Loans | Loans Loans consist of the following at the dates indicated: June 30, June 30, Retail consumer loans: One-to-four family $ 660,591 $ 664,289 HELOCs - originated 131,095 137,564 HELOCs - purchased 116,972 166,276 Construction and land/lots 80,602 65,601 Indirect auto finance 153,448 173,095 Consumer 19,756 12,379 Total retail consumer loans 1,162,464 1,219,204 Commercial loans: Commercial real estate 927,261 857,315 Construction and development 210,916 192,102 Commercial and industrial 160,471 135,336 Equipment finance 132,058 13,487 Municipal leases 112,016 109,172 Total commercial loans 1,542,722 1,307,412 Total loans 2,705,186 2,526,616 Deferred loan costs (fees), net 4 (764 ) Total loans, net of deferred loan fees 2,705,190 2,525,852 Allowance for loan and lease losses (21,429 ) (21,060 ) Net loans $ 2,683,761 $ 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 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 $ 1,800 and $409 at June 30, 2019 and 2018 , respectively. In relation to these loans are unfunded commitments that totaled approximately $118 and $287 at June 30, 2019 and 2018 , respectively. The Company’s total non-purchased and purchased performing loans by segment, class, and risk grade at the dates indicated follows: Pass Special Mention Substandard Doubtful Loss Total June 30, 2019 Retail consumer loans: One-to-four family $ 644,159 $ 2,089 $ 8,072 $ 384 $ 19 $ 654,723 HELOCs - originated 129,775 111 976 — 8 130,870 HELOCs - purchased 116,306 — 666 — — 116,972 Construction and land/lots 79,995 71 164 — — 80,230 Indirect auto finance 152,393 13 1,042 — 153,448 Consumer 18,601 656 491 3 5 19,756 Commercial loans: Commercial real estate 901,214 8,066 10,306 — — 919,586 Construction and development 207,827 790 1,357 1 — 209,975 Commercial and industrial 157,325 877 600 — — 158,802 Equipment finance 131,674 — 384 — — 132,058 Municipal leases 111,721 295 — — — 112,016 Total loans $ 2,650,990 $ 12,968 $ 24,058 $ 388 $ 32 $ 2,688,436 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 131,690 1,279 414 — — 133,383 Equipment finance 13,487 — — — — 13,487 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 follows: Pass Special Mention Substandard Doubtful Loss Total June 30, 2019 Retail consumer loans: One-to-four family $ 4,124 $ 248 $ 1,496 $ — $ — $ 5,868 HELOCs - originated 225 — — — — 225 Construction and land/lots 142 — 230 — — 372 Commercial loans: Commercial real estate 4,503 1,903 1,300 — — 7,706 Construction and development 453 — 488 — — 941 Commercial and industrial 1,666 — — — 3 1,669 Total loans $ 11,113 $ 2,151 $ 3,514 $ — $ 3 $ 16,781 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 June 30, 2019 Retail consumer loans: One-to-four family $ 1,615 $ 1,389 $ 3,004 $ 657,587 $ 660,591 HELOCs - originated 226 208 434 130,661 131,095 HELOCs - purchased — 485 485 116,487 116,972 Construction and land/lots 138 6 144 80,458 80,602 Indirect auto finance 459 237 696 152,752 153,448 Consumer 6 31 37 19,719 19,756 Commercial loans: Commercial real estate 2,279 516 2,795 924,466 927,261 Construction and development — 1,133 1,133 209,783 210,916 Commercial and industrial 207 99 306 160,165 160,471 Equipment finance 649 384 1,033 131,025 132,058 Municipal leases — — — 112,016 112,016 Total loans $ 5,579 $ 4,488 $ 10,067 $ 2,695,119 $ 2,705,186 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 84 135,252 135,336 Equipment finance — — — 13,487 13,487 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: June 30, 2019 June 30, 2018 Nonaccruing 90 Days + & still accruing Nonaccruing 90 Days + & still accruing Retail consumer loans: One-to-four family $ 3,223 $ — $ 4,308 $ — HELOCs - originated 348 — 656 — HELOCs - purchased 666 — 187 — Construction and land/lots 6 — 165 — Indirect auto finance 463 — 255 — Consumer 45 — 321 — Commercial loans: Commercial real estate 3,559 — 2,863 — Construction and development 1,357 — 2,045 — Commercial and industrial 307 — 114 — Equipment finance 384 — — — Municipal leases — — — — Total loans $ 10,358 $ — $ 10,914 $ — PCI loans totaling $ 1,344 at June 30, 2019 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. 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 follows: June 30, 2019 June 30, 2018 Performing TDRs $ 23,116 $ 21,251 An analysis of the allowance for loan losses by segment for the periods shown is as follows: June 30, 2019 PCI Retail Consumer Commercial Total Balance at beginning of period $ 483 $ 7,527 $ 13,050 $ 21,060 Provision for (recovery of) loan losses (282 ) (1,244 ) 7,226 5,700 Charge-offs — (1,136 ) (6,273 ) (7,409 ) Recoveries — 1,272 806 2,078 Balance at end of period $ 201 $ 6,419 $ 14,809 $ 21,429 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 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, 2019 Retail consumer loans: One-to-four family $ 62 $ 74 $ 2,375 $ 2,511 $ 5,868 $ 5,318 $ 649,405 $ 660,591 HELOCs - originated — 7 1,023 1,030 225 7 130,863 131,095 HELOCs - purchased — — 518 518 — — 116,972 116,972 Construction and land/lots — — 1,265 1,265 372 323 79,907 80,602 Indirect auto finance — — 927 927 — — 