Loans | Loans Loans consist of the following at the dates indicated: September 30, 2018 June 30, 2018 Retail consumer loans: One-to-four family $ 656,011 $ 664,289 HELOCs - originated 135,512 137,564 HELOCs - purchased 150,733 166,276 Construction and land/lots 75,433 65,601 Indirect auto finance 173,305 173,095 Consumer 13,139 12,379 Total retail consumer loans 1,204,133 1,219,204 Commercial loans: Commercial real estate 879,184 857,315 Construction and development 198,809 192,102 Commercial and industrial 193,739 148,823 Municipal leases 111,951 109,172 Total commercial loans 1,383,683 1,307,412 Total loans 2,587,816 2,526,616 Deferred loan fees, net (710 ) (764 ) Total loans, net of deferred loan fees 2,587,106 2,525,852 Allowance for loan losses (20,932 ) (21,060 ) Loans, net $ 2,566,174 $ 2,504,792 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 September 30, 2018 Retail consumer loans: One-to-four family $ 634,877 $ 3,571 $ 10,583 $ 512 $ 9 $ 649,552 HELOCs - originated 133,824 112 1,346 — 6 135,288 HELOCs - purchased 150,547 — 186 — — 150,733 Construction and land/lots 74,758 21 250 — — 75,029 Indirect auto finance 172,721 — 582 — 2 173,305 Consumer 12,392 17 722 — 8 13,139 Commercial loans: Commercial real estate 857,652 6,551 6,036 — — 870,239 Construction and development 194,470 710 1,660 171 — 197,011 Commercial and industrial 189,975 1,446 368 — — 191,789 Municipal leases 111,655 296 — — — 111,951 Total loans $ 2,532,871 $ 12,724 $ 21,733 $ 683 $ 25 $ 2,568,036 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 The Company's total PCI loans by segment, class, and risk grade at the dates indicated follow: Pass Special Mention Substandard Doubtful Loss Total September 30, 2018 Retail consumer loans: One-to-four family $ 4,429 $ 262 $ 1,768 $ — $ — $ 6,459 HELOCs - originated 224 — — — — 224 Construction and land/lots 404 — — — — 404 Commercial loans: Commercial real estate 4,669 2,017 2,259 — — 8,945 Construction and development 525 — 1,273 — — 1,798 Commercial and industrial 1,947 — — — 3 1,950 Total loans $ 12,198 $ 2,279 $ 5,300 $ — $ 3 $ 19,780 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 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 September 30, 2018 Retail consumer loans: One-to-four family $ 2,406 $ 1,861 $ 4,267 $ 651,744 $ 656,011 HELOCs - originated 278 117 395 135,117 135,512 HELOCs - purchased — — — 150,733 150,733 Construction and land/lots 86 — 86 75,347 75,433 Indirect auto finance 356 114 470 172,835 173,305 Consumer 316 42 358 12,781 13,139 Commercial loans: Commercial real estate 1,029 826 1,855 877,329 879,184 Construction and development 18 1,615 1,633 197,176 198,809 Commercial and industrial 20 53 73 193,666 193,739 Municipal leases — — — 111,951 111,951 Total loans $ 4,509 $ 4,628 $ 9,137 $ 2,578,679 $ 2,587,816 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 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: September 30, 2018 June 30, 2018 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 4,198 $ — $ 4,308 $ — HELOCs - originated 436 — 656 — HELOCs - purchased 186 — 187 — Construction and land/lots 110 — 165 — Indirect auto finance 367 — 255 — Consumer 520 — 321 — Commercial loans: Commercial real estate 2,362 — 2,863 — Construction and development 1,835 — 2,045 — Commercial and industrial 95 — 114 — Municipal leases — — — — Total loans $ 10,109 $ — $ 10,914 $ — PCI loans totaling $2,936 at September 30, 2018 and $3,353 at June 30, 2018 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 September 30, 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: September 30, 2018 June 30, 2018 Performing TDRs included in impaired loans $ 20,563 $ 21,251 An analysis of the allowance for loan losses by segment for the periods shown is as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 PCI Retail Consumer Commercial Total PCI Retail Consumer Commercial Total Balance at beginning of period $ 483 $ 7,527 $ 13,050 $ 21,060 $ 727 $ 8,585 $ 11,839 $ 21,151 Provision for (recovery of) loan losses (188 ) (64 ) 252 — 470 (412 ) (58 ) — Charge-offs — (416 ) (2 ) (418 ) — (149 ) (14 ) (163 ) Recoveries — 205 85 290 — 286 723 1,009 Balance at end of period $ 295 $ 7,252 $ 13,385 $ 20,932 $ 1,197 $ 8,310 $ 12,490 $ 21,997 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 September 30, 2018 Retail consumer loans: One-to-four family $ 90 $ 105 $ 2,901 $ 3,096 $ 6,459 $ 7,000 $ 642,552 $ 656,011 HELOCs - originated — 6 1,114 1,120 224 6 135,282 135,512 HELOCs - purchased — — 713 713 — — 150,733 150,733 Construction and land/lots — — 1,262 1,262 404 341 74,688 75,433 Indirect auto finance — 1 977 978 — 1 173,304 173,305 Consumer — 8 165 173 — 8 13,131 13,139 Commercial loans: Commercial real estate 118 19 7,869 8,006 8,945 3,082 867,157 879,184 Construction and development 71 4 3,176 3,251 1,798 2,211 194,800 198,809 Commercial and industrial 16 3 1,864 1,883 1,950 3 191,786 193,739 Municipal leases — — 450 450 — — 111,951 111,951 Total $ 295 $ 146 $ 20,491 $ 20,932 $ 19,780 $ 12,652 $ 2,555,384 $ 2,587,816 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 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, excluding PCI loans, 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 September 30, 2018 Retail consumer loans: One-to-four family $ 21,481 $ 14,796 $ 3,589 $ 18,385 $ 587 HELOCs - originated 1,496 764 119 883 7 HELOCs - purchased 186 — 186 186 — Construction and land/lots 2,446 1,203 439 1,642 31 Indirect auto finance 482 306 92 398 3 Consumer 2,069 410 1,145 1,555 69 Commercial loans: Commercial real estate 4,705 2,574 1,825 4,399 29 Construction and development 2,965 707 1,128 1,835 7 Commercial and industrial 4,819 203 1 204 4 Municipal leases — — — — — Total impaired loans $ 40,649 $ 20,963 $ 8,524 $ 29,487 $ 737 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 The table above includes $16,835 and $19,926 , of impaired loans that were not individually evaluated at September 30, 2018 and June 30, 2018 , respectively, because these loans did not meet the Company's threshold for individual impairment evaluation. The recorded allowance above includes $591 and $490 related to these loans that were not individually evaluated at September 30, 2018 and June 30, 2018 , respectively. The Company's average recorded investment in impaired loans and interest income recognized on impaired loans for the three months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Retail consumer loans: One-to-four family $ 19,280 $ 290 $ 25,002 $ 294 HELOCs - originated 1,319 18 2,851 35 HELOCs - purchased 186 3 192 4 Construction and land/lots 1,593 39 1,673 28 Indirect auto finance 327 4 90 2 Consumer 806 27 39 4 Commercial loans: Commercial real estate 4,754 93 7,574 75 Construction and development 1,940 29 2,654 15 Commercial and industrial 219 17 2,067 20 Municipal leases — — 253 — Total loans $ 30,424 $ 520 $ 42,395 $ 477 A summary of changes in the accretable yield for PCI loans for the three months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 September 30, 2017 Accretable yield, beginning of period $ 5,734 $ 7,080 Reclass from nonaccretable yield (1) 10 200 Other changes, net (2) 137 27 Interest income (429 ) (610 ) Accretable yield, end of period $ 5,452 $ 6,697 ______________________________________ (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 months ended September 30, 2018 and 2017 , the following table presents a breakdown of the types of concessions made on TDRs by loan class: Three Months Ended September 30, 2018 Three Months Ended September 30, 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 Other TDRs: Retail consumer: One-to-four family 5 $ 244 $ 243 10 $ 1,514 $ 1,514 Indirect auto finance 1 33 32 — — — Consumer 1 2 2 — — — Total 7 $ 279 $ 277 10 $ 1,514 $ 1,514 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, 2018 and 2017 : Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Other TDRs: Retail consumer: One-to-four family — $ — 3 $ 372 Commercial real estate — — 1 672 Total — $ — 4 $ 1,044 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. |