Loans | Loans Loans consist of the following at the dates indicated: March 31, 2017 June 30, 2016 Retail consumer loans: One-to-four family $ 683,383 $ 623,701 HELOCs - originated 160,083 163,293 HELOCs - purchased 160,829 144,377 Construction and land/lots 46,856 38,102 Indirect auto finance 132,959 108,478 Consumer 7,729 4,635 Total retail consumer loans 1,191,839 1,082,586 Commercial loans: Commercial real estate 706,277 486,561 Construction and development 177,087 86,840 Commercial and industrial 105,299 73,289 Municipal leases 101,776 103,183 Total commercial loans 1,090,439 749,873 Total loans 2,282,278 1,832,459 Deferred loan costs (fees), net (593 ) 372 Total loans, net of deferred loan fees 2,281,685 1,832,831 Allowance for loan losses (21,097 ) (21,292 ) Loans, net $ 2,260,588 $ 1,811,539 All qualifying one-to-four family first mortgage loans and HELOCs, and our FHLB Stock are pledged as collateral by a blanket pledge to secure any outstanding FHLB advances. The Company's total non-purchased and purchased performing loans by segment, class, and risk grade at the dates indicated follow: Pass Special Mention Substandard Doubtful Loss Total March 31, 2017 Retail consumer loans: One-to-four family $ 649,469 $ 7,407 $ 16,597 $ 1,318 $ 6 $ 674,797 HELOCs - originated 156,411 923 2,336 88 38 159,796 HELOCs - purchased 160,588 — 241 — — 160,829 Construction and land/lots 44,890 582 720 130 — 46,322 Indirect auto finance 132,710 12 99 136 2 132,959 Consumer 7,527 18 154 2 8 7,709 Commercial loans: Commercial real estate 671,778 6,933 8,776 — — 687,487 Construction and development 170,496 937 2,838 — — 174,271 Commercial and industrial 97,769 1,508 3,182 — 3 102,462 Municipal leases 100,394 1,271 111 — — 101,776 Total loans $ 2,192,032 $ 19,591 $ 35,054 $ 1,674 $ 57 $ 2,248,408 Pass Special Mention Substandard Doubtful Loss Total June 30, 2016 Retail consumer loans: One-to-four family $ 587,440 $ 7,800 $ 20,129 $ 1,283 $ 11 $ 616,663 HELOCs - originated 159,275 678 2,997 55 10 163,015 HELOCs - purchased 144,377 — — — — 144,377 Construction and land/lots 36,298 542 679 9 — 37,528 Indirect auto finance 108,432 14 21 11 — 108,478 Consumer 4,390 1 224 2 9 4,626 Commercial loans: Commercial real estate 448,188 7,817 9,232 1 — 465,238 Construction and development 79,005 480 4,208 — — 83,693 Commercial and industrial 63,299 1,032 5,361 — 2 69,694 Municipal leases 100,867 1,651 665 — — 103,183 Total loans $ 1,731,571 $ 20,015 $ 43,516 $ 1,361 $ 32 $ 1,796,495 The Company's total PCI loans by segment, class, and risk grade at the dates indicated follow: Pass Special Mention Substandard Doubtful Loss Total March 31, 2017 Retail consumer loans: One-to-four family $ 3,272 $ 1,569 $ 3,539 $ 206 $ — $ 8,586 HELOCs - originated 258 — 29 — — 287 Construction and land/lots 493 — 41 — — 534 Consumer 5 15 — — — 20 Commercial loans: Commercial real estate 9,608 5,228 3,954 — — 18,790 Construction and development 390 431 1,995 — — 2,816 Commercial and industrial 2,640 151 46 — — 2,837 Total loans $ 16,666 $ 7,394 $ 9,604 $ 206 $ — $ 33,870 Pass Special Mention Substandard Doubtful Loss Total June 30, 2016 Retail consumer loans: One-to-four family $ 5,039 $ 377 $ 1,593 $ 14 $ 15 $ 7,038 HELOCs - originated 258 — 20 — — 278 Construction and land/lots 522 — 52 — — 574 Consumer 8 — — — 1 9 Commercial loans: Commercial real estate 12,594 4,266 4,463 — — 21,323 Construction and development 1,136 292 1,719 — — 3,147 Commercial and industrial 3,234 194 167 — — 3,595 Total loans $ 22,791 $ 5,129 $ 8,014 $ 14 $ 16 $ 35,964 The Company's total loans by segment, class, and delinquency status at the dates indicated follows: Past Due Total 30-89 Days 90 Days+ Total Current Loans March 31, 2017 Retail consumer loans: One-to-four family $ 2,519 $ 3,930 $ 6,449 $ 676,934 $ 683,383 HELOCs - originated 446 330 776 159,307 160,083 HELOCs - purchased — 48 48 160,781 160,829 Construction and land/lots 161 308 469 46,387 46,856 Indirect auto finance 38 25 63 132,896 132,959 Consumer 5 16 21 7,708 7,729 Commercial loans: Commercial real estate 235 4,131 4,366 701,911 706,277 Construction and development — 817 817 176,270 177,087 Commercial and industrial 90 1,080 1,170 104,129 