Loans | Loans Loans consist of the following at the dates indicated: March 31, 2018 June 30, 2017 Retail consumer loans: One-to-four family $ 670,036 $ 684,089 HELOCs - originated 143,049 157,068 HELOCs - purchased 165,680 162,407 Construction and land/lots 68,121 50,136 Indirect auto finance 160,664 140,879 Consumer 11,317 7,900 Total retail consumer loans 1,218,867 1,202,479 Commercial loans: Commercial real estate 810,332 730,408 Construction and development 184,179 197,966 Commercial and industrial 132,337 120,387 Municipal leases 101,108 101,175 Total commercial loans 1,227,956 1,149,936 Total loans 2,446,823 2,352,415 Deferred loan fees, net (1,068 ) (945 ) Total loans, net of deferred loan fees 2,445,755 2,351,470 Allowance for loan losses (21,472 ) (21,151 ) Loans, net $ 2,424,283 $ 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 March 31, 2018 Retail consumer loans: One-to-four family $ 642,998 $ 5,628 $ 13,087 $ 901 $ 12 $ 662,626 HELOCs - originated 139,824 639 2,169 154 6 142,792 HELOCs - purchased 165,491 — 189 — — 165,680 Construction and land/lots 66,914 409 289 54 — 67,666 Indirect auto finance 160,203 — 461 — — 160,664 Consumer 11,276 9 21 3 6 11,315 Commercial loans: Commercial real estate 784,617 7,161 7,283 — — 799,061 Construction and development 178,771 600 2,371 — — 181,742 Commercial and industrial 126,888 1,596 1,696 — 3 130,183 Municipal leases 100,701 309 98 — — 101,108 Total loans $ 2,377,683 $ 16,351 $ 27,664 $ 1,112 $ 27 $ 2,422,837 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 March 31, 2018 Retail consumer loans: One-to-four family $ 2,806 $ 1,113 $ 3,491 $ — $ — $ 7,410 HELOCs - originated 257 — — — — 257 Construction and land/lots 455 — — — — 455 Consumer 2 — — — — 2 Commercial loans: Commercial real estate 5,613 2,860 2,798 — — 11,271 Construction and development 570 — 1,867 — — 2,437 Commercial and industrial 2,027 5 122 — — 2,154 Total loans $ 11,730 $ 3,978 $ 8,278 $ — $ — $ 23,986 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 March 31, 2018 Retail consumer loans: One-to-four family $ 3,019 $ 2,683 $ 5,702 $ 664,334 $ 670,036 HELOCs - originated 233 431 664 142,385 143,049 HELOCs - purchased — — — 165,680 165,680 Construction and land/lots 32 68 100 68,021 68,121 Indirect auto finance 385 48 433 160,231 160,664 Consumer 12 3 15 11,302 11,317 Commercial loans: Commercial real estate 1,413 2,375 3,788 806,544 810,332 Construction and development 352 2,020 2,372 181,807 184,179 Commercial and industrial 20 400 420 131,917 132,337 Municipal leases — — — 101,108 101,108 Total loans $ 5,466 $ 8,028 $ 13,494 $ 2,433,329 $ 2,446,823 The table above includes PCI loans of $1,422 30-89 days past due and $1,541 90 days or more past due as of March 31, 2018 . 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: March 31, 2018 June 30, 2017 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 5,356 $ — $ 6,453 $ — HELOCs - originated 815 — 1,291 — HELOCs - purchased 189 — 192 — Construction and land/lots 166 — 245 — Indirect auto finance 304 — 1 — Consumer 17 — 29 — Commercial loans: Commercial real estate 3,202 — 2,756 — Construction and development 2,137 — 1,766 — Commercial and industrial 367 — 827 — Municipal leases 98 — 106 — Total loans $ 12,651 $ — $ 13,666 $ — PCI loans totaling $3,760 at March 31, 2018 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 March 31, 2018 . 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, 2018 June 30, 2017 Performing TDRs included in impaired loans $ 24,977 $ 27,043 An analysis of the allowance for loan losses by segment for the periods shown is as follows: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 566 $ 8,191 $ 12,333 $ 21,090 $ 336 $ 9,813 $ 10,837 $ 20,986 Provision for (recovery of) loan losses 239 (172 ) (67 ) — 138 (980 ) 842 — Charge-offs (345 ) (240 ) (31 ) (616 ) — (317 ) (399 ) (716 ) Recoveries — 393 605 998 — 363 464 827 Balance at end of period $ 460 $ 8,172 $ 12,840 $ 21,472 $ 474 $ 8,879 $ 11,744 $ 21,097 Nine Months Ended March 31, 2018 Nine Months Ended March 31, 2017 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 78 (423 ) 345 — 113 (2,485 ) 2,372 — Charge-offs (345 ) (767 ) (739 ) (1,851 ) — (891 ) (1,074 ) (1,965 ) Recoveries — 777 1,395 2,172 — 706 1,064 1,770 Balance at end of period $ 460 $ 8,172 $ 12,840 $ 21,472 $ 474 $ 8,879 $ 11,744 $ 21,097 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, 2018 Retail consumer loans: One-to-four family $ 126 $ 228 $ 3,490 $ 3,844 $ 7,410 $ 8,336 $ 654,290 $ 670,036 HELOCs - originated — 6 1,244 1,250 257 453 142,339 143,049 HELOCs - purchased — — 821 821 — — 165,680 165,680 Construction and land/lots — 21 1,218 1,239 455 595 67,071 68,121 Indirect auto finance — — 1,083 1,083 — — 160,664 160,664 Consumer — 5 56 61 2 5 11,310 11,317 Commercial loans: Commercial real estate 168 149 7,911 8,228 11,271 4,457 794,604 810,332 Construction and development 151 9 2,989 3,149 2,437 2,380 179,362 184,179 Commercial and industrial 15 3 1,302 1,320 2,154 642 129,541 132,337 Municipal leases — — 477 477 — — 101,108 101,108 Total $ 460 $ 421 $ 20,591 $ 21,472 $ 23,986 $ 16,868 $ 2,405,969 $ 