5. Loans | 3 Months Ended |
Sep. 30, 2014 |
Notes | ' |
5. Loans | ' |
5. Loans |
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Loans consist of the following at the dates indicated: |
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| | September 30, | | | June 30, | | | | | | | | | | | | | | | |
| | 2014 | | | 2014 | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 656,068 | | $ | 660,200 | | | | | | | | | | | | | | | |
Home equity lines of credit | | 158,220 | | | 148,379 | | | | | | | | | | | | | | | |
Construction and land/lots | | 61,781 | | | 59,249 | | | | | | | | | | | | | | | |
Indirect auto finance | | 15,449 | | | 8,833 | | | | | | | | | | | | | | | |
Consumer | | 5,556 | | | 6,331 | | | | | | | | | | | | | | | |
Total retail consumer loans | | 897,074 | | | 882,992 | | | | | | | | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 455,219 | | | 377,769 | | | | | | | | | | | | | | | |
Construction and development | | 56,437 | | | 56,457 | | | | | | | | | | | | | | | |
Commercial and industrial | | 91,126 | | | 74,435 | | | | | | | | | | | | | | | |
Municipal leases | | 109,079 | | | 106,215 | | | | | | | | | | | | | | | |
Total commercial loans | | 711,861 | | | 614,876 | | | | | | | | | | | | | | | |
Total loans | | 1,608,935 | | | 1,497,868 | | | | | | | | | | | | | | | |
Deferred loan fees, net | | -721 | | | -1,340 | | | | | | | | | | | | | | | |
Total loans, net of deferred loan fees and discount | | 1,608,214 | | | 1,496,528 | | | | | | | | | | | | | | | |
Allowance for loan and lease losses | | -23,080 | | | -23,429 | | | | | | | | | | | | | | | |
Loans, net | $ | 1,585,134 | | $ | 1,473,099 | | | | | | | | | | | | | | | |
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All the qualifying first mortgage loans, home equity lines of credit, and FHLB Stock are pledged as collateral by a blanket pledge to secure any outstanding FHLB advances. |
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The Company’s total non-purchased and purchased performing loans by segment, class, and risk grade at the dates indicated follow: |
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| | | | | Special | | | | | | | | | | | | | | | | | |
| | Pass | | | Mention | | | Substandard | | | Doubtful | | | Loss | | | Total | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 597,955 | | $ | 15,069 | | $ | 30,133 | | $ | 3,156 | | $ | 9 | | $ | 646,322 | | | | | |
Home equity lines of credit | | 151,492 | | | 1,053 | | | 4,696 | | | 553 | | | 2 | | | 157,796 | | | | | |
Construction and land/lots | | 57,466 | | | 1,041 | | | 1,943 | | | 433 | | | - | | | 60,883 | | | | | |
Indirect auto finance | | 15,400 | | | 49 | | | - | | | - | | | - | | | 15,449 | | | | | |
Consumer | | 5,280 | | | 81 | | | 101 | | | 77 | | | 2 | | | 5,541 | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 371,721 | | | 14,688 | | | 16,448 | | | 1,936 | | | - | | | 404,793 | | | | | |
Construction and development | | 40,297 | | | 2,001 | | | 6,126 | | | 569 | | | - | | | 48,993 | | | | | |
Commercial and industrial | | 80,706 | | | 819 | | | 1,464 | | | - | | | 1 | | | 82,990 | | | | | |
Municipal leases | | 106,976 | | | 1,800 | | | 303 | | | - | | | - | | | 109,079 | | | | | |
Total loans | $ | 1,427,293 | | $ | 36,601 | | $ | 61,214 | | $ | 6,724 | | $ | 14 | | $ | 1,531,846 | | | | | |
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| | | | | Special | | | | | | | | | | | | | | | | | |
| | Pass | | | Mention | | | Substandard | | | Doubtful | | | Loss | | | Total | | | | | |
30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 602,409 | | $ | 17,639 | | $ | 28,974 | | $ | 2,907 | | $ | 10 | | $ | 651,939 | | | | | |
Home equity lines of credit | | 141,008 | | | 1,605 | | | 4,967 | | | 420 | | | 2 | | | 148,002 | | | | | |
Construction and land/lots | | 55,374 | | | 1,878 | | | 807 | | | 113 | | | - | | | 58,172 | | | | | |
Indirect auto finance | | 8,801 | | | 32 | | | - | | | - | | | - | | | 8,833 | | | | | |
