Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2021 | Feb. 07, 2022 | |
Cover [Abstract] | ||
SEC Form | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Period End date | Dec. 31, 2021 | |
Registrant CIK | 0000916907 | |
Entity File Number | 0-23406 | |
Registrant Name | SOUTHERN MISSOURI BANCORP, INC. | |
Entity Incorporation, State or Country Code | MO | |
Tax Identification Number (TIN) | 43-1665523 | |
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 | 63901 | |
City Area Code | 573 | |
Local Phone Number | 778-1800 | |
Title of 12(b) Security | Common | |
Trading Symbol | SMBC | |
Trading Exchange | NASDAQ | |
Current reporting status | Yes | |
Interactive Data Current | Yes | |
Filer Category | Accelerated Filer | |
Small Business | false | |
Emerging Growth Company | false | |
Shell Company | false | |
Number of common stock shares outstanding | 8,895,616 | |
Fiscal Year End | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Assets | ||
Cash and cash equivalents | $ 184,502 | $ 123,592 |
Interest-bearing time deposits | 981 | 979 |
Available for sale securities | 206,583 | 207,020 |
Stock in FHLB of Des Moines | 5,121 | 5,873 |
Stock in Federal Reserve Bank of St. Louis | 5,031 | 5,031 |
Loans receivable, net of ACL of $32,529 and $33,222 at December 31, 2021 and June 30, 2021, respectively | 2,358,585 | 2,200,244 |
Accrued interest receivable | 10,714 | 10,079 |
Premises and equipment, net | 65,074 | 64,077 |
Bank owned life insurance - cash surrender value | 44,382 | 43,817 |
Goodwill | 14,532 | 14,089 |
Other intangible assets, net | 6,625 | 7,129 |
Prepaid expenses and other assets | 16,933 | 18,600 |
Total assets | 2,919,063 | 2,700,530 |
Liabilities and Stockholders' Equity | ||
Deposits | 2,552,252 | 2,330,803 |
Advances from FHLB | 36,512 | 57,529 |
Accounts payable and other liabilities | 12,714 | 12,753 |
Accrued interest payable | 680 | 779 |
Subordinated debt | 15,294 | 15,243 |
Total liabilities | 2,617,452 | 2,417,107 |
Commitments and contingencies | ||
Common stock, $.01 par value; 25,000,000 shares authorized; 9,361,629 shares issued at December 31, 2021 and June 30, 2021 | 94 | 94 |
Additional paid-in capital | 95,675 | 95,585 |
Retained earnings | 221,312 | 200,140 |
Treasury stock of 483,038 and 456,431 shares at December 31, 2021 and June 30, 2021, respectively, at cost | (16,452) | (15,278) |
Accumulated other comprehensive income | 982 | 2,882 |
Total stockholders' equity | 301,611 | 283,423 |
Total liabilities and stockholders' equity | $ 2,919,063 | $ 2,700,530 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Loans and Leases Receivable, Allowance | $ 32,529 | $ 33,222 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Issued | 9,361,629 | 9,361,629 |
Treasury Stock | 483,038 | 456,431 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME: | ||||
Loans | $ 26,861 | $ 26,826 | $ 54,555 | $ 52,732 |
Investment securities | 556 | 519 | 1,085 | 1,009 |
Mortgage-backed securities | 609 | 478 | 1,186 | 1,012 |
Other interest-earning assets | 70 | 48 | 130 | 89 |
Total interest income | 28,096 | 27,871 | 56,956 | 54,842 |
INTEREST EXPENSE: | ||||
Deposits | 2,739 | 3,863 | 5,555 | 8,253 |
Advances from FHLB | 169 | 347 | 445 | 727 |
Subordinated debt | 130 | 134 | 260 | 271 |
Total interest expense | 3,038 | 4,344 | 6,260 | 9,251 |
NET INTEREST INCOME | 25,058 | 23,527 | 50,696 | 45,591 |
PROVISION (BENEFIT) FOR CREDIT LOSSES | 1,000 | (305) | 2,000 | |
NET INTEREST INCOME AFTER PROVISION (BENEFIT) FOR CREDIT LOSSES | 25,058 | 22,527 | 51,001 | 43,591 |
NONINTEREST INCOME: | ||||
Deposit account charges and related fees | 1,623 | 1,360 | 3,184 | 2,699 |
Bank card interchange income | 976 | 836 | 1,927 | 1,666 |
Loan late charges | 172 | 138 | 279 | 280 |
Loan servicing fees | 180 | 368 | 334 | 678 |
Other loan fees | 500 | 305 | 951 | 632 |
Net realized gains on sale of loans | 362 | 1,390 | 731 | 2,596 |
Earnings on bank owned life insurance | 282 | 974 | 563 | 1,254 |
Other income | 1,190 | 349 | 1,832 | 856 |
Total noninterest income | 5,285 | 5,720 | 9,801 | 10,661 |
NONINTEREST EXPENSE: | ||||
Compensation and benefits | 8,323 | 7,545 | 16,522 | 15,265 |
