Loan Quality and Allowance for Loan Losses | 10. LOAN QUALITY AND ALLOWANCE FOR LOAN LOSSES Acquired Credit-Impaired Loans. At March 31, 2016, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $8,048,086 and $7,071,000, respectively. By comparison, at June 30, 2015, the remaining outstanding principal balance and carrying amount of acquired credit-impaired loans totaled approximately $9,900,000 and $8,363,000, respectively. The carrying amount of acquired credit-impaired loans for which interest is not being recognized due to the uncertainty of the cash flows relating to such loans totaled $6,336,000 and $1,322,000 at March 31, 2016 and June 30, 2015, respectively. The balance of the allowance for loan losses at March 31, 2016 included approximately $745,000 of valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans. The valuation allowances were attributable to additional impairment recognized on the applicable loans subsequent to their acquisition, net of any charge offs recognized during that time. Valuation allowances for specifically identified impairment attributable to acquired credit-impaired loans at June 30, 2015 totaled $81,000. The following table presents the changes in the accretable yield relating to the acquired credit-impaired loans for the three and nine months ended March 31, 2016 and March 31, 2015. Three Months Ended March 31, 2016 2015 (In Thousands) Beginning balance $ 844 $ 1,684 Accretion to interest income (81 ) (379 ) Disposals - - Reclassifications from nonaccretable difference - - Ending balance $ 763 $ 1,305 Nine Months Ended March 31, 2016 2015 (In Thousands) Beginning balance $ 1,189 $ 1,891 Accretion to interest income (400 ) (586 ) Disposals (26 ) - Reclassifications from nonaccretable difference - - Ending balance $ 763 $ 1,305 Residential Mortgage Loans in Foreclosure. We may obtain physical possession of one- to four-family real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. As of March 31, 2016, we held one single-family property in real estate owned with a carrying value of $481,000 that was acquired through a foreclosure on a residential mortgage loan. As of that same date, we held 34 residential mortgage loans with aggregate carrying values totaling $6.9 million which were in the process of foreclosure. Loan Quality. The following tables present the balance of the allowance for loan losses at March 31, 2016 and June 30, 2015 based upon the calculation methodology as described in the Company’s Form 10-K for the fiscal year ended June 30, 2015. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates as well as the activity in the allowance for loan losses for the three and nine months ended March 31, 2016 and March 31, 2015. Unless otherwise noted, the balance of loans reported in the tables below excludes yield adjustments and the allowance for loan loss. Allowance for Loan Losses and Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Balance of allowance for loan losses: Originated and purchased loans: Loans individually evaluated for impairment $ 142 $ 84 $ - $ 89 $ 78 $ - $ - $ 393 Loans collectively evaluated for impairment 2,143 16,736 32 1,057 189 34 641 20,832 Allowance for loan losses on originated and purchased loans 2,285 16,820 32 1,146 267 34 641 21,225 Loans acquired at fair value: Loans acquired with deteriorated credit quality - - - 745 - - - 745 Other acquired loans individually evaluated for impairment - 50 - 177 - - - 227 Acquired loans collectively evaluated for impairment 56 414 5 240 44 53 1 813 Allowance for loan losses on loans acquired at fair value 56 464 5 1,162 44 53 1 1,785 Total allowance for loan losses $ 2,341 $ 17,284 $ 37 $ 2,308 $ 311 $ 87 $ 642 $ 23,010 Allowance for Loan Losses and Loans Receivable Period Ended March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Changes in the allowance for loan losses for the three months ended March 31, 2016: At December 31, 2015: Allocated $ 2,398 $ 15,452 $ 35 $ 1,941 $ 313 $ 88 $ 287 $ 20,514 Unallocated - - - - - - - - Total allowance for loan losses 2,398 15,452 35 1,941 313 88 287 20,514 Total charge offs (27 ) (18 ) - (43 ) (4 ) - (1 ) (93 ) Total recoveries - - - - - - - - Total allocated provisions (30 ) 1,850 2 410 2 (1 ) 356 2,589 Total unallocated provisions - - - - - - - - At March 31, 2016: Allocated 2,341 17,284 37 2,308 311 87 642 23,010 Unallocated - - - - - - - - Total allowance for loan losses $ 2,341 $ 17,284 $ 37 $ 2,308 $ 311 $ 87 $ 642 $ 23,010 Allowance for Loan Losses and Loans Receivable Period Ended March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Changes in the allowance for loan losses for the nine months ended March 31, 2016: At June 30, 2015: Allocated $ 2,210 $ 11,120 $ 34 $ 1,860 $ 260 $ 106 $ 16 $ 15,606 Unallocated - - - - - - - - Total allowance for loan losses 2,210 11,120 34 1,860 260 106 16 15,606 Total charge offs (1,180 ) (115 ) - (687 ) (38 ) (26 ) (4 ) (2,050 ) Total recoveries 9 - - 759 41 - 1 810 Total allocated provisions 1,302 6,279 3 376 48 7 629 8,644 Total unallocated provisions - - - - - - - - At March 31, 2016: Allocated 2,341 17,284 37 2,308 311 87 642 23,010 Unallocated - - - - - - - - Total allowance for loan losses $ 2,341 $ 17,284 $ 37 $ 2,308 $ 311 $ 87 $ 642 $ 23,010 Allowance for Loan Losses and Loans Receivable Period Ended March 31, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Changes in the allowance for loan losses for the three months ended March 31, 2015: At December 31, 2014: Allocated $ 2,310 $ 8,392 $ 59 $ 1,407 $ 314 $ 80 $ 22 $ 12,584 Unallocated - - - - - - - - Total allowance for loan losses 2,310 8,392 59 1,407 314 80 22 12,584 Total charge offs (183 ) - - (38 ) (38 ) - (1 ) (260 ) Total recoveries - - - 2 - - - 2 Total allocated provisions 34 1,443 (28 ) 313 5 (5 ) (1 ) 1,761 Total unallocated provisions - - - - - - - - At March 31, 2015: Allocated 2,161 9,835 31 1,684 281 75 20 14,087 Unallocated - - - - - - - - Total allowance for loan losses $ 2,161 $ 9,835 $ 31 $ 1,684 $ 281 $ 75 $ 20 $ 14,087 Allowance for Loan Losses and Loans Receivable Period Ended March 31, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Changes in the allowance for loan losses for the nine months ended March 31, 2015: At June 30, 2014: Allocated $ 2,729 $ 7,737 $ 67 $ 1,284 $ 460 $ 88 $ 22 $ 12,387 Unallocated - - - - - - - - Total allowance for loan losses 2,729 7,737 67 1,284 460 88 22 12,387 Total charge offs (1,620 ) (612 ) - (489 ) (77 ) - (1 ) (2,799 ) Total recoveries 141 - - 7 - - - 148 Total allocated provisions 911 2,710 (36 ) 882 (102 ) (13 ) (1 ) 4,351 Total unallocated provisions - - - - - - - - At March 31, 2015: Allocated 2,161 9,835 31 1,684 281 75 20 14,087 Unallocated - - - - - - - - Total allowance for loan losses $ 2,161 $ 9,835 $ 31 $ 1,684 $ 281 $ 75 $ 20 $ 14,087 Allowance for Loan Losses and Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Balance of loans receivable: Originated and purchased loans: Loans individually evaluated for impairment $ 13,157 $ 3,205 $ - $ 980 $ 1,064 $ 42 $ - $ 18,448 Loans collectively evaluated for impairment 553,447 1,797,427 3,038 69,901 64,399 11,236 24,876 2,524,324 Total originated and purchased loans 566,604 1,800,632 3,038 70,881 65,463 11,278 24,876 2,542,772 Loans acquired at fair value: Loans acquired