: Nontaxable municipal income (327) (349) (453) State tax, net of Federal benefit 46 812 1,018 Cash surrender value of Bank-owned life insurance (318) (245) (378) Tax credit benefits (19) (45) (11) Other, net 457 (18) (189) Actual provision $ 10,226 $ 12,735 $ 12,525 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (AOCI) (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (AOCI) | |
Schedule of components of AOCI | June 30, (dollars in thousands) 2023 2022 Net unrealized loss on securities available-for-sale $ (28,062) $ (22,366) Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income (1) (1) Unrealized gain from defined benefit pension plan (32) (37) (28,095) (22,404) Tax effect 6,170 4,917 Net of tax amount $ (21,925) $ (17,487) |
Schedule of reclassified from AOCI | Amounts Reclassified From AOCI (dollars in thousands) Affected Line Item in the Condensed 2023 2022 Consolidated Statements of Income Amortization of defined benefit pension items $ 5 $ (11) Compensation and benefits (included in computation of net periodic pension costs) Total reclassified amount before tax 5 (11) Tax benefit 1 (2) Provision for income tax Total reclassification out of AOCI $ 4 $ (9) Net Income |
Stockholders' Equity and Regu_2
Stockholders' Equity and Regulatory Capital (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity and Regulatory Capital | |
Schedule of company and Bank's actual and required regulatory capital | To Be Well Capitalized Under Prompt Corrective Action Actual For Capital Adequacy Purposes Provisions As of June 30, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 481,236 12.52 % $ 307,528 8.00 % $ n/a n/a Southern Bank 454,699 11.77 % 308,932 8.00 % 386,166 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 426,644 11.10 % 230,646 6.00 % n/a n/a Southern Bank 407,764 10.56 % 231,699 6.00 % 308,932 8.00 % Tier I Capital (to Average Assets) Consolidated 426,644 9.95 % 171,470 4.00 % n/a n/a Southern Bank 407,764 9.54 % 170,942 4.00 % 213,677 5.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 411,196 10.70 % 172,985 4.50 % n/a n/a Southern Bank 407,764 10.56 % 173,774 4.50 % 251,008 6.50 % To Be Well Capitalized Under Prompt Corrective Action Actual For Capital Adequacy Purposes Provisions As of June 30, 2022 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 370,013 13.42 % $ 220,558 8.00 % $ n/a n/a Southern Bank 352,169 12.90 % 218,397 8.00 % 272,996 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 335,316 12.16 % 165,418 6.00 % n/a n/a Southern Bank 325,183 11.91 % 163,797 6.00 % 218,397 8.00 % Tier I Capital (to Average Assets) Consolidated 335,316 10.41 % 128,822 4.00 % n/a n/a Southern Bank 325,183 10.22 % 127,333 4.00 % 159,167 5.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 319,971 11.61 % 124,064 4.50 % n/a n/a Southern Bank 325,183 11.91 % 122,848 4.50 % 177,447 6.50 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | June 30, (dollars in thousands except per share data) 2023 2022 2021 Net income $ 39,237 $ 47,169 $ 47,180 Less: distributed earnings allocated to participating securities (42) (30) (18) Less: undistributed earnings allocated to participating securities (150) (165) (135) Net income available to common shareholders $ 39,045 $ 46,974 $ 47,027 Denominator for basic earnings per share - Weighted-average shares outstanding 10,124,766 8,994,022 9,007,814 Effect of dilutive securities stock options or awards 17,033 17,122 2,923 Denominator for diluted earnings per share 10,141,799 9,011,144 9,010,737 Basic earnings per share available to common stockholders $ 3.86 $ 5.22 $ 5.22 Diluted earnings per share available to common stockholders $ 3.85 $ 5.21 $ 5.22 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Citizens | |
Schedule of Purchase price | Citizens Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $ 34,889 Common stock, at fair value 98,280 Total consideration $ 133,169 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 243,225 Investment securities 226,451 Loans 447,388 Premises and equipment 23,430 BOLI 21,733 Identifiable intangible assets 24,645 Miscellaneous other assets 9,366 Deposits (851,140) Securities sold under agreements to repurchase (27,629) Miscellaneous other liabilities (7,784) Total identifiable net assets 109,685 Goodwill $ 23,484 |
Schedule of unaudited pro forma | Pro Forma For the twelve months ended June 30, (dollars in thousands) 2023 2022 Revenue $ 183,878 $ 166,101 Earnings $ 51,156 $ 56,856 |
Fortune | |
Schedule of Purchase price | Fortune Financial Corporation Fair Value of Consideration Transferred (dollars in thousands) Cash $ 12,664 Common stock, at fair value 22,884 Total consideration $ 35,548 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 34,280 Interest bearing time deposits 2,300 Loans 202,053 Premises and equipment 7,690 BOLI 3,720 Identifiable intangible assets 1,602 Miscellaneous other assets 3,512 Deposits (213,670) FHLB Advances (9,681) Subordinated debt (7,800) Miscellaneous other liabilities (1,214) Total identifiable net assets 22,792 Goodwill $ 12,756 |
First National Bank, Cairo | |
Schedule of Purchase price | First National Bank - Cairo Branch Fair Value of Consideration Transferred (dollars in thousands) Cash received $ (26,932) Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 220 Loans 408 Premises and equipment 468 Identifiable intangible assets 168 Miscellaneous other assets 1 Deposits (28,540) Miscellaneous other liabilities (99) Total identifiable net liabilities (27,374) Goodwill $ 442 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at June 30, 2023, 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) Obligations of state and political subdivisions $ 42,568 $ — $ 42,568 $ — Corporate obligations 32,538 — 32,538 — Asset backed securities 68,626 — 68,626 — Other securities 3,570 — 3,570 — MBS and CMOs 270,252 — 270,252 — Fair Value Measurements at June 30, 2022, 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) Obligations of state and political subdivisions $ 44,479 $ — $ 44,479 $ — Corporate obligations 19,887 — 19,887 — Other securities 443 — 443 — MBS and CMOs 170,585 — 170,585 — |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at June 30, 2023 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 $ 1,472 $ — $ — $ 1,472 Fair Value Measurements at June 30, 2022, 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 $ — $ — $ — $ — |
Losses Recognized on Assets Measured on a Nonrecurring Basis | (dollars in thousands) 2023 2022 Foreclosed and repossessed assets held for sale $ 60 $ (503) Total gains (losses) on assets measured on a non-recurring basis $ 60 $ (503) |
Fair Value Option, Disclosures | Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2023 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,472 Third party appraisal Marketability discount 14.9 - 14.9 % 14.9 % |
Schedule of Financial Instruments | June 30, 2023 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 $ 53,979 $ 53,979 $ — $ — Interest-bearing time deposits 1,242 — 1,242 — Stock in FHLB 11,540 — 11,540 — Stock in Federal Reserve Bank of St. Louis 9,061 — 9,061 — Loans receivable, net 3,571,078 — — 3,393,791 Accrued interest receivable 18,871 — 18,871 — Financial liabilities Deposits 3,725,540 2,661,479 — 1,053,650 Advances from FHLB 133,514 — 131,821 — Accrued interest payable 4,723 — 4,723 — Subordinated debt 23,105 — — 20,318 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2022 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 $ 86,792 $ 86,792 $ — $ — Interest-bearing time deposits 4,768 — 4,768 — Stock in FHLB 5,893 — 5,893 — Stock in Federal Reserve Bank of St. Louis 5,790 — 5,790 — Loans receivable, net 2,686,198 — — 2,655,882 Accrued interest receivable 11,052 — 11,052 — Financial liabilities Deposits 2,815,075 2,176,444 — 637,163 Securities sold under agreements to repurchase — — — — Advances from FHLB 37,957 — 35,916 — Note payable — — — — Accrued interest payable 801 — 801 — Subordinated debt 23,055 — — 22,070 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Condensed Parent Company Only_2
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Parent Company Only Financial Statements | |
Parent Company Condensed Balance Sheets | June 30, (dollars in thousands) 2023 2022 Condensed Balance Sheets Assets Cash and cash equivalents $ 13,442 $ 8,964 Other assets 52,178 28,691 Investment in common stock of Bank 404,247 306,549 TOTAL ASSETS $ 469,867 $ 344,204 Liabilities and Stockholders' Equity Accrued expenses and other liabilities $ 704 $ 377 Subordinated debt 23,105 23,055 TOTAL LIABILITIES 23,809 23,432 Stockholders' equity 446,058 320,772 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 469,867 $ 344,204 |
Parent Company Condensed Statements of Income | Year ended June 30, (dollars in thousands) 2023 2022 2021 Condensed Statements of Income Interest income $ 32 $ 14 $ 13 Interest expense 1,439 686 534 Net interest expense (1,407) (672) (521) Dividends from Bank 48,000 31,000 12,000 Operating expenses 3,041 1,124 599 Income before income taxes and equity in undistributed income of the Bank 43,552 29,204 10,880 Income tax benefit 552 321 235 Income before equity in undistributed income of the Bank 44,104 29,525 11,115 Equity in undistributed income of the Bank (4,867) 17,644 36,065 NET INCOME $ 39,237 $ 47,169 $ 47,180 COMPREHENSIVE INCOME $ 34,799 $ 26,800 $ 45,615 |
Parent Company Condensed Statements of Cash Flows | Year ended June 30, (dollars in thousands) 2023 2022 2021 Condensed Statements of Cash Flow Cash Flows from operating activities: Net income $ 39,237 $ 47,169 $ 47,180 Changes in: Equity in undistributed income of the Bank 4,867 (17,644) (36,065) Other adjustments, net 388 (698) (559) NET CASH PROVIDED BY OPERATING ACTIVITES 44,492 28,827 10,556 Investments in Bank subsidiaries (31,382) (8,024) — NET CASH USED IN INVESTING ACTIVITIES (31,382) (8,024) — Cash flows from financing activities: Dividends on common stock (8,632) (7,194) (5,598) Payments to acquire treasury stock — (5,838) (8,341) NET CASH USED IN FINANCING ACTIVITIES (8,632) (13,032) (13,939) Net increase (decrease) in cash and cash equivalents 4,478 7,771 (3,383) Cash and cash equivalents at beginning of year 8,964 1,193 4,576 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 13,442 $ 8,964 $ 1,193 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Quarterly Financial Data (Unaudited) | |
Schedule of Quarterly Financial Information | Quarterly operating data is summarized as follows (in thousands): June 30, 2023 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 34,996 $ 38,851 $ 48,286 $ 54,283 Interest expense 6,487 10,600 14,519 18,065 Net interest income 28,509 28,251 33,767 36,218 Provision for credit losses 5,056 1,138 10,072 795 Noninterest income 5,513 5,456 6,284 8,951 Noninterest expense 16,920 17,638 26,992 24,875 Income before income taxes 12,046 14,931 2,987 19,499 Income tax expense 2,442 3,267 578 3,939 NET INCOME $ 9,604 $ 11,664 $ 2,409 $ 15,560 Basic earnings per share $ 1.04 $ 1.26 $ 0.22 $ 1.37 Diluted earnings per share $ 1.04 $ 1.26 $ 0.22 $ 1.37 June 30, 2022 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 28,860 $ 28,096 $ 28,339 $ 31,572 Interest expense 3,223 3,038 3,225 3,814 Net interest income 25,637 25,058 25,114 27,758 Provision for loan losses (305) — 1,552 240 Noninterest income 4,515 5,285 4,904 6,499 Noninterest expense 14,221 15,070 16,757 17,331 Income before income taxes 16,236 15,273 11,709 16,686 Income tax expense 3,487 3,288 2,358 3,602 NET INCOME $ 12,749 $ 11,985 $ 9,351 $ 13,084 Basic earnings per share $ 1.43 $ 1.35 $ 1.03 $ 1.41 Diluted earnings per share $ 1.43 $ 1.34 $ 1.03 $ 1.41 June 30, 2021 First Second Third Fourth (dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 26,972 $ 27,871 $ 27,100 $ 27,532 Interest expense 4,908 4,344 3,951 3,586 Net interest income 22,064 23,527 23,149 23,946 Provision for loan losses 1,000 1,000 (409) (2,615) Noninterest income 4,941 5,720 4,524 4,857 Noninterest expense 13,272 13,046 13,528 14,201 Income before income taxes 12,733 15,201 14,554 17,217 Income tax expense 2,747 3,153 3,096 3,529 NET INCOME $ 9,986 $ 12,048 $ 11,458 $ 13,688 Basic earnings per share $ 1.09 $ 1.33 $ 1.27 $ 1.53 Diluted earnings per share $ 1.09 $ 1.32 $ 1.27 $ 1.53 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Organization (Details) $ in Billions | Jun. 30, 2023 USD ($) |