Occupancy and equipment, net | 2,198 | 1,866 | 4,311 | 3,837 |
Data processing expense | 1,297 | 1,175 | 2,566 | 2,237 |
Telecommunications expense | 318 | 308 | 639 | 622 |
Deposit insurance premiums | 180 | 218 | 358 | 419 |
Legal and professional fees | 356 | 236 | 590 | 434 |
Advertising | 276 | 219 | 606 | 449 |
Postage and office supplies | 186 | 195 | 381 | 388 |
Intangible amortization | 338 | 338 | 677 | 718 |
Foreclosed property expenses/losses | 302 | 38 | 334 | 88 |
Other operating expense | 1,296 | 908 | 2,312 | 1,862 |
Total noninterest expense | 15,070 | 13,046 | 29,296 | 26,319 |
INCOME BEFORE INCOME TAXES | 15,273 | 15,201 | 31,506 | 27,933 |
INCOME TAXES | 3,288 | 3,153 | 6,775 | 5,900 |
NET INCOME | $ 11,985 | $ 12,048 | $ 24,731 | $ 22,033 |
Basic earnings per share | $ 1.35 | $ 1.33 | $ 2.78 | $ 2.42 |
Diluted earnings per share | 1.35 | 1.32 | 2.78 | 2.42 |
Dividends paid | $ 0.20 | $ 0.15 | $ 0.40 | $ 0.30 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income | $ 11,985 | $ 12,048 | $ 24,731 | $ 22,033 |
Other comprehensive income (loss): | ||||
Unrealized losses on securities available-for-sale | (2,448) | (493) | (2,435) | (315) |
Tax benefit | 538 | 108 | 535 | 69 |
Total other comprehensive income (loss) | (1,910) | (385) | (1,900) | (246) |
Comprehensive income | $ 10,075 | $ 11,663 | $ 22,831 | $ 21,787 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained EarningsImpact of adoption ASU 2016-13 | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Impact of adoption ASU 2016-13 | Total |
Beginning Balance at Jun. 30, 2020 | $ 93 | $ 95,035 | $ (7,151) | $ 165,709 | $ (6,937) | $ 4,447 | $ (7,151) | $ 258,347 |
Net Income | 22,033 | 22,033 | ||||||
Change in unrealized loss on available for sale securities | (246) | (246) | ||||||
Dividends paid on common stock | (2,730) | (2,730) | ||||||
Stock option expense | 47 | 47 | ||||||
Stock grant expense | 27 | 27 | ||||||
Treasury stock purchased | (2,638) | (2,638) | ||||||
Ending Balance at Dec. 31, 2020 | 93 | 95,109 | 177,861 | (9,575) | 4,201 | 267,689 | ||
Beginning Balance at Sep. 30, 2020 | 93 | 95,058 | 167,175 | (6,937) | 4,586 | 259,975 | ||
Net Income | 12,048 | 12,048 | ||||||
Change in unrealized loss on available for sale securities | (385) | (385) | ||||||
Dividends paid on common stock | (1,362) | (1,362) | ||||||
Stock option expense | 24 | 24 | ||||||
Stock grant expense | 27 | 27 | ||||||
Treasury stock purchased | (2,638) | (2,638) | ||||||
Ending Balance at Dec. 31, 2020 | 93 | 95,109 | 177,861 | (9,575) | 4,201 | 267,689 | ||
Beginning Balance at Jun. 30, 2021 | 94 | 95,585 | 200,140 | (15,278) | 2,882 | 283,423 | ||
Net Income | 24,731 | 24,731 | ||||||
Change in unrealized loss on available for sale securities | (1,900) | (1,900) | ||||||
Dividends paid on common stock | (3,559) | (3,559) | ||||||
Stock option expense | 73 | 73 | ||||||
Stock grant expense | 17 | 17 | ||||||
Treasury stock purchased | (1,174) | (1,174) | ||||||
Ending Balance at Dec. 31, 2021 | 94 | 95,675 | 221,312 | (16,452) | 982 | 301,611 | ||
Beginning Balance at Sep. 30, 2021 | 94 | 95,622 | 211,104 | (16,452) | 2,892 | 293,260 | ||
Net Income | 11,985 | 11,985 | ||||||
Change in unrealized loss on available for sale securities | (1,910) | (1,910) | ||||||
Dividends paid on common stock | (1,777) | (1,777) | ||||||
Stock option expense | 36 | 36 | ||||||
Stock grant expense | 17 | 17 | ||||||
Ending Balance at Dec. 31, 2021 | $ 94 | $ 95,675 | $ 221,312 | $ (16,452) | $ 982 | $ 301,611 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||
Dividends paid on common stock | $ 0.20 | $ 0.15 | $ 0.40 | $ 0.30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 24,731 | $ 22,033 |
Items not requiring (providing) cash: | ||
Depreciation | 2,158 | 2,018 |
Loss on disposal of fixed assets | 3 | 27 |
Stock option and stock grant expense | 90 | 74 |
Loss on sale/write-down of REO | 283 | 23 |
Amortization of intangible assets | 677 | 718 |
Accretion of purchase accounting adjustments | (637) | (709) |
Increase in cash surrender value of bank owned life insurance (BOLI) | (563) | (1,254) |