with deteriorated credit quality 106 308 - 6,657 - - - 7,071 Other acquired loans individually evaluated for impairment - 4,387 368 1,131 468 777 - 7,131 Acquired loans collectively evaluated for impairment 54,158 76,611 327 16,462 4,537 8,087 79 160,261 Total loans acquired at fair value 54,264 81,306 695 24,250 5,005 8,864 79 174,463 Total loans $ 620,868 $ 1,881,938 $ 3,733 $ 95,131 $ 70,468 $ 20,142 $ 24,955 2,717,235 Unamortized yield adjustments 2,834 Loans receivable, net of yield adjustments $ 2,720,069 Allowance for Loan Losses and Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Balance of allowance for loan losses: Originated and purchased loans: Loans individually evaluated for impairment $ 116 $ 415 $ - $ 30 $ 12 $ - $ - $ 573 Loans collectively evaluated for impairment 2,031 10,162 29 989 184 33 15 13,443 Allowance for loan losses on originated and purchased loans 2,147 10,577 29 1,019 196 33 15 14,016 Loans acquired at fair value: Loans acquired with deteriorated credit quality - - - 81 - - - 81 Other acquired loans individually evaluated for impairment - 114 - 259 - 24 - 397 Acquired loans collectively evaluated for impairment 63 429 5 501 64 49 1 1,112 Allowance for loan losses on loans acquired at fair value 63 543 5 841 64 73 1 1,590 Total allowance for loan losses $ 2,210 $ 11,120 $ 34 $ 1,860 $ 260 $ 106 $ 16 $ 15,606 Allowance for Loan Losses and Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Balance of loans receivable: Originated and purchased loans: Loans individually evaluated for impairment $ 10,240 $ 3,439 $ - $ 1,861 $ 991 $ 26 $ - $ 16,557 Loans collectively evaluated for impairment 520,070 1,214,586 3,328 69,797 63,034 10,854 4,204 1,885,873 Total originated and purchased loans 530,310 1,218,025 3,328 71,658 64,025 10,880 4,204 1,902,430 Loans acquired at fair value: Loans acquired with deteriorated credit quality 116 318 - 7,929 - - - 8,363 Other acquired loans individually evaluated for impairment - 4,196 2,037 927 534 945 - 8,639 Acquired loans collectively evaluated for impairment 61,895 86,564 346 18,937 5,698 9,589 87 183,116 Total loans acquired at fair value 62,011 91,078 2,383 27,793 6,232 10,534 87 200,118 Total loans $ 592,321 $ 1,309,103 $ 5,711 $ 99,451 $ 70,257 $ 21,414 $ 4,291 2,102,548 Unamortized yield adjustments 316 Loans receivable, net of yield adjustments $ 2,102,864 The following tables present key indicators of credit quality regarding the Company’s loan portfolio based upon loan classification and contractual payment status at March 31, 2016 and June 30, 2015 based upon the methodology for identifying and reporting such loans as described in the Company’s Form 10-K for the fiscal year ended June 30, 2015. Credit-Rating Classification of Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Non-classified $ 551,447 $ 1,796,098 $ 2,809 $ 69,835 $ 64,285 $ 11,187 $ 24,875 $ 2,520,536 Classified: Special Mention 500 - 229 66 50 25 - 870 Substandard 14,657 4,468 - 980 1,128 66 - 21,299 Doubtful - 66 - - - - 1 67 Loss - - - - - - - - Total classified loans 15,157 4,534 229 1,046 1,178 91 1 22,236 Total originated and purchased loans 566,604 1,800,632 3,038 70,881 65,463 11,278 24,876 2,542,772 Loans acquired at fair value: Non-classified 52,498 75,931 - 12,520 4,430 7,704 57 153,140 Classified: Special Mention 366 - 327 621 - 239 20 1,573 Substandard 1,400 5,375 368 11,103 575 921 2 19,744 Doubtful - - - 6 - - - 6 Loss - - - - - - - - Total classified loans 1,766 5,375 695 11,730 575 1,160 22 21,323 Total loans acquired at fair value 54,264 81,306 695 24,250 5,005 8,864 79 174,463 Total loans $ 620,868 $ 1,881,938 $ 3,733 $ 