Organization and Summary of Significant Accounting Policies | |
Assets of the REIT | $ 1.4 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash and Cash Equivalents [Line Items] | ||
Term of interest bearing deposits | 3 years | |
Interest-bearing deposits in other depository institutions | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 3.8 | $ 47.3 |
Deposits are held in various commercial banks | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 1.3 | $ 5.8 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Loans (Details) | 12 Months Ended | ||
Jul. 01, 2020 USD ($) | Jun. 30, 2023 item | Jun. 30, 2020 USD ($) | |
Number of loan portfolio pools | item | 24 | ||
Impact of adoption ASU 2016-13 | |||
Increase to ACL | $ 8,900,000 | ||
Impact of adoption ASU 2016-13 | Purchased credit deteriorated ("PCD") loans | |||
Increase to ACL | $ 434,000 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details) | Jun. 30, 2023 |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 3 years |
Minimum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 7 years |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 3 years |
Maximum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 40 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 7 years |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment loss on goodwill | $ 0 | |
Core deposit intangible assets, amortization method | using the straight line method | |
Impairment of intangible assets | $ 0 | $ 0 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 39.1 | 17 |
Intangibles assets, accumulated amortization | 14 | 11.5 |
2024 | 4.1 | |
2025 | 3.5 | |
2026 | 3 | |
2027 | 2.7 | |
2028 | 2.7 | |
Thereafter | 11.5 | |
Other identifiable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6.4 | 3.8 |
Intangibles assets, accumulated amortization | 3.9 | 3.8 |
Mortgage and SBA servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2.9 | $ 2.7 |
Minimum | Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amortization period | 5 years | |
Maximum | Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amortization period | 10 years |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Non-Employee Directors' Retirement (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Organization and Summary of Significant Accounting Policies | |
Vesting period | 5 years |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Wealth Management Assets and Fees (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Organization and Summary of Significant Accounting Policies | ||
Fiduciary assets | $ 102 | $ 0 |
Investment management assets | $ 464.2 | $ 252.3 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) | 12 Months Ended | ||||
Jul. 01, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for credit losses for purchased credit deteriorated (PCD) | $ 17,100,000 | $ 1,500,000 | $ 1,000,000 | ||
Loans receivable | 3,571,078,000 | 2,686,198,000 | |||
Total allowance for credit losses on loans | 47,820,000 | 33,192,000 | 33,222,000 | ||
Total allowance for credit losses on loans | $ 25,139,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 6,288,000 | 3,358,000 | 1,805,000 | 1,959,000 | |
Accounting Standards Update 2016-13 | |||||
Loans receivable | 2,141,929,000 | ||||
Total allowance for credit losses on loans | 25,139,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 1,959,000 | ||||
As reported under ASU 2016-13 | |||||
Adjustment to the reserve for unfunded commitments | 268,000 | ||||
Retained earnings | $ 7,200,000 | ||||
As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Loans receivable | 2,142,363,000 | ||||
Total allowance for credit losses on loans | 34,472,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 2,227,000 | ||||
Impact of adoption ASU 2016-13 | |||||
Increase to ACL | 8,900,000 | ||||
Allowance for credit losses for purchased credit deteriorated (PCD) | 1,121,000 | 434,000 | |||
Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Loans receivable | 434,000 | ||||
Total allowance for credit losses on loans | 9,333,000 | 9,333,000 | |||
Total allowance for credit losses on off-balance sheet credit exposures | 268,000 | 268,000 | |||
Impact of adoption ASU 2016-13 | Purchased credit deteriorated ("PCD") loans | |||||
Increase to ACL | 434,000 | ||||
Residential and commercial real estate loans | Purchased credit deteriorated ("PCD") loans | |||||
Loans receivable | 434,000 | ||||
Residential Real Estate | |||||
Total allowance for credit losses on loans | 15,641,000 | 8,908,000 | 11,192,000 | ||
Total allowance for credit losses on loans | 4,875,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 71,000 | 58,000 | 37,000 | 19,000 | |
Residential Real Estate | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 4,875,000 | ||||
Residential Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 8,396,000 | ||||
Residential Real Estate | Impact of adoption ASU 2016-13 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | 96,000 | ||||
Residential Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 3,521,000 | 3,521,000 | |||
Total allowance for credit losses on off-balance sheet credit exposures | 35,000 | ||||
Construction Real Estate | |||||
Total allowance for credit losses on loans | 2,664,000 | 2,220,000 | 2,170,000 | ||
Total allowance for credit losses on loans | 2,010,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 4,809,000 | 2,178,000 | 502,000 | 769,000 | |
Construction Real Estate | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 2,010,000 | ||||
Construction Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 1,889,000 | ||||
Construction Real Estate | Impact of adoption ASU 2016-13 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | 12,000 | ||||
Construction Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | (121,000) | (121,000) | |||
Total allowance for credit losses on off-balance sheet credit exposures | (167,000) | ||||
Commercial Real Estate | |||||
Total allowance for credit losses on loans | 22,838,000 | 16,838,000 | 14,535,000 | ||
Total allowance for credit losses on loans | 12,132,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 475,000 | 421,000 | 188,000 | 172,000 | |
Commercial Real Estate | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 12,132,000 | ||||
Commercial Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 15,988,000 | ||||
Commercial Real Estate | Impact of adoption ASU 2016-13 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | 628,000 | ||||
Commercial Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 3,856,000 | 3,856,000 | |||
Total allowance for credit losses on off-balance sheet credit exposures | 95,000 | ||||
Consumer loans | |||||
Total allowance for credit losses on loans | 909,000 | 710,000 | 916,000 | ||
Total allowance for credit losses on loans | 1,182,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | 73,000 | 61,000 | 218,000 | 153,000 | |
Consumer loans | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 1,182,000 | ||||
Consumer loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 2,247,000 | ||||
Consumer loans | Impact of adoption ASU 2016-13 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | 164,000 | ||||
Consumer loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 1,065,000 | 1,065,000 | |||
Total allowance for credit losses on off-balance sheet credit exposures | 197,000 | ||||
Commercial loans | |||||
Total allowance for credit losses on loans | 5,768,000 | 4,516,000 | 4,409,000 | ||
Total allowance for credit losses on loans | 4,940,000 | ||||
Total allowance for credit losses on off-balance sheet credit exposures | $ 860,000 | 640,000 | 860,000 | 846,000 | |
Commercial loans | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | $ 4,940,000 | ||||
Commercial loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | 5,952,000 | ||||
Commercial loans | Impact of adoption ASU 2016-13 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | $ 221,000 | ||||
Commercial loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||
Total allowance for credit losses on loans | $ 1,012,000 | 1,012,000 | |||
Total allowance for credit losses on off-balance sheet credit exposures | $ 108,000 |
Available for Sale Securities -
Available for Sale Securities - Amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | $ 445,616 | $ 257,760 |
Gross Unrealized Gains | 1,494 | 109 |
Gross Unrealized Losses | (29,556) | (22,475) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 417,554 | 235,394 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 45,285 | 47,383 |
Gross Unrealized Gains | 20 | 77 |
Gross Unrealized Losses | (2,737) | (2,981) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 42,568 | 44,479 |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 35,700 | 20,818 |
Gross Unrealized Gains | 19 | 32 |
Gross Unrealized Losses | (3,181) | (963) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 32,538 | 19,887 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 67,897 | |
Gross Unrealized Gains | 1,274 | |
Gross Unrealized Losses | (545) | |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 68,626 | |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 3,587 | 486 |
Gross Unrealized Gains | 39 | |
Gross Unrealized Losses | (56) | (43) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 3,570 | 443 |
Debt and Equity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 152,469 | 68,687 |
Gross Unrealized Gains | 1,352 | 109 |
Gross Unrealized Losses | (6,519) | (3,987) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 147,302 | 64,809 |
Residential MBS issued by governmental sponsored enterprises (GSEs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 97,612 | 76,345 |
Gross Unrealized Gains | 122 | |
Gross Unrealized Losses | (7,610) | (7,177) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 90,124 | 69,168 |
Commercial MBS issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 60,333 | 51,435 |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (6,959) | (5,705) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 53,385 | 45,730 |
CMOs issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 135,202 | 61,293 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (8,468) | (5,606) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 126,743 | 55,687 |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 293,147 | 189,073 |
Gross Unrealized Gains | 142 | |
Gross Unrealized Losses | (23,037) | (18,488) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | $ 270,252 | $ 170,585 |
Available for Sale Securities_2
Available for Sale Securities - Amortized Cost and Fair Value of Available-for-sale Securities, by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Amortized Cost | ||
Within one year | $ 3,233 | |
After one year but less than five years | 24,395 | |
After five years but less than ten years | 59,286 | |
After ten years | 65,555 | |
Total investment securities | 152,469 | |
Total AFS securities, Amortized Cost | 445,616 | $ 257,760 |
Estimated Fair Value | ||
Within one year | 3,221 | |
After one year but less than five years | 23,380 | |
After five years but less than ten years | 56,089 | |
After ten years | 64,612 | |
Total investment securities | 147,302 | |
Available for sale securities (Note 2) | 417,554 | 235,394 |
Debt and Equity Securities | ||
Amortized Cost | ||
Total AFS securities, Amortized Cost | 152,469 | 68,687 |
Estimated Fair Value | ||
Available for sale securities (Note 2) | 147,302 | 64,809 |
Total MBS and CMOs | ||