Consumer | | 6,115 | | | 62 | | | 97 | | | 13 | | | 3 | | | 6,290 | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 313,437 | | | 16,931 | | | 19,746 | | | 1,944 | | | - | | | 352,058 | | | | | |
Construction and development | | 41,336 | | | 2,927 | | | 5,972 | | | 570 | | | - | | | 50,805 | | | | | |
Commercial and industrial | | 66,481 | | | 873 | | | 1,723 | | | - | | | 3 | | | 69,080 | | | | | |
Municipal leases | | 104,404 | | | 1,811 | | | - | | | - | | | - | | | 106,215 | | | | | |
Total loans | $ | 1,339,365 | | $ | 43,758 | | $ | 62,286 | | $ | 5,967 | | $ | 18 | | $ | 1,451,394 | | | | | |
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The Company’s total PCI loans by segment, class, and risk grade at the dates indicated follow: |
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| | | | | Special | | | | | | | | | | | | | | | | | |
| | Pass | | | Mention | | | Substandard | | | Doubtful | | | Loss | | | Total | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 4,947 | | $ | 939 | | $ | 3,860 | | $ | - | | $ | - | | $ | 9,746 | | | | | |
Home equity lines of credit | | 57 | | | - | | | 367 | | | - | | | - | | | 424 | | | | | |
Construction and land/lots | | 457 | | | - | | | 441 | | | - | | | - | | | 898 | | | | | |
Indirect auto finance | | - | | | - | | | - | | | - | | | - | | | - | | | | | |
Consumer | | 15 | | | - | | | - | | | - | | | - | | | 15 | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 32,823 | | | 6,817 | | | 10,786 | | | - | | | - | | | 50,426 | | | | | |
Construction and development | | 1,914 | | | 1,778 | | | 3,752 | | | - | | | - | | | 7,444 | | | | | |
Commercial and industrial | | 6,504 | | | 456 | | | 1,176 | | | - | | | - | | | 8,136 | | | | | |
Municipal leases | | - | | | - | | | - | | | - | | | - | | | - | | | | | |
Total loans | $ | 46,717 | | $ | 9,990 | | $ | 20,382 | | $ | - | | $ | - | | $ | 77,089 | | | | | |
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| | | | | Special | | | | | | | | | | | | | | | | | |
| | Pass | | | Mention | | | Substandard | | | Doubtful | | | Loss | | | Total | | | | | |
30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 4,904 | | $ | - | | $ | 3,357 | | $ | - | | $ | - | | $ | 8,261 | | | | | |
Home equity lines of credit | | 7 | | | - | | | 370 | | | - | | | - | | | 377 | | | | | |
Construction and land/lots | | 791 | | | - | | | 286 | | | - | | | - | | | 1,077 | | | | | |
Indirect auto finance | | - | | | - | | | - | | | - | | | - | | | - | | | | | |
Consumer | | 41 | | | - | | | - | | | - | | | - | | | 41 | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 20,853 | | | - | | | 4,858 | | | - | | | - | | | 25,711 | | | | | |
Construction and development | | 2,443 | | | 2,169 | | | 1,040 | | | - | | | - | | | 5,652 | | | | | |
Commercial and industrial | | 4,647 | | | - | | | 708 | | | - | | | - | | | 5,355 | | | | | |
Municipal leases | | - | | | - | | | - | | | - | | | - | | | - | | | | | |
Total loans | $ | 33,686 | | $ | 2,169 | | $ | 10,619 | | $ | - | | $ | - | | $ | 46,474 | | | | | |
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The Company’s total loans by segment, class, and delinquency status at the dates indicated follows: |
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| | Past Due | | | | | | Total | | | | | | | | |
| | 30-89 Days | | | 90 Days+ | | | Total | | | Current | | | Loans | | | | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 2,916 | | $ | 8,277 | | $ | 11,193 | | $ | 644,875 | | $ | 656,068 | | | | | | | | |
Home equity lines of credit | | 375 | | | 1,010 | | | 1,385 | | | 156,835 | | | 158,220 | | | | | | | | |
Construction and land/lots | | 176 | | | 732 | | | 908 | | | 60,873 | | | 61,781 | | | | | | | | |
Indirect auto finance | | 63 | | | - | | | 63 | | | 15,386 | | | 15,449 | | | | | | | | |
Consumer | | 31 | | | 20 | | | 51 | | | 5,505 | | | 5,556 | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 3,731 | | | 8,064 | | | 11,795 | | | 443,424 | | | 455,219 | | | | | | | | |
