Loans | Loans Loans consist of the following at the dates indicated: December 31, 2017 June 30, 2017 Retail consumer loans: One-to-four family $ 686,229 $ 684,089 HELOCs - originated 150,084 157,068 HELOCs - purchased 162,181 162,407 Construction and land/lots 60,805 50,136 Indirect auto finance 150,042 140,879 Consumer 9,699 7,900 Total retail consumer loans 1,219,040 1,202,479 Commercial loans: Commercial real estate 786,381 730,408 Construction and development 185,921 197,966 Commercial and industrial 127,709 120,387 Municipal leases 100,205 101,175 Total commercial loans 1,200,216 1,149,936 Total loans 2,419,256 2,352,415 Deferred loan fees, net (1,242 ) (945 ) Total loans, net of deferred loan fees 2,418,014 2,351,470 Allowance for loan losses (21,090 ) (21,151 ) Loans, net $ 2,396,924 $ 2,330,319 All qualifying one-to-four family first mortgage loans, HELOCs, commercial real estate loans, and 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 December 31, 2017 Retail consumer loans: One-to-four family $ 658,436 $ 4,783 $ 14,298 $ 1,132 $ 132 $ 678,781 HELOCs - originated 146,733 756 2,318 — 21 149,828 HELOCs - purchased 161,991 — 190 — — 162,181 Construction and land/lots 59,496 389 409 — — 60,294 Indirect auto finance 149,660 — 382 — — 150,042 Consumer 9,656 10 20 1 9 9,696 Commercial loans: Commercial real estate 760,262 7,584 5,809 — — 773,655 Construction and development 179,946 714 2,829 — — 183,489 Commercial and industrial 122,282 906 2,099 — 2 125,289 Municipal leases 99,798 309 98 — — 100,205 Total loans $ 2,348,260 $ 15,451 $ 28,452 $ 1,133 $ 164 $ 2,393,460 Pass Special Mention Substandard Doubtful Loss Total June 30, 2017 Retail consumer loans: One-to-four family $ 655,424 $ 4,715 $ 14,769 $ 1,101 $ 11 $ 676,020 HELOCs - originated 153,676 809 2,100 188 7 156,780 HELOCs - purchased 162,215 — 192 — — 162,407 Construction and land/lots 48,728 479 341 60 — 49,608 Indirect auto finance 140,780 — 97 1 1 140,879 Consumer 7,828 12 34 — 8 7,882 Commercial loans: Commercial real estate 700,060 5,847 7,118 — — 713,025 Construction and development 192,025 992 2,320 — — 195,337 Commercial and industrial 113,923 883 2,954 — 1 117,761 Municipal leases 99,811 1,258 106 — — 101,175 Total loans $ 2,274,470 $ 14,995 $ 30,031 $ 1,350 $ 28 $ 2,320,874 The Company's total PCI loans by segment, class, and risk grade at the dates indicated follow: Pass Special Mention Substandard Doubtful Loss Total December 31, 2017 Retail consumer loans: One-to-four family $ 2,827 $ 1,193 $ 3,427 $ — $ 1 $ 7,448 HELOCs - originated 256 — — — — 256 Construction and land/lots 469 — 42 — — 511 Consumer 3 — — — — 3 Commercial loans: Commercial real estate 6,627 1,579 4,520 — — 12,726 Construction and development 326 — 2,106 — — 2,432 Commercial and industrial 2,267 23 130 — — 2,420 Total loans $ 12,775 $ 2,795 $ 10,225 $ — $ 1 $ 25,796 Pass Special Mention Substandard Doubtful Loss Total June 30, 2017 Retail consumer loans: One-to-four family $ 3,115 $ 1,129 $ 3,615 $ 210 $ — $ 8,069 HELOCs - originated 258 — 30 — — 288 Construction and land/lots 487 — 41 — — 528 Consumer 4 14 — — — 18 Commercial loans: Commercial real estate 8,909 2,299 6,175 — — 17,383 Construction and development 338 — 2,291 — — 2,629 Commercial and industrial 2,460 44 122 — — 2,626 Total loans $ 15,571 $ 3,486 $ 12,274 $ 210 $ — $ 31,541 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 December 31, 2017 Retail consumer loans: One-to-four family $ 4,730 $ 3,601 $ 8,331 $ 677,898 $ 686,229 HELOCs - originated 531 740 1,271 148,813 150,084 HELOCs - purchased — — — 162,181 162,181 Construction and land/lots 164 133 297 60,508 60,805 Indirect auto finance 441 67 