105,299 Municipal leases 1,126 111 1,237 100,539 101,776 Total loans $ 4,620 $ 10,796 $ 15,416 $ 2,266,862 $ 2,282,278 The table above includes PCI loans of $211 30-89 days past due and $4,377 90 days or more past due as of March 31, 2017 . Past Due Total 30-89 Days 90 Days+ Total Current Loans June 30, 2016 Retail consumer loans: One-to-four family $ 3,514 $ 5,476 $ 8,990 $ 614,711 $ 623,701 HELOCs - originated 220 377 597 162,696 163,293 HELOCs - purchased — — — 144,377 144,377 Construction and land/lots 100 119 219 37,883 38,102 Indirect auto finance 182 — 182 108,296 108,478 Consumer 4 4 8 4,627 4,635 Commercial loans: Commercial real estate 1,436 3,353 4,789 481,772 486,561 Construction and development 371 1,296 1,667 85,173 86,840 Commercial and industrial 216 2,819 3,035 70,254 73,289 Municipal leases — — — 103,183 103,183 Total loans $ 6,043 $ 13,444 $ 19,487 $ 1,812,972 $ 1,832,459 The table above includes PCI loans of $1,596 30-89 days past due and $5,776 90 days or more past due as of June 30, 2016 . 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: March 31, 2017 June 30, 2016 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 6,354 $ — $ 9,192 $ — HELOCs - originated 643 — 1,026 — HELOCs - purchased 241 — — — Construction and land/lots 397 — 188 — Indirect auto finance 155 — 20 — Consumer 32 — 15 — Commercial loans: Commercial real estate 3,032 — 3,222 — Construction and development 1,751 — 1,417 — Commercial and industrial 1,096 — 3,019 — Municipal leases 111 — 419 — Total loans $ 13,812 $ — $ 18,518 $ — PCI loans totaling $7,732 at March 31, 2017 and $6,607 at June 30, 2016 are excluded from nonaccruing loans due to the accretion of discounts established in accordance with the acquisition method of accounting for business combinations. Troubled debt restructurings ("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. The Company had no commitments to lend additional funds on these TDR loans at March 31, 2017 . 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: March 31, 2017 June 30, 2016 Performing TDRs included in impaired loans $ 29,004 $ 28,263 An analysis of the allowance for loan losses by segment for the periods shown is as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 336 $ 9,813 $ 10,837 $ 20,986 $ 355 $ 12,070 $ 9,552 $ 21,977 Provision for (recovery of) loan losses 138 (980 ) 842 — (10 ) 339 (329 ) — Charge-offs — (317 ) (399 ) (716 ) — (692 ) (500 ) (1,192 ) Recoveries — 363 464 827 — 228 748 976 Balance at end of period $ 474 $ 8,879 $ 11,744 $ 21,097 $ 345 $ 11,945 $ 9,471 $ 21,761 Nine Months Ended March 31, 2017 Nine Months Ended March 31, 2016 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 361 $ 11,549 $ 9,382 $ 21,292 $ 401 $ 12,575 $ 9,398 $ 22,374 Provision for (recovery of) loan losses 113 (2,485 ) 2,372 — (56 ) (141 ) 197 — Charge-offs — (891 ) (1,074 ) (1,965 ) — (1,466 ) (1,378 ) (2,844 ) Recoveries — 706 1,064 1,770 — 977 1,254 2,231 Balance at end of period $ 474 $ 8,879 $ 11,744 $ 21,097 $ 345 $ 11,945 $ 9,471 $ 21,761 The Company's ending balances of loans and the related allowance, by segment and class, at the dates indicated follows: Allowance for Loan Losses Total Loans Receivable PCI Loans individually evaluated for impairment Loans collectively evaluated Total PCI Loans individually evaluated for impairment Loans collectively evaluated Total March 31, 2017 Retail consumer loans: One-to-four family $ 16 $ 297 $ 4,573 $ 4,886 $ 8,586 $ 10,777 $ 664,020 $ 683,383 HELOCs - originated — 38 1,484 1,522 287 43 159,753 160,083 HELOCs - purchased — — 643 643 — — 160,829 160,829 Construction and land/lots — 26 903 929 534 648 45,674 46,856 Indirect auto finance — 2 857 859 — 8 132,951 132,959 Consumer — 8 48 56 20 2 7,707 7,729 Commercial loans: Commercial real estate 297 254 6,708 7,259 18,790 7,290 680,197 706,277 Construction and development 145 5 2,746 2,896 2,816 2,188 172,083 177,087 Commercial and industrial 16 544 974 1,534 2,837 1,805 100,657 105,299 Municipal leases — — 513 513 — 294 101,482 101,776 Total $ 474 $ 1,174 $ 19,449 $ 21,097 $ 33,870 $ 23,055 $ 2,225,353 $ 2,282,278 June 30, 2016 Retail consumer loans: One-to-four family $ 23 $ 187 $ 6,385 $ 6,595 $ 7,038 $ 12,411 $ 604,252 $ 623,701 HELOCs - originated — 288 1,709 1,997 278 1,145 161,870 163,293 HELOCs - purchased — — 558 558 — — 144,377 144,377 Construction and land/lots — 198 1,146 1,344 574 392 37,136 38,102 Indirect auto finance — — 1,016 1,016 — — 108,478 108,478 Consumer — 10 51 61 9 — 4,626 4,635 Commercial loans: Commercial real estate 288 — 6,142 6,430 21,323 5,376 459,862 486,561 Construction and development 17 — 1,891 1,908 3,147 1,789 81,904 86,840 Commercial and industrial 33 3 685 721 3,595 2,927 66,767 73,289 Municipal leases — — 662 662 — 305 102,878 103,183 Total $ 361 $ 686 $ 20,245 $ 21,292 $ 35,964 $ 24,345 $ 1,772,150 $ 1,832,459 Loans acquired from acquisitions are initially excluded from the allowance for loan losses in accordance with the acquisition method of accounting for business combinations. The Company records these loans at fair value, which includes a credit discount, therefore, no allowance for loan losses are established for these acquired loans at acquisition. A provision for loan losses is recorded for any further deterioration in these acquired loans subsequent to the acquisition. The Company's impaired loans and the related allowance, by segment and class, at the dates indicated follows: Total Impaired Loans Unpaid Principal Balance Recorded Investment With a Recorded Allowance Recorded Investment With No Recorded Allowance Total Related Recorded Allowance March 31, 2017 Retail consumer loans: One-to-four family $ 28,199 $ 17,205 $ 7,579 $ 24,784 $ 846 HELOCs - originated 3,434 2,033 299 2,332 85 Construction and land/lots 2,967 1,477 493 1,970 109 Indirect auto finance 285 2 153 155 1 Consumer 557 16 18 34 9 Commercial loans: Commercial real estate 9,252 4,019 4,867 8,886 269 Construction and development 3,783 1,035 1,749 2,784 28 Commercial and industrial 7,647 861 1,265 2,126 552 Municipal leases 406 111 295 406 — Total impaired loans $ 56,530 $ 26,759 $ 16,718 $ 43,477 $ 1,899 June 30, 2016 Retail consumer loans: One-to-four family $ 29,053 $ 12,348 $ 13,375 $ 25,723 $ 281 HELOCs - originated 4,486 1,999 1,178 3,177 305 Construction and land/lots 2,890 764 693 1,457 209 Indirect auto finance 45 20 — 20 — Consumer 514 9 13 22 10 Commercial loans: Commercial real estate 7,433 857 5,776 6,633 13 Construction and development 3,556 600 1,929 2,529 14 Commercial and industrial 9,710 1,197 2,930 4,127 17 Municipal leases 419 114 305 419 1 Total impaired loans $ 58,106 $ 17,908 $ 26,199 $ 44,107 $ 850 Impaired loans above excludes $1,082 at March 31, 2017 and $2,541 at June 30, 2016 in PCI loans due to the accretion of discounts established in accordance with the acquisition method of accounting for business combinations. At March 31, 2017 , impaired loans with a recorded allowance increased $9,148 during the nine months ended March 31, 2017 primarily due to the change in methodology of measuring impairment during the first quarter of 2017 from the collateral method to the present value of future cash flows method to better reflect the anticipated repayments of these loans. The table above includes $20,422 and $19,762 , of impaired loans that were not individually evaluated at March 31, 2017 and June 30, 2016 , respectively, because these loans did not meet the Company's threshold for individual impairment evaluation. The recorded allowance above includes $725 and $164 related to these loans that were not individually evaluated at March 31, 2017 and June 30, 2016 , respectively. The Company's average recorded investment in impaired loans and interest income recognized on impaired loans for the three and nine months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, 2017 March 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 25,262 $ 300 $ 30,193 $ 385 HELOCs - originated 2,315 32 3,671 48 Construction and land/lots 1,906 29 1,747 35 Indirect auto finance 166 1 7 1 Consumer 32 5 35 6 Commercial loans: Commercial real estate 8,305 83 7,711 34 Construction and development 2,816 14 3,151 17 Commercial and industrial 2,628 39 5,001 37 Municipal leases 407 6 609 1 Total loans $ 43,837 $ 509 $ 52,125 $ 564 Nine Months Ended March 31, 2017 March 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 