Document and Entity Information
Document and Entity Information - $ / shares | Feb. 08, 2019 | Dec. 31, 2018 |
Details | ||
Registrant Name | Southern Missouri Bancorp, Inc. | |
Registrant CIK | 916,907 | |
SEC Form | 10-Q | |
Period End date | Dec. 31, 2018 | |
Fiscal Year End | --06-30 | |
Trading Symbol | smbc | |
Tax Identification Number (TIN) | 431,665,523 | |
Number of common stock shares outstanding | 9,322,209 | |
Filer Category | Accelerated Filer | |
Current with reporting | Yes | |
Small Business | false | |
Emerging Growth Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State Country Name | Missouri | |
Entity Address, Address Line One | 2991 Oak Grove Road | |
Entity Address, City or Town | Poplar Bluff | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63,901 | |
City Area Code | 573 | |
Local Phone Number | 778-1800 | |
Entity Listing, Par Value Per Share | $ 0.01 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Assets | ||
Cash and cash equivalents | $ 38,384 | $ 26,326 |
Interest-bearing Domestic Deposit, Time Deposits | 1,711 | 1,953 |
Available-for-sale Securities | 197,872 | 146,325 |
Federal Home Loan Bank Stock | 9,339 | 5,661 |
Federal Reserve Bank Stock | 3,566 | 3,566 |
Loans Receivable, Net | 1,801,477 | 1,563,380 |
Interest Receivable | 10,801 | 7,992 |
Property, Plant and Equipment, Net | 62,253 | 54,832 |
Bank Owned Life Insurance | 37,845 | 37,547 |
Goodwill | 14,089 | 13,078 |
Other Intangible Assets, Net | 10,340 | 6,918 |
Prepaid Expense and Other Assets | 18,602 | 18,537 |
Total assets | 2,206,279 | 1,886,115 |
Liabilities and Stockholders' Equity | ||
Deposits | 1,796,006 | 1,579,902 |
Securities Sold under Agreements to Repurchase | 4,425 | 3,267 |
Advances from Federal Home Loan Banks | 155,765 | 76,652 |
Notes Payable | 3,000 | 3,000 |
Accounts Payable and Other Accrued Liabilities | 6,392 | 6,449 |
Interest Payable, Current | 1,668 | 1,206 |
Subordinated Debt | 14,994 | 14,945 |
Total current liabilities | 1,982,250 | 1,685,421 |
Common shares | 93 | 90 |
Additional paid-in capital | 94,293 | 83,413 |
Retained Earnings, Unappropriated | 131,451 | 119,536 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,808) | (2,345) |
Stockholders' Equity Attributable to Parent | 224,029 | 200,694 |
Total liabilities and stockholders' equity | $ 2,206,279 | $ 1,886,115 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Parenthetical - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Loans and Leases Receivable, Allowance | $ 19,023 | $ 18,214 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 12,000,000 |
Common Stock, Shares, Issued | 9,313,109 | 8,996,584 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Dividend Income, Operating | ||||
Interest and Fee Income, Loans and Leases | $ 22,785 | $ 18,236 | $ 43,701 | $ 35,692 |
Interest Income, Securities, Operating, Taxable | 738 | 558 | 1,255 | 1,087 |
Interest Income, Securities, Mortgage Backed | 649 | 426 | 1,232 | 843 |
Other Interest and Dividend Income | 35 | 11 | 61 | 20 |
Interest and Dividend Income, Operating | 24,207 | 19,231 | 46,249 | 37,642 |
Interest Expense | ||||
Interest Expense, Deposits | 4,925 | 3,025 | 8,934 | 5,887 |
Interest Expense, Securities Sold under Agreements to Repurchase | 8 | 8 | 16 | 22 |
Interest Expense, Federal Home Loan Bank and Federal Reserve Bank Advances, Long-term | 932 | 284 | 1,531 | 510 |
Interest Expense Note Payable | 48 | 29 | 83 | 57 |
Subordinated debt | 226 | 182 | 450 | 360 |
Interest Expense | 6,139 | 3,528 | 11,014 | 6,836 |
Interest Income (Expense), Net | 18,068 | 15,703 | 35,235 | 30,806 |
Provision for Loan and Lease Losses | 314 | 642 | 995 | 1,511 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 17,754 | 15,061 | 34,240 | 29,295 |
Noninterest Income | ||||
Deposit account charges and related fees | 1,286 | 1,162 | 2,510 | 2,331 |
Interest and Fee Income, Loans, Consumer Installment, Credit Card | 1,182 | 905 | 2,245 | 1,773 |
Loan late charges | 120 | 106 | 214 | 219 |
Loan servicing fees | 154 | 147 | 312 | 327 |
Other loan fees | 377 | 242 | 714 | 630 |
Gain (Loss) on Sales of Loans, Net | 141 | 219 | 320 | 422 |
Net realized gains on sale of Available for Sale securities | 0 | 37 | 0 | 37 |
Bank Owned Life Insurance Income | 594 | 234 | 840 | 466 |
Noninterest Income, Other | 200 | 122 | 328 | 241 |
Noninterest Income | 4,054 | 3,174 | 7,483 | 6,446 |
Noninterest Expense | ||||
Employee Benefits and Share-based Compensation | 6,445 | 5,424 | 12,492 | 11,356 |
Occupancy, Net | 2,671 | 2,379 | 5,141 | 4,684 |
Federal Deposit Insurance Corporation Premium Expense | 145 | 151 | 283 | 270 |
Professional Fees | 254 | 293 | 510 | 545 |
Advertising Expense | 278 | 364 | 593 | 602 |
Supplies and Postage Expense | 193 | 177 | 345 | 374 |
Amortization of Intangible Assets | 374 | 348 | 770 | 696 |
Bank Card Network Expense | 496 | 373 | 991 | 740 |
Other Noninterest Expense | 1,696 | 1,010 | 2,875 | 2,006 |
Noninterest Expense | 12,552 | 10,519 | 24,000 | 21,273 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 9,256 | 7,716 | 17,723 | 14,468 |
Income Taxes Paid, Net | 1,802 | 2,546 | 3,469 | 4,435 |
Net Income (Loss) Attributable to Parent | $ 7,454 | $ 5,170 | $ 14,254 | $ 10,033 |
Basic earnings per common share | $ 0.82 | $ 0.60 | $ 1.57 | $ 1.17 |
Diluted earnings per common share | 0.81 | 0.60 | 1.57 | 1.16 |
Dividends per common share | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Net Income (Loss) Attributable to Parent | $ 7,454 | $ 5,170 | $ 14,254 | $ 10,033 |
Available-for-sale Securities, Gross Unrealized Gain | 1,144 | (1,360) | 766 | (1,338) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 37 | 0 | 37 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 0 | 40 | 0 | 52 |
Income Tax Expense (Benefit) | (320) | 428 | (229) | 416 |
Other Comprehensive Income (Loss), Tax | 824 | (929) | 537 | (907) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 8,278 | $ 4,241 | $ 14,791 | $ 9,126 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 14,254 | $ 10,033 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,614 | 1,559 |
Gain (Loss) on Disposal of Fixed Assets | 8 | (12) |
Stock Option and Stock Grant Expense | 126 | 144 |
Loss (gain) on sale/write-down of REO | 132 | (71) |
Amortization of intangible assets | 770 | 696 |
Amortization of Purchase Accounting Adjustments | (1,629) | (820) |
Life Insurance, Corporate or Bank Owned, Change in Value | (840) | (466) |
Provision for loan losses | 995 | 1,511 |
Net Realized Gains on Sale of Available for Sale Securities | 0 | (37) |
Net amortization of premiums and discounts on securities | 452 | 510 |
Payments for Origination of Mortgage Loans Held-for-sale | (14,689) | (11,605) |
Proceeds from Sale of Loans Held-for-sale | 14,934 | 11,199 |
Gain on Sales of Loans Held for Sale | (320) | (422) |
Changes in | ||
Increase (Decrease) in Accrued Interest Receivable, Net | (1,071) | (2,290) |
Increase (Decrease) in Prepaid Expense and Other Assets | 2,540 | 4,938 |
Increase (Decrease) in Accounts Payable and Other Operating Liabilities | (512) | (3,657) |
Increase (Decrease) in Deferred Income Taxes | (188) | 142 |
Increase (Decrease) in Interest Payable, Net | 364 | 162 |
Net cash used in operating activities | 16,940 | 11,514 |
Cash flows from investing activities: | ||
Increase (Decrease) in Other Loans | (94,716) | (56,501) |
Net Change Interest-bearing Deposits, Domestic | 242 | 249 |
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | 13,650 | 7,943 |
Proceeds from Sale of Available-for-sale Securities | 0 | 7,303 |
Net purchases of Federal Home Loan Bank stock | (2,617) | (764) |
Payments for (Proceeds from) Federal Reserve Bank Stock | 0 | (836) |
Payments to Acquire Available-for-sale Securities | (10,017) | (20,978) |
Payments to Acquire Property, Plant, and Equipment | (5,381) | (1,714) |
Net Cash Paid for Acquisitions | (8,377) | 0 |
Investments in state & federal tax credits | (231) | (4,748) |
Proceeds from Sale of Productive Assets | 0 | 854 |
Proceeds from Sale of Foreclosed Assets | 1,753 | 752 |
Proceeds from Life Insurance Policy | 544 | 0 |
Net cash used in investing activities | (105,150) | (68,440) |
Cash flows from financing activities: | ||
Increase (Decrease) in Demand Deposits | (63,690) | 73,299 |
Increase (Decrease) in Time Deposits | 109,146 | (19,914) |
Increase (Decrease) in Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Net | 1,158 | (6,515) |
Proceeds from FHLBank Advance, Investing Activities | 327,500 | 1,186,400 |
Payments of FHLBank Borrowings, Financing Activities | (267,107) | (1,170,000) |
Repayments of Long-term Debt | (4,400) | 0 |
Common Stock Issued Expense | 0 | (4) |
Dividends, Common Stock, Paid-in-kind | (2,339) | (1,890) |
Net cash provided by financing activities | 100,268 | 61,376 |
Increase in cash and cash equivalents | 12,058 | 4,450 |
Cash and cash equivalents | 26,326 | 30,786 |
Cash and cash equivalents | 38,384 | 35,236 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Conversion of loans to foreclosed real estate | 1,623 | 1,272 |
Conversion of loans to repossessed assets | 20 | 34 |
Common Stock Issued Expense | 0 | 4 |
Cash Paid During the Period For | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 2,539 | 1,749 |
Income Taxes Paid | 795 | 1,080 |
Gideon Bancshares Company | ||
Cash flows from financing activities: | ||
Common Stock Issued Expense | (10,757) | 0 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Fair value of assets acquired | 216,772 | 0 |
Common Stock Issued Expense | 10,757 | 0 |
Cash paid for capital stock | 11,271 | 0 |
Liabilities assumed | $ 194,744 | $ 0 |
Note 1_ Basis of Presentation
Note 1: Basis of Presentation | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 1: Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company as of June 30, 2018, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and six- month periods ended December 31, 2018, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the CompanyÂ’s June 30, 2018, Form 10-K, which was filed with the SEC. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Southern Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Note 2_ Organization and Summar
Note 2: Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 2: Organization and Summary of Significant Accounting Policies | Note 2: Organization and Summary of Significant Accounting Policies Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to regulation by certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. Principles of Consolidation. Use of Estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, estimated fair values of purchased loans, other-than-temporary impairments (OTTI), and fair value of financial instruments. Cash and Cash Equivalents. Interest-bearing Time Deposits. Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. As a result of this guidance, the Company’s consolidated balance sheet as of the dates presented reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. Federal Home Loan Bank and Federal Reserve Bank Stock. Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. The allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans and the results of regulatory examinations. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan. Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans (“purchased credit impaired loans”), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software. Bank Owned Life Insurance. Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Intangible Assets. The Company’s intangible assets at , 201 included gross core deposit intangibles of $ million with $ accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million , and mortgage servicing rights of $ . t June 30, 201 included gross core deposit intangibles of $ million with $ million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million , and FHLB mortgage servicing rights of $1. million . The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to years , with amortization expense expected to be approximately $ in fiscal 201 , $ in fiscal 20 , $ in fiscal 20 , $ in fiscal 20 , Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. Incentive Plan. Outside Directors’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and benefits shall terminate on the death of the beneficiary. Stock Options. Earnings Per Share. Comprehensive Income. Transfers Between Fair Value Hierarchy Levels. The following paragraphs summarize the impact of new accounting pronouncements: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures, and is not expected to have a significant impact on our financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) are recorded. This standard is effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-02 and, as a result, reclassified $65,497 from accumulated other comprehensive income to retained earnings as of December 31, 2017. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Subtopic 718): Scope of Modification Accounting. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should account for the effects of a modification unless all of the following are the same immediately before and after the change: (1) the fair value of the modified award, (2) the vesting conditions of the modified award, and (3) the classification of the modified award as either an equity or liability instrument. ASU 2017-09 was effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively to awards modified on or after the adoption date. The adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash payments. The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice. The Update addresses eight specific cash flow issues. For public companies, the ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively. There has been no material impact on the Company’s consolidated financial statements due to the adoption of this standard in the first quarter of fiscal 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is available beginning after December 15, 2018, including interim periods within those fiscal years. Adoption will be applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Management is evaluating the impact, if any, this new guidance will have on the Company’s consolidated financial statements, but cannot yet reasonably estimate the impact of adoption. The Company formed a working group of key personnel responsible for the allowance for loan losses estimate and initiated its evaluation of the data and systems requirements of adoption of the Update. The group determined that purchasing third party software would be the most effective method to comply with the requirements, and evaluated several outside vendors. The group provided a recommendation to purchase Sageworks software, which was approved by the Board, and purchased in June 2018. Loan data files as of June 30, 2018 were imported into the testing environment within the Sageworks software, and sample testing was completed. Loan data files as of September 30, 2018 and December 31, 2018 were imported into the live environment, ALLL calculations were performed under the incurred loss model and results were compared to the Bank’s excel calculations. CECL model training was attended during the second quarter of fiscal 2019, with a goal to run parallel calculations shortly thereafter. In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting. Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Adoption of the standard requires the use of a modified retrospective transition approach for all periods presented at the time of adoption. Management is evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10). The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 on recognition of financial assets and financial liabilities. ASU 2016-01 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606- performance obligations and the licensing implementation guidance. Neither of the two updates changed the core principle of the guidance in Topic 606. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), to provide narrow-scope improvements and practical expedients to ASU 2015-14. ASU 2015-04 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material change to our accounting for revenue because the majority of our financial instruments are not within the scope of Topic 606. |
Note 3_ Securities