Provision (benefit)for credit losses | (305) | 2,000 |
Net amortization of premiums and discounts on securities | 596 | 914 |
Originations of loans held for sale | (28,271) | (98,827) |
Proceeds from sales of loans held for sale | 29,008 | 98,233 |
Gain on sales of loans held for sale | (731) | (2,596) |
Changes in: | ||
Accrued interest receivable | (633) | (261) |
Prepaid expenses and other assets | (1,087) | 2,265 |
Accounts payable and other liabilities | 3,831 | (4,244) |
Deferred income taxes | 513 | 28 |
Accrued interest payable | (99) | (540) |
Net cash provided by operating activities | 29,564 | 19,902 |
Cash flows from investing activities: | ||
Net increase (decrease) in loans | (156,655) | 13,239 |
Net change in interest-bearing deposits | (4) | |
Proceeds from maturities of available for sale securities | 24,795 | 29,826 |
Net redemptions of Federal Home Loan Bank stock | 752 | 403 |
Net purchases of Federal Reserve Bank of St. Louis stock | (654) | |
Purchases of available-for-sale securities | (27,390) | (35,674) |
Purchases of long-term investment | (133) | |
Purchases of premises and equipment | (3,689) | (1,020) |
Net cash received from acquisition | 27,151 | |
Investments in state & federal tax credits | (1,827) | (1,051) |
Proceeds from sale of fixed assets | 928 | 72 |
Proceeds from sale of foreclosed assets | 249 | 766 |
Proceeds from BOLI claim | 1,351 | |
Net cash (used in) provided by investing activities | (135,819) | 7,254 |
Cash flows from financing activities: | ||
Net increase in demand deposits and savings accounts | 206,309 | 132,558 |
Net decrease in certificates of deposits | (13,385) | (52,297) |
Proceeds from Federal Home Loan Bank advances | 110,100 | |
Repayments of Federal Home Loan Bank advances | (21,025) | (116,874) |
Purchase of treasury stock | (1,175) | (2,638) |
Dividends paid on common stock | (3,559) | (2,730) |
Net cash provided by financing activities | 167,165 | 68,119 |
Increase in cash and cash equivalents | 60,910 | 95,275 |
Cash and cash equivalents at beginning of period | 123,592 | 54,245 |
Cash and cash equivalents at end of period | 184,502 | 149,520 |
Noncash investing and financing activities: | ||
Conversion of loans to foreclosed real estate | 607 | |
Conversion of loans to repossessed assets | 14 | 363 |
Right of use assets obtained in exchange for lease obligations: Operating Leases | 70 | 40 |
Fair value of assets acquired | 1,707 | |
Cash received | 26,932 | |
Liabilities assumed | 28,639 | |
Cash paid during the period for: | ||
Interest (net of interest credited) | 1,100 | 1,510 |
Income taxes | $ 157 | $ 6,776 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation | |
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 condensed consolidated balance sheet of the Company as of June 30, 2021, 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, 2021, 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 Company’s June 30, 2021 Form 10-K, which was filed with the SEC. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
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 the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates. On July 1, 2020, Financial Instruments – Credit Losses which created material changes to the existing critical accounting policy that existed at June 30, 2020 . Effective July 1, 2020 , the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans. 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. For AFS securities with fair value less than amortized cost 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 income. 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, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation. At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at December 31, 2021, or June 30, 2021. Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Federal Reserve Bank and Federal Home Loan Bank Stock. Loans. Loans are generally stated at unpaid principal balances, less the ACL, any net deferred loan origination fees, and unamortized premiums or discounts on purchased 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. At December 31, 2021, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at June 30, 2021 or December 31, 2021. See further disclosure in Note 4: Loans and Allowance for Credit Losses. 