95,131 $ 70,468 $ 20,142 $ 24,955 $ 2,717,235 Credit-Rating Classification of Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Non-classified $ 518,592 $ 1,213,307 $ 3,328 $ 69,662 $ 62,902 $ 10,780 $ 4,201 $ 1,882,772 Classified: Special Mention 955 256 - 58 56 74 - 1,399 Substandard 10,763 4,195 - 1,938 1,067 26 3 17,992 Doubtful - 267 - - - - - 267 Loss - - - - - - - - Total classified loans 11,718 4,718 - 1,996 1,123 100 3 19,658 Total originated and purchased loans 530,310 1,218,025 3,328 71,658 64,025 10,880 4,204 1,902,430 Loans acquired at fair value: Non-classified 60,593 82,068 - 13,749 5,588 9,196 60 171,254 Classified: Special Mention 372 3,425 346 7,617 76 242 24 12,102 Substandard 1,046 5,585 2,037 6,421 568 1,096 3 16,756 Doubtful - - - 6 - - - 6 Loss - - - - - - - - Total classified loans 1,418 9,010 2,383 14,044 644 1,338 27 28,864 Total loans acquired at fair value 62,011 91,078 2,383 27,793 6,232 10,534 87 200,118 Total loans $ 592,321 $ 1,309,103 $ 5,711 $ 99,451 $ 70,257 $ 21,414 $ 4,291 $ 2,102,548 Contractual Payment Status of Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Current $ 556,940 $ 1,798,031 $ 3,038 $ 70,464 $ 64,940 $ 11,155 $ 24,790 $ 2,529,358 Past due: 30-59 days 1,700 1,214 - 417 - 81 46 3,458 60-89 days 347 58 - - 80 - 40 525 90+ days 7,617 1,329 - - 443 42 - 9,431 Total past due 9,664 2,601 - 417 523 123 86 13,414 Total originated and purchased loans 566,604 1,800,632 3,038 70,881 65,463 11,278 24,876 2,542,772 Loans acquired at fair value: Current 54,158 80,028 327 23,002 4,925 8,276 77 170,793 Past due: 30-59 days 106 207 - - - 24 1 338 60-89 days - 365 - 91 - 128 1 585 90+ days - 706 368 1,157 80 436 - 2,747 Total past due 106 1,278 368 1,248 80 588 2 3,670 Total loans acquired at fair value 54,264 81,306 695 24,250 5,005 8,864 79 174,463 Total loans $ 620,868 $ 1,881,938 $ 3,733 $ 95,131 $ 70,468 $ 20,142 $ 24,955 $ 2,717,235 Contractual Payment Status of Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Current $ 524,780 $ 1,216,644 $ 3,328 $ 70,529 $ 63,457 $ 10,828 $ 4,199 $ 1,893,765 Past due: 30-59 days 420 256 - 23 114 - 4 817 60-89 days 685 - - - - 26 - 711 90+ days 4,425 1,125 - 1,106 454 26 1 7,137 Total past due 5,530 1,381 - 1,129 568 52 5 8,665 Total originated and purchased loans 530,310 1,218,025 3,328 71,658 64,025 10,880 4,204 1,902,430 Loans acquired at fair value: Current 61,895 89,796 1,610 25,721 5,993 9,577 85 194,677 Past due: 30-59 days 116 - - - 134 12 - 262 60-89 days - 468 - - - - 1 469 90+ days - 814 773 2,072 105 945 1 4,710 Total past due 116 1,282 773 2,072 239 957 2 5,441 Total loans acquired at fair value 62,011 91,078 2,383 27,793 6,232 10,534 87 200,118 Total loans $ 592,321 $ 1,309,103 $ 5,711 $ 99,451 $ 70,257 $ 21,414 $ 4,291 $ 2,102,548 The following tables present information relating to the Company’s nonperforming and impaired loans at March 31, 2016 and June 30, 2015 based upon the methodology for identifying and reporting such loans as described in the Company’s Form 10-K for the fiscal year ended June 30, 2015. Loans reported as “90+ days past due accruing” in the table immediately below are also reported in the preceding contractual payment status table under the heading “90+ days past due”. Performance Status of Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Performing $ 555,660 $ 1,797,427 $ 3,038 $ 69,920 $ 64,899 $ 11,236 $ 24,876 $ 2,527,056 Nonperforming: 90+ days past due accruing - - - - - - - - Nonaccrual 10,944 3,205 - 961 564 42 - 15,716 Total nonperforming 10,944 3,205 - 961 564 42 - 15,716 Total originated and purchased loans 566,604 1,800,632 3,038 70,881 65,463 11,278 24,876 2,542,772 Loans acquired at fair value: Performing 54,158 77,284 327 16,906 4,721 8,428 79 161,903 Nonperforming: 90+ days past due accruing - - - - - - - - Nonaccrual 106 4,022 368 7,344 284 436 - 12,560 Total nonperforming 106 4,022 368 7,344 284 436 - 12,560 Total loans acquired at fair value 54,264 81,306 695 24,250 5,005 8,864 79 174,463 Total loans $ 620,868 $ 1,881,938 $ 3,733 $ 95,131 $ 70,468 $ 20,142 $ 24,955 $ 2,717,235 Performance Status of Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Originated and purchased loans: Performing $ 522,474 $ 1,214,653 $ 3,328 $ 69,819 $ 63,563 $ 10,854 $ 4,203 $ 1,888,894 Nonperforming: 90+ days past due accruing - - - - - - - - Nonaccrual 7,836 3,372 - 1,839 462 26 1 13,536 Total nonperforming 7,836 3,372 - 1,839 462 26 1 13,536 Total originated and purchased loans 530,310 1,218,025 3,328 71,658 64,025 10,880 4,204 1,902,430 Loans acquired at fair value: Performing 61,895 87,273 346 25,688 5,882 9,589 86 190,759 Nonperforming: 90+ days past due accruing - - - - - - - - Nonaccrual 116 3,805 2,037 2,105 350 945 1 9,359 Total nonperforming 116 3,805 2,037 2,105 350 945 1 9,359 Total loans acquired at fair value 62,011 91,078 2,383 27,793 6,232 10,534 87 200,118 Total loans $ 592,321 $ 1,309,103 $ 5,711 $ 99,451 $ 70,257 $ 21,414 $ 4,291 $ 2,102,548 Impairment Status of Loans Receivable at March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Carrying value of impaired loans: Originated and purchased loans: Non-impaired loans $ 553,447 $ 1,797,427 $ 3,038 $ 69,901 $ 64,399 $ 11,236 $ 24,876 $ 2,524,324 Impaired loans: Impaired loans with no allowance for impairment 8,550 3,081 - 960 983 42 - 13,616 Impaired loans with allowance for impairment: Recorded investment 4,607 124 - 20 81 - - 4,832 Allowance for impairment (142 ) (84 ) - (89 ) (78 ) - - (393 ) Balance of impaired loans net of allowance for impairment 4,465 40 - (69 ) 3 - - 4,439 Total impaired loans, excluding allowance for impairment: 13,157 3,205 - 980 1,064 42 - 18,448 Total originated and purchased loans 566,604 1,800,632 3,038 70,881 65,463 11,278 24,876 2,542,772 Loans acquired at fair value: Non-impaired loans 54,158 76,611 327 16,462 4,537 8,087 79 160,261 Impaired loans: Impaired loans with no allowance for impairment 106 4,330 368 1,406 468 777 - 7,455 Impaired loans with allowance for impairment: Recorded investment - 365 - 6,382 - - - 6,747 Allowance for impairment - (50 ) - (922 ) - - - (972 ) Balance of impaired loans net of allowance for impairment - 315 - 5,460 - - - 5,775 Total impaired loans, excluding allowance for impairment: 106 4,695 368 7,788 468 777 - 14,202 Total loans acquired at fair value 54,264 81,306 695 24,250 5,005 8,864 79 174,463 Total loans $ 620,868 $ 1,881,938 $ 3,733 $ 95,131 $ 70,468 $ 20,142 $ 24,955 $ 2,717,235 Unpaid principal balance of impaired loans: Originated and purchased loans $ 17,371 $ 4,522 $ 73 $ 1,072 $ 1,132 $ 42 $ - $ 24,212 Loans acquired at fair value 144 5,187 391 9,506 589 863 - 16,680 Total impaired loans $ 17,515 $ 9,709 $ 464 $ 10,578 $ 1,721 $ 905 $ - $ 40,892 Impairment Status of Loans Receivable at June 30, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Carrying value of impaired loans: Originated and purchased loans: Non-impaired loans $ 520,070 $ 1,214,586 $ 3,328 $ 69,797 $ 63,034 $ 10,854 $ 4,204 $ 1,885,873 Impaired loans: Impaired loans with no allowance for impairment 8,387 1,777 - 1,418 905 26 - 12,513 Impaired loans with allowance for impairment: Recorded investment 1,853 1,662 - 443 86 - - 4,044 Allowance for impairment (116 ) (415 ) - (30 ) (12 ) - - (573 ) Balance of impaired loans net of