Note 3: Securities | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 3: Securities | Note 3: Securities The amortized cost, gross unrealized gains, gross unrealized losses, and approximate fair value of securities available for sale consisted of the following: December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $46,140 $164 $(114) $46,190 State and political subdivisions 50,162 295 (397) 50,060 Other securities 5,185 31 (157) 5,059 Mortgage-backed GSE residential 98,661 143 (2,241) 96,563 Total investments and mortgage-backed securities $200,148 $633 $(2,909) $197,872 June 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $9,513 $- $(128) $9,385 State and political subdivisions 41,862 230 (480) 41,612 Other securities 5,284 61 (193) 5,152 Mortgage-backed GSE residential 92,708 1 (2,533) 90,176 Total investments and mortgage-backed securities $149,367 $292 $(3,334) $146,325 The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. December 31, 2018 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $16,524 $16,510 After one year but less than five years 41,220 41,241 After five years but less than ten years 25,014 24,970 After ten years 18,729 18,588 Total investment securities 101,487 101,309 Mortgage-backed securities 98,661 96,563 Total investments and mortgage-backed securities $200,148 $197,872 The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $146.7 million at December 31, 2018 and $124.2 million at June 30, 2018. The securities pledged consist of marketable securities, including $19.7 million and $8.4 million of U.S. Government and Federal Agency Obligations, $41.2 million and $39.8 million of Mortgage-Backed Securities, $49.9 million and $41.5 million of Collateralized Mortgage Obligations, $35.7 million and $34.2 million of State and Political Subdivisions Obligations, and $200,000 and $300,000 of Other Securities at December 31 and June 30, 2018, respectively. Gains of $51,452 were recognized from sales of available-for-sale securities in each of the three- and six- month periods ended December 31, 2017. Losses of $14,345 were recognized from sales of available-for-sale securities in each of the three- and six- month periods ended December 31, 2017. There were no sales of available-for-sale securities in the three- and six- month periods ended December 31, 2018. The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31 and June 30, 2018: December 31, 2018 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $3,843 $17 $7,381 $97 $11,224 $114 Obligations of state and political subdivisions 4,516 27 19,194 370 23,710 397 Other securities - - 1,033 157 1,033 157 Mortgage-backed securities 23,207 321 58,839 1,920 82,046 2,241 Total investments and mortgage-backed securities $31,566 $365 $86,447 $2,544 $118,013 $2,909 June 30, 2018 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $5,957 $58 $3,427 $70 $9,384 $128 Obligations of state and political subdivisions 14,861 224 8,526 256 23,387 480 Other securities 982 10 1,109 183 2,091 193 Mortgage-backed securities 65,863 1,513 24,187 1,020 90,050 2,533 Total investments and mortgage-backed securities $87,663 $1,805 $37,249 $1,529 $124,912 $3,334 Other securities. At December 31, 2018, there were two pooled trust preferred securities with an estimated fair value of $820 ,000 and unrealized losses of $152 ,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. Rules adopted by the federal banking agencies in December 2013 to implement Section 619 of the Dodd-Frank Act (the “Volcker Rule”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund. The pooled trust preferred securities owned by the Company were included in a January 2014 listing of securities which the agencies considered to be grandfathered with regard to these prohibitions; as such, banking entities are permitted to retain their interest in these securities, provided the interest was acquired on or before December 10, 2013, unless acquired pursuant to a merger or acquisition. The December 31, 2018, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.4 percent, annually, annual defaults averaging 69 basis points, and a recovery rate averaging 7.0 percent of gross defaults, lagged two years. One of these two securities has continued to receive cash interest payments in full since our purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for the securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018. The Company does not believe any other individual unrealized loss as of December 31, 2018, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified. Credit losses recognized on investments. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.” The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended December 31, 2018 and 2017. The trust preferred security with a credit loss at December 31, 2017 was sold later in the fiscal year ended June 30, 2018. Accumulated Credit Losses Six-Month Period Ended (dollars in thousands) December 31, 2018 2017 Credit losses on debt securities held Beginning of period $ - $ 340 Additions related to OTTI losses not previously recognized - - Reductions due to sales - - Reductions due to change in intent or likelihood of sale - - Additions related to increases in previously-recognized OTTI losses - - Reductions due to increases in expected cash flows - (6) End of period $ - $ 334 |
Note 4_ Loans and Allowance for
Note 4: Loans and Allowance for Loan Losses | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 4: Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses Classes of loans are summarized as follows: (dollars in thousands) December 31, 2018 June 30, 2018 Real Estate Loans: Residential $ 480,227 $ 450,919 Construction 116,576 112,718 Commercial 837,917 704,647 Consumer loans 86,920 78,571 Commercial loans 345,803 281,272 1,867,443 1,628,127 Loans in process (46,940) (46,533) Deferred loan fees, net (3) - Allowance for loan losses (19,023) (18,214) Total loans $ 1,801,477 $ 1,563,380 The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. The Company has also occasionally purchased loan participation interests originated by other lenders and secured by properties generally located in the states of Missouri and Arkansas. Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the primary market area. The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to seven years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally secured by mortgage loans for the construction of owner occupied residential real estate or to finance speculative construction secured by residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, loans may be converted to permanent status with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. While the Company typically utilizes maturity periods ranging from 6 to 12 months to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically obtains interim inspections completed by an independent third party. This monitoring further allows the Company opportunity to assess risk. At December 31, 2018, construction loans outstanding included 58 loans, totaling $13.3 million , for which a modification had been agreed to. At June 30, 2018, construction loans outstanding included 72 loans, totaling $12.5 million , for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs . Consumer Lending . The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years. Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Commercial Business Lending . The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans. The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. The following tables present the balance in the allowance for loan losses and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment and impairment methods as of December 31 and June 30, 2018, and activity in the allowance for loan losses for the three- and six- month periods ended December 31, 2018 and 2017: At period end and for the six months ended December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,226 $1,097 $8,793 $902 $4,196 $18,214 Provision charged to expense 415 94 319 80 87 995 Losses charged off (9) - (120) (20) (47) (196) Recoveries 1 - 3 5 1 10 Balance, end of period $3,633 $1,191 $8,995 $967 $4,237 $19,023 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,633 $1,191 $8,995 $967 $4,237 $19,023 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $478,389 $68,344 $818,394 $86,920 $339,895 $1,791,942 Ending Balance: loans acquired with deteriorated credit quality $1,838 $1,292 $19,523 $- $5,908 $28,561 For the three months ended December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,349 $1,293 $8,733 $981 $4,434 $18,790 Provision charged to expense 293 (102) 284 (11) (150) 314 Losses charged off (9) - (25) (3) (47) (84) Recoveries - - 3 - - 3 Balance, end of period $3,633 $1,191 $8,995 $967 $4,237 $19,023 At period end and for the six months ended December 31, 2017 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,230 $964 $7,068 $757 $3,519 $15,538 Provision charged to expense 133 (78) 1,271 125 60 1,511 Losses charged off (78) - (36) (58) (21) (193) Recoveries 1 - - 4 6 11 Balance, end of period $3,286 $886 $8,303 $828 $3,564 $16,867 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,286 $886 $8,303 $828 $3,564 $16,867 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- For the three months ended December 31, 2017 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,300 $965 $7,649 $815 $3,628 $16,357 Provision charged to expense 40 (79) 690 40 (49) 642 Losses charged off (55) - (36) (28) (21) (140) Recoveries 1 - - 1 6 8 Balance, end of period $3,286 $886 $8,303 $828 $3,564 $16,867 At June 30, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $3,226 $1,097 $8,793 $902 $4,196 $18,214 Ending Balance: individually evaluated for impairment $- $- $399 $- $351 $750 Ending Balance: collectively evaluated for impairment $3,226 $1,097 $8,394 $902 $3,845 $17,464 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $660 $- $580 $1,240 Ending Balance: collectively evaluated for impairment $447,706 $64,888 $696,377 $78,571 $278,241 $1,565,783 Ending Balance: loans acquired with deteriorated credit quality $3,213 $1,297 $7,610 $- $2,451 $14,571 Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. The allowance for loan losses is maintained at a level that, in management’s judgment, is adequate to cover probable credit losses inherent in the loan portfolio at the balance sheet date. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when an amount is determined to be uncollectible, based on management’s analysis of expected cash flow (for non-collateral-dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Under the Company’s methodology, loans are first segmented into 1) those comprising large groups of smaller-balance homogeneous loans, including single-family mortgages and installment loans, which are collectively evaluated for impairment, and 2) all other loans which are individually evaluated. Those loans in the second category are further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. The loans subject to credit classification represent the portion of the portfolio subject to the greatest credit risk and where adjustments to the allowance for losses on loans as a result of provision and charge offs are most likely to have a significant impact on operations. A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit represents a probable loss or risk that should be recognized. A loan is considered impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be able to be collected when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The general component covers non-impaired loans and is based on quantitative and qualitative factors. The loan portfolio is stratified into homogeneous groups of loans that possess similar loss characteristics and an appropriate loss ratio adjusted for qualitative factors is applied to the homogeneous pools of loans to estimate the incurred losses in the loan portfolio. Included in the Company’s loan portfolio are certain loans accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. These loans were written down at acquisition to an amount estimated to be collectible. As a result, certain ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s current credit quality to prior periods. The ratios particularly affected by accounting under ASC 310-30 include the allowance for loan losses as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. The following tables present the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of December 31 and June 30, 2018. These tables include purchased credit impaired loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $473,542 $69,458 $792,781 $86,657 $335,764 Watch 715 - 28,344 81 4,012 Special Mention - - 32 27 - Substandard 5,970 178 16,719 150 5,425 Doubtful - - 41 5 602 Total $480,227 $69,636 $837,917 $86,920 $345,803 June 30, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $443,916 $66,160 $691,188 $78,377 $277,568 Watch 1,566 - 7,004 111 374 Special Mention 75 - 926 27 69 Substandard 5,362 25 4,869 56 2,079 Doubtful - - 660 - 1,182 Total $450,919 $66,185 $704,647 $78,571 $281,272 The above amounts include purchased credit impaired loans. At December 31, 2018, purchased credited impaired loans comprised $7.1 million of credits rated “Pass”; $10.3 million of credits rated “Watch”; none rated “Special Mention”; $11.2 million of credits rated “Substandard”; and none rated “Doubtful”. At June 30, 2018, purchased credit impaired loans accounted for $7.8 million of credits rated “Pass”; $3.1 million of credits rated “Watch”; none rated “Special Mention”; $3.7 million of credits rated “Substandard”; and none rated “Doubtful”. Credit Quality Indicators Watch Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of December 31, 2018 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $1,140 $1,555 $3,732 $6,427 $473,800 $480,227 $- Construction - - - - 69,636 69,636 - Commercial 2,382 1,616 6,163 10,161 827,756 837,917 - Consumer loans 571 46 278 895 86,025 86,920 - Commercial loans 1,237 105 2,222 3,564 342,239 345,803 - Total loans $5,330 $3,322 $12,395 $21,047 $1,799,456 $1,820,503 $- June 30, 2018 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $749 $84 $4,089 $4,922 $445,997 $450,919 $- Construction - - - - 66,185 66,185 - Commercial 1,100 290 1,484 2,874 701,773 704,647 - Consumer loans 510 33 146 689 77,882 78,571 - Commercial loans 134 90 707 931 280,341 281,272 - Total loans $2,493 $497 $6,426 $9,416 $1,572,178 $1,581,594 $- At December 31, 2018 there was one A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans, as well as performing loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The tables below present impaired loans (excluding loans in process and deferred loan fees) as of . These tables include purchased credit impaired loans. Purchased credit impaired loans are those for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, will continue to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will be less than the amount previously expected, the Company will allocate a specific allowance under the terms of ASC 310-10-35. December 31, 2018 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $2,427 $2,664 $- Construction real estate 1,316 1,467 - Commercial real estate 27,853 33,365 - Consumer loans 1 1 - Commercial loans 7,076 9,274 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $2,427 $2,664 $- Construction real estate $1,316 $1,467 $- Commercial real estate $27,853 $33,365 $- Consumer loans $1 $1 $- Commercial loans $7,076 $9,274 $- June 30, 2018 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,820 $4,468 $- Construction real estate 1,321 1,569 - Commercial real estate 14,052 15,351 - Consumer loans 25 25 - Commercial loans 2,787 3,409 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate 660 660 399 Consumer loans - - - Commercial loans 580 580 351 Total: Residential real estate $3,820 $4,468 $- Construction real estate $1,321 $1,569 $- Commercial real estate $14,712 $16,011 $399 Consumer loans $25 $25 $- Commercial loans $3,367 $3,989 $351 The above amounts include purchased credit impaired loans. At , 201 , purchased credit impaired loans $ million of impaired loans without a specific valuation allowance At June 30, 201 , purchased credit impaired loans $ million of impaired loans without a specific valuation allowance The following tables present information regarding interest income recognized on impaired loans: For the three-month period ended December 31, 2018 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 1,844 $ 28 Construction Real Estate 1,295 41 Commercial Real Estate 13,186 429 Consumer Loans - - Commercial Loans 3,356 102 Total Loans $ 19,681 $ 600 For the three-month period ended December 31, 2017 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 3,443 $ 60 Construction Real Estate 1,326 40 Commercial Real Estate 10,249 305 Consumer Loans - - Commercial Loans 3,514 51 Total Loans $ 18,532 $ 456 For the six-month period ended December 31, 2018 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 2,300 $ 61 Construction Real Estate 1,295 142 Commercial Real Estate 11,327 799 Consumer Loans - - Commercial Loans 3,054 718 Total Loans $ 17,976 $ 1,720 For the six-month period ended December 31, 2017 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 3,456 $ 127 Construction Real Estate 1,329 79 Commercial Real Estate 10,664 551 Consumer Loans - - Commercial Loans 3,614 109 Total Loans $ 19,063 $ 866 Interest income on impaired loans recognized on a cash basis in the three- and six- month periods ended December 31, 2018 and 2017, was immaterial. For the three- and six- month periods ended December 31, 