508 149,534 150,042 Consumer 7 4 11 9,688 9,699 Commercial loans: Commercial real estate 341 2,854 3,195 783,186 786,381 Construction and development 831 2,062 2,893 183,028 185,921 Commercial and industrial 267 538 805 126,904 127,709 Municipal leases — — — 100,205 100,205 Total loans $ 7,312 $ 9,999 $ 17,311 $ 2,401,945 $ 2,419,256 The table above includes PCI loans of $797 30-89 days past due and $2,023 90 days or more past due as of December 31, 2017 . Past Due Total 30-89 Days 90 Days+ Total Current Loans June 30, 2017 Retail consumer loans: One-to-four family $ 3,496 $ 3,990 $ 7,486 $ 676,603 $ 684,089 HELOCs - originated 1,037 274 1,311 155,757 157,068 HELOCs - purchased — — — 162,407 162,407 Construction and land/lots 132 129 261 49,875 50,136 Indirect auto finance 96 — 96 140,783 140,879 Consumer 5 14 19 7,881 7,900 Commercial loans: Commercial real estate 809 3,100 3,909 726,499 730,408 Construction and development 385 887 1,272 196,694 197,966 Commercial and industrial 37 831 868 119,519 120,387 Municipal leases — — — 101,175 101,175 Total loans $ 5,997 $ 9,225 $ 15,222 $ 2,337,193 $ 2,352,415 The table above includes PCI loans of $854 30-89 days past due and $4,211 90 days or more past due as of June 30, 2017 . 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: December 31, 2017 June 30, 2017 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 6,281 $ — $ 6,453 $ — HELOCs - originated 1,275 — 1,291 — HELOCs - purchased 190 — 192 — Construction and land/lots 315 — 245 — Indirect auto finance 285 — 1 — Consumer 21 — 29 — Commercial loans: Commercial real estate 2,808 — 2,756 — Construction and development 2,569 — 1,766 — Commercial and industrial 525 — 827 — Municipal leases 98 — 106 — Total loans $ 14,367 $ — $ 13,666 $ — PCI loans totaling $4,596 at December 31, 2017 and $6,664 at June 30, 2017 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 December 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: December 31, 2017 June 30, 2017 Performing TDRs included in impaired loans $ 25,181 $ 27,043 An analysis of the allowance for loan losses by segment for the periods shown is as follows: Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 1,197 $ 8,310 $ 12,490 $ 21,997 $ 356 $ 10,446 $ 10,149 $ 20,951 Provision for (recovery of) loan losses (286 ) 162 124 — (20 ) (609 ) 629 — Charge-offs (345 ) (378 ) (349 ) (1,072 ) — (155 ) (67 ) (222 ) Recoveries — 97 68 165 — 131 126 257 Balance at end of period $ 566 $ 8,191 $ 12,333 $ 21,090 $ 336 $ 9,813 $ 10,837 $ 20,986 Six Months Ended December 31, 2017 Six Months Ended December 31, 2016 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 727 $ 8,585 $ 11,839 $ 21,151 $ 361 $ 11,549 $ 9,382 $ 21,292 Provision for (recovery of) loan losses 184 (250 ) 66 — (25 ) (1,505 ) 1,530 — Charge-offs (345 ) (528 ) (363 ) (1,236 ) — (574 ) (675 ) (1,249 ) Recoveries — 384 791 1,175 — 343 600 943 Balance at end of period $ 566 $ 8,191 $ 12,333 $ 21,090 $ 336 $ 9,813 $ 10,837 $ 20,986 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 December 31, 2017 Retail consumer loans: One-to-four family $ 135 $ 391 $ 3,587 $ 4,113 $ 7,448 $ 9,302 $ 669,479 $ 686,229 HELOCs - originated — 21 1,311 1,332 256 462 149,366 150,084 HELOCs - purchased — — 791 791 — — 162,181 162,181 Construction and land/lots — 22 1,063 1,085 511 611 59,683 60,805 Indirect auto finance — — 940 940 — — 150,042 150,042 Consumer — 9 56 65 3 9 9,687 9,699 Commercial loans: Commercial real estate 248 190 7,463 7,901 12,726 5,806 767,849 786,381 Construction and development 168 51 2,876 3,095 2,432 2,583 180,906 185,921 Commercial and industrial 15 91 1,197 1,303 2,420 1,060 124,229 127,709 Municipal