Amortized Cost | ||
Total AFS securities, Amortized Cost | 293,147 | 189,073 |
Estimated Fair Value | ||
Available for sale securities (Note 2) | $ 270,252 | $ 170,585 |
Available for Sale Securities_3
Available for Sale Securities - Investments Pledged as Collateral to Secure Public Deposits and Securities Sold Under Agreements to Repurchase (Details) - Public deposits - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Pledged as collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | $ 253.9 | $ 198.3 |
Asset backed securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 129.2 | 126.3 |
Asset backed securities | Pledged as collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 27.3 | |
Collateralized Mortgage Obligations | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 94.8 | |
US States and Political Subdivisions Debt Securities [Member] | Pledged as collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 26.5 | 42.3 |
Other Debt Obligations [Member] | Pledged as collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | $ 3.4 | $ 2.4 |
Available for Sale Securities_4
Available for Sale Securities - Gains and Losses recognized from sales of AFS securities (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Available for Sale Securities | ||
Gains recognized from sales of available-for-sale securities | $ 0 | $ 0 |
Losses recognized from sales of available-for-sale securities | $ 0 | $ 0 |
Available for Sale Securities_5
Available for Sale Securities - Fair Value of Debt Securities Reported Less Than Their Historical Cost (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Available for Sale Securities | ||
Fair value of certain investments reported less than their historical cost | $ 325.5 | $ 219.3 |
Certain investments in debt securities reported at less than historical cost, percentage of Company's AFS portfolio | 78% | 93.20% |
Available for Sale Securities_6
Available for Sale Securities - Gross Unrealized Losses and Fair Value, Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 138,235 | $ 180,937 |
Less than 12 Months, Unrealized Losses | 3,057 | 15,584 |
12 Months or more, Fair Value | 187,305 | 38,345 |
12 Months or more, Unrealized Losses | 26,499 | 6,891 |
Fair Value, Total | 325,540 | 219,282 |
Unrealized Losses , Total | 29,556 | 22,475 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 11,574 | 31,985 |
Less than 12 Months, Unrealized Losses | 184 | 2,639 |
12 Months or more, Fair Value | 26,763 | 1,600 |
12 Months or more, Unrealized Losses | 2,553 | 342 |
Fair Value, Total | 38,337 | 33,585 |
Unrealized Losses , Total | $ 2,737 | $ 2,981 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 27 | 27 |
Number of individual securities in an unrealized loss position for more than 12 months | security | 52 | 52 |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 14,709 | $ 10,944 |
Less than 12 Months, Unrealized Losses | 1,074 | 420 |
12 Months or more, Fair Value | 13,821 | 6,911 |
12 Months or more, Unrealized Losses | 2,107 | 543 |
Fair Value, Total | 28,530 | 17,855 |
Unrealized Losses , Total | $ 3,181 | $ 963 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 16 | 16 |
Number of individual securities in an unrealized loss position for more than 12 months | security | 14 | 14 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 22,628 | |
Less than 12 Months, Unrealized Losses | 263 | |
12 Months or more, Fair Value | 698 | |
12 Months or more, Unrealized Losses | 282 | |
Fair Value, Total | 23,326 | |
Unrealized Losses , Total | $ 545 | |
Number of individual securities in an unrealized loss position for less than 12 months | security | 7 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 2 | |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 1,970 | $ 418 |
Less than 12 Months, Unrealized Losses | 11 | 43 |
12 Months or more, Fair Value | 350 | |
12 Months or more, Unrealized Losses | 45 | |
Fair Value, Total | 2,320 | 418 |
Unrealized Losses , Total | 56 | 43 |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 87,354 | 137,590 |
Less than 12 Months, Unrealized Losses | 1,525 | 12,482 |
12 Months or more, Fair Value | 145,673 | 29,834 |
12 Months or more, Unrealized Losses | 21,512 | 6,006 |
Fair Value, Total | 233,027 | 167,424 |
Unrealized Losses , Total | $ 23,037 | $ 18,488 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 24 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 122 |
Available for Sale Securities_7
Available for Sale Securities - Other Securities Policy: Pooled Trust Preferred Securities (Details) | 12 Months Ended | |
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit losses recognized on investments | $ 0 | $ 0 |
Corporate Obligations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Number of Pooled Trust Preferred Securities | security | 2 | |
Fair Value of Pooled Trust Preferred Securities Held | $ 698,000 | |
Pooled trust preferred securities, unrealized losses in a continuous unrealized loss position for twelve months or more | $ 282,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Classes of loans (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | $ 3,978,393 | $ 2,843,499 | |
Loans in Process | (359,196) | (123,656) | |
Deferred loan fees, net | (299) | (453) | |
Allowance for credit losses | (47,820) | (33,192) | $ (33,222) |
Total loans | $ 3,571,078 | $ 2,686,198 | |
Number of purchased participation loans | 86 | 31 | |
Purchased participation loans | $ 155,600 | $ 70,000 | |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | 1,133,417 | 904,160 | |
Allowance for credit losses | (15,641) | (8,908) | (11,192) |
Construction Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | 550,052 | 258,072 | |
Allowance for credit losses | (2,664) | (2,220) | (2,170) |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | 1,562,379 | 1,146,673 | |
Allowance for credit losses | (22,838) | (16,838) | (14,535) |
Consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | 133,515 | 92,996 | |
Allowance for credit losses | (909) | (710) | (916) |
Commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real Estate Loans | 599,030 | 441,598 | |
Allowance for credit losses | $ (5,768) | $ (4,516) | $ (4,409) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Classes of loans information (Details) | 12 Months Ended | |||||
Jan. 20, 2023 USD ($) | Feb. 25, 2022 USD ($) | Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Allowance for credit losses | $ 14,131,000 | $ (66,000) | $ (602,000) | |||
Allowance for credit losses for purchased credit deteriorated (PCD) | 17,100,000 | 1,500,000 | 1,000,000 | |||
Off-balance sheet credit exposures | 6,288,000 | $ 3,358,000 | 1,805,000 | $ 1,959,000 | ||
Impact of acquisition on provision on credit losses (PCL) | 10,100,000 | |||||
Impact of acquisition on allowance for credit losses (ACL) | 8,900,000 | |||||
Impact of acquisition on off-balance sheet credit exposure | $ 1,200,000 | |||||
Net charge offs on average loans outstanding (as percentage) | 0.02% | 0.01% | ||||
Citizens Bancshares Company | ||||||
Allowance for credit losses | $ 5,200,000 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | $ 1,121,000 | 1,100,000 | ||||
Off-balance sheet credit exposures | 1,800,000 | |||||
Fortune | ||||||
Allowance for credit losses for purchased credit deteriorated (PCD) | $ 120,000 | $ 120,000 | ||||
ACL required for non-PCD loans acquired | 1,900,000 | |||||
Credit exposure | 120,000 | |||||
Negative PCL | 533,000 | |||||
Secured by properties located outside lending area | ||||||
Loans Receivable | $ 618,600,000 | |||||
Residential Real Estate. | ||||||
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years) | 30 years | |||||
Residential Real Estate. | Single Family | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90% | |||||
Residential Real Estate. | Multifamily | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 85% | |||||
Amortization period of loans | 25 years | |||||
Amortization period of multi-family residential loans if balloon maturities | 10 years | |||||
Commercial | ||||||
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 | |||||
Loans Receivable | $ 1,600,000,000 | |||||
Residential Real Estate | ||||||
Amortization period of loans | 30 years | |||||
Allowance for credit losses | $ 6,655,000 | (2,238,000) | 2,973,000 | |||
Off-balance sheet credit exposures | $ 71,000 | 58,000 | 37,000 | 19,000 | ||
Residential Real Estate | Minimum | ||||||
Maturities of single-family residential construction loans | 6 months | |||||
Residential Real Estate | Maximum | ||||||
Maturities of single-family residential construction loans | 12 months | |||||
Commercial Real Estate | ||||||
Amortization period of loans | 25 years | |||||
Allowance for credit losses | $ 5,605,000 | 2,251,000 | (1,364,000) | |||
Off-balance sheet credit exposures | $ 475,000 | 421,000 | 188,000 | 172,000 | ||
Construction Real Estate | ||||||
Average term of construction loans | 12 months | |||||
Allowance for credit losses | $ 432,000 | 46,000 | 281,000 | |||
Off-balance sheet credit exposures | $ 4,809,000 | 2,178,000 | 502,000 | 769,000 | ||
Construction Real Estate | Minimum | ||||||
Maturities of multifamily or commercial construction loans | 12 months | |||||
Construction Real Estate | Maximum | ||||||
Maturities of multifamily or commercial construction loans | 36 months | |||||
Consumer loans | ||||||
Amortization period of loans | 66 months | |||||
Allowance for credit losses | $ 334,000 | (205,000) | (1,232,000) | |||
Off-balance sheet credit exposures | $ 73,000 | 61,000 | 218,000 | 153,000 | ||
Consumer loans | Home Equity Loan | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90% | |||||
Amortization period of loans | 10 years | |||||
Consumer loans | Automobile loans | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100% | |||||
Amortization period of loans | 66 months | |||||
Commercial loans | ||||||
Amortization period of loans | 5 years | |||||
Amortization period of multi-family residential loans if balloon maturities | 1 year | |||||
Allowance for credit losses | $ 1,105,000 | 80,000 | (1,260,000) | |||
Off-balance sheet credit exposures | $ 860,000 | $ 640,000 | $ 860,000 | $ 846,000 | ||
Modifications for the purpose of extending the maturity date | Construction Real Estate | ||||||
Incremental period that the loan maturity can be extended to | 3 months | |||||
Number of construction loans outstanding, for which a modification had been agreed to | loan | 53 | 57 | ||||
Construction loans outstanding, for which a modification had been agreed to | $ 33,400,000 | $ 13,800,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - PCD Loans Acquired (Details) - USD ($) | 12 Months Ended | ||||
Jan. 20, 2023 | Feb. 25, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses at acquisition | $ (17,100,000) | $ (1,500,000) | $ (1,000,000) | ||
Citizens Bancshares Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchase price of PCD loans at acquisition | $ 27,481,000 | ||||
Allowance for credit losses at acquisition | (1,121,000) | $ (1,100,000) | |||
Fair value of PCD loans at acquisition | $ 26,360,000 | ||||
Fortune | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchase price of PCD loans at acquisition | $ 15,055,000 | ||||
Allowance for credit losses at acquisition | (120,000) | $ (120,000) | |||
Fair value of PCD loans at acquisition | $ 14,935,000 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Balance and activity in the Allowance for credit losses (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for credit losses: | ||||
Balance, beginning of period | $ 25,139,000 | |||
Balance, beginning of period | $ 33,192,000 | $ 33,222,000 | ||
Initial ACL on PCD loans | 17,100,000 | 1,500,000 | 1,000,000 | |
Allowance for credit losses | 14,131,000 | (66,000) | (602,000) | |
Losses charged off | (673,000) | (153,000) | (734,000) | |
Recoveries | 49,000 | 69,000 | 86,000 | |
Balance, end of period | 47,820,000 | 33,192,000 | 33,222,000 | |
Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 1,121,000 | $ 434,000 | ||
Residential Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,875,000 | |||
Balance, beginning of period | 8,908,000 | 11,192,000 | ||
Allowance for credit losses | 6,655,000 | (2,238,000) | 2,973,000 | |
Losses charged off | (19,000) | (72,000) | (180,000) | |
Recoveries | 1,000 | 3,000 | 3,000 | |
Balance, end of period | 15,641,000 | 8,908,000 | 11,192,000 | |
Residential Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 96,000 | |||
Construction Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 2,010,000 | |||
Balance, beginning of period | 2,220,000 | 2,170,000 | ||
Allowance for credit losses | 432,000 | 46,000 | 281,000 | |
Balance, end of period | 2,664,000 | 2,220,000 | 2,170,000 | |
Construction Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 12,000 | |||
Commercial Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 12,132,000 | |||
Balance, beginning of period | 16,838,000 | 14,535,000 | ||
Allowance for credit losses | 5,605,000 | 2,251,000 | (1,364,000) | |
Losses charged off | (245,000) | (90,000) | ||
Recoveries | 12,000 | 1,000 | ||
Balance, end of period | 22,838,000 | 16,838,000 | 14,535,000 | |
Commercial Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 628,000 | |||
Consumer loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 1,182,000 | |||
Balance, beginning of period | 710,000 | 916,000 | ||
Allowance for credit losses | 334,000 | (205,000) | (1,232,000) | |
Losses charged off | (327,000) | (65,000) | (146,000) | |
Recoveries | 28,000 | 64,000 | 47,000 | |
Balance, end of period | 909,000 | 710,000 | 916,000 | |
Consumer loans | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 164,000 | |||
Commercial loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,940,000 | |||
Balance, beginning of period | 4,516,000 | 4,409,000 | ||
Allowance for credit losses | 1,105,000 | 80,000 | (1,260,000) | |
Losses charged off | (82,000) | (16,000) | (318,000) | |
Recoveries | 8,000 | 2,000 | 35,000 | |
Balance, end of period | 5,768,000 | 4,516,000 | 4,409,000 | |
Commercial loans | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Initial ACL on PCD loans | 221,000 | |||
Accounting Standards Update 2016-13 | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 25,139,000 | |||
Accounting Standards Update 2016-13 | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 9,333,000 | |||
Balance, end of period | 9,333,000 | |||
Accounting Standards Update 2016-13 | Residential Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,875,000 | |||
Accounting Standards Update 2016-13 | Residential Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 3,521,000 | |||
Balance, end of period | 3,521,000 | |||
Accounting Standards Update 2016-13 | Construction Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 2,010,000 | |||
Accounting Standards Update 2016-13 | Construction Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | (121,000) | |||
Balance, end of period | (121,000) | |||
Accounting Standards Update 2016-13 | Commercial Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 12,132,000 | |||
Accounting Standards Update 2016-13 | Commercial Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 3,856,000 | |||
Balance, end of period | 3,856,000 | |||
Accounting Standards Update 2016-13 | Consumer loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 1,182,000 | |||
Accounting Standards Update 2016-13 | Consumer loans | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 1,065,000 | |||
Balance, end of period | 1,065,000 | |||
Accounting Standards Update 2016-13 | Commercial loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,940,000 | |||
Accounting Standards Update 2016-13 | Commercial loans | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 1,012,000 | |||
Balance, end of period | $ 1,012,000 | |||
Accounting Standards Update 2022-02 | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 120,000 | |||
Balance, end of period | 120,000 | |||
Accounting Standards Update 2022-02 | Residential Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 23,000 | |||
Balance, end of period | 23,000 | |||
Accounting Standards Update 2022-02 | Construction Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,000 | |||
Balance, end of period | 4,000 | |||
Accounting Standards Update 2022-02 | Commercial Real Estate | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 52,000 | |||
Balance, end of period | 52,000 | |||
Accounting Standards Update 2022-02 | Commercial loans | Impact of adoption ASU | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | $ 41,000 | |||
Balance, end of period | $ 41,000 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Allowance for off-balance credit exposure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | $ 3,358 | $ 1,805 | $ 1,959 |
Provision (benefit) charged to expense | 2,930 | 1,553 | (422) |
Balance, end of period | 6,288 | 3,358 | 1,805 |
Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 1,959 | ||
Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 268 | ||
Balance, end of period | 268 | ||
Residential Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 58 | 37 | 19 |
Provision (benefit) charged to expense | 13 | 21 | (17) |
Balance, end of period | 71 | 58 | 37 |
Residential Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 35 | ||
Balance, end of period | 35 | ||
Construction Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 2,178 | 502 | 769 |
Provision (benefit) charged to expense | 2,631 | 1,676 | (100) |
Balance, end of period | 4,809 | 2,178 | 502 |
Construction Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | (167) | ||
Balance, end of period | (167) | ||
Commercial Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 421 | 188 | 172 |
Provision (benefit) charged to expense | 54 | 233 | (79) |
Balance, end of period | 475 | 421 | 188 |
Commercial Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 95 | ||
Balance, end of period | 95 | ||
Consumer loans | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 61 | 218 | 153 |
Provision (benefit) charged to expense | 12 | (157) | (132) |
Balance, end of period | 73 | 61 | 218 |
Consumer loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 197 | ||
Balance, end of period | 197 | ||
Commercial loans | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 640 | 860 | 846 |
Provision (benefit) charged to expense | 220 | (220) | (94) |
Balance, end of period | $ 860 | 640 | 860 |
Commercial loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | $ 108 | ||
Balance, end of period | $ 108 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Credit risk profile based on rating category and year of origination (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amount of loan relationships subject to annual credit analysis | $ 3,000 | |
Loan relationships that are subject to independent annual review | 1,000 | |
2023 / 2022 | 1,112,842 | $ 1,146,932 |
2022 / 2021 | 969,065 | 721,665 |
2021 / 2020 | 623,440 | 251,984 |
2020 / 2019 | 213,074 | 103,484 |
2019 / 2018 | 108,106 | 78,834 |
Prior | 195,293 | 148,060 |
Revolving loans | 397,377 | 268,884 |
Total | 3,619,197 | 2,719,843 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 1,089,767 | 1,107,991 |
2022 / 2021 | 934,545 | 718,973 |
2021 / 2020 | 619,444 | 248,814 |
2020 / 2019 | 208,612 | 102,783 |
2019 / 2018 | 107,260 | 78,116 |
Prior | 191,942 | 144,948 |
Revolving loans | 393,419 | 266,719 |
Total | 3,544,989 | 2,668,344 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 10,385 | 6,147 |
2022 / 2021 | 6,729 | 1,276 |
2021 / 2020 | 932 | 2,939 |
2020 / 2019 | 3,990 | 62 |
2019 / 2018 | 198 | 668 |
Prior | 144 | 2,216 |
Revolving loans | 2,554 | 1,754 |
Total | 24,932 | 15,062 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 2,940 | 9,297 |
Total | 2,940 | 9,297 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 9,750 | 22,670 |
2022 / 2021 | 27,791 | 1,416 |
2021 / 2020 | 3,064 | 231 |
2020 / 2019 | 472 | 639 |
2019 / 2018 | 648 | 50 |
Prior | 3,207 | 896 |
Revolving loans | 1,404 | 411 |
Total | 46,336 | 26,313 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 827 | |
Total | 827 | |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 330,193 | 380,812 |
2022 / 2021 | 314,305 | 296,420 |
2021 / 2020 | 253,203 | 119,634 |
2020 / 2019 | 103,843 | 19,879 |
2019 / 2018 | 25,849 | 22,161 |
Prior | 96,919 | 59,180 |
Revolving loans | 9,105 | 6,074 |
Total | 1,133,417 | 904,160 |
Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 328,142 | 380,502 |
2022 / 2021 | 312,853 | 295,260 |
2021 / 2020 | 252,077 | 118,464 |
2020 / 2019 | 103,735 | 19,383 |
2019 / 2018 | 25,651 | 22,143 |
Prior | 96,035 | 58,545 |
Revolving loans | 9,100 | 6,074 |
Total | 1,127,593 | 900,371 |
Residential Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 1,214 | 44 |
2022 / 2021 | 1,136 | 242 |
2021 / 2020 | 616 | 1,083 |
2020 / 2019 | 108 | 56 |
2019 / 2018 | 198 | |
Prior | 27 | 30 |
Revolving loans | 5 | |
Total | 3,304 | 1,455 |
Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 837 | 266 |
2022 / 2021 | 316 | 918 |
2021 / 2020 | 510 | 87 |
2020 / 2019 | 440 | |
2019 / 2018 | 18 | |
Prior | 857 | 605 |
Total | 2,520 | 2,334 |
Construction Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 125,089 | 100,114 |
2022 / 2021 | 50,690 | 34,082 |
2021 / 2020 | 10,946 | |
2020 / 2019 | 3,190 | |
Revolving loans | 941 | 220 |
Total | 190,856 | 134,416 |
Construction Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 124,479 | 100,114 |
2022 / 2021 | 50,011 | 34,082 |
2021 / 2020 | 10,946 | |
2020 / 2019 | 3,190 | |
Revolving loans | 941 | 220 |
Total | 189,567 | 134,416 |
Construction Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 280 | |
Total | 280 | |
Construction Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 330 | |
2022 / 2021 | 679 | |
Total | 1,009 | |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 481,395 | 524,459 |
2022 / 2021 | 505,987 | 285,986 |
2021 / 2020 | 282,509 | 107,851 |
2020 / 2019 | 93,439 | 71,393 |
2019 / 2018 | 75,126 | 52,494 |
Prior | 85,723 | 80,208 |
Revolving loans | 38,200 | 24,282 |
Total | 1,562,379 | 1,146,673 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 462,643 | 487,486 |
2022 / 2021 | 474,140 | 284,736 |
2021 / 2020 | 279,921 | 105,893 |
2020 / 2019 | 89,272 | 71,380 |
2019 / 2018 | 74,653 | 51,804 |
Prior | 83,871 | 78,115 |
Revolving loans | 37,443 | 23,669 |
Total | 1,501,943 | 1,103,083 |
Commercial Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 8,122 | 4,763 |
2022 / 2021 | 5,382 | 769 |
2021 / 2020 | 163 | 1,818 |
2020 / 2019 | 3,879 | |
2019 / 2018 | 668 | |
Prior | 117 | 2,000 |
Revolving loans | 548 | |
Total | 17,663 | 10,566 |
Commercial Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 2,940 | 9,297 |
Total | 2,940 | 9,297 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 7,690 | 22,086 |
2022 / 2021 | 26,465 | 481 |
2021 / 2020 | 2,425 | 140 |
2020 / 2019 | 288 | 13 |
2019 / 2018 | 473 | 22 |
Prior | 1,735 | 93 |
Revolving loans | 757 | 65 |
Total | 39,833 | 22,900 |
Commercial Real Estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 827 | |
Total | 827 | |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 36,107 | 28,563 |
2022 / 2021 | 14,532 | 11,066 |
2021 / 2020 | 5,509 | 3,666 |
2020 / 2019 | 1,692 | 1,524 |
2019 / 2018 | 717 | 926 |
Prior | 1,420 | 707 |
Revolving loans | 73,538 | 46,544 |
Total | 133,515 | 92,996 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 36,003 | 28,519 |
2022 / 2021 | 14,530 | 10,989 |
2021 / 2020 | 5,446 | 3,662 |
2020 / 2019 | 1,692 | 1,524 |
2019 / 2018 | 717 | 916 |
Prior | 1,379 | 676 |
Revolving loans | 73,225 | 46,521 |
Total | 132,992 | 92,807 |
Consumer loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 71 | 21 |
2022 / 2021 | 71 | |
2021 / 2020 | 62 | |
Total | 133 | 92 |
Consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 33 | 23 |