allowance for impairment 1,737 1,247 - 413 74 - - 3,471 Total impaired loans, excluding allowance for impairment: 10,240 3,439 - 1,861 991 26 - 16,557 Total originated and purchased loans 530,310 1,218,025 3,328 71,658 64,025 10,880 4,204 1,902,430 Loans acquired at fair value: Non-impaired loans 61,895 86,564 346 18,937 5,698 9,589 87 183,116 Impaired loans: Impaired loans with no allowance for impairment 116 4,072 2,037 8,214 534 488 - 15,461 Impaired loans with allowance for impairment: Recorded investment - 442 - 642 - 457 - 1,541 Allowance for impairment - (114 ) - (340 ) - (24 ) - (478 ) Balance of impaired loans net of allowance for impairment - 328 - 302 - 433 - 1,063 Total impaired loans, excluding allowance for impairment: 116 4,514 2,037 8,856 534 945 - 17,002 Total loans acquired at fair value 62,011 91,078 2,383 27,793 6,232 10,534 87 200,118 Total loans $ 592,321 $ 1,309,103 $ 5,711 $ 99,451 $ 70,257 $ 21,414 $ 4,291 $ 2,102,548 Unpaid principal balance of impaired loans: Originated and purchased loans $ 16,985 $ 4,103 $ - $ 2,036 $ 1,014 $ 26 $ - $ 24,164 Loans acquired at fair value 147 4,759 2,118 10,506 561 975 - 19,066 Total impaired loans $ 17,132 $ 8,862 $ 2,118 $ 12,542 $ 1,575 $ 1,001 $ - $ 43,230 Impairment Status of Loans Receivable Period Ended March 31, 2016 and 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) For the three months ended March 31, 2016: Average balance of impaired loans $ 12,827 $ 7,998 $ 387 $ 8,793 $ 1,507 $ 834 $ - $ 32,346 Interest earned on impaired loans $ 45 $ 8 $ - $ 182 $ 11 $ 3 $ - $ 249 For the nine months ended March 31, 2016: Average balance of impaired loans $ 11,926 $ 8,011 $ 1,046 $ 9,438 $ 1,507 $ 910 $ - $ 32,838 Interest earned on impaired loans $ 156 $ 27 $ - $ 573 $ 39 $ 4 $ - $ 799 For the three months ended March 31, 2015: Average balance of impaired loans $ 12,462 $ 7,626 $ 2,421 $ 11,794 $ 1,657 $ 972 $ - $ 36,932 Interest earned on impaired loans $ 33 $ 28 $ - $ 233 $ 10 $ - $ - $ 304 For the nine months ended March 31, 2015: Average balance of impaired loans $ 12,867 $ 7,837 $ 1,818 $ 11,795 $ 1,645 $ 1,015 $ - $ 36,977 Interest earned on impaired loans $ 105 $ 49 $ 5 $ 639 $ 35 $ - $ - $ 833 The following table presents information regarding the restructuring of the Company’s troubled debts during the three and nine months ended March 31, 2016 and 2015 and any defaults during those periods of TDRs that were restructured within 12 months of the date of default. Troubled Debt Restructurings of Loans Receivable Period Ended March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Troubled debt restructuring activity for the three months ended March 31, 2016 Originated and purchased loans Number of loans 2 - - - 1 - - 3 Pre-modification outstanding recorded investment $ 673 $ - $ - $ - $ 41 $ - $ - $ 714 Post-modification outstanding recorded investment 687 - - - 37 - - $ 724 Charge offs against the allowance for loan loss recognized at modification 8 - - - 4 - - $ 12 Loans acquired at fair value Number of loans - - - - - - - - Pre-modification outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Post-modification outstanding recorded investment - - - - - - - $ - Charge offs against the allowance for loan loss recognized at modification - - - - - - - $ - Troubled debt restructuring defaults for the three months ended March 31, 2016 Originated and purchased loans Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Loans acquired at fair value Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Troubled Debt Restructurings of Loans Receivable Period Ended March 31, 2016 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Troubled