Construction and development | | 111 | | | 3,728 | | | 3,839 | | | 52,598 | | | 56,437 | | | | | | | | |
Commercial and industrial | | 207 | | | 623 | | | 830 | | | 90,296 | | | 91,126 | | | | | | | | |
Municipal leases | | 555 | | | 303 | | | 858 | | | 108,221 | | | 109,079 | | | | | | | | |
Total loans | $ | 8,165 | | $ | 22,757 | | $ | 30,922 | | $ | 1,578,013 | | $ | 1,608,935 | | | | | | | | |
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The table above includes PCI loans of $2,461 30-89 days past due and $4,096 90 days or more past due as of September 30, 2014. |
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| | Past Due | | | | | | Total | | | | | | | | |
| | 30-89 Days | | | 90 Days+ | | | Total | | | Current | | | Loans | | | | | | | | |
30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 4,929 | | $ | 8,208 | | $ | 13,137 | | $ | 647,063 | | $ | 660,200 | | | | | | | | |
Home equity lines of credit | | 400 | | | 939 | | | 1,339 | | | 147,040 | | | 148,379 | | | | | | | | |
Construction and land/lots | | 508 | | | 122 | | | 630 | | | 58,619 | | | 59,249 | | | | | | | | |
Indirect auto finance | | - | | | - | | | - | | | 8,833 | | | 8,833 | | | | | | | | |
Consumer | | 34 | | | 16 | | | 50 | | | 6,281 | | | 6,331 | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 306 | | | 6,729 | | | 7,035 | | | 370,734 | | | 377,769 | | | | | | | | |
Construction and development | | 1,165 | | | 3,789 | | | 4,954 | | | 51,503 | | | 56,457 | | | | | | | | |
Commercial and industrial | | 183 | | | 576 | | | 759 | | | 73,676 | | | 74,435 | | | | | | | | |
Municipal leases | | - | | | - | | | - | | | 106,215 | | | 106,215 | | | | | | | | |
Total loans | $ | 7,525 | | $ | 20,379 | | $ | 27,904 | | $ | 1,469,964 | | $ | 1,497,868 | | | | | | | | |
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The table above includes PCI loans of $1,817 30-89 days past due and $4,189 90 days or more past due as of June 30, 2014. |
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The Company’s recorded investment in loans, by segment and class, that are not accruing interest or are 90 days or more past due and still accruing interest at the dates indicated follow: |
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| | 30-Sep-14 | | | 30-Jun-14 | | | | | | | | | | | |
| | | | | 90 Days + & | | | | | | 90 Days + & | | | | | | | | | | | |
| | Nonaccruing | | | still accruing | | | Nonaccruing | | | still accruing | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 15,864 | | $ | - | | $ | 17,968 | | $ | - | | | | | | | | | | | |
Home equity lines of credit | | 2,765 | | | - | | | 3,114 | | | - | | | | | | | | | | | |
Construction and land/lots | | 782 | | | - | | | 688 | | | - | | | | | | | | | | | |
Indirect auto finance | | - | | | - | | | - | | | - | | | | | | | | | | | |
Consumer | | 35 | | | - | | | 27 | | | - | | | | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 16,910 | | | - | | | 16,941 | | | - | | | | | | | | | | | |
Construction and development | | 6,771 | | | - | | | 6,270 | | | - | | | | | | | | | | | |
Commercial and industrial | | 2,043 | | | - | | | 2,003 | | | - | | | | | | | | | | | |
Municipal leases | | 303 | | | - | | | - | | | - | | | | | | | | | | | |
Total loans | $ | 45,473 | | $ | - | | $ | 47,011 | | $ | - | | | | | | | | | | | |
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The table above includes PCI loans of $8,464 and $9,220 as of September 30, 2014 and June 30, 2014, respectively. |
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TDRs are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, or a longer term to maturity. Additionally, all TDRs are considered impaired. |
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The Company’s loans that were performing under the payment terms of TDRs that were excluded from nonaccruing loans above at the dates indicated follow: |