2022 / 2021 | 2 | 6 |
2021 / 2020 | 1 | 4 |
2019 / 2018 | 10 | |
Prior | 41 | 31 |
Revolving loans | 313 | 23 |
Total | 390 | 97 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 140,058 | 112,984 |
2022 / 2021 | 83,551 | 94,111 |
2021 / 2020 | 71,273 | 20,833 |
2020 / 2019 | 10,910 | 10,688 |
2019 / 2018 | 6,414 | 3,253 |
Prior | 11,231 | 7,965 |
Revolving loans | 275,593 | 191,764 |
Total | 599,030 | 441,598 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 138,500 | 111,370 |
2022 / 2021 | 83,011 | 93,906 |
2021 / 2020 | 71,054 | 20,795 |
2020 / 2019 | 10,723 | 10,496 |
2019 / 2018 | 6,239 | 3,253 |
Prior | 10,657 | 7,612 |
Revolving loans | 272,710 | 190,235 |
Total | 592,894 | 437,667 |
Commercial loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 698 | 1,319 |
2022 / 2021 | 211 | 194 |
2021 / 2020 | 91 | 38 |
2020 / 2019 | 3 | 6 |
Prior | 186 | |
Revolving loans | 2,549 | 1,206 |
Total | 3,552 | 2,949 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 / 2022 | 860 | 295 |
2022 / 2021 | 329 | 11 |
2021 / 2020 | 128 | |
2020 / 2019 | 184 | 186 |
2019 / 2018 | 175 | |
Prior | 574 | 167 |
Revolving loans | 334 | 323 |
Total | $ 2,584 | $ 982 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Credit risk profile based on rating and payment activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 37.4 | $ 23.1 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 12.7 | 4.7 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 0 | 0 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 6.3 | 1.1 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 0 | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Loan portfolio aging analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 3,619,197 | $ 2,719,843 |
Greater than 90 Days Past Due and Accruing | 109 | |
Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,608,456 | 2,715,257 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 10,741 | 4,586 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 4,212 | 2,432 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,767 | 732 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,762 | 1,422 |
Purchased credit-impaired loans | 0 | 0 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,133,417 | 904,160 |
Greater than 90 Days Past Due and Accruing | 109 | |
Residential Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,130,549 | 901,694 |
Residential Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,868 | 2,466 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,984 | 1,402 |
Residential Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 401 | |
Residential Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 483 | 1,064 |
Construction Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 190,856 | 134,416 |
Construction Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 189,404 | 134,416 |
Construction Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,452 | |
Construction Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 443 | |
Construction Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 311 | |
Construction Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 698 | |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,562,379 | 1,146,673 |
Commercial Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,558,329 | 1,145,354 |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 4,050 | 1,319 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 616 | 416 |
Commercial Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,854 | 615 |
Commercial Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,580 | 288 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 133,515 | 92,996 |
Consumer loans | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 132,723 | 92,554 |
Consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 792 | 442 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 456 | 340 |
Consumer loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 124 | 45 |
Consumer loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 212 | 57 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 599,030 | 441,598 |
Commercial loans | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 597,451 | 441,239 |
Commercial loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,579 | 359 |
Commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 713 | 274 |
Commercial loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 77 | 72 |
Commercial loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 789 | $ 13 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Total Loans Receivable | $ 3,619,197 | $ 2,719,843 | |
Related allowance for credit losses | 47,820 | 33,192 | $ 33,222 |
Collateral-dependent Loans | 1- to 4-family residential loans | |||
Total Loans Receivable | 6,376 | 864 | |
Related allowance for credit losses | 901 | 193 | |
Residential Real Estate | |||
Total Loans Receivable | 1,133,417 | 904,160 | |
Related allowance for credit losses | 15,641 | 8,908 | $ 11,192 |
Residential Real Estate | Collateral-dependent Loans | |||
Total Loans Receivable | 6,376 | 864 | |
Related allowance for credit losses | $ 901 | $ 193 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 7,543 | $ 4,118 |
Nonaccrual loans individually evaluated for which no ACL was recorded | 0 | |
Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 934 | 1,647 |
Construction Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 698 | |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 4,564 | 2,259 |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 256 | 73 |
Commercial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 1,091 | $ 139 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - TDRs Segregated by Class (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) loan | |
Number of modifications | 0 | 6 |
Recorded Investment, TDRs | $ 24,500 | |
Recorded Investment | $ 29,765 | $ 30,606 |
Residential Real Estate | ||
Number of modifications | 10 | 11 |
Recorded Investment | $ 3,438 | $ 3,625 |
Commercial Real Estate | ||
Number of modifications | 6 | 8 |
Recorded Investment | $ 24,017 | $ 25,132 |
Commercial loans | ||
Number of modifications | 6 | 8 |
Recorded Investment | $ 2,310 | $ 1,849 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Real Estate Foreclosures (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Repossessed assets | $ 0 | $ 580,000 |
Residential Real Estate. | Home Equity Loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Foreclosure proceedings in process | $ 1,500,000 | $ 486,000 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Summary of loans to executive officers, directors, significant shareholders (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Loans and Allowance for Credit Losses | ||
Beginning Balance | $ 10,614 | $ 10,624 |
Additions | 6,374 | 6,393 |
Repayments | (7,223) | (6,403) |
Change in related party | 782 | |
Ending Balance | $ 10,547 | $ 10,614 |
Premises and Equipment - Summar
Premises and Equipment - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Premises and Equipment | ||
Land | $ 15,415 | $ 13,532 |
Buildings and improvements | 79,661 | 64,730 |
Construction in progress | 450 | 142 |
Furniture, fixtures, equipment and software | 26,404 | 20,838 |
Automobiles | 122 | 120 |
Operating leases ROU asset | 6,125 | 3,849 |
Property, Plant and Equipment, Gross | 128,177 | 103,211 |
Less accumulated depreciation | 35,780 | 31,864 |
Premises and equipment, net | $ 92,397 | $ 71,347 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) | 12 Months Ended | |
Jun. 30, 2023 USD ($) property | Jun. 30, 2022 USD ($) | |
Number of leased properties | property | 11 | |
Operating Lease, Weighted Average Discount Rate, Percent | 5% | |
Operating lease expense | $ 720,000 | $ 451,000 |
Income recognized from lessor agreements | $ 228,000 | $ 279,000 |
Minimum | ||
Lessee Expected Lease Terms | 18 months | |
Maximum | ||
Lessee Expected Lease Terms | 20 |
Premises and Equipment - Calcul
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Right of use assets obtained in exchange for lease obligations: Operating Leases | $ 216 | $ 95 | $ 804 |
Consolidated Balance Sheet | |||
Operating leases ROU asset | 6,125 | 3,849 | |
Operating leases liability | 6,125 | 3,849 | |
Consolidated Statement Of Income | |||
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs) | 720 | 451 | |
Supplemental Disclosures Of Cash Flow Information | Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 524 | $ 382 |
Premises and Equipment - Future
Premises and Equipment - Future expected lease payments for leases (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Premises and Equipment | |
2024 | $ 721 |
2025 | 711 |
2026 | 707 |
2027 | 694 |
2028 | 623 |
Thereafter | 7,359 |
Future lease payments expected | $ 10,815 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Non-interest bearing accounts | $ 597,600 | $ 426,929 |
NOW accounts | 1,328,423 | 1,171,620 |
Money market deposit accounts | 452,728 | 303,612 |
Savings accounts | 282,753 | 274,283 |
Certificates | 1,064,036 | 638,631 |
TOTAL NON-MATURITY DEPOSITS | 2,661,504 | 2,176,444 |
TOTAL DEPOSITS | 3,725,540 | 2,815,075 |
0.00-.99% | ||
Certificates | 92,533 | 408,479 |
1.00-1.99% | ||
Certificates | 109,564 | 171,997 |
2.00-2.99% | ||
Certificates | 186,538 | 51,692 |
3.00-3.99% | ||
Certificates | 109,780 | 6,298 |
4.00-4.99% | ||
Certificates | 472,546 | $ 165 |
5.00 - 5.99% | ||
Certificates | 93,057 | |
6.00% and above | ||
Certificates | $ 18 |
Deposits - Summary of Certifica
Deposits - Summary of Certificate Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Deposits | |
July 1, 2023 to June 30, 2024 | $ 690,500 |
July 1, 2024 to June 30, 2025 | 208,578 |
July 1, 2025 to June 30, 2026 | 69,336 |
July 1, 2026 to June 30, 2027 | 49,439 |
July 1, 2027 to June 30, 2028 | 46,083 |
Thereafter | 100 |
TOTAL | $ 1,064,036 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Deposits | ||
Aggregate Amount of Deposits With a Minimum Denomination of $250,000 | $ 1,200 | $ 848.9 |
Interest-bearing Domestic Deposit, Brokered | 146.5 | 10.8 |
Deposits Held for Affiliates | $ 6.6 | $ 6 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Federal Home Loan Bank Advances. | $ 133,514 | $ 37,957 |
Weighted-average rate | 3.95% | 1.47% |
08/15/22 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 1.89% | |
Federal Home Loan Bank Advances. | $ 3,000 | |
11/16/22 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.51% | |
Federal Home Loan Bank Advances. | 1,994 | |
03/06/23 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.99% | |
Federal Home Loan Bank Advances. | 3,000 | |
07/24/23 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.59% | |
Federal Home Loan Bank Advances. | $ 998 | 987 |
11/15/23 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.57% | |
Federal Home Loan Bank Advances. | $ 993 | 980 |
03/06/24 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.95% | |
Federal Home Loan Bank Advances. | $ 3,000 | 3,000 |
03/28/24 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 2.56% | |
Federal Home Loan Bank Advances. | $ 8,000 | 8,000 |
07/24/24 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.66% | |
Federal Home Loan Bank Advances. | $ 1,966 | 1,940 |
08/13/24 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 1.88% | |
Federal Home Loan Bank Advances. | $ 3,000 | 3,000 |
02/21/25 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 1.53% | |
Federal Home Loan Bank Advances. | 5,000 | |
03/06/25 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 1.01% | |
Federal Home Loan Bank Advances. | $ 3,000 | 3,000 |
07/15/25 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 0.77% | |
Federal Home Loan Bank Advances. | $ 1,939 | 1,913 |
07/22/26 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 1.10% | |
Federal Home Loan Bank Advances. | $ 1,929 | 1,909 |
12/14/26 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 2.65% | |