leases — — 465 465 — — 100,205 100,205 Total $ 566 $ 775 $ 19,749 $ 21,090 $ 25,796 $ 19,833 $ 2,373,627 $ 2,419,256 June 30, 2017 Retail consumer loans: One-to-four family $ 28 $ 863 $ 3,585 $ 4,476 $ 8,069 $ 10,305 $ 665,715 $ 684,089 HELOCs - originated — 44 1,340 1,384 288 12 156,768 157,068 HELOCs - purchased — — 838 838 — — 162,407 162,407 Construction and land/lots — 88 889 977 528 634 48,974 50,136 Indirect auto finance — 1 880 881 — 1 140,878 140,879 Consumer — 8 49 57 18 8 7,874 7,900 Commercial loans: Commercial real estate 512 239 6,600 7,351 17,383 6,284 706,741 730,408 Construction and development 171 13 2,982 3,166 2,629 2,184 193,153 197,966 Commercial and industrial 16 287 1,221 1,524 2,626 1,514 116,247 120,387 Municipal leases — — 497 497 — — 101,175 101,175 Total $ 727 $ 1,543 $ 18,881 $ 21,151 $ 31,541 $ 20,942 $ 2,299,932 $ 2,352,415 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 December 31, 2017 Retail consumer loans: One-to-four family $ 27,510 $ 18,013 $ 6,147 $ 24,160 $ 935 HELOCs - originated 3,826 2,046 554 2,600 63 HELOCs - purchased 190 190 — 190 1 Construction and land/lots 2,538 1,277 332 1,609 60 Indirect auto finance 354 257 28 285 1 Consumer 512 2 29 31 9 Commercial loans: Commercial real estate 7,483 4,737 2,390 7,127 204 Construction and development 4,433 1,272 2,006 3,278 62 Commercial and industrial 6,280 1,339 50 1,389 93 Municipal leases 98 98 — 98 — Total impaired loans $ 53,224 $ 29,231 $ 11,536 $ 40,767 $ 1,428 June 30, 2017 Retail consumer loans: One-to-four family $ 28,469 $ 17,353 $ 7,773 $ 25,126 $ 881 HELOCs - originated 4,070 2,270 532 2,802 49 HELOCs - purchased 192 — 192 192 — Construction and land/lots 2,817 1,310 468 1,778 88 Indirect auto finance 22 — 1 1 1 Consumer 552 15 27 42 8 Commercial loans: Commercial real estate 8,307 4,721 3,186 7,907 253 Construction and development 3,768 1,024 1,617 2,641 16 Commercial and industrial 7,757 845 1,231 2,076 288 Municipal leases 400 106 294 400 — Total impaired loans $ 56,354 $ 27,644 $ 15,321 $ 42,965 $ 1,584 Impaired loans above excludes $4,596 at December 31, 2017 and $6,677 at June 30, 2017 in PCI loans due to the accretion of discounts established in accordance with the acquisition method of accounting for business combinations. The June 30, 2017 balance in the preceding sentence was previously disclosed as $13,425 . Based on further review, this amount was determined to be an error and was corrected during the quarter ended September 30, 2017. The error had no effect on the Company’s audited financial statements or other disclosures. The table above includes $20,934 and $22,023 , of impaired loans that were not individually evaluated at December 31, 2017 and June 30, 2017 , respectively, because these loans did not meet the Company's threshold for individual impairment evaluation. The recorded allowance above includes $653 and $41 related to these loans that were not individually evaluated at December 31, 2017 and June 30, 2017 , respectively. The Company's average recorded investment in impaired loans and interest income recognized on impaired loans for the three and six months ended December 31, 2017 and 2016 was as follows: Three Months Ended December 31, 2017 December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 24,519 $ 287 $ 26,673 $ 283 HELOCs - originated 2,750 31 2,544 33 HELOC - purchased 191 3 — — Construction and land/lots 1,588 27 1,594 38 Indirect auto finance 232 3 134 1 Consumer 33 4 32 5 Commercial loans: Commercial real estate 7,184 77 7,673 63 Construction and development 2,973 31 2,530 31 Commercial and industrial 1,723 23 3,372 22 Municipal leases 102 6 408 — Total loans $ 41,295 $ 492 $ 44,960 $ 476 Six Months Ended December 31, 2017 December 31, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 24,721 $ 585 $ 26,356 $ 585 HELOCs - originated 2,767 61 2,755 65 HELOCs - purchased 191 7 — — Construction and land/lots 1,651 56 1,548 75 Indirect auto finance 155 9 96 3 Consumer 36 8 29 10 Commercial loans: Commercial real estate 7,425 152 7,326 130 Construction and development 2,862 52 2,530 49 Commercial and industrial 1,841 42 3,624 58 Municipal leases 201 6 412 12 Total loans $ 41,850 $ 978 $ 44,676 $ 987 A summary of changes in the accretable yield for PCI loans for the three and six months ended December 31, 2017 and 2016 was as follows: Three Months Ended December 31, 2017 December 31, 2016 Accretable yield, beginning of period $ 6,698 $ 8,339 Reclass from nonaccretable yield (1) 77 185 Other changes, net (2) 80 (282 ) Interest income (634 ) (723 ) Accretable yield, end of period $ 6,221 $ 7,519 Six Months Ended December 31, 2017 December 31, 2016 Accretable yield, beginning of period $ 7,080 $ 9,532 Reclass from nonaccretable yield (1) 278 1,072 Other changes, net (2) 107 (741 ) Interest income (1,244 ) (2,344 ) Accretable yield, end of period $ 6,221 $ 7,519 ______________________________________ (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. 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. For the three and six months ended December 31, 2017 and 2016 , the following table presents a breakdown of the types of concessions made on TDRs by loan class: Three Months Ended December 31, 2017 Three Months Ended December 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 Extended payment terms: Retail consumer: One-to-four family 3 $ 398 $ 395 1 $ 20 $ 20 HELOCs - originated 1 64 59 — — — Construction and land/lots 1 36 36 1 280 280 Total 5 $ 498 $ 490 2 $ 300 $ 300 Other TDRs: Retail consumer: One-to-four family 6 $ 177 $ 176 5 $ 168 $ 171 Construction and land/lots — — — 2 254 251 Indirect auto finance 1 19 6 — — — Commercial: Commercial & Industrial — — — 1 24 24 Total 7 $ 196 $ 182 8 $ 446 $ 446 Total 12 $ 694 $ 672 10 $ 746 $ 746 Six Months Ended December 31, 2017 Six Months Ended December 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 Extended payment terms: Retail consumer: One-to-four family 3 $ 398 $ 395 3 $ 139 $ 137 HELOCs - originated 1 64 59 — — — Construction and land/lots 1 36 36 1 280 280 Total 5 $ 498 $ 490 4 $ 419 $ 417 Other TDRs: Retail consumer: One-to-four family 15 $ 1,493 $ 1,481 8 $ 273 $ 275 HELOCs - originated — — — 1 3 3 Construction and land/lots — — — 2 254 251 Indirect auto finance 1 19 6 — — — Commercial: Commercial and industrial — — — 1 24 24 Total 16 $ 1,512 $ 1,487 12 $ 554 $ 553 Total 21 $ 2,010 $ 1,977 16 $ 973 $ 970 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 six months ended December 31, 2017 and 2016 : Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Extended payment terms: Retail consumer: One-to-four family 1 $ 37 — $ — Total 1 $ 37 — $ — Other TDRs: Retail consumer: One-to-four family 3 $ 493 — $ — Indirect auto finance 1 6 — — Commercial: Commercial and industrial — — 4 1,277 Total 4 $ 499 4 $ 1,277 Total 5 $ 536 4 $ 1,277 Six Months Ended December 31, 2017 Six Months Ended December 31, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Extended payment terms: Retail consumer: One-to-four family 1 $ 37 — $ — Total 1 $ 37 — $ — Other TDRs: Retail consumer: One-to-four family 3 $ 493 — $ — Indirect auto finance 1 6 — — Commercial: Commercial real estate — — — — Commercial and industrial — — 4 1,277 Total 4 $ 499 4 $ 1,277 Total 5 $ 536 4 $ 1,277 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. |