2018, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $144,000 and $1.1 million, respectively, as compared to $183,000 and $261,000, respectively, for the three- and six- month periods ended December 31, 2017. The following table presents the Company’s nonaccrual loans at December 31 and June 30, 2018. Purchased credit impaired loans are placed on nonaccrual status in the event the Company cannot reasonably estimate cash flows expected to be collected. The table excludes performing troubled debt restructurings. (dollars in thousands) December 31, 2018 June 30, 2018 Residential real estate $ 5,836 $ 5,913 Construction real estate 24 25 Commercial real estate 10,560 1,962 Consumer loans 353 209 Commercial loans 3,680 1,063 Total loans $ 20,453 $ 9,172 The above amounts include purchased credit impaired loans. At December 31 and June 30, 2018, purchased credit impaired loans comprised $4.2 million and $1.1 million of nonaccrual loans, respectively. Included in certain loan categories in the impaired loans are troubled debt restructurings (TDRs), where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When loans and leases are modified into a TDR, the Company evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, and uses the current fair value of the collateral, less selling costs, for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance. During the three- and six- month periods ended December 31, 2018 and 2017, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below: For the three-month periods ended December 31, 2018 December 31, 2017 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 707 - $ - Construction real estate - - - - Commercial real estate 4 962 - - Consumer loans - - - - Commercial loans 1 20 - - Total 6 $ 1,689 - $ - For the six-month periods ended December 31, 2018 December 31, 2017 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 707 - $ - Construction real estate - - - - Commercial real estate 7 2,264 - - Consumer loans - - - - Commercial loans 2 89 - - Total 10 $ 3,060 - $ - Performing loans classified as TDRs and outstanding at December 31 and June 30, 2018, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans. December 31, 2018 June 30, 2018 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 11 $ 1,273 12 $ 800 Construction real estate - - - - Commercial real estate 20 9,925 13 8,084 Consumer loans - - 1 14 Commercial loans 10 1,950 8 2,787 Total 41 $ 13,148 34 $ 11,685 We may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of December 31 and June 30, 2018, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $646,000 and $472,000, respectively. In addition, as of December 31 and June 30, 2018, we had residential mortgage loans and home equity loans with a carrying value of $895,000 and $331,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Note 5_ Accounting For Certain
Note 5: Accounting For Certain Loans Acquired in A Transfer | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 5: Accounting For Certain Loans Acquired in A Transfer | Note 5: Accounting for Certain Loans Acquired in a Transfer The Company acquired loans in transfers during the fiscal years ended June 30, 2011, 2015, 2017, and 2019. At acquisition, certain transferred loans evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amount of those loans is included in the balance sheet amounts of loans receivable at December 31 and June 30, 2018. The amount of these loans is shown below: (dollars in thousands) December 31, 2018 June 30, 2018 Residential real estate $ 2,075 $ 3,861 Construction real estate 1,443 1,544 Commercial real estate 25,035 8,909 Consumer loans - - Commercial loans 8,106 3,073 Outstanding balance $ 36,659 $ 17,387 Carrying amount, net of fair value adjustment of $8,089 and $2,816 at December 31, 2018, and June 30, 2018, respectively $ 28,561 $ 14,571 Accretable yield, or income expected to be collected, is as follows: For the three-month period ended (dollars in thousands) December 31, 2018 December 31, 2017 Balance at beginning of period $ 305 $ 620 Additions 102 - Accretion (144) (183) Reclassification from nonaccretable difference 108 170 Disposals - - Balance at end of period $ 371 $ 607 For the six-month period ended (dollars in thousands) December 31, 2018 December 31, 2017 Balance at beginning of period $ 589 $ 609 Additions 102 - Accretion (1,089) (261) Reclassification from nonaccretable difference 973 259 Disposals (204) - Balance at end of period $ 371 $ 607 During the three- and six- month periods ended December 31, 2018 and December 31, 2017, the Company did not increase or reverse the allowance for loan losses related to these purchased credit impaired loans. |
Note 6_ Deposits
Note 6: Deposits | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 6: Deposits | Note 6: Deposits Deposits are summarized as follows: (dollars in thousands) December 31, 2018 June 30, 2018 Non-interest bearing accounts $ 239,955 $ 203,517 NOW accounts 592,066 569,005 Money market deposit accounts 163,425 116,389 Savings accounts 162,773 157,540 Certificates 637,787 533,451 Total Deposit Accounts $ 1,796,006 $ 1,579,902 |
Note 7_ Earnings Per Share
Note 7: Earnings Per Share | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 7: Earnings Per Share | Note 7: Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended Six months ended December 31, December 31, 2018 2017 2018 2017 (dollars in thousands except per share data) Net income available to common shareholders $7,454 $5,170 $14,254 $10,033 Average Common shares – outstanding basic 9,136,873 8,589,073 9,066,597 8,590,218 Stock options under treasury stock method 11,860 29,883 12,342 28,778 Average Common shares – outstanding diluted 9,148,733 8,618,956 9,078,939 8,618,996 Basic earnings per common share $0.82 $0.60 $1.57 $1.17 Diluted earnings per common share $0.81 $0.60 $1.57 $1.16 At December 31, 2018, 13,500 options outstanding had an exercise price in excess of the market price. At December 31, 2017, no options outstanding had an exercise price in excess of the market price. |
Note 8_ Income Taxes
Note 8: Income Taxes | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 8: Income Taxes | Note 8: Income Taxes The Company and its subsidiary file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state examinations by tax authorities for tax years ending June 30, 2014 and before. The Company recognized no interest or penalties related to income taxes. The CompanyÂ’s income tax provision is comprised of the following components: For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Income taxes Current $3,368 $2,484 $5,029 $4,366 Deferred (1,566) 62 (1,560) 69 Total income tax provision $1,802 $2,546 $3,469 $4,435 The components of net deferred tax assets are summarized as follows: (dollars in thousands) December 31, 2018 June 30, 2018 Deferred tax assets: Provision for losses on loans $4,435 $4,418 Accrued compensation and benefits 602 708 NOL carry forwards acquired 225 273 Minimum Tax Credit 130 130 Unrealized loss on other real estate 131 124 Unrealized loss on available for sale securities 501 730 Purchase accounting adjustments 476 (949) Losses and credits from LLCÂ’s 962 1,003 Total deferred tax assets 7,462 6,437 Deferred tax liabilities: Depreciation 1,177 1,475 FHLB stock dividends 120 130 Prepaid expenses 127 98 Other 300 327 Total deferred tax liabilities 1,724 2,030 Net deferred tax asset $5,738 $4,407 As of December 31, 2018 the Company had approximately $1.1 million and $2.5 million in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., the August 2014 acquisition of Peoples Service Company, and the June 2017 acquisition of Tammcorp, Inc. (Capaha Bank). The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027. A reconciliation of income tax expense at the statutory rate to the CompanyÂ’s actual income tax is shown below: For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Tax at statutory rate $1,944 $2,168 $3,722 $4,066 Increase (reduction) in taxes resulting from: Nontaxable municipal income (77) (114) (149) (225) State tax, net of Federal benefit 101 137 224 243 Cash surrender value of Bank-owned life insurance (125) (66) (176) (131) Tax credit benefits (68) (225) (136) (449) Other, net 27 (478) (16) (193) Actual provision $1,802 $2,546 $3,469 $4,435 For the three- and six- month periods ended December 31, 2018, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR), compared to 28.1% for the three- and six- month periods ended December 31, 2017, as a result of the Tax Cuts and Jobs Act ("Tax Act") signed into law December 22, 2017. The Tax Act ultimately reduced the corporate Federal income tax rate for the Company from 35% to 21%, and for the fiscal year ended June 30, 2018, the Company was administratively subject to a 28.1% AETR. U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the income tax effects of the Tax Act were recognized in the CompanyÂ’s financial statements for the quarter ended December 31, 2017, and for the twelve months ended June 30, 2018. The Tax Act is complex and requires significant detailed analysis. During the preparation of the Company's June 30, 2018 income tax returns, additional adjustments related to enactment of the Tax Act may be identified. We do not currently expect significant adjustments will be necessary, but any further adjustments identified will be recognized in accordance with guidance contained in Staff Accounting Bulletin No. 118 from the U. S. Securities and Exchange Commission. Tax credit benefits are recognized under the flow-through method of accounting for investments in tax credits. |
Note 9_ 401(k) Retirement Plan
Note 9: 401(k) Retirement Plan | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 9: 401(k) Retirement Plan | Note 9: 401(k) Retirement Plan The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank made a safe harbor matching contribution to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2018; for fiscal 2019, the Company has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and six month periods ended December 31, 2018, retirement plan expenses recognized for the Plan totaled approximately $293,000 and $634,000, respectively, as compared to $273,000 and $552,000, respectively, for the same period of the prior fiscal year. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years. |
Note 10_ Subordinated Debt
Note 10: Subordinated Debt | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 10: Subordinated Debt | Note 10: Subordinated Debt Southern Missouri Statutory Trust I issued $7.0 million of Floating Rate Capital Securities (the “Trust Preferred Securities”) with a liquidation value of $1,000 per share in March 2004. The securities are due in 30 years, redeemable after five years and bear interest at a floating rate based on LIBOR. At December 31, 2018, the current rate was 5.54%. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries. In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. The carrying value of the debt securities was approximately $2.6 million at December 31 and June 30, 2018. In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. The carrying value of the debt securities was approximately $5.2 million at December 31 and June 30, 2018. |
Note 11_ Fair Value Measurement
Note 11: Fair Value Measurements | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 11: Fair Value Measurements | Note 11: Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1 Level 2 Level 3 Recurring Measurements. Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $46,190 $- $46,190 $- State and political subdivisions 50,060 - 50,060 - Other securities 5,059 - 5,059 - Mortgage-backed GSE residential 96,563 - 96,563 - Fair Value Measurements at June 30, 2018, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $9,385 $- $9,385 $- State and political subdivisions 41,612 - 41,612 - Other securities 5,152 - 5,152 - Mortgage-backed GSE residential 90,176 - 90,176 - Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale Securities. Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at December 31 and June 30, 2018: Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,948 $- $- $3,948 Fair Value Measurements at June 30, 2018, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans (collateral dependent) $490 $- $- $490 Foreclosed and repossessed assets held for sale 3,924 - - 3,924 The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the three-month periods ended December 31, 2018 and 2017: For the six months ended (dollars in thousands) December 31, 2018 December 31, 2017 Foreclosed and repossessed assets held for sale $ (222) $ (56) Total (losses) gains on assets measured on a non-recurring basis $ (222) $ (56) The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below. Impaired Loans (Collateral Dependent). A collateral dependent loan is considered to be impaired when it is probable that all of the principal and interest due may not be collected according to its contractual terms. Generally, when a collateral dependent loan is considered impaired, the amount of reserve required is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material collateral dependent loans deemed impaired using the fair value of the collateral for collateral dependent loans. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. In addition, management applies selling and other discounts to the underlying collateral value to determine the fair value. If an appraised value is not available, the fair value of the collateral dependent impaired loan is determined by an adjusted appraised value including unobservable cash flows. On a quarterly basis, loans classified as special mention, substandard, doubtful, or loss are evaluated including the loan officerÂ’s review of the collateral and its current condition, the CompanyÂ’s knowledge of the current economic environment in the market where the collateral is located, and the CompanyÂ’s recent experience with real estate in the area. The date of the appraisal is also considered in conjunction with the economic environment and any decline in the real estate market since the appraisal was obtained. For all loan types, updated appraisals are obtained if considered necessary. In instances where the economic environment has worsened and/or the real estate market declined since the last appraisal, a higher distressed sale discount would be applied to the appraised value. The Company records collateral dependent impaired loans based on nonrecurring Level 3 inputs. If a collateral dependent loanÂ’s fair value, as estimated by the Company, is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a specific reserve as part of the allowance for loan losses. There were no loans measured at fair value on a nonrecurring basis at December 31, 2018 or June 30, 2018. Foreclosed and Repossessed A ssets H eld for Sal e. are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets held for sale. The value of the asset is based on third party appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and managementÂ’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed assets held for sale are evaluated for additional impairment and are adjusted accordingly if is identified. Unobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. (dollars in thousands) Fair value at December 31 , 2018 Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,948 Third party appraisal Marketability discount 0.0% - 60.3% 32.8% (dollars in thousands) Fair value at Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Impaired loans (collateral dependent) $490 Internal Valuation Discount to reflect realizable value n/a Foreclosed and repossessed assets $3,924 Third party appraisal Marketability discount 0.0% - 65.9% 32.3% Fair Value of Financial Instruments. December 31, 2018 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $38,384 $38,384 $- $- Interest-bearing time deposits 1,711 - 1,711 - Stock in FHLB 9,339 - 9,339 - Stock in Federal Reserve Bank of St. Louis 3,566 - 3,566 - Loans receivable, net 1,801,477 - - 1,780,098 Accrued interest receivable 10,801 - 10,801 - Financial liabilities Deposits 1,796,006 1,158,166 - 633,830 Securities sold under agreements to repurchase 4,425 - 4,425 - Advances from FHLB 155,765 129,400 26,490 - Note Payable 3,000 - - 3,000 Accrued interest payable 1,668 - 1,668 - Subordinated debt 14,994 - - 14,851 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2018 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $26,326 $26,326 $- $- Interest-bearing time deposits 1,953 - 1,953 - Stock in FHLB 5,661 - 5,661 - Stock in Federal Reserve Bank of St. Louis 3,566 - 3,566 - Loans receivable, net 1,563,380 - - 1,556,466 Accrued interest receivable 7,992 - 7,992 - Financial liabilities Deposits 1,579,902 1,046,491 - 529,297 Securities sold under agreements to repurchase 3,267 - 3,267 - Advances from FHLB 76,652 66,550 10,110 - Note Payable 3,000 - - 3,000 Accrued interest payable 1,206 - 1,206 - Subordinated debt 14,945 - - 14,382 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - The following methods and assumptions were used in estimating the fair values of financial instruments: Cash and cash equivalents and interest-bearing time deposits are valued at their carrying amounts, which approximates book value. Stock in FHLB and the Federal Reserve Bank of St. Louis is valued at cost, which approximates fair value. For December 31, 2018, the fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayments discount spreads, credit loss and liquidity premiums. For June 30, 2018, the fair value of loans was estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. The carrying amount of accrued interest approximates its fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Non-maturity deposits and securities sold under agreements are valued at their carrying value, which approximates fair value. Fair value of advances from the FHLB is estimated by discounting maturities using an estimate of the current market for similar instruments. The fair value of subordinated debt is estimated using rates currently available to the Company for debt with similar terms and maturities. The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The carrying amount of notes payable approximates fair value. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and committed rates. The fair value of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. |