Federal Home Loan Bank Advances. | $ 189 | $ 234 |
04/20/26 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.39% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
06/22/26 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.49% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
06/26/26 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.55% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
04/12/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.04% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
04/27/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.07% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
05/03/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 3.95% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
05/12/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 3.86% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
06/22/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.38% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
06/25/27 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.34% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
03/23/28 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 3.85% | |
Federal Home Loan Bank Advances. | $ 10,000 | |
03/24/28 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 3.93% | |
Federal Home Loan Bank Advances. | $ 10,000 | |
06/22/28 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.21% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
06/26/28 | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 4.18% | |
Federal Home Loan Bank Advances. | $ 5,000 | |
Overnight | Federal Home Loan Bank Advances Maturity Date | ||
Federal Home Loan Bank, Advances, Interest Rate | 5.35% | |
Federal Home Loan Bank Advances. | $ 33,500 |
Advances from Federal Home Lo_4
Advances from Federal Home Loan Bank - FHLB Advances Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Advances from Federal Home Loan Bank | ||
July 1, 2023 to June 30, 2024 | $ 46,491 | |
July 1, 2024 to June 30, 2025 | 7,966 | |
July 1, 2025 to June 30, 2026 | 1,939 | |
July 1, 2026 to June 30, 2027 | 47,118 | |
July 1, 2027 to June 30, 2028 | 30,000 | |
TOTAL | $ 133,514 | $ 37,957 |
Advances from Federal Home Lo_5
Advances from Federal Home Loan Bank - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Advances from Federal Home Loan Bank | ||
FHLB prior to maturity amount | $ 0 | |
Long-term Line of Credit | 541.3 | $ 500.6 |
Line of Credit Outstanding | $ 1,100 | $ 889.7 |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021 | Aug. 31, 2014 | Oct. 31, 2013 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 28, 2022 | |
Subordinated debt | $ 23,105,000 | $ 23,055,000 | ||||
Investment, carrying value | 464,200,000 | 252,300,000 | ||||
Prepaid Expenses and Other Current Assets | ||||||
Investment, face amount | 505,000 | |||||
Investment, carrying value | 464,000 | |||||
Trust Preferred Securities | ||||||
Subordinated debt | $ 7,200,000 | 7,200,000 | ||||
Number of years after securities became redeemable | 5 years | |||||
Interest rate (as a percent) | 8.26% | |||||
Ozarks Legacy Community Financial, Inc. | ||||||
Interest rate (as a percent) | 8% | |||||
Floating rate | $ 3,100,000 | |||||
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement | ||||||
Floating rate | $ 2,700,000 | 2,700,000 | ||||
Peoples Service Company, Inc. | ||||||
Interest rate (as a percent) | 7.35% | |||||
Floating rate | $ 6,500,000 | |||||
Peoples Service Company, Inc. | Reported Value Measurement | ||||||
Floating rate | $ 5,500,000 | 5,400,000 | ||||
Fortune | Subordinated Notes Issued in May 2021 [Member] | ||||||
Subordinated debt | $ 7,700,000 | $ 7,700,000 | ||||
Interest rate (as a percent) | 4.50% | |||||
Instrument face amount | $ 7,500,000 | |||||
Fortune | Subordinated Notes Issued in May 2021 [Member] | Secured Overnight Financing Rate [Member] | ||||||
Variable rate (as a percent) | 3.77% |
Employee Benefits - 401(k) Reti
Employee Benefits - 401(k) Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Additional profit-sharing contributions of eligible salary | 5% | ||
Retirement plan expenses | $ 2.4 | $ 1.9 | $ 1.7 |
401(k) Retirement Plan Shares Held | 421,000 | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contributions of eligible compensation | 4% |
Employee Benefits - 2008 Equity
Employee Benefits - 2008 Equity Incentive Plan (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2012 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Equity Incentive Plan Description | The Company adopted an Equity Incentive Plan (the EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. | ||||
Equity Incentive Plan Shares reserved | 132,000 | ||||
Equity Incentive Plan vesting percentage | 20% | ||||
Restricted Stock | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Equity Incentive Plan Shares Awarded | 0 | 122,803 | |||
Equity Incentive Plan vesting percentage | 20% | ||||
Equity Incentive Plan Shares Vested | 0 | 2,250 | 2,700 | ||
Equity Incentive Plan Expense | $ 0 | $ 46,000 | $ 84,000 | ||
Equity Incentive Plan Remained Outstanding | 0 | ||||
Equity Incentive Plan Unvested Compensation Expense | $ 0 |
Employee Benefits - 2003 Stock
Employee Benefits - 2003 Stock Option Plan (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Exercised | 0 | 0 | 0 |
2003 Stock Option Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Stock Option Plan Description | The Company adopted a stock option plan in October 2003 (the 2003 Plan). Under the plan, the Company granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 187,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 10,000 remain outstanding. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the 2003 Plan. | ||
Granted | 242,000 | ||
Exercised | 187,000 | ||
Forfeited | 45,000 | ||
Outstanding | 10,000 | ||
Stock Option Plan Unrecognized Compensation Expense Related to Nonvested Stock Options | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 209,000 | ||
Options vested | 0 | 0 | 0 |
Employee Benefits - 2017 Omnibu
Employee Benefits - 2017 Omnibus Incentive Plan (Details) | 12 Months Ended | ||
Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | |
Defined Contribution Plan Disclosure [Line Items] | |||
Common stock reserve for issuance | 132,000 | ||
Exercised | 0 | 0 | 0 |
Equity Incentive Plan vesting percentage | 20% | ||
Restricted Stock | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Equity Incentive Plan vesting percentage | 20% | ||
Omnibus Incentive Plan 2017 | |||
Defined Contribution Plan Disclosure [Line Items] | |||
2017 Omnibus Incentive Plan Description | The Company adopted an equity-based incentive plan in October 2017 (the 2017 Plan). Under the 2017 plan, the Company reserved for issuance 500,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2017 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2017 Plan. Under the 2017 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares. | ||
Common stock reserve for issuance | 500,000 | ||
Full value awards basis | 2.5 | ||
Granted | 138,000 | ||
Outstanding | 138,000 | ||
Unrecognized compensation cost | $ | $ 1,100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | 419,000 | ||
Stock Option Plan Intrinsic Value of Options Vested | $ | $ 42,000 | $ 150,000 | $ 87,000 |
Options Exercisable, Number | 2,900 | ||
Full value awards issued | 28,650 | 22,350 | 18,925 |
Full value awards vested | 15,140 | 12,860 | 9,770 |
Share based compensation expense | $ | $ 833,000 | $ 548,000 | $ 351,000 |
Unvested compensation cost for full value awards | $ | $ 2,400,000 | ||
Omnibus Incentive Plan 2017 | Restricted Stock | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Achievement of specified profitability targets period | 3 years | ||
Omnibus Incentive Plan 2017 | Performance-based restricted stock | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Equity Incentive Plan vesting percentage | 20% | ||
Achievement of specified profitability targets period | 3 years | ||
Omnibus Incentive Plan 2017 | Share-Based Payment Arrangement, Tranche One [Member] | Restricted Stock | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Equity Incentive Plan vesting percentage | 20% | ||
Omnibus Incentive Plan 2017 | Share-Based Payment Arrangement, Tranche Two [Member] | Restricted Stock | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Equity Incentive Plan vesting percentage | 33.33% |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Outstanding at beginning of year | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Weighted Average Price | $ 36.56 | $ 33.77 | $ 33.22 | |
Number | 104,000 | 89,500 | 60,500 | |
Granted | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Weighted Average Price | $ 38.58 | $ 53.82 | $ 34.91 | |
Number | 44,000 | 14,500 | 29,000 | |
Outstanding at year-end | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Weighted Average Price | $ 39.63 | $ 36.56 | $ 33.77 | |
Number | 148,000 | 104,000 | 89,500 | |
Options exercisable at year-end | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Weighted Average Price | $ 33.89 | $ 31.92 | $ 29.79 | |
Number | 63,700 | 44,900 | 29,000 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Benefits | |||
Expected dividend yield | 1.79% | 1.49% | 1.83% |
Expected volatility | 29.67% | 28.02% | 27.72% |
Risk-free interest rate | 3.79% | 1.82% | 1.14% |
Weighted-average expected life (years) | 10 years | 10 years | 10 years |
Weighted-average fair value of options granted during the year | $ 16.68 | $ 16.38 | $ 9.19 |
Employee Benefits - Share-based
Employee Benefits - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
14 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 14 months |
Options Outstanding, Number | shares | 10,000 |
Options Outstanding, Weighted Average Exercise Price | $ 17.55 |
Options Exercisable, Number | shares | 10,000 |
Options Exercisable, Weighted Average Exercise Price | $ 17.55 |
55 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 55 months |
Options Outstanding, Number | shares | 13,500 |
Options Outstanding, Weighted Average Exercise Price | $ 37.31 |
Options Exercisable, Number | shares | 13,500 |
Options Exercisable, Weighted Average Exercise Price | $ 37.31 |
66 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 66 months |
Options Outstanding, Number | shares | 17,500 |
Options Outstanding, Weighted Average Exercise Price | $ 34.35 |
Options Exercisable, Number | shares | 14,000 |
Options Exercisable, Weighted Average Exercise Price | $ 34.35 |
80 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 80 months |
Options Outstanding, Number | shares | 19,500 |
Options Outstanding, Weighted Average Exercise Price | $ 37.40 |
Options Exercisable, Number | shares | 11,700 |
Options Exercisable, Weighted Average Exercise Price | $ 37.40 |
91 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 91 months |
Options Outstanding, Number | shares | 29,000 |
Options Outstanding, Weighted Average Exercise Price | $ 34.91 |
Options Exercisable, Number | shares | 11,600 |
Options Exercisable, Weighted Average Exercise Price | $ 34.91 |
103 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 103 months |
Options Outstanding, Number | shares | 14,500 |
Options Outstanding, Weighted Average Exercise Price | $ 53.82 |
Options Exercisable, Number | shares | 2,900 |
Options Exercisable, Weighted Average Exercise Price | $ 53.82 |
109 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 109 months |
Options Outstanding, Number | shares | 7,500 |
Options Outstanding, Weighted Average Exercise Price | $ 46.59 |
Options Exercisable, Weighted Average Exercise Price | $ 46.59 |
116 mo. | |
Defined Contribution Plan Disclosure [Line Items] | |
Weighted Average Remaining Contractual Life | 116 months |
Options Outstanding, Number | shares | 36,500 |
Options Outstanding, Weighted Average Exercise Price | $ 46.94 |
Options Exercisable, Weighted Average Exercise Price | $ 46.94 |