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| | September 30, | | | June 30, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2014 | | | | | | | | | | | | | | | | | |
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Performing TDRs included in impaired loans | $ | 18,737 | | $ | 22,179 | | | | | | | | | | | | | | | | | |
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An analysis of the allowance for loan losses by segment for the periods shown was as follows: |
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| Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 | | | | | | | | | | | |
| Retail | | | | | | Retail | | | | | | | | | | | | | | | |
| Consumer | | Commercial | | Total | | Consumer | | Commercial | | Total | | | | | | | | | | | |
Balance at beginning of period | $15,731 | | $7,698 | | $23,429 | | $21,952 | | $10,121 | | $32,073 | | | | | | | | | | | |
Provision for (recovery of) | -674 | | 424 | | -250 | | -1,639 | | -661 | | -2,300 | | | | | | | | | | | |
loan losses | | | | | | | | | | | |
Charge-offs | -479 | | -197 | | -676 | | -714 | | -214 | | -928 | | | | | | | | | | | |
Recoveries | 367 | | 210 | | 577 | | 132 | | 223 | | 355 | | | | | | | | | | | |
Balance at end of period | $14,945 | | $8,135 | | $23,080 | | $19,731 | | $9,469 | | $29,200 | | | | | | | | | | | |
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The Company’s ending balances of loans and the related allowance, by segment and class, at the dates indicated follows: |
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| Allowance for Loan Losses | | | Total Loans Receivable |
| | | | Loans | | | | | | | | | | | | Loans | | | | | | |
| | | | individually | | | Loans | | | | | | | | | individually | | | Loans | | | |
| | | | evaluated for | | | Collectively | | | | | | | | | evaluated for | | | Collectively | | | |
| PCI | | | impairment | | | Evaluated | | | Total | | | PCI | | | impairment | | | Evaluated | | | Total |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $- | | $ | 432 | | $ | 9,082 | | $ | 9,514 | | $ | 9,746 | | $ | 23,328 | | $ | 622,994 | | $ | 656,068 |
Home equity | - | | | 154 | | | 2,225 | | | 2,379 | | | 424 | | | 2,653 | | | 155,143 | | | 158,220 |
Construction and land/lots | - | | | 655 | | | 2,097 | | | 2,752 | | | 898 | | | 2,272 | | | 58,611 | | | 61,781 |
Indirect auto finance | - | | | - | | | 198 | | | 198 | | | - | | | - | | | 15,449 | | | 15,449 |
Consumer | - | | | 3 | | | 100 | | | 103 | | | 15 | | | 9 | | | 5,532 | | | 5,556 |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | - | | | 20 | | | 5,609 | | | 5,629 | | | 50,426 | | | 15,608 | | | 389,185 | | | 455,219 |
Construction and development | - | | | 67 | | | 1,265 | | | 1,332 | | | 7,444 | | | 5,509 | | | 43,484 | | | 56,437 |
Commercial and industrial | - | | | 1 | | | 444 | | | 445 | | | 8,136 | | | 2,243 | | | 80,747 | | | 91,126 |
Municipal leases | - | | | - | | | 728 | | | 728 | | | - | | | - | | | 109,079 | | | 109,079 |
Total | $- | | $ | 1,332 | | $ | 21,748 | | $ | 23,080 | | $ | 77,089 | | $ | 51,622 | | $ | 1,480,224 | | $ | 1,608,935 |
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30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $- | | $ | 493 | | $ | 10,034 | | $ | 10,527 | | $ | 8,261 | | $ | 23,929 | | $ | 628,010 | | $ | 660,200 |
Home equity | - | | | 134 | | | 2,353 | | | 2,487 | | | 377 | | | 3,014 | | | 144,988 | | | 148,379 |
Construction and land/lots | - | | | 379 | | | 2,041 | | | 2,420 | | | 1,077 | | | 1,735 | | | 56,437 | | | 59,249 |
Indirect auto finance | - | | | - | | | 113 | | | 113 | | | - | | | - | | | 8,833 | | | 8,833 |
Consumer | - | | | 3 | | | 181 | | | 184 | | | 41 | | | 10 | | | 6,280 | | | 6,331 |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | - | | | 26 | | | 5,413 | | | 5,439 | | | 25,711 | | | 13,784 | | | 338,274 | | | 377,769 |
Construction and development | - | | | 26 | | | 1,215 | | | 1,241 | | | 5,652 | | | 5,571 | | | 45,234 | | | 56,457 |
Commercial and industrial | - | | | 3 | | | 246 | | | 249 | | | 5,355 | | | 2,378 | | | 66,702 | | | 74,435 |