debt restructuring activity for the nine months ended March 31, 2016 Originated and purchased loans Number of loans 5 - - - 1 - - 6 Pre-modification outstanding recorded investment $ 1,770 $ - $ - $ - $ 41 $ - $ - $ 1,811 Post-modification outstanding recorded investment 1,472 - - - 37 - - $ 1,509 Charge offs against the allowance for loan loss recognized at modification 300 - - - 4 - - $ 304 Loans acquired at fair value Number of loans - 3 - - 2 - - 5 Pre-modification outstanding recorded investment $ - $ 2,285 $ - $ - $ 110 $ - $ - $ 2,395 Post-modification outstanding recorded investment - 2,290 - - 87 - - $ 2,377 Charge offs against the allowance for loan loss recognized at modification - - - - 24 - - $ 24 Troubled debt restructuring defaults for the nine months ended March 31, 2016 Originated and purchased loans Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Loans acquired at fair value Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Troubled Debt Restructurings of Loans Receivable Period Ended March 31, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Troubled debt restructuring activity for the three months ended March 31, 2015 Originated and purchased loans Number of loans - - - - - - - - Pre-modification outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Post-modification outstanding recorded investment - - - - - - - $ - Charge offs against the allowance for loan loss recognized at modification - - - - - - - $ - Loans acquired at fair value Number of loans - - - - - - - - Pre-modification outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Post-modification outstanding recorded investment - - - - - - - $ - Charge offs against the allowance for loan loss recognized at modification - - - - - - - $ - Troubled debt restructuring defaults for the three months ended March 31, 2015 Originated and purchased loans Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Loans acquired at fair value Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Troubled Debt Restructurings of Loans Receivable Period Ended March 31, 2015 Residential Mortgage Commercial Mortgage Construction Commercial Business Home Equity Loans Home Equity Lines of Credit Other Consumer Total (In Thousands) Troubled debt restructuring activity for the nine months ended March 31, 2015 Originated and purchased loans Number of loans 5 - - 2 - - - 7 Pre-modification outstanding recorded investment $ 1,955 $ - $ - $ 348 $ - $ - $ - $ 2,303 Post-modification outstanding recorded investment 1,823 - - 322 - - - $ 2,145 Charge offs against the allowance for loan loss recognized at modification 261 - - 27 - - - $ 288 Loans acquired at fair value Number of loans - - - - - - - - Pre-modification outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - Post-modification outstanding recorded investment - - - - - - - $ - Charge offs against the allowance for loan loss recognized at modification - - - - - - - $ - Troubled debt restructuring defaults for the nine months ended March 31, 2015 Originated and purchased loans Number of loans 1 - - - - - - 1 Outstanding recorded investment $ 419 $ - $ - $ - $ - $ - $ - $ 419 Loans acquired at fair value Number of loans - - - - - - - - Outstanding recorded investment $ - $ - $ - $ - $ - $ - $ - $ - The manner in which the terms of a loan are modified through a troubled debt restructuring generally includes one or more of the following changes to the loan’s repayment terms: · Interest Rate Reduction · Capitalization of Prior Past Dues · Extension of Maturity or Balloon Date · Deferral of Principal Payments: · Payment Recalculation and Re-amortization |