Income Taxes - Schedule of net
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Provision for losses on loans | $ 12,101 | $ 7,761 |
Accrued compensation and benefits | 974 | 828 |
NOL carry forwards acquired | 709 | 57 |
Low income tax credit carry forward | 1,192 | |
Unrealized loss on other real estate | 818 | 72 |
Unrealized loss on available for sale securities | 6,174 | 4,921 |
Total deferred tax assets | 21,968 | 13,639 |
Deferred tax liabilities: | ||
Purchase accounting adjustments | 2,348 | 224 |
Depreciation | 4,276 | 1,974 |
FHLB stock dividends | 120 | 120 |
Prepaid expenses | 728 | 415 |
Other | 1,636 | 181 |
Total deferred tax liabilities | 9,108 | 2,914 |
Net deferred tax asset | $ 12,860 | $ 10,725 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense at statutory rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||||
Tax at statutory rate | $ 10,387 | $ 12,580 | $ 12,538 | ||||||||||||
Nontaxable municipal income | (327) | (349) | (453) | ||||||||||||
State tax, net of Federal benefit | 46 | 812 | 1,018 | ||||||||||||
Cash surrender value of Bank-owned life insurance | (318) | (245) | (378) | ||||||||||||
Tax credit benefits | (19) | (45) | (11) | ||||||||||||
Other, net | 457 | (18) | (189) | ||||||||||||
TOTAL INCOME TAXES | $ 3,939 | $ 578 | $ 3,267 | $ 2,442 | $ 3,602 | $ 2,358 | $ 3,288 | $ 3,487 | $ 3,529 | $ 3,096 | $ 3,153 | $ 2,747 | $ 10,226 | $ 12,735 | $ 12,525 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | |||
Interest or penalties on income taxes | $ 0 | $ 0 | |
Federal Net Operating Loss Carryforwards | 3,200,000 | ||
State Net Operating Loss Carryforwards | $ 0 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) - Components of AOCI (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, included in stockholders' equity | $ (28,095) | $ (22,404) | ||
Tax effect | 6,170 | 4,917 | ||
Net of tax amount | 446,058 | 320,772 | $ 283,423 | $ 258,347 |
Net unrealized loss on securities available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, included in stockholders' equity | (28,062) | (22,366) | ||
Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, included in stockholders' equity | (1) | (1) | ||
Unrealized gain from defined benefit pension plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, included in stockholders' equity | (32) | (37) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net of tax amount | $ (21,925) | $ (17,487) | $ 2,882 | $ 4,447 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (AOCI) - Reclassification out of AOCI (Details) - Reclassification out of Accumulated Other Comprehensive Income. - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of defined benefit pension items | $ 5 | $ (11) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Compensation and benefits | Compensation and benefits |
Total reclassified amount before tax | $ 5 | $ (11) |
Provision for income tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax benefit | 1 | (2) |
Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total reclassification out of AOCI | $ 4 | $ (9) |
Stockholders' Equity and Regu_3
Stockholders' Equity and Regulatory Capital (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Southern Bank | Total Capital (to Risk-Weighted Assets) | ||
Capital | $ 454,699 | $ 352,169 |
Capital to Risk Weighted Assets | 0.1177 | 0.1290 |
Capital Required for Capital Adequacy | $ 308,932 | $ 218,397 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Capital Required to be Well Capitalized | $ 386,166 | $ 272,996 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 |
Southern Bank | Tier I Capital (to Risk-Weighted Assets) | ||
Capital | $ 407,764 | $ 325,183 |
Capital to Risk Weighted Assets | 0.1056 | 0.1191 |
Capital Required for Capital Adequacy | $ 231,699 | $ 163,797 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Capital Required to be Well Capitalized | $ 308,932 | $ 218,397 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 |
Southern Bank | Tier I Capital (to Average Assets) | ||
Capital | $ 407,764 | $ 325,183 |
Capital to Risk Weighted Assets | 0.0954 | 0.1022 |
Capital Required for Capital Adequacy | $ 170,942 | $ 127,333 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0400 | 0.0400 |
Capital Required to be Well Capitalized | $ 213,677 | $ 159,167 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0500 | 0.0500 |
Southern Bank | Common Equity Tier I Capital (to Risk-Weighted Assets) | ||
Capital | $ 407,764 | $ 325,183 |
Capital to Risk Weighted Assets | 0.1056 | 0.1191 |
Capital Required for Capital Adequacy | $ 173,774 | $ 122,848 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Capital Required to be Well Capitalized | $ 251,008 | $ 177,447 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0650 | 0.0650 |
Consolidated | Total Capital (to Risk-Weighted Assets) | ||
Capital | $ 481,236 | $ 370,013 |
Capital to Risk Weighted Assets | 0.1252 | 0.1342 |
Capital Required for Capital Adequacy | $ 307,528 | $ 220,558 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Consolidated | Tier I Capital (to Risk-Weighted Assets) | ||
Capital | $ 426,644 | $ 335,316 |
Capital to Risk Weighted Assets | 0.1110 | 0.1216 |
Capital Required for Capital Adequacy | $ 230,646 | $ 165,418 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Consolidated | Tier I Capital (to Average Assets) | ||
Capital | $ 426,644 | $ 335,316 |
Capital to Risk Weighted Assets | 0.0995 | 0.1041 |
Capital Required for Capital Adequacy | $ 171,470 | $ 128,822 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0400 | 0.0400 |
Consolidated | Common Equity Tier I Capital (to Risk-Weighted Assets) | ||
Capital | $ 411,196 | $ 319,971 |
Capital to Risk Weighted Assets | 0.1070 | 0.1161 |
Capital Required for Capital Adequacy | $ 172,985 | $ 124,064 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Stockholders' Equity and Regu_4
Stockholders' Equity and Regulatory Capital - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Apr. 30, 2021 | Apr. 30, 2020 | Jan. 01, 2020 USD ($) | |
Capital conservation buffer ratio | 0.025 | ||||
Amount of distributions as dividend of equity | $ 29,900 | ||||
Assets | $ 4,360,211 | $ 3,214,782 | |||
Minimum | |||||
Assets | $ 10,000,000 | ||||
Tier I Capital (to Risk-Weighted Assets) | Maximum | |||||
Minimum leverage ratio | 0.09 | ||||
Community Bank Leverage Ratio | Maximum | |||||
Ratio of risk-based capital | 9 | ||||
2021 Year | Community Bank Leverage Ratio | Minimum | |||||
Minimum leverage ratio | 0.085 | ||||
2021 Year After | Community Bank Leverage Ratio | Minimum | |||||
Minimum leverage ratio | 0.09 |
Commitments and Contingencies -
Commitments and Contingencies - Standby Letters of Credit: Letters of Credit (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding amount | $ 7.1 | $ 3.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Off-balance-sheet and Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Unused Commitments to Extend Credit | $ 912 | $ 707.7 |
Commitments to originate fixed rate loans | $ 213.3 | |
Weighted-average rate | 6.07% | |
Commitments extended period | 30 days | |
Diversified portfolio, loans | $ 1,500 | |
Minimum | ||
Term | 12 months | |
Commitments to originate fixed rate loans rates | 3.95% | |
Maximum | ||
Term | 24 months | |
Commitments to originate fixed rate loans rates | 11% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share | |||||||||||||||
Net Income | $ 39,237 | $ 47,169 | $ 47,180 | ||||||||||||
Less: distributed earnings allocated to participating securities | (42) | (30) | (18) | ||||||||||||
Less: undistributed earnings allocated to participating securities | (150) | (165) | (135) | ||||||||||||
Net income available to common shareholders | $ 39,045 | $ 46,974 | $ 47,027 | ||||||||||||
Weighted-average shares outstanding | 10,124,766 | 8,994,022 | 9,007,814 | ||||||||||||
Effect of dilutive securities stock options or awards | 17,033 | 17,122 | 2,923 | ||||||||||||
Denominator for diluted earnings per share | 10,141,799 | 9,011,144 | 9,010,737 | ||||||||||||
Basic earnings per share available to common stockholders | $ 1.37 | $ 0.22 | $ 1.26 | $ 1.04 | $ 1.41 | $ 1.03 | $ 1.35 | $ 1.43 | $ 1.53 | $ 1.27 | $ 1.33 | $ 1.09 | $ 3.86 | $ 5.22 | $ 5.22 |
Diluted earnings per share available to common stockholders | $ 1.37 | $ 0.22 | $ 1.26 | $ 1.04 | $ 1.41 | $ 1.03 | $ 1.34 | $ 1.43 | $ 1.53 | $ 1.27 | $ 1.32 | $ 1.09 | $ 3.85 | $ 5.21 | $ 5.22 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Details) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share | 66,607 | 22,750 | 99,825 |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share | 66,607 | 22,750 | 99,825 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | 12 Months Ended | ||||
Jan. 20, 2023 USD ($) loan | Feb. 25, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 15, 2021 USD ($) | |
Goodwill | $ 50,773,000 | $ 27,288,000 | |||
Citizens | |||||
Transaction value | $ 133,169,000 | ||||
Identifiable intangible assets | 24,645,000 | ||||
Goodwill | 23,484,000 | ||||
Goodwill tax deductible | 0 | ||||
Loan portfolio | 461,500,000 | ||||
Fair value discount | 14,100,000 | ||||
Fair value | 419,500,000 | ||||
Gross | $ 520,000,000 | ||||
Number of PCD loans identified | loan | 48 | ||||
PCD loans | $ 27,481,000 | ||||
Citizens | Noninterest expense | |||||
Third-party acquisition-related costs incurred | $ 4,900,000 | ||||
Citizens | Core Deposits | |||||
Identifiable intangible assets | $ 22,100,000 | ||||
Acquired intangible assets useful life (in years) | 10 years | ||||
Citizens | Acquired trust and wealth management | |||||
Identifiable intangible assets | $ 2,600,000 | ||||
Acquired intangible assets useful life (in years) | 10 years | ||||
Fortune | |||||
Transaction value | $ 35,548,000 | ||||
Identifiable intangible assets | 1,602,000 | ||||
Goodwill | 12,756,000 | ||||
Goodwill tax deductible | 0 | ||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed, Financial Statement Caption | noninterest expense | noninterest expense | |||
Loan portfolio | 204,100,000 | ||||
Fair value discount | 2,100,000 | ||||
Fair value | 187,000,000 | ||||
Gross | $ 211,000,000 | ||||
Number of PCD loans identified | loan | 31 | ||||
PCD loans | $ 15,055,000 | ||||
Fortune | Noninterest expense | |||||
Third-party acquisition-related costs incurred | $ 45,000 | $ 1,400,000 | |||
Fortune | Core Deposits | |||||
Identifiable intangible assets | $ 1,600,000 | ||||
Acquired intangible assets useful life (in years) | 7 years | ||||
First National Bank, Cairo | |||||
Identifiable intangible assets | $ 168,000 | ||||
Goodwill | $ 442,000 | ||||
Third-party acquisition-related costs incurred | $ 0 | $ 50,000 |
Business Combinations - Purchas
Business Combinations - Purchase price for the citizens bancshares acquisition (Details) - USD ($) $ in Thousands | Jan. 20, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Goodwill | $ 50,773 | $ 27,288 | |
Citizens | |||
Fair Value of Consideration Transferred | |||
Cash | $ 34,889 | ||
Common stock, at fair value | 98,280 | ||
Total consideration | 133,169 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash and cash equivalents | 243,225 | ||
Investment securities | 226,451 | ||
Loans | 447,388 | ||
Premises and equipment | 23,430 | ||
BOLI | 21,733 | ||
Identifiable intangible assets | 24,645 | ||
Miscellaneous other assets | 9,366 | ||
Deposits | (851,140) | ||
Securities sold under agreements to repurchase | (27,629) | ||
Miscellaneous other liabilities | (7,784) | ||
Total identifiable net liabilities | 109,685 | ||
Goodwill | $ 23,484 |
Business Combinations - Pro For
Business Combinations - Pro Forma (Details) - Citizens - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||
Acquired business contributed revenues | $ 11,600 | ||
Acquired business contributed earnings | $ 3,300 | ||
Revenue | $ 183,878 | $ 166,101 | |
Earnings | $ 51,156 | $ 56,856 |
Business Combinations - Purch_2