153,448 153,448 Consumer — 4 226 230 — 4 19,752 19,756 Commercial loans: Commercial real estate 118 28 7,890 8,036 7,706 8,692 910,863 927,261 Construction and development 4 5 3,187 3,196 941 1,397 208,578 210,916 Commercial and industrial 17 2 1,957 1,976 1,669 2 158,800 160,471 Equipment finance — — 1,305 1,305 — — 132,058 132,058 Municipal leases — — 435 435 — — 112,016 112,016 Total $ 201 $ 120 $ 21,108 $ 21,429 $ 16,781 $ 15,743 $ 2,672,662 $ 2,705,186 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 — 133,383 135,336 Equipment finance — — — — — — 13,487 13,487 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 Related Recorded Allowance With a Recorded Allowance With No Recorded Allowance Total June 30, 2019 Retail consumer loans: One-to-four family $ 18,302 $ 12,461 $ 3,152 $ 15,613 $ 472 HELOCs - originated 1,262 564 130 694 9 HELOCs - purchased 666 — 666 666 — Construction and land/lots 1,917 957 323 1,280 26 Indirect auto finance 601 353 137 490 2 Consumer 1,527 7 1,130 1,137 43 Commercial loans: Commercial real estate 10,127 6,434 3,404 9,838 36 Construction and development 2,574 940 791 1,731 7 Commercial and industrial 10,173 354 768 1,122 6 Equipment finance 462 — 384 384 — Total impaired loans $ 47,611 $ 22,070 $ 10,885 $ 32,955 $ 601 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 Total impaired loans $ 42,677 $ 22,209 $ 9,152 $ 31,361 $ 687 The table above includes $17,212 and $17,477 of impaired loans that were not individually evaluated at June 30, 2019 and June 30, 2018 , respectively, because these loans did not meet the Company’s threshold for individual impairment evaluation. The recorded allowance above includes $481 and $490 related to these loans that were not individually evaluated at June 30, 2019 and June 30, 2018 , respectively. The Company’s average recorded investment and interest income recognized on impaired loans as of the dates indicated follows: Year Ended June 30, 2019 June 30, 2018 June 30, 2017 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 $ 17,319 $ 950 $ 23,257 $ 1,170 $ 25,256 $ 1,147 HELOCs - originated 1,005 63 2,304 104 2,548 152 HELOCs - purchased 320 13 189 15 48 12 Construction and land/lots 1,441 94 1,575 109 1,734 139 Indirect auto finance 373 29 256 23 106 2 Consumer 1,328 67 43 17 35 20 Commercial loans: Commercial real estate 5,026 466 6,496 209 7,771 272 Construction and development 1,779 65 2,703 56 2,450 58 Commercial and industrial 315 249 1,205 60 2,737 125 Equipment finance 192 37 — — — — Municipal leases — — 75 — 406 18 Total loans $ 29,098 $ 2,033 $ 38,103 $ 1,763 $ 43,091 $ 1,945 A summary of changes in the accretable yield for PCI loans for the periods indicated follows: Year Ended June 30, 2019 Year Ended June 30, 2018 Accretable yield, beginning of period $ 5,734 $ 7,080 Reclass from nonaccretable yield (1) 576 513 Other changes, net (2) 1,018 393 Interest income (2,069 ) (2,252 ) Accretable yield, end of period $ 5,259 $ 5,734 ______________________________ (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, 2019 June 30, 2018 Carrying value of PCI loans $ 16,750 $ 20,904 Unpaid principal balance of PCI loans $ 20,141 $ 25,746 The following table presents a breakdown of the types of concessions made on TDRs by loan class for the periods indicated below: Year Ended June 30, 2019 Year Ended June 30, 2018 Year Ended June 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 Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Below market interest rate: Retail consumer: One-to-four family 1 $ 85 $ 84 — $ — $ — 3 $ 288 $ 285 Construction and land/lots — — — — — — 2 80 79 Commercial: Total 1 $ 85 $ 84 — $ — $ — 5 $ 368 $ 364 Extended payment terms: Retail consumer: One-to-four family 1 $ 34 $ 34 4 $ 514 $ 502 5 $ 186 $ 179 HELOCs - originated — — — — — — 1 37 37 Construction and land/lots — — — 1 36 32 1 280 264 Consumer 2 34 33 — — — 2 11 11 Commercial: Construction and development — — — — — — 1 439 439 Commercial and industrial — — — — — $ — 2 52 $ 50 Total 3 $ 68 $ 67 5 $ 550 $ 534 12 $ 1,005 $ 980 Other TDRs: Retail consumer: One-to-four family 18 $ 1,452 $ 1,433 25 $ 3,646 $ 3,747 13 $ 525 $ 517 HELOCs - originated — — — — — — 2 33 31 Construction and land/lots 1 29 28 — — — 4 404 318 Indirect auto finance 1 33 26 — — — — — — Consumer 1 2 2 1 2 2 — — — Commercial: Commercial real estate 3 5,440 5,427 — — — 3 2,349 2,035 Construction and development 1 182 182 — — — — — — Commercial and industrial — — — — — — 2 231 227 Total 25 $ 7,138 $ 7,098 26 $ 3,648 $ 3,749 24 $ 3,542 $ 3,128 Total 29 $ 7,291 $ 7,249 31 $ 4,198 $ 4,283 41 $ 4,915 $ 4,472 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 periods indicated below: Year Ended June 30, 2019 Year Ended June 30, 2018 Year Ended June 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment Number of Loans Recorded Investment Other TDRs: Retail consumer: One-to-four family 1 $ 72 5 $ 277 2 $ 27 Construction and land/lots — — — — 1 19 Consumer 1 2 — — — — Total Other TDRs 2 $ 74 5 $ 277 3 $ 46 Total 2 $ 74 5 $ 277 3 $ 46 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. |