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 ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL 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. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term historical averages. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on statistical analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020. 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. Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020. 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 three Bank Owned Life Insurance. Goodwill. Intangible Assets. five 2024 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, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31. Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense. 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. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. Stock Options. Earnings Per Share. Comprehensive Income. Transfers Between Fair Value Hierarchy Levels. Reclassifications. Certain immaterial revisions have been made to the 2021 consolidated financial statements to reclassify the provision for off-balance sheet credit exposure out of noninterest expense and combine with provision for credit losses on the income statement. The revisions did not have a significant impact on the financial statement line items impacted and have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on net income or retained earnings. New Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated 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. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. The following table illustrates the impact of adoption of ASU 2016-13: July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company’s operations, financial position or disclosures. In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”. The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 is not expected to have a material impact on the Company’s consolidated financial statements. |
Securities
Securities | 6 Months Ended |
Dec. 31, 2021 | |
Securities | |
Securities | Note 3: Securities The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following: December 31, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 46,042 $ 1,335 $ (88) $ — $ 47,289 Corporate obligations 19,817 278 (325) — 19,770 Other securities 566 1 — — 567 Total debt and equity securities 66,425 1,614 (413) — 67,626 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 58,941 576 (653) — 58,864 Commercial MBS issued by GSEs 38,256 852 (556) — 38,552 CMOs issued by GSEs 41,663 352 (474) — 41,541 Total MBS and CMOs 138,860 1,780 (1,683) — 138,957 Total AFS securities $ 205,285 $ 3,394 $ (2,096) $ — $ 206,583 June 30, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 46,257 $ 1,479 $ (40) $ — 47,696 Corporate obligations 20,356 290 (335) — 20,311 Other securities 647 25 — — 672 Total debt and equity securities 67,260 1,794 (375) — 68,679 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 64,400 932 (379) — 64,953 Commercial MBS issued by GSEs 35,425 1,394 (338) — 36,481 CMOs issued by GSEs 36,201 755 (49) — 36,907 Total MBS and CMOs 136,026 3,081 (766) — 138,341 Total AFS securities $ 203,286 $ 4,875 $ (1,141) $ — $ 207,020 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, 2021 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 1,549 $ 1,553 After one year but less than five years 6,204 6,317 After five years but less than ten years 29,557 30,064 After ten years 29,115 29,692 Total investment securities 66,425 67,626 MBS and CMOs 138,860 138,957 Total AFS securities $ 205,285 $ 206,583 The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $181.3 million at December 31, 2021 and $155.6 million at June 30, 2021. The securities pledged consist of marketable securities, including $104.1 million and $95.4 million of Mortgage-backed Securities, $31.5 million and $18.8 million of Collateralized Mortgage Obligations, and $45.7 million and $41.4 million of State and Political Subdivisions