2,446,823 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 is 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, 2018 Retail consumer loans: One-to-four family $ 27,014 $ 18,958 $ 4,858 $ 23,816 $ 782 HELOCs - originated 3,189 1,402 559 1,961 10 HELOCs - purchased 189 189 — 189 1 Construction and land/lots 2,382 1,127 451 1,578 56 Indirect auto finance 365 288 16 304 2 Consumer 508 8 39 47 6 Commercial loans: Commercial real estate 6,717 4,780 1,728 6,508 170 Construction and development 4,109 970 1,853 2,823 16 Commercial and industrial 6,058 496 643 1,139 10 Municipal leases 98 98 — 98 — Total impaired loans $ 50,629 $ 28,316 $ 10,147 $ 38,463 $ 1,053 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 $3,760 at March 31, 2018 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 $21,595 and $22,023 , of impaired loans that were not individually evaluated at March 31, 2018 and June 30, 2017 , respectively, because these loans did not meet the Company's threshold for individual impairment evaluation. The recorded allowance above includes $632 and $41 related to these loans that were not individually evaluated at March 31, 2018 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 nine months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, 2018 March 31, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 23,988 $ 325 $ 25,262 $ 300 HELOCs - originated 2,280 36 2,315 32 HELOC - purchased 189 4 — — Construction and land/lots 1,594 28 1,906 29 Indirect auto finance 295 4 166 1 Consumer 39 4 32 5 Commercial loans: Commercial real estate 6,818 54 8,305 83 Construction and development 3,050 18 2,816 14 Commercial and industrial 1,264 22 2,628 39 Municipal leases 98 — 407 6 Total loans $ 39,615 $ 495 $ 43,837 $ 509 Nine Months Ended March 31, 2018 March 31, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 24,495 $ 916 $ 25,963 $ 881 HELOCs - originated 2,566 83 2,649 98 HELOCs - purchased 190 10 — — Construction and land/lots 1,633 82 1,654 105 Indirect auto finance 192 17 111 9 Consumer 39 12 30 15 Commercial loans: Commercial real estate 7,196 161 7,716 221 Construction and development 2,852 71 2,594 35 Commercial and industrial 1,665 68 3,249 96 Municipal leases 176 6 410 18 Total loans $ 41,004 $ 1,426 $ 44,376 $ 1,478 A summary of changes in the accretable yield for PCI loans for the three and nine months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, 2018 March 31, 2017 Accretable yield, beginning of period $ 6,221 $ 7,519 Addition from the TriSummit acquisition — 1,288 Reclass from nonaccretable yield (1) 163 296 Other changes, net (2) 222 396 Interest income (501 ) (1,722 ) Accretable yield, end of period $ 6,105 $ 7,777 Nine Months Ended March 31, 2018 March 31, 2017 Accretable yield, beginning of period $ 7,080 $ 9,532 Addition from the TriSummit acquisition — 1,288 Reclass from nonaccretable yield (1) 441 1,368 Other changes, net (2) 329 (345 ) Interest income (1,745 ) (4,066 ) Accretable yield, end of period $ 6,105 $ 7,777 ______________________________________ (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, 2018 and 2017 , the following table presents a breakdown of the types of concessions made on TDRs by loan class: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 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 Total — $ — $ — 3 $ 162 $ 163 Extended payment terms: Retail consumer: One-to-four family — $ — $ — 2 $ 76 $ 60 Commercial & Industrial — — — 1 439 439 Total — $ — $ — 3 $ 515 $ 499 Other TDRs: Retail consumer: One-to-four family 5 $ 470 $ 465 3 $ 135 $ 136 HELOCs - originated — — — 1 30 30 Construction and land/lots — — — 2 150 149 Commercial: Commercial real estate — — — 3 2,443 2,145 Total 5 $ 470 $ 465 9 $ 2,758 $ 2,460 Total 5 $ 470 $ 465 15 $ 3,435 $ 3,122 Nine Months Ended March 31, 2018 Nine Months Ended March 31, 2017 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 Total — $ — $ — 3 $ 162 $ 163 Extended payment terms: Retail consumer: One-to-four family 4 $ 462 $ 450 5 $ 215 $ 195 HELOCs - originated — — — — — — Construction and land/lots 1 36 34 1 280 271 Consumer — — — 1 — 1 Commercial: Commercial and industrial — — — 1 439 439 Total 5 $ 498 $ 484 8 $ 934 $ 906 Other TDRs: Retail consumer: One-to-four family 19 $ 1,583 $ 1,559 10 $ 353 $ 352 HELOCs - originated — — — 2 33 32 Construction and land/lots — — — 4 404 396 Commercial: Commercial real estate — — — 3 2,443 2,145 Commercial and industrial — — — 1 24 24 Total 19 $ 1,583 $ 1,559 20 $ 3,257 $ 2,949 Total 24 $ 2,081 $ 2,043 31 $ 4,353 $ 4,018 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, 2018 and 2017 : Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Other TDRs: Retail consumer: One-to-four family 2 $ 145 2 $ 27 Commercial: Commercial and industrial — — 4 900 Total 2 $ 145 6 $ 927 Total 2 $ 145 6 $ 927 Nine Months Ended March 31, 2018 Nine Months Ended March 31, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Other TDRs: Retail consumer: One-to-four family 2 $ 145 2 $ 27 Commercial and industrial — — 4 900 Total 2 $ 145 6 $ 927 Total 2 $ 145 6 $ 927 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. |