Municipal leases | - | | | - | | | 769 | | | 769 | | | - | | | - | | | 106,215 | | | 106,215 |
Total | $- | | $ | 1,064 | | $ | 22,365 | | $ | 23,429 | | $ | 46,474 | | $ | 50,421 | | $ | 1,400,973 | | $ | 1,497,868 |
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The Company’s impaired loans and the related allowance, by segment and class, at the dates indicated follows: |
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| Total Impaired Loans | | | | | | | | | | | |
| | With a | | | With No | | | | | | Related | | | | | | | | | | | |
| | Recorded | | | Recorded | | | | | | Recorded | | | | | | | | | | | |
| | Allowance | | | Allowance | | | Total | | | Allowance | | | | | | | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 13,980 | | $ | 17,710 | | $ | 31,690 | | $ | 540 | | | | | | | | | | | |
Home equity lines of credit | | 3,178 | | | 1,491 | | | 4,669 | | | 188 | | | | | | | | | | | |
Construction and land/lots | | 1,723 | | | 627 | | | 2,350 | | | 656 | | | | | | | | | | | |
Indirect auto finance | | - | | | - | | | - | | | - | | | | | | | | | | | |
Consumer | | 26 | | | 9 | | | 35 | | | 3 | | | | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 3,167 | | | 15,297 | | | 18,464 | | | 48 | | | | | | | | | | | |
Construction and development | | 2,182 | | | 3,892 | | | 6,074 | | | 83 | | | | | | | | | | | |
Commercial and industrial | | 820 | | | 2,243 | | | 3,063 | | | 4 | | | | | | | | | | | |
Municipal leases | | 303 | | | - | | | 303 | | | 2 | | | | | | | | | | | |
Total impaired loans | $ | 25,379 | | $ | 41,269 | | $ | 66,648 | | $ | 1,524 | | | | | | | | | | | |
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| Total Impaired Loans | | | | | | | | | | | |
| | With a | | | With No | | | | | | Related | | | | | | | | | | | |
| | Recorded | | | Recorded | | | | | | Recorded | | | | | | | | | | | |
| | Allowance | | | Allowance | | | Total | | | Allowance | | | | | | | | | | | |
30-Jun-14 | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | $ | 17,379 | | $ | 14,614 | | $ | 31,993 | | $ | 678 | | | | | | | | | | | |
Home equity lines of credit | | 2,445 | | | 2,305 | | | 4,750 | | | 166 | | | | | | | | | | | |
Construction and land/lots | | 1,737 | | | 109 | | | 1,846 | | | 411 | | | | | | | | | | | |
Indirect auto finance | | - | | | - | | | - | | | - | | | | | | | | | | | |
Consumer | | 16 | | | 11 | | | 27 | | | 3 | | | | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | 6,228 | | | 9,114 | | | 15,342 | | | 166 | | | | | | | | | | | |
Construction and development | | 1,043 | | | 5,088 | | | 6,131 | | | 54 | | | | | | | | | | | |
Commercial and industrial | | 835 | | | 1,903 | | | 2,738 | | | 13 | | | | | | | | | | | |
Municipal leases | | - | | | - | | | - | | | - | | | | | | | | | | | |
Total impaired loans | $ | 29,683 | | $ | 33,144 | | $ | 62,827 | | $ | 1,491 | | | | | | | | | | | |
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The table above includes $15,026 and $12,406, of impaired loans that were not individually evaluated at September 30, 2014 and June 30, 2014, respectively, because these loans did not meet the Company’s threshold for individual impairment evaluation. The recorded allowance above includes $192 and $427 related to these loans that were not individually evaluated at September 30, 2014 and June 30, 2014, respectively. |
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The Company’s average recorded investment in loans individually evaluated for impairment and interest income recognized on impaired loans for the three months ended September 30, 2014 and 2013 was as follows: |
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| Three Months Ended | | | | |
| | 30-Sep-14 | | | 30-Sep-13 | | | | |
| | | Average | | | Unpaid | | | Interest | | | Average | | | Unpaid | | | Interest | | | | |
| | | Recorded | | | Principal | | | Income | | | Recorded | | | Principal | | | Income | | | | |