Business Combinations - Purchase price for the fortune financial acquisition (Details) - USD ($) $ in Thousands | Feb. 25, 2022 | Jun. 30, 2023 | Jun. 30, 2022 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Goodwill | $ 50,773 | $ 27,288 | |
Fortune | |||
Fair Value of Consideration Transferred | |||
Cash | $ 12,664 | ||
Common stock, at fair value | 22,884 | ||
Total consideration | 35,548 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash and cash equivalents | 34,280 | ||
Interest bearing time deposits | 2,300 | ||
Loans | 202,053 | ||
Premises and equipment | 7,690 | ||
BOLI | 3,720 | ||
Identifiable intangible assets | 1,602 | ||
Miscellaneous other assets | 3,512 | ||
Deposits | (213,670) | ||
FHLB Advances | (9,681) | ||
Subordinated debt | (7,800) | ||
Miscellaneous other liabilities | (1,214) | ||
Total identifiable net liabilities | 22,792 | ||
Goodwill | $ 12,756 |
Business Combinations - Purch_3
Business Combinations - Purchase price for the cairo acquisition (Details) - USD ($) $ in Thousands | Dec. 15, 2021 | Jun. 30, 2023 | Jun. 30, 2022 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Goodwill | $ 50,773 | $ 27,288 | |
First National Bank, Cairo | |||
Fair Value of Consideration Transferred | |||
Cash received | $ (26,932) | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash and cash equivalents | 220 | ||
Loans | 408 | ||
Premises and equipment | 468 | ||
Identifiable intangible assets | 168 | ||
Miscellaneous other assets | 1 | ||
Deposits | (28,540) | ||
Miscellaneous other liabilities | (99) | ||
Total identifiable net liabilities | (27,374) | ||
Goodwill | $ 442 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of Assets Measured on a Recurring Basis and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Nonrecurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets held for sale | $ 1,472 | |
Fair Value, Inputs, Level 3 | Nonrecurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets held for sale | 1,472 | |
US States and Political Subdivisions Debt Securities [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 42,568 | $ 44,479 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 42,568 | 44,479 |
Corporate Segment [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 32,538 | 19,887 |
Corporate Segment [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 32,538 | 19,887 |
Asset backed securities | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 68,626 | |
Asset backed securities | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 68,626 | |
Other Debt Obligations [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,570 | 443 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,570 | 443 |
Total MBS and CMOs | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 270,252 | 170,585 |
Total MBS and CMOs | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 270,252 | $ 170,585 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses Recognized on Assets Measured on a Nonrecurring Basis (Details) - Nonrecurring Measurements - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total gains ( losses) on assets measured on a non-recurring basis | $ 60 | $ (503) |
Foreclosed and repossessed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total gains ( losses) on assets measured on a non-recurring basis | $ 60 | $ (503) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Nonrecurring Measurements - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements Nonrecurring Unobservable Inputs | $ 1,472 |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 14.9 |
Third party appraisal | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal |
Third party appraisal | Marketability discount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount |
Third party appraisal | Marketability discount | Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements Nonrecurring Range of discounts Applied | 14.90% |
Third party appraisal | Marketability discount | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements Nonrecurring Range of discounts Applied | 14.90% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financial assets | ||
Cash and cash equivalents | $ 53,979 | $ 86,792 |
Interest-bearing time deposits | 1,242 | 4,768 |
Stock in FHLB | 11,540 | 5,893 |
Stock in Federal Reserve Bank of St. Louis | 9,061 | 5,790 |
Loans receivable, net | 3,571,078 | 2,686,198 |
Accrued interest receivable | 18,871 | 11,052 |
Financial liabilities | ||
Deposits | 3,725,540 | 2,815,075 |
Advances from FHLB | 133,514 | 37,957 |
Accrued interest payable | 4,723 | 801 |
Subordinated debt | 23,105 | 23,055 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 53,979 | 86,792 |
Financial liabilities | ||
Deposits | 2,661,479 | 2,176,444 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Interest-bearing time deposits | 1,242 | 4,768 |
Stock in FHLB | 11,540 | 5,893 |
Stock in Federal Reserve Bank of St. Louis | 9,061 | 5,790 |
Accrued interest receivable | 18,871 | 11,052 |
Financial liabilities | ||
Advances from FHLB | 131,821 | 35,916 |
Accrued interest payable | 4,723 | 801 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Loans receivable, net | 3,393,791 | 2,655,882 |
Financial liabilities | ||
Deposits | 1,053,650 | 637,163 |
Subordinated debt | $ 20,318 | $ 22,070 |
Condensed Parent Company Only_3
Condensed Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Cash and cash equivalents | $ 53,979 | $ 86,792 | ||
TOTAL ASSETS | 4,360,211 | 3,214,782 | ||
Subordinated debt | 23,105 | 23,055 | ||
TOTAL LIABILITIES | 3,914,153 | 2,894,010 | ||
Stockholders' equity | 446,058 | 320,772 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,360,211 | 3,214,782 | ||
Parent Company | ||||
Cash and cash equivalents | 13,442 | 8,964 | $ 1,193 | $ 4,576 |
Other assets | 52,178 | 28,691 | ||
Investment in common stock of Bank | 404,247 | 306,549 | ||
TOTAL ASSETS | 469,867 | 344,204 | ||
Accrued expenses and other liabilities | 704 | 377 | ||
Subordinated debt | 23,105 | 23,055 | ||
TOTAL LIABILITIES | 23,809 | 23,432 | ||
Stockholders' equity | 446,058 | 320,772 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 469,867 | $ 344,204 |
Condensed Parent Company Only_4
Condensed Parent Company Only Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income | $ 54,283 | $ 48,286 | $ 38,851 | $ 34,996 | $ 31,572 | $ 28,339 | $ 28,096 | $ 28,860 | $ 27,532 | $ 27,100 | $ 27,871 | $ 26,972 | $ 176,416 | $ 116,867 | $ 109,475 |
Interest expense | 18,065 | 14,519 | 10,600 | 6,487 | 3,814 | 3,225 | 3,038 | 3,223 | 3,586 | 3,951 | 4,344 | 4,908 | 49,671 | 13,300 | 16,789 |
NET INTEREST INCOME | 36,218 | 33,767 | 28,251 | 28,509 | 27,758 | 25,114 | 25,058 | 25,637 | 23,946 | 23,149 | 23,527 | 22,064 | 126,745 | 103,567 | 92,686 |
Income tax benefit | (3,939) | (578) | (3,267) | (2,442) | (3,602) | (2,358) | (3,288) | (3,487) | (3,529) | (3,096) | (3,153) | (2,747) | (10,226) | (12,735) | (12,525) |
NET INCOME | $ 15,560 | $ 2,409 | $ 11,664 | $ 9,604 | $ 13,084 | $ 9,351 | $ 11,985 | $ 12,749 | $ 13,688 | $ 11,458 | $ 12,048 | $ 9,986 | 39,237 | 47,169 | 47,180 |
Parent Company | |||||||||||||||
Interest income | 32 | 14 | 13 | ||||||||||||
Interest expense | 1,439 | 686 | 534 | ||||||||||||
NET INTEREST INCOME | (1,407) | (672) | (521) | ||||||||||||
Dividends from Bank | 48,000 | 31,000 | 12,000 | ||||||||||||
Operating expenses | 3,041 | 1,124 | 599 | ||||||||||||
Income before income taxes and equity in undistributed income of the Bank | 43,552 | 29,204 | 10,880 | ||||||||||||
Income tax benefit | 552 | 321 | 235 | ||||||||||||
Income before equity in undistributed income of the Bank | 44,104 | 29,525 | 11,115 | ||||||||||||
Equity in undistributed income of the Bank | (4,867) | 17,644 | 36,065 | ||||||||||||
NET INCOME | 39,237 | 47,169 | 47,180 | ||||||||||||
COMPREHENSIVE INCOME | $ 34,799 | $ 26,800 | $ 45,615 |
Condensed Parent Company Only_5
Condensed Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Income (Loss) | $ 15,560 | $ 2,409 | $ 11,664 | $ 9,604 | $ 13,084 | $ 9,351 | $ 11,985 | $ 12,749 | $ 13,688 | $ 11,458 | $ 12,048 | $ 9,986 | $ 39,237 | $ 47,169 | $ 47,180 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 62,023 | 67,342 | 51,762 | ||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (213,405) | (303,928) | (101,918) | ||||||||||||
Dividends on common stock | 8,632 | 7,194 | 5,598 | ||||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 118,552 | 199,803 | 119,503 | ||||||||||||
(Decrease) increase in cash and cash equivalents | (32,830) | (36,783) | 69,347 | ||||||||||||
Cash and cash equivalents at beginning of period | 86,792 | 86,792 | |||||||||||||
Cash and cash equivalents at end of period | 53,979 | 86,792 | 53,979 | 86,792 | |||||||||||
Parent Company | |||||||||||||||
Net Income (Loss) | 39,237 | 47,169 | 47,180 | ||||||||||||
Equity in undistributed income of the Bank | 4,867 | (17,644) | (36,065) | ||||||||||||
Other adjustments, net | 388 | (698) | (559) | ||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 44,492 | 28,827 | 10,556 | ||||||||||||
Investments in Bank subsidiaries | (31,382) | (8,024) | |||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (31,382) | (8,024) | |||||||||||||
Dividends on common stock | (8,632) | (7,194) | (5,598) | ||||||||||||
Payments to acquire treasury stock | (5,838) | (8,341) | |||||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | (8,632) | (13,032) | (13,939) | ||||||||||||
(Decrease) increase in cash and cash equivalents | 4,478 | 7,771 | (3,383) | ||||||||||||
Cash and cash equivalents at beginning of period | $ 8,964 | $ 1,193 | $ 4,576 | 8,964 | 1,193 | 4,576 | |||||||||
Cash and cash equivalents at end of period | $ 13,442 | $ 8,964 | $ 1,193 | $ 13,442 | $ 8,964 | $ 1,193 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Quarterly Operating Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Quarterly Financial Data (Unaudited) | |||||||||||||||
Interest income | $ 54,283 | $ 48,286 | $ 38,851 | $ 34,996 | $ 31,572 | $ 28,339 | $ 28,096 | $ 28,860 | $ 27,532 | $ 27,100 | $ 27,871 | $ 26,972 | $ 176,416 | $ 116,867 | $ 109,475 |
Interest expense | 18,065 | 14,519 | 10,600 | 6,487 | 3,814 | 3,225 | 3,038 | 3,223 | 3,586 | 3,951 | 4,344 | 4,908 | 49,671 | 13,300 | 16,789 |
NET INTEREST INCOME | 36,218 | 33,767 | 28,251 | 28,509 | 27,758 | 25,114 | 25,058 | 25,637 | 23,946 | 23,149 | 23,527 | 22,064 | 126,745 | 103,567 | 92,686 |
Provision (benefit) for credit / loan losses | 795 | 10,072 | 1,138 | 5,056 | 240 | 1,552 | (305) | (2,615) | (409) | 1,000 | 1,000 | 17,061 | 1,487 | (1,024) | |
Noninterest income | 8,951 | 6,284 | 5,456 | 5,513 | 6,499 | 4,904 | 5,285 | 4,515 | 4,857 | 4,524 | 5,720 | 4,941 | 26,204 | 21,203 | 20,042 |
Noninterest expense | 24,875 | 26,992 | 17,638 | 16,920 | 17,331 | 16,757 | 15,070 | 14,221 | 14,201 | 13,528 | 13,046 | 13,272 | 86,425 | 63,379 | 54,047 |
Income before income taxes | 19,499 | 2,987 | 14,931 | 12,046 | 16,686 | 11,709 | 15,273 | 16,236 | 17,217 | 14,554 | 15,201 | 12,733 | 49,463 | 59,904 | 59,705 |
Income tax expense | 3,939 | 578 | 3,267 | 2,442 | 3,602 | 2,358 | 3,288 | 3,487 | 3,529 | 3,096 | 3,153 | 2,747 | 10,226 | 12,735 | 12,525 |
NET INCOME | $ 15,560 | $ 2,409 | $ 11,664 | $ 9,604 | $ 13,084 | $ 9,351 | $ 11,985 | $ 12,749 | $ 13,688 | $ 11,458 | $ 12,048 | $ 9,986 | $ 39,237 | $ 47,169 | $ 47,180 |
Basic earnings per share | $ 1.37 | $ 0.22 | $ 1.26 | $ 1.04 | $ 1.41 | $ 1.03 | $ 1.35 | $ 1.43 | $ 1.53 | $ 1.27 | $ 1.33 | $ 1.09 | $ 3.86 | $ 5.22 | $ 5.22 |
Diluted earnings per share | $ 1.37 | $ 0.22 | $ 1.26 | $ 1.04 | $ 1.41 | $ 1.03 | $ 1.34 | $ 1.43 | $ 1.53 | $ 1.27 | $ 1.32 | $ 1.09 | $ 3.85 | $ 5.21 | $ 5.22 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||||||||||||||
Net Income (Loss) | $ 15,560 | $ 2,409 | $ 11,664 | $ 9,604 | $ 13,084 | $ 9,351 | $ 11,985 | $ 12,749 | $ 13,688 | $ 11,458 | $ 12,048 | $ 9,986 | $ 39,237 | $ 47,169 | $ 47,180 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |