Loans | Loans Loans consist of the following at the dates indicated: June 30, June 30, Retail consumer loans: One-to-four family $ 664,289 $ 684,089 HELOCs - originated 137,564 157,068 HELOCs - purchased 166,276 162,407 Construction and land/lots 65,601 50,136 Indirect auto finance 173,095 140,879 Consumer 12,379 7,900 Total retail consumer loans 1,219,204 1,202,479 Commercial loans: Commercial real estate 857,315 730,408 Construction and development 192,102 197,966 Commercial and industrial 148,823 120,387 Municipal leases 109,172 101,175 Total commercial loans 1,307,412 1,149,936 Total loans 2,526,616 2,352,415 Deferred loan fees, net (764 ) (945 ) Total loans, net of deferred loan fees 2,525,852 2,351,470 Allowance for loan and lease losses (21,060 ) (21,151 ) Net loans $ 2,504,792 $ 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 outstanding FHLB advances. Loans are made to the Company's executive officers and directors and their associates during the ordinary course of business. The aggregate amount of loans to related parties totaled approximately $409 and $338 at June 30, 2018 and 2017 , respectively. In relation to these loans are unfunded commitments that totaled approximately $287 and $750 at June 30, 2018 and 2017 , respectively. 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 June 30, 2018 Retail consumer loans: One-to-four family $ 643,077 $ 3,576 $ 10,059 $ 746 $ 14 $ 657,472 HELOCs - originated 135,336 113 1,735 150 6 137,340 HELOCs - purchased 166,089 — 187 — — 166,276 Construction and land/lots 64,823 23 257 54 — 65,157 Indirect auto finance 172,675 — 420 — 173,095 Consumer 11,723 85 558 2 11 12,379 Commercial loans: Commercial real estate 835,485 5,804 6,787 — — 848,076 Construction and development 187,187 621 2,067 — — 189,875 Commercial and industrial 145,177 1,279 414 — — 146,870 Municipal leases 108,864 308 — — — 109,172 Total loans $ 2,470,436 $ 11,809 $ 22,484 $ 952 $ 31 $ 2,505,712 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 June 30, 2018 Retail consumer loans: One-to-four family $ 4,620 $ 388 $ 1,809 $ — $ — $ 6,817 HELOCs - originated 224 — — — — 224 Construction and land/lots 444 — — — — 444 Commercial loans: Commercial real estate 4,718 2,162 2,359 — — 9,239 Construction and development 547 — 1,680 — — 2,227 Commercial and industrial 1,894 — 59 — — 1,953 Total loans $ 12,447 $ 2,550 $ 5,907 $ — $ — $ 20,904 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 June 30, 2018 Retail consumer loans: One-to-four family $ 3,001 $ 1,756 $ 4,757 $ 659,532 $ 664,289 HELOCs - originated 98 268 366 137,198 137,564 HELOCs - purchased — — — 166,276 166,276 Construction and land/lots 44 54 98 65,503 65,601 Indirect auto finance 335 127 462 172,633 173,095 Consumer 238 39 277 12,102 12,379 Commercial loans: Commercial real estate 169 1,412 1,581 855,734 857,315 Construction and development 260 1,928 2,188 189,914 192,102 Commercial and industrial 15 69 84 148,739 148,823 Municipal leases — — — 109,172 109,172 Total loans $ 4,160 $ 5,653 $ 9,813 $ 2,516,803 $ 2,526,616 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 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: June 30, 2018 June 30, 2017 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 4,308 $ — $ 6,453 $ — HELOCs - originated 656 — 1,291 — HELOCs - purchased 187 — 192 — Construction and land/lots 165 — 245 — Indirect auto finance 255 — 1 — Consumer 321 — 29 — Commercial loans: Commercial real estate 2,863 — 2,756 — Construction and development 2,045 — 1,766 — Commercial and industrial 114 — 827 — Municipal leases — — 106 — Total loans $ 10,914 $ — $ 13,666 $ — PCI loans totaling $ 3,353 at June 30, 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. 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’s loans that were performing under the payment terms of TDRs that were excluded from nonaccruing loans above at the dates indicated follow: June 30, 2018 June 30, 2017 Performing TDRs $ 21,251 $ 27,043 An analysis of the allowance for loan losses by segment for the periods shown is as follows: June 30, 2018 PCI Retail Consumer Commercial Total Balance at beginning of period $ 727 $ 8,585 $ 11,839 $ 21,151 Provision for (recovery of) loan losses 228 (906 ) 678 — Charge-offs (472 ) (1,142 ) (1,033 ) (2,647 ) Recoveries — 990 1,566 2,556 Balance at end of period $ 483 $ 7,527 $ 13,050 $ 21,060 June 30, 2017 PCI Retail Consumer Commercial Total Balance at beginning of period $ 361 $ 11,549 $ 9,382 $ 21,292 Provision for (recovery of) loan losses 366 (2,829 ) 2,463 — Charge-offs — (1,219 ) (1,331 ) (2,550 ) Recoveries — 1,084 1,325 2,409 Balance at end of period $ 727 $ 8,585 $ 11,839 $ 21,151 June 30, 2016 PCI Retail Consumer Commercial Total Balance at beginning of period $ 401 $ 12,575 $ 9,398 $ 22,374 Provision for (recovery of) loan losses (40 ) (597 ) 637 — Charge-offs — (1,663 ) (2,041 ) (3,704 ) Recoveries — 1,234 1,388 2,622 Balance at end of period $ 361 $ 11,549 $ 9,382 $ 21,292 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 June 30, 2018 Retail consumer loans: One-to-four family $ 98 $ 125 $ 3,137 $ 3,360 $ 6,817 $ 7,104 $ 650,368 $ 664,289 HELOCs - originated — 6 1,117 1,123 224 452 136,888 137,564 HELOCs - purchased — — 795 795 — — 166,276 166,276 Construction and land/lots — 19 1,134 1,153 444 583 64,574 65,601 Indirect auto finance — — 1,126 1,126 — — 173,095 173,095 Consumer — 11 57 68 — 11 12,368 12,379 Commercial loans: Commercial real estate 138 28 8,029 8,195 9,239 3,511 844,565 857,315 Construction and development 229 8 3,109 3,346 2,227 2,223 187,652 192,102 Commercial and industrial 18 — 1,458 1,476 1,953 — 146,870 148,823 Municipal leases — — 418 418 — — 109,172 109,172 Total $ 483 $ 197 $ 20,380 $ 21,060 $ 20,904 $ 13,884 $ 2,491,828 $ 2,526,616 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, excluding PCI loans, at the dates indicated follows: Total Impaired Loans Unpaid Principal Balance Recorded Investment Related Recorded Allowance With a Recorded Allowance With No Recorded Allowance Total June 30, 2018 Retail consumer loans: One-to-four family $ 23,295 $ 16,035 $ 4,140 $ 20,175 $ 554 HELOCs - originated 2,544 1,017 737 1,754 9 HELOCs - purchased 187 — 187 187 — Construction and land/lots 2,348 1,098 446 1,544 53 Indirect auto finance 395 122 133 255 1 Consumer 501 12 46 58 11 Commercial loans: Commercial real estate 5,343 2,862 2,246 5,108 42 Construction and development 3,166 828 1,217 2,045 14 Commercial and industrial 4,898 235 — 235 3 Municipal leases — — — — — Total impaired loans $ 42,677 $ 22,209 $ 9,152 $ 31,361 $ 687 June 30, 2017 Retail consumer loans: One-to-four family $ 26,032 $ 16,557 $ 6,338 $ 22,895 $ 719 HELOCs - originated 3,746 2,036 736 2,772 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 7,144 4,721 2,131 6,852 253 Construction and development 2,956 935 1,021 1,956 16 Commercial and industrial 7,757 845 1,231 2,076 288 Municipal leases 400 106 294 400 — Total impaired loans $ 51,618 $ 26,525 $ 12,439 $ 38,964 $ 1,422 The table above includes $19,926 and $22,023 of impaired loans that were not individually evaluated at June 30, 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 $595 and $41 related to these loans that were not individually evaluated at June 30, 2018 and June 30, 2017 , respectively. The Company’s average recorded investment and interest income recognized on impaired loans as of the dates indicated below: Year Ended June 30, 2018 June 30, 2017 June 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 23,257 $ 1,170 $ 25,256 $ 1,147 $ 28,479 $ 1,477 HELOCs - originated 2,304 104 2,548 152 3,593 200 HELOCs - purchased 189 15 48 12 — — Construction and land/lots 1,575 109 1,734 139 1,787 135 Indirect auto finance 256 23 106 2 7 2 Consumer 43 17 35 20 55 23 Commercial loans: Commercial real estate 6,496 209 7,771 272 8,506 440 Construction and development 2,703 56 2,450 58 3,469 84 Commercial and industrial 1,205 60 2,737 125 4,379 155 Municipal leases 75 — 406 18 452 22 Total loans $ 38,103 $ 1,763 $ 43,091 $ 1,945 $ 50,727 $ 2,538 A summary of changes in the accretable yield for PCI loans at the dates indicated below: Year Ended June 30, 2018 Year Ended June 30, 2017 Accretable yield, beginning of period $ 7,080 $ 9,532 Addition from TriSummit acquisition — 1,288 Reclass from nonaccretable yield (1) 513 1,537 Other changes, net (2) 393 (427 ) Interest income (2,252 ) (4,850 ) Accretable yield, end of period $ 5,734 $ 7,080 ______________________________ (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. The following table presents carrying values and unpaid principal balances for PCI loans at the dates indicated below: June 30, 2018 June 30, 2017 Carrying value of PCI loans $ 20,904 $ 31,541 Unpaid principal balance of PCI loans $ 25,746 $ 37,955 The following table presents a breakdown of the types of concessions made on TDRs by loan class: Year Ended June 30, 2018 Year Ended June 30, 2017 Year Ended June 30, 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 Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Below market interest rate: Retail consumer: One-to-four family — $ — $ — 3 $ 288 $ 285 5 $ 234 $ 238 Construction and land/lots — — — 2 80 79 — — — Commercial: Commercial real estate — $ — $ — — $ — — 1 $ 590 578 Total — $ — $ — 5 $ 368 $ 364 6 $ 824 $ 816 Extended payment terms: Retail consumer: One-to-four family 4 $ 514 $ 502 5 $ 186 $ 179 5 $ 142 $ 147 HELOCs - originated — — — 1 37 37 2 28 25 Construction and land/lots 1 36 32 1 280 264 — — — Consumer — — — 2 11 11 — — — Commercial: Commercial real estate — — — — — — 1 286 284 Construction and development — — — 1 439 439 1 128 128 Commercial and industrial — — — 2 52 $ 50 2 164 $ 155 Total 5 $ 550 $ 534 12 $ 1,005 $ 980 11 $ 748 $ 739 Other TDRs: Retail consumer: One-to-four family 25 $ 3,646 $ 3,747 13 $ 525 $ 517 30 $ 2,890 $ 2,498 HELOCs - originated — — — 2 33 31 4 228 227 Construction and land/lots — — — 4 404 318 — — — Consumer 1 2 2 — — — 1 2 1 Commercial: Commercial real estate — — — 3 2,349 2,035 — — — Construction and development — — — — — — 2 386 371 Commercial and industrial — — — 2 231 227 1 997 957 Total 26 $ 3,648 $ 3,749 24 $ 3,542 $ 3,128 38 $ 4,503 $ 4,054 Total 31 $ 4,198 $ 4,283 41 $ 4,915 $ 4,472 55 $ 6,075 $ 5,609 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 years ended June 30, 2018 and 2017 . Year Ended June 30, 2018 Year Ended June 30, 2017 Year Ended June 30, 2016 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Below market interest rate: Retail consumer: One-to-four family — $ — — $ — 2 $ 63 Total — $ — — $ — 2 $ 63 Extended payment terms: Retail consumer: One-to-four family — $ — — $ — 2 $ 43 Total — $ — — $ — 2 $ 43 Other TDRs: Retail consumer: One-to-four family 5 $ 277 2 $ 27 11 $ 529 HELOCs - originated — — — — 1 8 Construction and land/lots — — 1 19 — — Commercial: Construction and development — — — — 2 371 Total Other TDRs 5 $ 277 3 $ 46 14 $ 908 Total 5 $ 277 3 $ 46 18 $ 1,014 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 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. |