25,963 $ 881 $ 29,922 $ 1,141 HELOCs - originated 2,649 98 3,856 149 Construction and land/lots 1,654 105 1,952 102 Indirect auto finance 111 9 3 4 Consumer 30 15 56 20 Commercial loans: Commercial real estate 7,716 221 10,828 119 Construction and development 2,594 35 4,477 61 Commercial and industrial 3,249 96 4,029 107 Municipal leases 410 18 431 30 Total loans $ 44,376 $ 1,478 $ 55,554 $ 1,733 A summary of changes in the accretable yield for PCI loans for the three and nine months ended March 31, 2017 and 2016 was as follows: Three Months Ended March 31, 2017 March 31, 2016 Accretable yield, beginning of period $ 7,519 $ 9,964 Addition from the TriSummit acquisition 1,288 — Reclass from nonaccretable yield (1) 296 59 Other changes, net (2) 396 (36 ) Interest income (1,722 ) (840 ) Accretable yield, end of period $ 7,777 $ 9,147 Nine Months Ended March 31, 2017 March 31, 2016 Accretable yield, beginning of period $ 9,532 $ 11,096 Addition from the TriSummit acquisition 1,288 — Reclass from nonaccretable yield (1) 1,368 661 Other changes, net (2) (345 ) 1,044 Interest income (4,066 ) (3,654 ) Accretable yield, end of period $ 7,777 $ 9,147 ______________________________________ (1) Represents changes attributable to expected losses assumptions. (2) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, and changes in interest rates. For the three and nine months ended March 31, 2017 and 2016 , the following table presents a breakdown of the types of concessions made on TDRs by loan class: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 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 3 $ 162 $ 163 — $ — $ — Commercial: Commercial real estate — — — 1 590 586 Total 3 $ 162 $ 163 1 $ 590 $ 586 Extended term: Retail consumer: One-to-four family 2 $ 76 $ 60 — $ — $ — HELOCs - originated — — — 1 14 14 Commercial: Commercial real estate — — — 1 286 286 Commercial & Industrial 1 439 439 — — — Total 3 $ 515 $ 499 2 $ 300 $ 300 Other TDRs: Retail consumer: One-to-four family 3 $ 135 $ 136 7 $ 485 $ 493 HELOCs - originated 1 30 30 1 8 8 Construction and land/lots 2 150 149 — — — Commercial: Commercial real estate 3 2,443 2,145 — — — Construction and development — — — 1 2 2 Total 9 $ 2,758 $ 2,460 9 $ 495 $ 503 Total 15 $ 3,435 $ 3,122 12 $ 1,385 $ 1,389 Nine Months Ended March 31, 2017 Nine Months Ended March 31, 2016 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 3 $ 162 $ 163 1 $ 26 $ 28 Commercial: Commercial real estate — — — 1 590 586 Total 3 $ 162 $ 163 2 $ 616 $ 614 Extended term: Retail consumer: One-to-four family 5 $ 215 $ 195 4 $ 92 $ 99 HELOCs - originated — — — 2 28 27 Construction and land/lots 1 280 271 — — — Consumer 1 — 1 — — — Commercial: Commercial real estate — — — 1 286 286 Commercial and industrial 1 439 439 — — — Total 8 $ 934 $ 906 7 $ 406 $ 412 Other TDRs: Retail consumer: One-to-four family 10 $ 353 $ 352 26 $ 2,860 $ 2,657 HELOCs - originated 2 33 32 2 8 8 Construction and land/lots 4 404 396 — — — Consumer — — — 1 2 2 Commercial: Commercial real estate 3 2,443 2,145 — — — Construction and development — — — 1 386 374 Commercial and industrial 1 24 24 1 997 978 Total 20 $ 3,257 $ 2,949 31 $ 4,253 $ 4,019 Total 31 $ 4,353 $ 4,018 40 $ 5,275 $ 5,045 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 and nine months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Extended payment terms: Retail consumer: One-to-four family — $ — 1 $ 31 Total — $ — 1 $ 31 Other TDRs: Retail consumer: One-to-four family 2 $ 27 6 $ 390 HELOCs - originated — — 1 16 Commercial: Commercial and industrial 4 900 — — Total 6 $ 927 7 $ 406 Total 6 $ 927 8 $ 437 Nine Months Ended March 31, 2017 Nine Months Ended March 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Extended payment terms: Retail consumer: One-to-four family — $ — 3 $ 75 Total — $ — 3 $ 75 Other TDRs: Retail consumer: One-to-four family 2 $ 27 14 $ 895 HELOCs - originated — — 2 24 Commercial: Commercial and industrial 4 900 — — Total 6 $ 927 16 $ 919 Total 6 $ 927 19 $ 994 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. 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 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. |