| | | Investment | | | Balance | | | Recognized | | | Investment | | | Balance | | | Recognized | | | | |
Retail consumer loans: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | | $ | 31,842 | | $ | 35,147 | | $ | 451 | | $ | 44,682 | | $ | 48,252 | | $ | 364 | | | | |
Home equity lines of credit | | | 4,710 | | | 6,348 | | | 75 | | | 5,938 | | | 8,970 | | | 70 | | | | |
Construction and land/lots | | | 2,098 | | | 3,675 | | | 36 | | | 2,556 | | | 5,023 | | | 42 | | | | |
Indirect auto finance | | | - | | | - | | | - | | | - | | | - | | | - | | | | |
Consumer | | | 31 | | | 1,147 | | | 3 | | | 59 | | | 181 | | | 1 | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 16,903 | | | 26,291 | | | 210 | | | 26,535 | | | 30,055 | | | 143 | | | | |
Construction and development | | | 6,103 | | | 9,541 | | | 32 | | | 10,978 | | | 15,368 | | | 33 | | | | |
Commercial and industrial | | | 2,901 | | | 5,042 | | | 76 | | | 2,860 | | | 3,471 | | | 38 | | | | |
Municipal leases | | | 152 | | | 303 | | | - | | | - | | | - | | | - | | | | |
Total loans | | $ | 64,738 | | $ | 87,494 | | $ | 883 | | $ | 93,608 | | $ | 111,320 | | $ | 691 | | | | |
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A summary of changes in the accretable yield for PCI loans for the three months ended September 30, 2014 and 2013 was as follows. |
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| Three Months Ended | | | | | | | | | | | | | | | | | |
| | September 30, | | | September 30, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | |
Accretable yield, beginning of period | $ | 6,151 | | $ | - | | | | | | | | | | | | | | | | | |
Addition from the Bank of Commerce acquisition | | 7,315 | | | 1,835 | | | | | | | | | | | | | | | | | |
Interest income | | -931 | | | -100 | | | | | | | | | | | | | | | | | |
Accretable yield, end of period | $ | 12,535 | | $ | 1,735 | | | | | | | | | | | | | | | | | |
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The following table presents the purchased performing loans receivable for Bank of Commerce at September 30, 2014 and July 31, 2014 (the combination date): |
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| | September 30, | | | July 31, | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2014 | | | | | | | | | | | | | | | | | |
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Contractually required principal payments receivable | $ | 46,812 | | $ | 47,291 | | | | | | | | | | | | | | | | | |
Adjustment for credit, interest rate, and liquidity | | 1,150 | | | 1,159 | | | | | | | | | | | | | | | | | |
Balance of purchased loans receivable | $ | 45,662 | | $ | 46,132 | | | | | | | | | | | | | | | | | |
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The following table presents the PCI loans for Bank of Commerce at July 31, 2014, the acquisition date: |
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| | July 31, | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | | | | | | | | | | | | | | | | | | |
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Contractually required principal and interest payments receivable | $ | 49,870 | | | | | | | | | | | | | | | | | | | | |
Amounts not expected to be collected – nonaccretable difference | | 2,300 | | | | | | | | | | | | | | | | | | | | |
Estimated payments expected to be received | | 47,570 | | | | | | | | | | | | | | | | | | | | |
Accretable yield | | 7,315 | | | | | | | | | | | | | | | | | | | | |
Fair value of PCI loans | $ | 40,255 | | | | | | | | | | | | | | | | | | | | |
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For the three months ended September 30, 2014 and 2013, the following table presents a breakdown of the types of concessions made on TDRs by loan class: |
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| Three Months Ended | | Three Months Ended | | | | | | | |
| 30-Sep-14 | | 30-Sep-13 | | | | | | | |