Note 12_ Business Combinations
Note 12: Business Combinations | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 12: Business Combinations | Note 12: Business Combinations On November 21, 2018, the Company completed its acquisition of Gideon Bancshares Company (“Gideon”), and its wholly owned subsidiary, First Commercial Bank (“First Commercial”), in a stock and cash transaction. Upon completion of the Merger, each share of Gideon common stock was converted into the right to receive $72.48 in cash, as well as 2.04 shares of Southern Missouri common stock, with cash payable in lieu of fractional Southern Missouri shares (the “Merger Consideration”). The Company issued an aggregate of 317,225 shares of common stock for the stock portion of the Merger Consideration and paid an aggregate of approximately $11.3 million for the cash portion of the Merger Consideration. The conversion of data systems took place on December 8, 2018. The Company acquired First Commercial primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through December 31, 2018, the Company incurred $629,000 of third-party acquisition-related costs with $420,000 and $554,000 being included in noninterest expense in the Company's consolidated statement of income for the three- and six-month periods ended December 31, 2018, respectively, and $75,000 included in the prior fiscal year. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Gideon acquisition is detailed in the following table. Gideon Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $11,271 Common stock, at fair value 10,757 Total consideration $22,028 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $2,894 Investment securities 54,866 Loans 144,286 Premises and equipment 3,663 Identifiable intangible assets 4,125 Miscellaneous other assets 5,926 Deposits (170,687) FHLB Advances (18,701) Note Payable (4,400) Miscellaneous other liabilities (956) Total identifiable net assets 21,016 Goodwill $1,012 Of the total estimated purchase price of $22.0 million, $4.1 million has been allocated to core deposit intangible. Additionally, $1.0 million has been allocated to goodwill and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and First Commercial. Total goodwill was assigned to the acquisition of First Commercial. The core deposit intangible will be amortized over seven years on a straight line basis. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, our assessment of the ability of the borrower to service the debt, and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using individual analysis of each purchased credit impaired loan. The Company acquired the $154.0 million loan portfolio at an estimated fair value discount of $9.7 million. The accounting for the business combination is not yet complete and therefore all required disclosures for a business combination have not been provided. When completed, the excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Final estimates of certain loans, those for which specific credit-related deterioration, since origination, will be recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans will be based on reasonable expectation about the timing and amount of cash flows to be collected. The acquired business contributed revenues of $1.2 million and earnings of $405,000 for the period from November 21, 2018 through December 31, 2018. The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on July 1, 2018 and 2017: Pro Forma Three months ended December 31, 2018 2017 Revenue $ 22,879 $ 21,237 Earnings 7,629 5,314 Pro Forma Six months ended December 31, 2018 2017 Revenue $ 45,739 $ 41,656 Earnings 14,948 10,587 |
Note 2_ Organization and Summ_2
Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to regulation by certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. |
Note 2_ Organization and Summ_3
Note 2: Organization and Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Principles of Consolidation Policy | Principles of Consolidation. |
Note 2_ Organization and Summ_4
Note 2: Organization and Summary of Significant Accounting Policies: Use of Estimates Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Use of Estimates Policy | Use of Estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, estimated fair values of purchased loans, other-than-temporary impairments (OTTI), and fair value of financial instruments. |
Note 2_ Organization and Summ_5
Note 2: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents. |
Note 2_ Organization and Summ_6
Note 2: Organization and Summary of Significant Accounting Policies: Interest-bearing Time Deposits (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Interest-bearing Time Deposits | Interest-bearing Time Deposits. |
Note 2_ Organization and Summ_7
Note 2: Organization and Summary of Significant Accounting Policies: Marketable Securities, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Marketable Securities, Policy | Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. As a result of this guidance, the CompanyÂ’s consolidated balance sheet as of the dates presented reflects the full impairment (that is, the difference between the securityÂ’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. |
Note 2_ Organization and Summ_8
Note 2: Organization and Summary of Significant Accounting Policies: Federal Home Loan Bank and Federal Reserve Bank Stock (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Federal Home Loan Bank and Federal Reserve Bank Stock | Federal Home Loan Bank and Federal Reserve Bank Stock. |
Note 2_ Organization and Summ_9
Note 2: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Loans Policy | Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. The allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans and the results of regulatory examinations. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan. Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans (“purchased credit impaired loans”), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. |
Note 2_ Organization and Sum_10
Note 2: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Foreclosed Real Estate Policy | Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. |
Note 2_ Organization and Sum_11
Note 2: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Property, Plant and Equipment, Policy | Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software. |
Note 2_ Organization and Sum_12
Note 2: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Bank Owned Life Insurance Policy | Bank Owned Life Insurance. |
Note 2_ Organization and Sum_13
Note 2: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Goodwill Policy | Goodwill. The CompanyÂ’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. |
Note 2_ Organization and Sum_14
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Intangible Assets, Finite-Lived, Policy | Intangible Assets. The CompanyÂ’s intangible assets at , 201 included gross core deposit intangibles of $ million with $ accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million , and mortgage servicing rights of $ . t June 30, 201 included gross core deposit intangibles of $ million with $ million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million , and FHLB mortgage servicing rights of $1. million . The CompanyÂ’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to years , with amortization expense expected to be approximately $ in fiscal 201 , $ in fiscal 20 , $ in fiscal 20 , $ in fiscal 20 , |
Note 2_ Organization and Sum_15
Note 2: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Income Tax, Policy | Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to managementÂ’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. |
Note 2_ Organization and Sum_16
Note 2: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Share-based Compensation, Option and Incentive Plans Policy | Incentive Plan. |
Note 2_ Organization and Sum_17
Note 2: Organization and Summary of Significant Accounting Policies: Outside Directors Retirement Plan Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Outside Directors Retirement Plan Policy | Outside DirectorsÂ’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participantÂ’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and benefits shall terminate on the death of the beneficiary. |
Note 2_ Organization and Sum_18
Note 2: Organization and Summary of Significant Accounting Policies: Stock Options Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Stock Options Policy | Stock Options. |
Note 2_ Organization and Sum_19
Note 2: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Earnings Per Share, Policy | Earnings Per Share. |
Note 2_ Organization and Sum_20
Note 2: Organization and Summary of Significant Accounting Policies: Comprehensive Income, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Comprehensive Income, Policy | Comprehensive Income. |
Note 2_ Organization and Sum_21
Note 2: Organization and Summary of Significant Accounting Policies: Fair Value Transfer Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Fair Value Transfer Policy | Transfers Between Fair Value Hierarchy Levels. |
Note 2_ Organization and Sum_22
Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
New Accounting Pronouncements | The following paragraphs summarize the impact of new accounting pronouncements: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures, and is not expected to have a significant impact on our financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) are recorded. This standard is effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-02 and, as a result, reclassified $65,497 from accumulated other comprehensive income to retained earnings as of December 31, 2017. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Subtopic 718): Scope of Modification Accounting. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should account for the effects of a modification unless all of the following are the same immediately before and after the change: (1) the fair value of the modified award, (2) the vesting conditions of the modified award, and (3) the classification of the modified award as either an equity or liability instrument. ASU 2017-09 was effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively to awards modified on or after the adoption date. The adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash payments. The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice. The Update addresses eight specific cash flow issues. For public companies, the ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively. There has been no material impact on the Company’s consolidated financial statements due to the adoption of this standard in the first quarter of fiscal 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is available beginning after December 15, 2018, including interim periods within those fiscal years. Adoption will be applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Management is evaluating the impact, if any, this new guidance will have on the Company’s consolidated financial statements, but cannot yet reasonably estimate the impact of adoption. The Company formed a working group of key personnel responsible for the allowance for loan losses estimate and initiated its evaluation of the data and systems requirements of adoption of the Update. The group determined that purchasing third party software would be the most effective method to comply with the requirements, and evaluated several outside vendors. The group provided a recommendation to purchase Sageworks software, which was approved by the Board, and purchased in June 2018. Loan data files as of June 30, 2018 were imported into the testing environment within the Sageworks software, and sample testing was completed. Loan data files as of September 30, 2018 and December 31, 2018 were imported into the live environment, ALLL calculations were performed under the incurred loss model and results were compared to the Bank’s excel calculations. CECL model training was attended during the second quarter of fiscal 2019, with a goal to run parallel calculations shortly thereafter. In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting. Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Adoption of the standard requires the use of a modified retrospective transition approach for all periods presented at the time of adoption. Management is evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10). The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 on recognition of financial assets and financial liabilities. ASU 2016-01 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606- performance obligations and the licensing implementation guidance. Neither of the two updates changed the core principle of the guidance in Topic 606. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), to provide narrow-scope improvements and practical expedients to ASU 2015-14. ASU 2015-04 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material change to our accounting for revenue because the majority of our financial instruments are not within the scope of Topic 606. |
Note 3_ Securities_ Repurchase
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Repurchase Agreements, Collateral, Policy | The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $146.7 million at December 31, 2018 and $124.2 million at June 30, 2018. The securities pledged consist of marketable securities, including $19.7 million and $8.4 million of U.S. Government and Federal Agency Obligations, $41.2 million and $39.8 million of Mortgage-Backed Securities, $49.9 million and $41.5 million of Collateralized Mortgage Obligations, $35.7 million and $34.2 million of State and Political Subdivisions Obligations, and $200,000 and $300,000 of Other Securities at December 31 and June 30, 2018, respectively. Gains of $51,452 were recognized from sales of available-for-sale securities in each of the three- and six- month periods ended December 31, 2017. Losses of $14,345 were recognized from sales of available-for-sale securities in each of the three- and six- month periods ended December 31, 2017. There were no sales of available-for-sale securities in the three- and six- month periods ended December 31, 2018. |
Note 3_ Securities_ Other Secur
Note 3: Securities: Other Securities Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Other Securities Policy | Other securities. At December 31, 2018, there were two pooled trust preferred securities with an estimated fair value of $820 ,000 and unrealized losses of $152 ,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. Rules adopted by the federal banking agencies in December 2013 to implement Section 619 of the Dodd-Frank Act (the “Volcker Rule”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund. The pooled trust preferred securities owned by the Company were included in a January 2014 listing of securities which the agencies considered to be grandfathered with regard to these prohibitions; as such, banking entities are permitted to retain their interest in these securities, provided the interest was acquired on or before December 10, 2013, unless acquired pursuant to a merger or acquisition. The December 31, 2018, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.4 percent, annually, annual defaults averaging 69 basis points, and a recovery rate averaging 7.0 percent of gross defaults, lagged two years. One of these two securities has continued to receive cash interest payments in full since our purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for the securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2018. The Company does not believe any other individual unrealized loss as of December 31, 2018, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified. |