Obligations at December 31, 2021 and June 30, 2021, respectively. The following tables show the Company’s 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 for which an ACL has not been recorded at December 31 and June 30, 2021: December 31, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) Obligations of state and political subdivisions $ 6,412 $ 88 $ — $ — $ 6,412 $ 88 Corporate obligations 4,364 39 6,167 286 10,531 325 MBS and CMOs 72,113 1,301 10,819 382 82,932 1,683 Total AFS securities $ 82,889 $ 1,428 $ 16,986 $ 668 $ 99,875 $ 2,096 June 30, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) Obligations of state and political subdivisions $ 3,177 $ 40 $ — $ — $ 3,177 $ 40 Corporate obligations 9,331 79 720 256 10,051 335 MBS and CMOs 53,893 764 70 2 53,963 766 Total AFS securities $ 66,401 $ 883 $ 790 $ 258 $ 67,191 $ 1,141 Obligations of state and political subdivisions Corporate Obligations. At December 31, 2021, corporate obligations included two pooled trust preferred securities with an estimated fair value of $766,000 and unrealized losses of $211,000 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 issuers of the underlying trust preferred securities. A cash flow analysis performed as of December 31, 2021, 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. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities. MBS and CMOs The Company does not believe that any individual unrealized loss as of December 31, 2021, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio. Credit losses recognized on investments. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | Note 4: Loans and Allowance for Credit Losses Classes of loans are summarized as follows: (dollars in thousands) December 31, 2021 June 30, 2021 Real Estate Loans: Residential $ 809,196 $ 721,216 Construction 247,968 208,824 Commercial 963,299 889,793 Consumer loans 81,049 77,674 Commercial loans 390,262 414,124 2,491,774 2,311,631 Loans in process (100,351) (74,540) Deferred loan fees, net (309) (3,625) Allowance for credit losses (32,529) (33,222) Total loans $ 2,358,585 $ 2,200,244 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. At December 31, 2021 the Company had purchased participations in 21 loans totaling $96.9 million, as compared to 23 loans totaling $83.0 million at June 30, 2021. Residential Mortgage Lending. located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values. 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 our primary lending area. The majority of the multi-family residential loans that are originated by the Company 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 adjustable interest rate 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. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage. Commercial Real Estate Lending. 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 to maturity of up to ten 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. six While the Company typically utilizes relatively short maturity periods 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 nine 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 performs interim inspections which further allow the Company opportunity to assess risk. At December 31, 2021, construction loans outstanding included 50 loans, totaling $31.9 million, for which a modification had been agreed to. At June 30, 2021, construction loans outstanding included 48 loans, totaling $28.5 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above, pursuant to the Company’s normal underwriting and monitoring procedures. As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs); nor were they made pursuant to exemptions provided under the CARES Act. Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans modified under the CARES Act did not include any construction loans with drawn balances at December 31, 2021. Consumer Lending 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. Risks related to HELOC lending generally include the stability of borrower income and collateral values. 