| Number of Loans | | | Pre Modification Outstanding Recorded Investment | | | Post Modification Outstanding Recorded Investment | | Number of Loans | | | Pre Modification Outstanding Recorded Investment | | | Post Modification Outstanding Recorded Investment | | | | | | | |
Below market interest rate: | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | - | | $ | - | | $ | - | | 1 | | $ | 18 | | $ | 17 | | | | | | | |
Total | - | | $ | - | | $ | - | | 1 | | $ | 18 | | $ | 17 | | | | | | | |
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Extended term: | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | 1 | | $ | 146 | | $ | 147 | | - | | $ | - | | $ | - | | | | | | | |
Home equity lines of credit | 1 | | | 46 | | | 46 | | - | | | - | | | - | | | | | | | |
Total | 2 | | $ | 192 | | $ | 193 | | - | | $ | - | | $ | - | | | | | | | |
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Other TDRs: | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | 4 | | $ | 314 | | $ | 324 | | 3 | | $ | 572 | | $ | 576 | | | | | | | |
Home equity lines of credit | 1 | | | 100 | | | 105 | | - | | | - | | | - | | | | | | | |
Construction and land/lots | 1 | | | 106 | | | 100 | | 1 | | | 135 | | | 135 | | | | | | | |
Total | 6 | | $ | 520 | | $ | 529 | | 4 | | $ | 707 | | $ | 711 | | | | | | | |
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Total | 8 | | $ | 712 | | $ | 722 | | 5 | | $ | 725 | | $ | 728 | | | | | | | |
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The following table presents loans that were modified as TDRs within the previous 12 months and for which there was a payment default during the three months ended September 30, 2014 and 2013: |
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| Three Months Ended | | Three Months Ended | | | | | | | | | | | | | |
| 30-Sep-14 | | 30-Sep-13 | | | | | | | | | | | | | |
| Number of | | | Recorded | | Number of | | | Recorded | | | | | | | | | | | | | |
| Loans | | | Investment | | Loans | | | Investment | | | | | | | | | | | | | |
Below market interest rate: | | | | | | | | | | | | | | | | | | | | | | |
Total | - | | $ | - | | - | | $ | - | | | | | | | | | | | | | |
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Extended payment terms: | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | - | | | - | | 1 | | $ | 10 | | | | | | | | | | | | | |
Home equity lines of credit | - | | | - | | 1 | | | 11 | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | |
Commercial and Industrial | - | | | - | | 1 | | | 25 | | | | | | | | | | | | | |
Total | - | | $ | - | | 3 | | $ | 46 | | | | | | | | | | | | | |
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Other TDRs: | | | | | | | | | | | | | | | | | | | | | | |
Retail consumer: | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family | 4 | | $ | 312 | | 7 | | $ | 1,523 | | | | | | | | | | | | | |
Home equity lines of credit | - | | | - | | 1 | | | 48 | | | | | | | | | | | | | |
Construction and land/lots | - | | | - | | 1 | | | 135 | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | - | | | - | | 3 | | | 381 | | | | | | | | | | | | | |
Total | 4 | | $ | 312 | | 12 | | $ | 2,087 | | | | | | | | | | | | | |
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Total | 6 | | $ | 312 | | 15 | | $ | 2,133 | | | | | | | | | | | | | |
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Other TDRs include TDRs that have a below market interest rate and extended payment terms. The Company does not typically forgive principal when restructuring troubled debt. |
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In the determination of the allowance for loan losses, management considers TDRs for all loan classes, and the subsequent nonperformance in accordance with their modified terms, by measuring impairment on a loan-by-loan basis based on either the value of the loan’s expected future cash flows discounted at the loan’s original effective interest rate or on the collateral value, net of the estimated costs of disposal, if the loan is collateral dependent. |
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