Note 3_ Securities_ Credit Loss
Note 3: Securities: Credit Losses Recognized on Investments Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Credit Losses Recognized on Investments Policy | Credit losses recognized on investments. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.” The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended December 31, 2018 and 2017. The trust preferred security with a credit loss at December 31, 2017 was sold later in the fiscal year ended June 30, 2018. |
Note 4_ Loans and Allowance f_2
Note 4: Loans and Allowance for Loan Losses: Residential Mortgage Lending Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Residential Mortgage Lending Policy | Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the primary market area. The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. |
Note 4_ Loans and Allowance f_3
Note 4: Loans and Allowance for Loan Losses: Commercial Real Estate Lending Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Commercial Real Estate Lending Policy | Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to seven years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. |
Note 4_ Loans and Allowance f_4
Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Construction Lending Policy | Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally secured by mortgage loans for the construction of owner occupied residential real estate or to finance speculative construction secured by residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, loans may be converted to permanent status with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. While the Company typically utilizes maturity periods ranging from 6 to 12 months to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The CompanyÂ’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically obtains interim inspections completed by an independent third party. This monitoring further allows the Company opportunity to assess risk. At December 31, 2018, construction loans outstanding included 58 loans, totaling $13.3 million , for which a modification had been agreed to. At June 30, 2018, construction loans outstanding included 72 loans, totaling $12.5 million , for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs . |
Note 4_ Loans and Allowance f_5
Note 4: Loans and Allowance for Loan Losses: Consumer Lending Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Consumer Lending Policy | Consumer Lending . The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years. Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. |
Note 4_ Loans and Allowance f_6
Note 4: Loans and Allowance for Loan Losses: Commercial Business Lending Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Policies | |
Commercial Business Lending Policy | Commercial Business Lending . The CompanyÂ’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans. The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. |
Note 12_ Business Combinations_
Note 12: Business Combinations: Business Combinations Policy (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Gideon Bancshares Company | |
Business Combinations Policy | On November 21, 2018, the Company completed its acquisition of Gideon Bancshares Company (“Gideon”), and its wholly owned subsidiary, First Commercial Bank (“First Commercial”), in a stock and cash transaction. Upon completion of the Merger, each share of Gideon common stock was converted into the right to receive $72.48 in cash, as well as 2.04 shares of Southern Missouri common stock, with cash payable in lieu of fractional Southern Missouri shares (the “Merger Consideration”). The Company issued an aggregate of 317,225 shares of common stock for the stock portion of the Merger Consideration and paid an aggregate of approximately $11.3 million for the cash portion of the Merger Consideration. The conversion of data systems took place on December 8, 2018. The Company acquired First Commercial primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through December 31, 2018, the Company incurred $629,000 of third-party acquisition-related costs with $420,000 and $554,000 being included in noninterest expense in the Company's consolidated statement of income for the three- and six-month periods ended December 31, 2018, respectively, and $75,000 included in the prior fiscal year. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Gideon acquisition is detailed in the following table. Gideon Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $11,271 Common stock, at fair value 10,757 Total consideration $22,028 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $2,894 Investment securities 54,866 Loans 144,286 Premises and equipment 3,663 Identifiable intangible assets 4,125 Miscellaneous other assets 5,926 Deposits (170,687) FHLB Advances (18,701) Note Payable (4,400) Miscellaneous other liabilities (956) Total identifiable net assets 21,016 Goodwill $1,012 Of the total estimated purchase price of $22.0 million, $4.1 million has been allocated to core deposit intangible. Additionally, $1.0 million has been allocated to goodwill and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and First Commercial. Total goodwill was assigned to the acquisition of First Commercial. The core deposit intangible will be amortized over seven years on a straight line basis. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, our assessment of the ability of the borrower to service the debt, and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using individual analysis of each purchased credit impaired loan. The Company acquired the $154.0 million loan portfolio at an estimated fair value discount of $9.7 million. The accounting for the business combination is not yet complete and therefore all required disclosures for a business combination have not been provided. When completed, the excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Final estimates of certain loans, those for which specific credit-related deterioration, since origination, will be recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans will be based on reasonable expectation about the timing and amount of cash flows to be collected. The acquired business contributed revenues of $1.2 million and earnings of $405,000 for the period from November 21, 2018 through December 31, 2018. The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on July 1, 2018 and 2017: Pro Forma Three months ended December 31, 2018 2017 Revenue $ 22,879 $ 21,237 Earnings 7,629 5,314 Pro Forma Six months ended December 31, 2018 2017 Revenue $ 45,739 $ 41,656 Earnings 14,948 10,587 |
Note 3_ Securities_ Schedule of
Note 3: Securities: Schedule of Available for Sale Securities (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Available for Sale Securities | December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $46,140 $164 $(114) $46,190 State and political subdivisions 50,162 295 (397) 50,060 Other securities 5,185 31 (157) 5,059 Mortgage-backed GSE residential 98,661 143 (2,241) 96,563 Total investments and mortgage-backed securities $200,148 $633 $(2,909) $197,872 June 30, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $9,513 $- $(128) $9,385 State and political subdivisions 41,862 230 (480) 41,612 Other securities 5,284 61 (193) 5,152 Mortgage-backed GSE residential 92,708 1 (2,533) 90,176 Total investments and mortgage-backed securities $149,367 $292 $(3,334) $146,325 |
Note 3_ Securities_ Contractual
Note 3: Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Contractual Obligation, Fiscal Year Maturity Schedule | December 31, 2018 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $16,524 $16,510 After one year but less than five years 41,220 41,241 After five years but less than ten years 25,014 24,970 After ten years 18,729 18,588 Total investment securities 101,487 101,309 Mortgage-backed securities 98,661 96,563 Total investments and mortgage-backed securities $200,148 $197,872 |
Note 3_ Securities_ Available-f
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | December 31, 2018 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $3,843 $17 $7,381 $97 $11,224 $114 Obligations of state and political subdivisions 4,516 27 19,194 370 23,710 397 Other securities - - 1,033 157 1,033 157 Mortgage-backed securities 23,207 321 58,839 1,920 82,046 2,241 Total investments and mortgage-backed securities $31,566 $365 $86,447 $2,544 $118,013 $2,909 June 30, 2018 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $5,957 $58 $3,427 $70 $9,384 $128 Obligations of state and political subdivisions 14,861 224 8,526 256 23,387 480 Other securities 982 10 1,109 183 2,091 193 Mortgage-backed securities 65,863 1,513 24,187 1,020 90,050 2,533 Total investments and mortgage-backed securities $87,663 $1,805 $37,249 $1,529 $124,912 $3,334 |
Note 3_ Securities_ Other than
Note 3: Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | Accumulated Credit Losses Six-Month Period Ended (dollars in thousands) December 31, 2018 2017 Credit losses on debt securities held Beginning of period $ - $ 340 Additions related to OTTI losses not previously recognized - - Reductions due to sales - - Reductions due to change in intent or likelihood of sale - - Additions related to increases in previously-recognized OTTI losses - - Reductions due to increases in expected cash flows - (6) End of period $ - $ 334 |
Note 4_ Loans and Allowance f_7
Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Classes of loans are summarized as follows: (dollars in thousands) December 31, 2018 June 30, 2018 Real Estate Loans: Residential $ 480,227 $ 450,919 Construction 116,576 112,718 Commercial 837,917 704,647 Consumer loans 86,920 78,571 Commercial loans 345,803 281,272 1,867,443 1,628,127 Loans in process (46,940) (46,533) Deferred loan fees, net (3) - Allowance for loan losses (19,023) (18,214) Total loans $ 1,801,477 $ 1,563,380 |
Note 4_ Loans and Allowance f_8
Note 4: Loans and Allowance for Loan Losses: Schedule of balance in the allowance for loan losses and recorded investment (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of balance in the allowance for loan losses and recorded investment | At period end and for the six months ended December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,226 $1,097 $8,793 $902 $4,196 $18,214 Provision charged to expense 415 94 319 80 87 995 Losses charged off (9) - (120) (20) (47) (196) Recoveries 1 - 3 5 1 10 Balance, end of period $3,633 $1,191 $8,995 $967 $4,237 $19,023 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,633 $1,191 $8,995 $967 $4,237 $19,023 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $478,389 $68,344 $818,394 $86,920 $339,895 $1,791,942 Ending Balance: loans acquired with deteriorated credit quality $1,838 $1,292 $19,523 $- $5,908 $28,561 For the three months ended December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,349 $1,293 $8,733 $981 $4,434 $18,790 Provision charged to expense 293 (102) 284 (11) (150) 314 Losses charged off (9) - (25) (3) (47) (84) Recoveries - - 3 - - 3 Balance, end of period $3,633 $1,191 $8,995 $967 $4,237 $19,023 At period end and for the six months ended December 31, 2017 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,230 $964 $7,068 $757 $3,519 $15,538 Provision charged to expense 133 (78) 1,271 125 60 1,511 Losses charged off (78) - (36) (58) (21) (193) Recoveries 1 - - 4 6 11 Balance, end of period $3,286 $886 $8,303 $828 $3,564 $16,867 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,286 $886 $8,303 $828 $3,564 $16,867 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- For the three months ended December 31, 2017 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,300 $965 $7,649 $815 $3,628 $16,357 Provision charged to expense 40 (79) 690 40 (49) 642 Losses charged off (55) - (36) (28) (21) (140) Recoveries 1 - - 1 6 8 Balance, end of period $3,286 $886 $8,303 $828 $3,564 $16,867 At June 30, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $3,226 $1,097 $8,793 $902 $4,196 $18,214 Ending Balance: individually evaluated for impairment $- $- $399 $- $351 $750 Ending Balance: collectively evaluated for impairment $3,226 $1,097 $8,394 $902 $3,845 $17,464 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $660 $- $580 $1,240 Ending Balance: collectively evaluated for impairment $447,706 $64,888 $696,377 $78,571 $278,241 $1,565,783 Ending Balance: loans acquired with deteriorated credit quality $3,213 $1,297 $7,610 $- $2,451 $14,571 |
Note 4_ Loans and Allowance f_9
Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | December 31, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $473,542 $69,458 $792,781 $86,657 $335,764 Watch 715 - 28,344 81 4,012 Special Mention - - 32 27 - Substandard 5,970 178 16,719 150 5,425 Doubtful - - 41 5 602 Total $480,227 $69,636 $837,917 $86,920 $345,803 June 30, 2018 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $443,916 $66,160 $691,188 $78,377 $277,568 Watch 1,566 - 7,004 111 374 Special Mention 75 - 926 27 69 Substandard 5,362 25 4,869 56 2,079 Doubtful - - 660 - 1,182 Total $450,919 $66,185 $704,647 $78,571 $281,272 |
Note 4_ Loans and Allowance _10
Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Loan Portfolio Aging Analysis | The following tables present the CompanyÂ’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of December 31, 2018 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $1,140 $1,555 $3,732 $6,427 $473,800 $480,227 $- Construction - - - - 69,636 69,636 - Commercial 2,382 1,616 6,163 10,161 827,756 837,917 - Consumer loans 571 46 278 895 86,025 86,920 - Commercial loans 1,237 105 2,222 3,564 342,239 345,803 - Total loans $5,330 $3,322 $12,395 $21,047 $1,799,456 $1,820,503 $- June 30, 2018 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $749 $84 $4,089 $4,922 $445,997 $450,919 $- Construction - - - - 66,185 66,185 - Commercial 1,100 290 1,484 2,874 701,773 704,647 - Consumer loans 510 33 146 689 77,882 78,571 - Commercial loans 134 90 707 931 280,341 281,272 - Total loans $2,493 $497 $6,426 $9,416 $1,572,178 $1,581,594 $- |
Note 4_ Loans and Allowance _11
Note 4: Loans and Allowance for Loan Losses: Schedule of Impaired Loans (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Impaired Loans | December 31, 2018 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $2,427 $2,664 $- Construction real estate 1,316 1,467 - Commercial real estate 27,853 33,365 - Consumer loans 1 1 - Commercial loans 7,076 9,274 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $2,427 $2,664 $- Construction real estate $1,316 $1,467 $- Commercial real estate $27,853 $33,365 $- Consumer loans $1 $1 $- Commercial loans $7,076 $9,274 $- June 30, 2018 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,820 $4,468 $- Construction real estate 1,321 1,569 - Commercial real estate 14,052 15,351 - Consumer loans 25 25 - Commercial loans 2,787 3,409 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate 660 660 399 Consumer loans - - - Commercial loans 580 580 351 Total: Residential real estate $3,820 $4,468 $- Construction real estate $1,321 $1,569 $- Commercial real estate $14,712 $16,011 $399 Consumer loans $25 $25 $- Commercial loans $3,367 $3,989 $351 |
Note 4_ Loans and Allowance _12
Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Interest Income Recognized on Impaired Loans | For the three-month period ended December 31, 2018 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 1,844 $ 28 Construction Real Estate 1,295 41 Commercial Real Estate 13,186 429 Consumer Loans - - Commercial Loans 3,356 102 Total Loans $ 19,681 $ 600 For the three-month period ended December 31, 2017 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 3,443 $ 60 Construction Real Estate 1,326 40 Commercial Real Estate 10,249 305 Consumer Loans - - Commercial Loans 3,514 51 Total Loans $ 18,532 $ 456 For the six-month period ended December 31, 2018 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 2,300 $ 61 Construction Real Estate 1,295 142 Commercial Real Estate 11,327 799 Consumer Loans - - Commercial Loans 3,054 718 Total Loans $ 17,976 $ 1,720 For the six-month period ended December 31, 2017 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $ 3,456 $ 127 Construction Real Estate 1,329 79 Commercial Real Estate 10,664 551 Consumer Loans - - Commercial Loans 3,614 109 Total Loans $ 19,063 $ 866 |
Note 4_ Loans and Allowance _13
Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Financing Receivables, Non Accrual Status | (dollars in thousands) December 31, 2018 June 30, 2018 Residential real estate $ 5,836 $ 5,913 Construction real estate 24 25 Commercial real estate 10,560 1,962 Consumer loans 353 209 Commercial loans 3,680 1,063 Total loans $ 20,453 $ 9,172 |
Note 4_ Loans and Allowance _14
Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Debtor Troubled Debt Restructuring, Current Period | For the three-month periods ended December 31, 2018 December 31, 2017 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 707 - $ - Construction real estate - - - - Commercial real estate 4 962 - - Consumer loans - - - - Commercial loans 1 20 - - Total 6 $ 1,689 - $ - For the six-month periods ended December 31, 2018 December 31, 2017 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 707 - $ - Construction real estate - - - - Commercial real estate 7 2,264 - - Consumer loans - - - - Commercial loans 2 89 - - Total 10 $ 3,060 - $ - |
Note 4_ Loans and Allowance _15
Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Performing Loans Classified as Troubled Debt Restructuring Loans | December 31, 2018 June 30, 2018 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 11 $ 1,273 12 $ 800 Construction real estate - - - - Commercial real estate 20 9,925 13 8,084 Consumer loans - - 1 14 Commercial loans 10 1,950 8 2,787 Total 41 $ 13,148 34 $ 11,685 |
Note 5_ Accounting For Certai_2
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Acquired Loans with Credit Deterioration | (dollars in thousands) December 31, 2018 June 30, 2018 Residential real estate $ 2,075 $ 3,861 Construction real estate 1,443 1,544 Commercial real estate 25,035 8,909 Consumer loans - - Commercial loans 8,106 3,073 Outstanding balance $ 36,659 $ 17,387 Carrying amount, net of fair value adjustment of $8,089 and $2,816 at December 31, 2018, and June 30, 2018, respectively $ 28,561 $ 14,571 |
Note 5_ Accounting For Certai_3
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Acquired Loans in Transfer Accretable Yield | For the three-month period ended (dollars in thousands) December 31, 2018 December 31, 2017 Balance at beginning of period $ 305 $ 620 Additions 102 - Accretion (144) (183) Reclassification from nonaccretable difference 108 170 Disposals - - Balance at end of period $ 371 $ 607 For the six-month period ended (dollars in thousands) December 31, 2018 December 31, 2017 Balance at beginning of period $ 589 $ 609 Additions 102 - Accretion (1,089) (261) Reclassification from nonaccretable difference 973 259 Disposals (204) - Balance at end of period $ 371 $ 607 |
Note 6_ Deposits_ Schedule of D
Note 6: Deposits: Schedule of Deposit Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Deposit Liabilities | (dollars in thousands) December 31, 2018 June 30, 2018 Non-interest bearing accounts $ 239,955 $ 203,517 NOW accounts 592,066 569,005 Money market deposit accounts 163,425 116,389 Savings accounts 162,773 157,540 Certificates 637,787 533,451 Total Deposit Accounts $ 1,796,006 $ 1,579,902 |
Note 7_ Earnings Per Share_ Sch
Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three months ended Six months ended December 31, December 31, 2018 2017 2018 2017 (dollars in thousands except per share data) Net income available to common shareholders $7,454 $5,170 $14,254 $10,033 Average Common shares – outstanding basic 9,136,873 8,589,073 9,066,597 8,590,218 Stock options under treasury stock method 11,860 29,883 12,342 28,778 Average Common shares – outstanding diluted 9,148,733 8,618,956 9,078,939 8,618,996 Basic earnings per common share $0.82 $0.60 $1.57 $1.17 Diluted earnings per common share $0.81 $0.60 $1.57 $1.16 |
Note 8_ Income Taxes_ Schedule
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Income taxes Current $3,368 $2,484 $5,029 $4,366 Deferred (1,566) 62 (1,560) 69 Total income tax provision $1,802 $2,546 $3,469 $4,435 |
Note 8_ Income Taxes_ Schedul_2
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | (dollars in thousands) December 31, 2018 June 30, 2018 Deferred tax assets: Provision for losses on loans $4,435 $4,418 Accrued compensation and benefits 602 708 NOL carry forwards acquired 225 273 Minimum Tax Credit 130 130 Unrealized loss on other real estate 131 124 Unrealized loss on available for sale securities 501 730 Purchase accounting adjustments 476 (949) Losses and credits from LLCÂ’s 962 1,003 Total deferred tax assets 7,462 6,437 Deferred tax liabilities: Depreciation 1,177 1,475 FHLB stock dividends 120 130 Prepaid expenses 127 98 Other 300 327 Total deferred tax liabilities 1,724 2,030 Net deferred tax asset $5,738 $4,407 |
Note 8_ Income Taxes_ Schedul_3
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax | For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Tax at statutory rate $1,944 $2,168 $3,722 $4,066 Increase (reduction) in taxes resulting from: Nontaxable municipal income (77) (114) (149) (225) State tax, net of Federal benefit 101 137 224 243 Cash surrender value of Bank-owned life insurance (125) (66) (176) (131) Tax credit benefits (68) (225) (136) (449) Other, net 27 (478) (16) (193) Actual provision $1,802 $2,546 $3,469 $4,435 |
Note 11_ Fair Value Measureme_2
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $46,190 $- $46,190 $- State and political subdivisions 50,060 - 50,060 - Other securities 5,059 - 5,059 - Mortgage-backed GSE residential 96,563 - 96,563 - Fair Value Measurements at June 30, 2018, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $9,385 $- $9,385 $- State and political subdivisions 41,612 - 41,612 - Other securities 5,152 - 5,152 - Mortgage-backed GSE residential 90,176 - 90,176 - |
Note 11_ Fair Value Measureme_3
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,948 $- $- $3,948 Fair Value Measurements at June 30, 2018, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans (collateral dependent) $490 $- $- $490 Foreclosed and repossessed assets held for sale 3,924 - - 3,924 |
Note 11_ Fair Value Measureme_4
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis | For the six months ended (dollars in thousands) December 31, 2018 December 31, 2017 Foreclosed and repossessed assets held for sale $ (222) $ (56) Total (losses) gains on assets measured on a non-recurring basis $ (222) $ (56) |
Note 11_ Fair Value Measureme_5
Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Fair Value Option, Disclosures | (dollars in thousands) Fair value at December 31 , 2018 Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,948 Third party appraisal Marketability discount 0.0% - 60.3% 32.8% (dollars in thousands) Fair value at Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Impaired loans (collateral dependent) $490 Internal Valuation Discount to reflect realizable value n/a Foreclosed and repossessed assets $3,924 Third party appraisal Marketability discount 0.0% - 65.9% 32.3% |
Note 11_ Fair Value Measureme_6
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Financial Instruments | December 31, 2018 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $38,384 $38,384 $- $- Interest-bearing time deposits 1,711 - 1,711 - Stock in FHLB 9,339 - 9,339 - Stock in Federal Reserve Bank of St. Louis 3,566 - 3,566 - Loans receivable, net 1,801,477 - - 1,780,098 Accrued interest receivable 10,801 - 10,801 - Financial liabilities Deposits 1,796,006 1,158,166 - 633,830 Securities sold under agreements to repurchase 4,425 - 4,425 - Advances from FHLB 155,765 129,400 26,490 - Note Payable 3,000 - - 3,000 Accrued interest payable 1,668 - 1,668 - Subordinated debt 14,994 - - 14,851 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2018 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $26,326 $26,326 $- $- Interest-bearing time deposits 1,953 - 1,953 - Stock in FHLB 5,661 - 5,661 - Stock in Federal Reserve Bank of St. Louis 3,566 - 3,566 - Loans receivable, net 1,563,380 - - 1,556,466 Accrued interest receivable 7,992 - 7,992 - Financial liabilities Deposits 1,579,902 1,046,491 - 529,297 Securities sold under agreements to repurchase 3,267 - 3,267 - Advances from FHLB 76,652 66,550 10,110 - Note Payable 3,000 - - 3,000 Accrued interest payable 1,206 - 1,206 - Subordinated debt 14,945 - - 14,382 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - |
Note 12_ Business Combination_2
Note 12: Business Combinations: Business Combinations Policy: Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | Gideon Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $11,271 Common stock, at fair value 10,757 Total consideration $22,028 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $2,894 Investment securities 54,866 Loans 144,286 Premises and equipment 3,663 Identifiable intangible assets 4,125 Miscellaneous other assets 5,926 Deposits (170,687) FHLB Advances (18,701) Note Payable (4,400) Miscellaneous other liabilities (956) Total identifiable net assets 21,016 Goodwill $1,012 Of the total estimated purchase price of $22.0 million, $4.1 million has been allocated to core deposit intangible. Additionally, $1.0 million has been allocated to goodwill and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and First Commercial. Total goodwill was assigned to the acquisition of First Commercial. The core deposit intangible will be amortized over seven years on a straight line basis. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, our assessment of the ability of the borrower to service the debt, and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using individual analysis of each purchased credit impaired loan. The Company acquired the $154.0 million loan portfolio at an estimated fair value discount of $9.7 million. The accounting for the business combination is not yet complete and therefore all required disclosures for a business combination have not been provided. When completed, the excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Final estimates of certain loans, those for which specific credit-related deterioration, since origination, will be recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans will be based on reasonable expectation about the timing and amount of cash flows to be collected. The acquired business contributed revenues of $1.2 million and earnings of $405,000 for the period from November 21, 2018 through December 31, 2018. The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on July 1, 2018 and 2017: Pro Forma Three months ended December 31, 2018 2017 Revenue $ 22,879 $ 21,237 Earnings 7,629 5,314 Pro Forma Six months ended December 31, 2018 2017 Revenue $ 45,739 $ 41,656 Earnings 14,948 10,587 |
Note 12_ Business Combination_3
Note 12: Business Combinations: Business Combinations Policy: Business Acquisition, Pro Forma Information (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Business Acquisition, Pro Forma Information | Pro Forma Three months ended December 31, 2018 2017 Revenue $ 22,879 $ 21,237 Earnings 7,629 5,314 Pro Forma Six months ended December 31, 2018 2017 Revenue $ 45,739 $ 41,656 Earnings 14,948 10,587 |
Note 2_ Organization and Sum_23
Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2018USD ($) | |
Details | |
Entity Incorporation, State Country Name | Missouri |
Real Estate Investments, Net | $ 608,000 |
Note 2_ Organization and Sum_24
Note 2: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Cash Due and Interest-Bearing Deposits in Other Depository Institutions | $ 1,200 | $ 3,400 |
Note 2_ Organization and Sum_25
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||||
Dec. 31, 2018 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Details | ||||||||
Finite-Lived Core Deposits, Gross | $ 14,700 | $ 10,600 | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 6,000 | 5,200 | ||||||
Other Finite-Lived Intangible Assets, Gross | 3,800 | 3,800 | ||||||
Gross Other Identifiable Intangibles Accumulated Amortization | 3,800 | 3,800 | ||||||
FHLB Mortgage Servicing Rights | $ 1,600 | $ 1,500 | ||||||
Core Deposits and Intangible Assets, Remaining Amortization Period | periods ranging from five to seven years | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 1,300 | $ 1,300 | $ 1,300 | $ 1,800 | $ 902 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 2,200 |
Note 3_ Securities_ Schedule _2
Note 3: Securities: Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Other Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 5,185 | $ 5,284 |
Available for sale Securities Gross Unrealized Gain | 31 | 61 |
Available For Sale Securities Gross Unrealized Losses | (157) | (193) |
Available-for-sale Securities Estimated Fair Value | 5,059 | 5,152 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Amortized Cost Basis | 98,661 | 92,708 |
Available for sale Securities Gross Unrealized Gain | 143 | 1 |
Available For Sale Securities Gross Unrealized Losses | (2,241) | (2,533) |
Available-for-sale Securities Estimated Fair Value | 96,563 | 90,176 |
Total investments and mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis | 200,148 | 149,367 |
Available for sale Securities Gross Unrealized Gain | 633 | 292 |
Available For Sale Securities Gross Unrealized Losses | (2,909) | (3,334) |
Available-for-sale Securities Estimated Fair Value | 197,872 | 146,325 |
US Government-sponsored Enterprises Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 46,140 | 9,513 |
Available for sale Securities Gross Unrealized Gain | 164 | 0 |
Available For Sale Securities Gross Unrealized Losses | (114) | (128) |
Available-for-sale Securities Estimated Fair Value | 46,190 | 9,385 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 50,162 | 41,862 |
Available for sale Securities Gross Unrealized Gain | 295 | 230 |
Available For Sale Securities Gross Unrealized Losses | (397) | (480) |
Available-for-sale Securities Estimated Fair Value | $ 50,060 | $ 41,612 |
Note 3_ Securities_ Contractu_2
Note 3: Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Details | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 16,524 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 16,510 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 41,220 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 41,241 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 25,014 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 24,970 |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 18,729 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 18,588 |
Debt and equity securities amortized cost | 101,487 |
Debt and equity securities fair value | 101,309 |
Mortgage-backed securities GSE residential amortized cost | 98,661 |
Mortgage-backed securities GSE residential fair value | 96,563 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 200,148 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 197,872 |
Note 3_ Securities_ Repurchas_2
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Assets Sold under Agreements to Repurchase, Carrying Amount | $ 146,700 | $ 146,700 | $ 124,200 | ||
Gain Recognized from Sales of Available for Sale Securities | $ 51,452 | $ 51,452 | |||
Loss Recognized from Sale of Available for Sale Securities | $ 14,345 | $ 14,345 | |||
Sales of Available for Sale Securities | 0 | 0 | |||
US Government and Federal Agency Obligations | |||||
Assets Sold under Agreements to Repurchase, Carrying Amount | 19,700 | 19,700 | 8,400 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | |||||
Assets Sold under Agreements to Repurchase, Carrying Amount | 41,200 | 41,200 | 39,800 | ||
Collateralized Mortgage Obligations | |||||
Assets Sold under Agreements to Repurchase, Carrying Amount | 49,900 | 49,900 | 41,500 | ||
US States and Political Subdivisions Debt Securities | |||||
Assets Sold under Agreements to Repurchase, Carrying Amount | 35,700 | 35,700 | 34,200 | ||
Other Securities | |||||
Assets Sold under Agreements to Repurchase, Carrying Amount | $ 200 | $ 200 | $ 300 |
Note 3_ Securities_ Available_2
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
US Government-sponsored Enterprises Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 3,843 | $ 5,957 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 58 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 7,381 | 3,427 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 97 | 70 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,224 | 9,384 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 114 | 128 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,516 | 14,861 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 27 | 224 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 19,194 | 8,526 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 370 | 256 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 23,710 | 23,387 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 397 | 480 |
Other Debt Obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 982 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,033 | 1,109 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 157 | 183 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,033 | 2,091 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 157 | 193 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 23,207 | 65,863 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 321 | 1,513 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 58,839 | 24,187 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,920 | 1,020 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 82,046 | 90,050 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2,241 | 2,533 |
Total investments and mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 31,566 | 87,663 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 365 | 1,805 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 86,447 | 37,249 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,544 | 1,529 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 118,013 | 124,912 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 2,909 | $ 3,334 |
Note 3_ Securities_ Other Sec_2
Note 3: Securities: Other Securities Policy: Pooled Trust Preferred Securities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Details | |
Number of Pooled Trust Preferred Securities | 2 |
Fair Value of Pooled Trust Preferred Securities Held | $ 820 |
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More | $ 152 |
Note 3_ Securities_ Other tha_2
Note 3: Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | $ 0 | $ 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold | 0 | 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 0 | 0 |
Other than temporary impairment credit losses additions related to increases in previously recognized losses | 0 | 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | 0 | (6) |
Beginning of period | ||
Beginning of period | 0 | 340 |
End of period | 0 | 340 |
End of period | ||
Beginning of period | 0 | 334 |
End of period | $ 0 | $ 334 |
Note 4_ Loans and Allowance _16
Note 4: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Loans Receivable, Net | $ 1,801,477 | $ 1,563,380 |
Loans Receivable Gross | ||
Loans Receivable, Net | 1,867,443 | 1,628,127 |
Loans in process | ||
Loans Receivable, Net | (46,940) | (46,533) |
Deferred loan fees, net | ||
Loans Receivable, Net | (3) | 0 |
SEC Schedule, 12-09, Allowance, Loan and Lease Loss | ||
Loans Receivable, Net | (19,023) | (18,214) |
Loans Receivable Net | ||
Loans Receivable, Net | 1,801,477 | 1,563,380 |
Consumer Loan | ||
Loans Receivable, Net | 86,920 | 78,571 |
Commercial Loan | ||
Loans Receivable, Net | 345,803 | 281,272 |
Residential Mortgage | ||
Loans Receivable, Net | 480,227 | 450,919 |
Construction Real Estate | ||
Loans Receivable, Net | 116,576 | 112,718 |
Commercial Real Estate | ||
Loans Receivable, Net | $ 837,917 | $ 704,647 |
Note 4_ Loans and Allowance _17
Note 4: Loans and Allowance for Loan Losses: Construction Lending Policy: Construction Loans Modified for other than TDR (Details) - Construction Loans $ in Thousands | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) |
Number of Loans Modified for Other Than TDR | 58 | 72 |
Amount of Loans Modified for Other Than TDR | $ 13,300 | $ 12,500 |
Note 4_ Loans and Allowance _18
Note 4: Loans and Allowance for Loan Losses: Schedule of balance in the allowance for loan losses and recorded investment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans Receivable | |||||
Provision for Loan Losses Expensed | $ 314 | $ 642 | $ 995 | $ 1,511 | |
Allowance for Loan and Lease Losses, Write-offs | (84) | (140) | (196) | (193) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 3 | 8 | 10 | 11 | |
Loans Receivable | Beginning of period | |||||
Allowance for Loan Losses | 18,790 | 16,357 | 18,214 | 15,538 | |
Loans Receivable | End of period | |||||
Allowance for Loan Losses | $ 18,214 | 19,023 | 16,867 | 19,023 | 16,867 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 750 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 17,464 | 19,023 | 16,867 | 19,023 | 16,867 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 1,240 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 1,565,783 | 1,791,942 | 1,791,942 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | 14,571 | 28,561 | |||
Consumer Loan | |||||
Provision for Loan Losses Expensed | (11) | 40 | 80 | 125 | |
Allowance for Loan and Lease Losses, Write-offs | (3) | (28) | (20) | (58) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | 1 | 5 | 4 | |
Consumer Loan | Beginning of period | |||||
Allowance for Loan Losses | 981 | 815 | 902 | 757 | |
Consumer Loan | End of period | |||||
Allowance for Loan Losses | 902 | 967 | 828 | 967 | 828 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 902 | 967 | 828 | 967 | 828 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 78,571 | 86,920 | 86,920 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | 0 | 0 | |||
Commercial Loan | |||||
Provision for Loan Losses Expensed | (150) | (49) | 87 | 60 | |
Allowance for Loan and Lease Losses, Write-offs | (47) | (21) | (47) | (21) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | 6 | 1 | 6 | |
Commercial Loan | Beginning of period | |||||
Allowance for Loan Losses | 4,434 | 3,628 | 4,196 | 3,519 | |
Commercial Loan | End of period | |||||
Allowance for Loan Losses | 4,196 | 4,237 | 3,564 | 4,237 | 3,564 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 351 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,845 | 4,237 | 3,564 | 4,237 | 3,564 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 580 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 278,241 | 339,895 | 339,895 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | 2,451 | 5,908 | |||
Construction Loan Payable | |||||
Provision for Loan Losses Expensed | (102) | (79) | 94 | (78) | |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | 0 | 0 | 0 | |
Construction Loan Payable | Beginning of period | |||||
Allowance for Loan Losses | 1,293 | 965 | 1,097 | 964 | |
Construction Loan Payable | End of period | |||||
Allowance for Loan Losses | 1,097 | 1,191 | 886 | 1,191 | 886 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,097 | 1,191 | 886 | 1,191 | 886 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 64,888 | 68,344 | 68,344 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | 1,297 | 1,292 | |||
Residential Real Estate | |||||
Provision for Loan Losses Expensed | 293 | 40 | 415 | 133 | |
Allowance for Loan and Lease Losses, Write-offs | (9) | (55) | (9) | (78) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 0 | 1 | 1 | 1 | |
Residential Real Estate | Beginning of period | |||||
Allowance for Loan Losses | 3,349 | 3,300 | 3,226 | 3,230 | |
Residential Real Estate | End of period | |||||
Allowance for Loan Losses | 3,226 | 3,633 | 3,286 | 3,633 | 3,286 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,226 | 3,633 | 3,286 | 3,633 | 3,286 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 447,706 | 478,389 | 478,389 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | 3,213 | 1,838 | |||
Commercial Real Estate | |||||
Provision for Loan Losses Expensed | 284 | 690 | 319 | 1,271 | |
Allowance for Loan and Lease Losses, Write-offs | (25) | (36) | (120) | (36) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 3 | 0 | 3 | 0 | |
Commercial Real Estate | Beginning of period | |||||
Allowance for Loan Losses | 8,733 | 7,649 | 8,793 | 7,068 | |
Commercial Real Estate | End of period | |||||
Allowance for Loan Losses | 8,793 | 8,995 | 8,303 | 8,995 | 8,303 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 399 | 0 | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,394 | 8,995 | $ 8,303 | 8,995 | 8,303 |
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality | 0 | 0 | $ 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 660 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 696,377 | $ 818,394 | 818,394 | ||
Financing Receivables Acquired with Deteriorated Credit Quality | $ 7,610 | $ 19,523 |
Note 4_ Loans and Allowance _19
Note 4: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Consumer Loan | Pass | ||
Financing Receivable Credit Quality Indicators | $ 86,657 | $ 78,377 |
Consumer Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 81 | 111 |
Consumer Loan | Special Mention | ||
Financing Receivable Credit Quality Indicators | 27 | 27 |
Consumer Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 150 | 56 |
Consumer Loan | Doubtful | ||
Financing Receivable Credit Quality Indicators | 5 | 0 |
Consumer Loan | Total by Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 86,920 | 78,571 |
Commercial Loan | Pass | ||
Financing Receivable Credit Quality Indicators | 335,764 | 277,568 |
Commercial Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 4,012 | 374 |
Commercial Loan | Special Mention | ||
Financing Receivable Credit Quality Indicators | 0 | 69 |
Commercial Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 5,425 | 2,079 |
Commercial Loan | Doubtful | ||
Financing Receivable Credit Quality Indicators | 602 | 1,182 |
Commercial Loan | Total by Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 345,803 | 281,272 |
Construction Loan Payable | Pass | ||
Financing Receivable Credit Quality Indicators | 69,458 | 66,160 |
Construction Loan Payable | Watch | ||
Financing Receivable Credit Quality Indicators | 0 | 0 |
Construction Loan Payable | Special Mention | ||
Financing Receivable Credit Quality Indicators | 0 | 0 |
Construction Loan Payable | Substandard | ||
Financing Receivable Credit Quality Indicators | 178 | 25 |
Construction Loan Payable | Doubtful | ||
Financing Receivable Credit Quality Indicators | 0 | 0 |
Construction Loan Payable | Total by Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 69,636 | 66,185 |
Residential Real Estate | Pass | ||
Financing Receivable Credit Quality Indicators | 473,542 | 443,916 |
Residential Real Estate | Watch | ||
Financing Receivable Credit Quality Indicators | 715 | 1,566 |
Residential Real Estate | Special Mention | ||
Financing Receivable Credit Quality Indicators | 0 | 75 |
Residential Real Estate | Substandard | ||
Financing Receivable Credit Quality Indicators | 5,970 | 5,362 |
Residential Real Estate | Doubtful | ||
Financing Receivable Credit Quality Indicators | 0 | 0 |
Residential Real Estate | Total by Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 480,227 | 450,919 |
Commercial Real Estate | Pass | ||
Financing Receivable Credit Quality Indicators | 792,781 | 691,188 |
Commercial Real Estate | Watch | ||
Financing Receivable Credit Quality Indicators | 28,344 | 7,004 |
Commercial Real Estate | Special Mention | ||
Financing Receivable Credit Quality Indicators | 32 | 926 |
Commercial Real Estate | Substandard | ||
Financing Receivable Credit Quality Indicators | 16,719 | 4,869 |
Commercial Real Estate | Doubtful | ||
Financing Receivable Credit Quality Indicators | 41 | 660 |
Commercial Real Estate | Total by Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | $ 837,917 | $ 704,647 |
Note 4_ Loans and Allowance _20
Note 4: Loans and Allowance for Loan Losses: Purchased Credit Impaired Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Pass | ||
Purchased Credit Impaired Loans | $ 7,100 | $ 7,800 |
Watch | ||
Purchased Credit Impaired Loans | 10,300 | 3,100 |
Special Mention | ||
Purchased Credit Impaired Loans | 0 | 0 |
Substandard | ||
Purchased Credit Impaired Loans | 11,200 | 3,700 |
Doubtful | ||
Purchased Credit Impaired Loans | $ 0 | $ 0 |
Note 4_ Loans and Allowance _21
Note 4: Loans and Allowance for Loan Losses (Details) $ in Thousands | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Financing Receivable, Credit Quality, Additional Information | lending relationships of $1 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $2.5 million are subject to an independent loan review annually, in order to verify risk ratings | ||
Number of Purchased Credit Impaired Loans | 1 | 2 | |
Foreclosed residential real estate properties physical possession | $ 646 | $ 472 | $ 646 |
Residential mortgage loans and home equity loans formal foreclosure proceedings in process | 895 | 331 | 895 |
Loans without a specific valuation allowance | |||
Purchased Credit Impaired Loans | 28,600 | 14,600 | 28,600 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Purchased Credit Impaired Loans | $ 3,100 | $ 1,100 | $ 3,100 |
Note 4_ Loans and Allowance _22
Note 4: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Financing Receivables, 30 to 59 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | $ 5,330 | $ 2,493 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 571 | 510 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 1,237 | 134 |
Financing Receivables, 30 to 59 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate | ||
Financing Receivable Recorded Investment | 1,140 | 749 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 2,382 | 1,100 |
Financing Receivables, 60 to 89 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 3,322 | 497 |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 46 | 33 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 105 | 90 |
Financing Receivables, 60 to 89 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate | ||
Financing Receivable Recorded Investment | 1,555 | 84 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 1,616 | 290 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 12,395 | 6,426 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 278 | 146 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 2,222 | 707 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate | ||
Financing Receivable Recorded Investment | 3,732 | 4,089 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 6,163 | 1,484 |
Nonperforming Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 21,047 | 9,416 |
Nonperforming Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 895 | 689 |
Nonperforming Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 3,564 | 931 |
Nonperforming Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 0 | 0 |
Nonperforming Financial Instruments | Residential Real Estate | ||
Financing Receivable Recorded Investment | 6,427 | 4,922 |
Nonperforming Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 10,161 | 2,874 |
Financing Receivables Current | Total loans | ||
Financing Receivable Recorded Investment | 1,799,456 | 1,572,178 |
Financing Receivables Current | Consumer Loan | ||
Financing Receivable Recorded Investment | 86,025 | 77,882 |
Financing Receivables Current | Commercial Loan | ||
Financing Receivable Recorded Investment | 342,239 | 280,341 |
Financing Receivables Current | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 69,636 | 66,185 |
Financing Receivables Current | Residential Real Estate | ||
Financing Receivable Recorded Investment | 473,800 | 445,997 |
Financing Receivables Current | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 827,756 | 701,773 |
Performing Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 1,820,503 | 1,581,594 |
Performing Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 86,920 | 78,571 |
Performing Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 345,803 | 281,272 |
Performing Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 69,636 | 66,185 |
Performing Financial Instruments | Residential Real Estate | ||
Financing Receivable Recorded Investment | 480,227 | 450,919 |
Performing Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 837,917 | 704,647 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Total loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Consumer Loan | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Loan | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Residential Real Estate | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Real Estate | ||
Financing Receivable Recorded Investment | $ 0 | $ 0 |
Note 4_ Loans and Allowance _23
Note 4: Loans and Allowance for Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Consumer Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1 | $ 25 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1 | 25 |
Impaired Financing Receivable With No Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable With Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1 | 25 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 1 | 25 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | 0 | 0 |
Commercial Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 7,076 | 2,787 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 9,274 | 3,409 |
Impaired Financing Receivable With No Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 580 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 580 |
Impaired Financing Receivable With Related Allowance Specific Allowance | 0 | 351 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 7,076 | 3,367 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 9,274 | 3,989 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | 0 | 351 |
Construction Loan Payable | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,316 | 1,321 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,467 | 1,569 |
Impaired Financing Receivable With No Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable With Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1,316 | 1,321 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 1,467 | 1,569 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | 0 | 0 |
Residential Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,427 | 3,820 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,664 | 4,468 |
Impaired Financing Receivable With No Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable With Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 2,427 | 3,820 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 2,664 | 4,468 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | 0 | 0 |
Commercial Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 27,853 | 14,052 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 33,365 | 15,351 |
Impaired Financing Receivable With No Related Allowance Specific Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 660 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 660 |
Impaired Financing Receivable With Related Allowance Specific Allowance | 0 | 399 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 27,853 | 14,712 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 33,365 | 16,011 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | $ 0 | $ 399 |
Note 4_ Loans and Allowance _24
Note 4: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total loans | ||||
Impaired Financing Receivable, Average Recorded Investment | $ 19,681 | $ 18,532 | $ 17,976 | $ 19,063 |
Impaired Financing Receivable Interest Income Recognized | 600 | 456 | 1,720 | 866 |
Consumer Loan | ||||
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Financing Receivable Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial Loan | ||||
Impaired Financing Receivable, Average Recorded Investment | 3,356 | 3,514 | 3,054 | 3,614 |
Impaired Financing Receivable Interest Income Recognized | 102 | 51 | 718 | 109 |
Construction Loan Payable | ||||
Impaired Financing Receivable, Average Recorded Investment | 1,295 | 1,326 | 1,295 | 1,329 |
Impaired Financing Receivable Interest Income Recognized | 41 | 40 | 142 | 79 |
Residential Real Estate | ||||
Impaired Financing Receivable, Average Recorded Investment | 1,844 | 3,443 | 2,300 | 3,456 |
Impaired Financing Receivable Interest Income Recognized | 28 | 60 | 61 | 127 |
Commercial Real Estate | ||||
Impaired Financing Receivable, Average Recorded Investment | 13,186 | 10,249 | 11,327 | 10,664 |
Impaired Financing Receivable Interest Income Recognized | $ 429 | $ 305 | $ 799 | $ 551 |
Note 4_ Loans and Allowance _25
Note 4: Loans and Allowance for Loan Losses: Loans and Leases Receivable Impaired Interest Income Recognized Change in Present Value Attributable to Passage of Time (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time | $ 144 | $ 183 | $ 1,100 | $ 261 |
Note 4_ Loans and Allowance _26
Note 4: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Total loans | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 20,453 | $ 9,172 |
Consumer Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 353 | 209 |
Commercial Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 3,680 | 1,063 |
Construction Loan Payable | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 24 | 25 |
Residential Real Estate | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 5,836 | 5,913 |
Commercial Real Estate | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 10,560 | $ 1,962 |
Note 4_ Loans and Allowance _27
Note 4: Loans and Allowance for Loan Losses: Purchased Credit Impaired Loans Nonaccrual (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Included in Nonaccrual Loans | ||
Purchased Credit Impaired Loans | $ 4,200 | $ 1,100 |
Note 4_ Loans and Allowance _28
Note 4: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Total loans | ||||
Financing Receivable, Modifications, Number of Contracts | 6 | 0 | 10 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,689 | $ 0 | $ 3,060 | $ 0 |
Consumer Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 2 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 20 | $ 0 | $ 89 | $ 0 |
Construction Loan Payable | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 1 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 707 | $ 0 | $ 707 | $ 0 |
Commercial Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 4 | 0 | 7 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 962 | $ 0 | $ 2,264 | $ 0 |
Note 4_ Loans and Allowance _29
Note 4: Loans and Allowance for Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Total loans | ||||
Financing Receivable, Modifications, Number of Contracts | 6 | 0 | 10 | 0 |
Consumer Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 |
Commercial Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 2 | 0 |
Construction Loan Payable | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 |
Residential Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 1 | 0 |
Commercial Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 4 | 0 | 7 | 0 |
Performing Financial Instruments | Total loans | ||||
Financing Receivable, Modifications, Number of Contracts | 41 | 34 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 13,148 | $ 11,685 | ||
Performing Financial Instruments | Consumer Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 1 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 14 | ||
Performing Financial Instruments | Commercial Loan | ||||
Financing Receivable, Modifications, Number of Contracts | 10 | 8 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,950 | $ 2,787 | ||
Performing Financial Instruments | Construction Loan Payable | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 0 | ||
Performing Financial Instruments | Residential Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 11 | 12 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,273 | $ 800 | ||
Performing Financial Instruments | Commercial Real Estate | ||||
Financing Receivable, Modifications, Number of Contracts | 20 | 13 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 9,925 | $ 8,084 |
Note 5_ Accounting For Certai_4
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 | |
Outstanding balance | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 36,659 | $ 17,387 | |
Carrying Amount Of Acquired Loans Net | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | [1] | 28,561 | 14,571 |
Consumer Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 0 | 0 | |
Commercial Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 8,106 | 3,073 | |
Construction Loan Payable | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 1,443 | 1,544 | |
Residential Real Estate | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 2,075 | 3,861 | |
Commercial Real Estate | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 25,035 | $ 8,909 | |
[1] | Fair value adjustment of $8,089 and $2,816 at December 31, 2018 and June 30, 2018, respectively. |
Note 5_ Accounting For Certai_5
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Balance at beginning of period | $ 305 | $ 620 | $ 589 | $ 609 |
Certain Loans Acquired In Transfer Accretable Yield Additions | 102 | 0 | 102 | 0 |
Certain Loans Acquired In Transfer Accretable Yield Accretion | (144) | (183) | (1,089) | (261) |
Certain Loans Acquired In Transfer Accretable Yield Reclassification from Nonaccretable Difference | 108 | 170 | 973 | 259 |
Certain Loans Acquired In Transfer Accretable Yield Disposals | 0 | 0 | (204) | 0 |
Balance at end of period | $ 371 | $ 607 | $ 371 | $ 607 |
Note 6_ Deposits_ Schedule of_2
Note 6: Deposits: Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Noninterest-bearing Deposit Liabilities | $ 239,955 | $ 203,517 |
Deposits, Negotiable Order of Withdrawal (NOW) | 592,066 | 569,005 |
Deposits, Money Market Deposits | 163,425 | 116,389 |
Deposits, Savings Deposits | 162,773 | 157,540 |
Interest-bearing Domestic Deposit, Certificates of Deposits | 637,787 | 533,451 |
Deposits, Domestic | $ 1,796,006 | $ 1,579,902 |
Note 7_ Earnings Per Share_ S_2
Note 7: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Net income available to common shareholders | $ 7,454 | $ 5,170 | $ 14,254 | $ 10,033 |
Weighted Average Number of Shares Outstanding, Basic | 9,136,873 | 8,589,073 | 9,066,597 | 8,590,218 |
Stock options under treasury stock method | 11,860 | 29,883 | 12,342 | 28,778 |
Weighted Average Number of Shares Outstanding, Diluted | 9,148,733 | 8,618,956 | 9,078,939 | 8,618,996 |
Basic earnings per common share | $ 0.82 | $ 0.60 | $ 1.57 | $ 1.17 |
Diluted earnings per common share | $ 0.81 | $ 0.60 | $ 1.57 | $ 1.16 |
Note 8_ Income Taxes_ Schedul_4
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Current Income Tax Expense (Benefit) | $ 3,368 | $ 2,484 | $ 5,029 | $ 4,366 |
Deferred Income Taxes and Tax Credits | (1,566) | 62 | (1,560) | 69 |
Income tax provision, total | $ 1,802 | $ 2,546 | $ 3,469 | $ 4,435 |
Note 8_ Income Taxes_ Schedul_5
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Deferred Tax Assets Provision for Losses on Loans | $ 4,435 | $ 4,418 |
Deferred Tax Assets Accrued Compensation and Benefits | 602 | 708 |
Deferred Tax Assets NOL Carry Forwards Acquired | 225 | 273 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 130 | 130 |
Deferred Tax Assets Unrealized Loss on Other Real Estate | 131 | 124 |
Unrealized loss on available for sale securities | 501 | 730 |
Deferred tax liabilities purchase accounting adjustments | 476 | (949) |
Losses and credits from LLC's | 962 | 1,003 |
Deferred Tax Assets, Gross | 7,462 | 6,437 |
Deferred Tax Liabilities Depreciation | 1,177 | 1,475 |
Deferred Tax Liabilities FHLB Stock Dividends | 120 | 130 |
Deferred Tax Liabilities, Prepaid Expenses | 127 | 98 |
Deferred Tax Liabilities, Other | 300 | 327 |
Deferred Tax Liabilities, Net | 1,724 | 2,030 |
Deferred Tax Assets, Net of Valuation Allowance | $ 5,738 | $ 4,407 |
Note 8_ Income Taxes_ Federal a
Note 8: Income Taxes: Federal and State Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Federal | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,100 | |
State | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 2,500 |
Note 8_ Income Taxes_ Schedul_6
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 1,944 | $ 2,168 | $ 3,722 | $ 4,066 |
Income Tax Expense, Actual | 1,802 | 2,546 | 3,469 | 4,435 |
Increase (decrease) in taxes | ||||
Nontaxable Municipal Income | (77) | (114) | (149) | (225) |
Current State and Local Tax Expense (Benefit) | 101 | 137 | 224 | 243 |
Cash Surrender Value Of Bank-owned Life Insurance | (125) | (66) | (176) | (131) |
Tax Credit Benefits | (68) | (225) | (136) | (449) |
Taxes, Other | $ 27 | $ (478) | $ (16) | $ (193) |
Note 8_ Income Taxes (Details)
Note 8: Income Taxes (Details) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% |
Note 9_ 401(k) Retirement Plan_
Note 9: 401(k) Retirement Plan: 401(k) Retirement Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Defined Contribution Plan, Administrative Expense | $ 293 | $ 273 | $ 634 | $ 552 |
Note 10_ Subordinated Debt (Det
Note 10: Subordinated Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2018 | Jun. 30, 2019 | |
Ozarks Legacy Community Financial, Inc | ||||
Assumed floating rate junior subordinated debt securities | $ 3,100 | |||
Ozarks Legacy Community Financial, Inc | Reported Value Measurement | ||||
Assumed floating rate junior subordinated debt securities | $ 2,600 | $ 2,600 | ||
Peoples Service Company, Inc | ||||
Assumed floating rate junior subordinated debt securities | $ 6,500 | |||
Peoples Service Company, Inc | Reported Value Measurement | ||||
Assumed floating rate junior subordinated debt securities | $ 5,200 | $ 5,200 |
Note 11_ Fair Value Measureme_7
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
US Government-sponsored Enterprises Debt Securities | ||
Fair value on a recurring basis | $ 46,190 | $ 9,385 |
US States and Political Subdivisions Debt Securities | ||
Fair value on a recurring basis | 50,060 | 41,612 |
Other Debt Obligations | ||
Fair value on a recurring basis | 5,059 | 5,152 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Fair value on a recurring basis | $ 96,563 | $ 90,176 |
Note 11_ Fair Value Measureme_8
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Foreclosed and repossessed assets held for sale | ||
Fair value on a nonrecurring basis | $ 3,948 | $ 3,924 |
Impaired loans (collateral dependent) | ||
Fair value on a nonrecurring basis | $ 490 |
Note 11_ Fair Value Measureme_9
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Foreclosed and repossessed assets held for sale | ||
Gains (losses) recognized on assets measured on a non-recurring basis | $ (222) | $ (56) |
Total Gains Losses on Assets Measured on a Nonrecurring Basis | ||
Gains (losses) recognized on assets measured on a non-recurring basis | $ (222) | $ (56) |
Note 11_ Fair Value Measurem_10
Note 11: Fair Value Measurements: Fair Value Option, Disclosures (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jun. 30, 2018 | |
Foreclosed and Repossessed Assets | ||
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs | $ 3,948 | $ 3,924 |
Foreclosed and Repossessed Assets | Third party appraisal | ||
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal | Third party appraisal |
Foreclosed and Repossessed Assets | Third party appraisal | Marketability discount | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount | Marketability discount |
Fair Value Measurements Nonrecurring Range of discounts Applied | 0.0% - 60.3% | 0.0% - 65.9% |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 32.8% | 32.3% |
Impaired loans (collateral dependent) | ||
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs | $ 490 | |
Fair Value Measurements Nonrecurring Range of discounts Applied | n/a | |
Impaired loans (collateral dependent) | Discount to reflect realizable value | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | Discount to reflect realizable value | |
Impaired loans (collateral dependent) | Internal Valuation | ||
Fair Value Measurements Nonrecurring Valuation Technique | Internal Valuation |
Note 11_ Fair Value Measurem_11
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Letter of Credit | ||
Financial Instruments Owned Carrying Amount | $ 0 | $ 0 |
Line of Credit | ||
Financial Instruments Owned Carrying Amount | 0 | 0 |
Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | 38,384 | 26,326 |
Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | 1,711 | 1,953 |
Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | 9,339 | 5,661 |
Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | 3,566 | 3,566 |
Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | 1,801,477 | 1,563,380 |
Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | 10,801 | 7,992 |
Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | 1,796,006 | 1,579,902 |
Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | 4,425 | 3,267 |
Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | 155,765 | 76,652 |
Financial Liabilities | Note Payable | ||
Financial Instruments Owned Carrying Amount | 3,000 | 3,000 |
Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | 1,668 | 1,206 |
Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | 14,994 | 14,945 |
Commitments to Extend Credit | ||
Financial Instruments Owned Carrying Amount | $ 0 | $ 0 |
Note 12_ Business Combination_4
Note 12: Business Combinations: Business Combinations Policy (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Business Acquisition, Name of Acquired Entity | Gideon Bancshares Company (“Gideon”), and its wholly owned subsidiary, First Commercial Bank (“First Commercial”) | ||||
Noninterest Expense | $ 12,552 | $ 10,519 | $ 24,000 | $ 21,273 | |
Noninterest Expense | 12,552 | $ 10,519 | 24,000 | $ 21,273 | |
Gideon Bancshares Company | |||||
Business Combination, Acquisition Related Costs | 629 | ||||
Noninterest Expense | 420 | 554 | $ 75 | ||
Noninterest Expense | $ 420 | $ 554 | $ 75 |
Note 12_ Business Combination_5
Note 12: Business Combinations: Business Combinations Policy: Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Details) - USD ($) $ in Thousands | Nov. 21, 2018 | Dec. 31, 2018 | Jun. 30, 2018 |
Goodwill | $ 14,089 | $ 13,078 | |
Gideon Bancshares Company | Fair Value of Consideration Transferred | |||
Cash | $ 11,271 | ||
Common stock acquired from acquisition, at fair value | 10,757 | ||
Total consideration | 22,028 | ||
Cash and cash equivalents | 2,894 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Investment Securities | 54,866 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Loans | 144,286 | ||
Premises and equipment | 3,663 | ||
Identifiable intangible assets | 4,125 | ||
Miscellaneous other assets | 5,926 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Deposits | (170,687) | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Federal Home Loan Bank Advances | (18,701) | ||
Note Payable | (4,400) | ||
Miscellaneous other liabilities | (956) | ||
Total identifiable net assets | 21,016 | ||
Goodwill | $ 1,012 |
Note 12_ Business Combination_6
Note 12: Business Combinations: Business Combinations Policy: Business Acquisition, Pro Forma Information (Details) - Gideon Bancshares Company - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 22,879 | $ 21,237 | $ 45,739 | $ 41,656 |
Earnings | 7,629 | 5,314 | 14,948 | 10,587 |
Revenue | 22,879 | 21,237 | 45,739 | 41,656 |
Earnings | $ 7,629 | $ 5,314 | $ 14,948 | $ 10,587 |