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. Risks related to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay. Commercial Business Lending ACL. ● economic conditions and projections as provided by Moody’s Analytics, including baseline and downside scenarios, were utilized in the Company’s estimate at December 31, 2021. Economic factors considered in the projections included national and state levels of unemployment, and national and state rates of inflation-adjusted growth in the gross domestic product. Economic conditions are considered to be a moderate and declining risk factor; ● the pace of growth of the Company’s loan portfolio, exclusive of acquisitions or government guaranteed loans, relative to overall economic growth. This measure remains elevated, but continued to moderate in the most recent quarter, and is considered to be a moderate and increasing risk factor; ● levels and trends for loan delinquencies nationally and in the region. This measure as reported remains relatively stable, but management considered the potential that the measure remains under-reported due to the availability of modifications under the CARES Act. The level of uncertainty about loan delinquencies is considered to be diminishing. This is considered to be an elevated and stable risk factor; ● exposure to the hotel industry, in particular, metropolitan area hotels more impacted by activity restrictions and a lack of business or convention-related travel. This is considered to be an elevated and stable risk factor. Management considered the impact of the COVID-19 pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels, when making qualitative factor adjustments. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL. The following tables present the balance in the ACL based on portfolio segment as of December 31, 2021 and 2020, and activity in the ACL for the three- and six-month periods ended December 31, 2021 and 2020: At period end and for the six months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 Provision (benefit) charged to expense (404) (44) 192 (112) (311) (679) Losses charged off (32) — — (25) (11) (68) Recoveries 1 — — 51 2 54 Balance, end of period $ 10,757 $ 2,126 $ 14,727 $ 830 $ 4,089 $ 32,529 At period end and for the three months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 10,634 $ 2,045 $ 14,883 $ 873 $ 4,108 $ 32,543 Provision charged to expense 123 81 (156) (40) (8) — Losses charged off — — — (13) (11) (24) Recoveries — — — 10 — 10 Balance, end of period $ 10,757 $ 2,126 $ 14,727 $ 830 $ 4,089 $ 32,529 At period end and for the six months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period prior to adoption of CECL $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Impact of CECL adoption 3,521 (121) 3,856 1,065 1,012 9,333 Provision charged to expense 2,112 498 (750) (823) 348 1,385 Losses charged off (110) — — (72) (234) (416) Recoveries — — 1 10 19 30 Balance, end of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 At period end and for the three months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $ 8,629 $ 1,892 $ 16,050 $ 2,305 $ 6,208 $ 35,084 Provision charged to expense 1,859 495 (811) (882) (49) 612 Losses charged off (90) — — (67) (89) (246) Recoveries — — — 6 15 21 Balance, end of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of December 31, 2021 and 2020, and activity in the allowance for the three- and six-month periods ended December 31, 2021 and 2020: At period end and for the six months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 Provision (benefit) charged to expense (3) 1,171 (18) (160) (616) 374 Balance, end of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 At period end and for the three months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 Provision (benefit) charged to expense — — — — — — Balance, end of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 At period end and for the six months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period prior to CECL adoption $ 19 $ 769 $ 172 $ 153 $ 846 $ 1,959 Impact of CECL adoption 35 (167) 95 197 108 268 Provision (benefit) charged to expense (5) 340 18 (100) 362 615 Balance, end of period $ 49 $ 942 $ 285 $ 250 $ 1,316 $ 2,842 At period end and for the three months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period prior to CECL adoption $ 59 $ 768 $ 299 $ 354 $ 973 $ 2,453 Provision (benefit) charged to expense (10) 174 (14) (105) 343 388 Balance, end of period $ 49 $ 942 $ 285 $ 250 $ 1,316 $ 2,842 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 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 continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis. The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and fiscal year of origination as of December 31, 2021. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: (dollars in thousands) Revolving 2022 2021 2020 2019 2018 Prior loans Total Residential Real Estate Pass $ 208,789 $ 311,065 $ 155,440 $ 27,199 $ 25,075 $ 72,099 $ 6,572 $ 806,239 Watch 84 323 — 384 — 10 — 801 Special Mention — — — — — — — — Substandard 483 1,038 151 192 52 240 — 2,156 Doubtful — — — — — — — — Total Residential Real Estate $ 209,356 $ 312,426 $ 155,591 $ 27,775 $ 25,127 $ 72,349 $ 6,572 $ 809,196 Construction Real Estate Pass $ 65,140 $ 50,291 $ 31,935 $ — $ — $ — $ 65 $ 147,431 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — 186 — — — — — 186 Doubtful — — — — — — — — Total Construction Real Estate $ 65,140 $ 50,477 $ 31,935 $ — $ — $ — $ 65 $ 147,617 Commercial Real Estate Pass $ 257,283 $ 285,607 $ 97,132 $ 93,309 $ 57,468 $ 106,491 $ 22,931 $ 920,221 Watch 288 3,968 2,340 22 694 245 1,261 8,818 Special Mention 23,425 — — — — — 300 23,725 Substandard 3,982 4,399 1,124 13 25 96 69 9,708 Doubtful — — — 827 — — — 827 Total Commercial Real Estate $ 284,978 $ 293,974 $ 100,596 $ 94,171 $ 58,187 $ 106,832 $ 24,561 $ 963,299 Consumer Pass $ 16,295 $ 16,061 $ 5,706 $ 2,091 $ 657 $ 841 $ 39,166 $ 80,817 Watch — 76 — — — — 48 124 Special Mention — — — — — — — — Substandard — 64 — 1 — 31 12 108 Doubtful — — — — — — — — Total Consumer $ 16,295 $ 16,201 $ 5,706 $ 2,092 $ 657 $ 872 $ 39,226 $ 81,049 Commercial Pass $ 59,615 $ 130,942 $ 26,276 $ 14,196 $ 4,119 $ 11,757 $ 138,619 $ 385,524 Watch 697 1,072 58 40 — 197 326 2,390 Special Mention — — — — — — — — Substandard 22 524 38 258 — 172 1,334 2,348 Doubtful — — — — — — — — Total Commercial $ 60,334 $ 132,538 $ 26,372 $ 14,494 $ 4,119 $ 12,126 $ 140,279 $ 390,262 Total Loans Pass $ 607,122 $ 793,966 $ 316,489 $ 136,795 $ 87,319 $ 191,188 $ 207,353 $ 2,340,232 Watch 1,069 5,439 2,398 446 694 452 1,635 12,133 Special Mention 23,425 — — — — — 300 23,725 Substandard 4,487 6,211 1,313 464 77 539 1,415 14,506 Doubtful — — — 827 — — — 827 Total $ 636,103 $ 805,616 $ 320,200 $ 138,532 $ 88,090 $ 192,179 $ 210,703 $ 2,391,423 At December 31, 2021, PCD loans comprised $12.0 million of credits rated “Pass”; none rated “Watch”; none rated “Special Mention”; $3.0 million of credits rated “Substandard”; and none rated “Doubtful”. The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and fiscal year of origination as of June 30, 2021. This table includes PCD loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification: (dollars in thousands) Revolving 2021 2020 2019 2018 2017 Prior loans Total Residential Real Estate Pass $ 361,876 $ 175,772 $ 43,576 $ 32,929 $ 23,267 $ 71,592 $ 5,557 $ 714,569 Watch 328 70 410 — 89 809 — 1,706 Special Mention — — — — — — — — Substandard 4,288 89 — 92 — 472 — 4,941 Doubtful — — — — — — — — Total Residential Real Estate $ 366,492 $ 175,931 $ 43,986 $ 33,021 $ 23,356 $ 72,873 $ 5,557 $ 721,216 Construction Real Estate Pass $ 88,371 $ 45,866 $ — $ — $ — $ — $ — $ 134,237 Watch — — — — — — — — Special Mention — — — — — — — — Substandard 47 — — — — — — 47 Doubtful — — — — — — — — Total Construction Real Estate $ 88,418 $ 45,866 $ — $ — $ — $ — $ — $ 134,284 Commercial Real Estate Pass $ 351,732 $ 147,670 $ 104,746 $ 75,967 $ 70,927 $ 61,194 $ 23,699 $ 835,935 Watch 4,456 2,365 9,502 1,377 726 10 810 19,246 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 8,191 1,137 505 31 5 99 69 10,037 Doubtful — — 850 — — — — 850 Total Commercial Real Estate $ 364,379 $ 159,978 $ 115,603 $ 79,168 $ 84,484 $ 61,303 $ 24,878 $ 889,793 Consumer Pass $ 23,858 $ 8,626 $ 3,597 $ 1,126 $ 534 $ 650 $ 39,071 $ 77,462 Watch 80 — — — — — 48 128 Special Mention — — — — — — — — Substandard — — — 30 30 — 24 84 Doubtful — — — — — — — — Total Consumer $ 23,938 $ 8,626 $ 3,597 $ 1,156 $ 564 $ 650 $ 39,143 $ 77,674 Commercial Pass $ 189,280 $ 42,549 $ 17,960 $ 5,591 $ 7,265 $ 9,120 $ 136,603 $ 408,368 Watch 1,551 262 1,323 22 — — 463 3,621 Special Mention — — — — — — — — Substandard 594 81 305 — 176 — 979 2,135 Doubtful — — — — — — — — Total Commercial $ 191,425 $ 42,892 $ 19,588 $ 5,613 $ 7,441 $ 9,120 $ 138,045 $ 414,124 Total Loans Pass $ 1,015,117 $ 420,483 $ 169,879 $ 115,613 $ 101,993 $ 142,556 $ 204,930 $ 2,170,571 Watch 6,415 2,697 11,235 1,399 815 819 1,321 24,701 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 13,120 1,307 810 153 211 571 1,072 17,244 Doubtful — — 850 — — — — 850 Total $ 1,034,652 $ 433,293 $ 182,774 $ 118,958 $ 115,845 $ 143,946 $ 207,623 $ 2,237,091 At June 30, 2021, PCD loans comprised $3.2 million of credits rated “Pass”; $9.0 million of credits rated “Watch”, none rated “Special Mention”, $2.7 million of credits rated “Substandard” and none rated “Doubtful”. Past-due Loans December 31, 2021 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 $ 601 $ 520 $ 638 $ 1,759 $ 807,437 $ 809,196 $ — Construction — — — — 147,617 147,617 — Commercial 397 471 — 868 962,431 963,299 — Consumer loans 326 120 69 515 80,534 81,049 — Commercial loans 171 6 27 204 390,058 390,262 — Total loans $ 1,495 $ 1,117 $ 734 $ 3,346 $ 2,388,077 $ 2,391,423 $ — June 30, 2021 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 $ 312 $ 364 $ 613 $ 1,289 $ 719,927 $ 721,216 $ — Construction — — 30 30 134,254 134,284 — Commercial 363 — 374 737 889,056 889,793 — Consumer loans 195 66 84 345 77,329 77,674 — Commercial loans 368 939 110 1,417 412,707 414,124 — Total loans $ 1,238 $ 1,369 $ 1,211 $ 3,818 $ 2,233,273 $ 2,237,091 $ — Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at December 31, 2021, included $23.7 million in loans reported as current in the above table, while none were reported as past due. Loans with such modifications in effect at June 30, 2021, included $23.9 million in loans reported as current in the above table, while none were reported as past due. At December 31 and June 30, 2021 there were no PCD loans that were greater than 90 days past due. Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. 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. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses. Collateral-dependent Loans . December 31, 2021 Amortized cost basis of loans determined to be Related allowance collateral dependent for credit losses (dollars in thousands) Residential real estate loans 1- to 4-family residential loans $ 880 $ 208 Total loans $ 880 $ 208 June 30, 2021 Amortized cost basis of loans determined to be Related allowance collateral dependent for credit losses (dollars in thousands) Residential real estate loans 1- to 4-family residential loans $ 895 $ 223 Total loans $ 895 $ 223 Nonaccrual Loans (dollars in thousands) December 31, 2021 June 30, 2021 Residential real estate $ 1,011 $ 3,235 Construction real estate — 30 Commercial real estate 1,631 1,914 Consumer loans 76 100 Commercial loans 245 589 Total loans $ 2,963 $ 5,868 At December 31, 2021, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three- and six- month periods ended December 31, 2021 and 2020, was immaterial. Troubled Debt Restructurings During the three-month periods ended December 31, 2021 and 2020, there were no loan modifications that were classified as TDRs. During the six-month periods ended December 31, 2021 and 2020, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below: For the six-month periods ended December 31, 2021 December 31, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 151 1 $ 96 Construction real estate — — — — Commercial real estate — — 2 1,798 Consumer loans — — — — Commercial loans — — 1 33 Total 1 $ 151 4 $ 1,927 Performing loans classified as TDRs and outstanding at December 31, and June 30, 2021, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans. December 31, 2021 June 30, 2021 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 11 $ 3,696 1 $ 895 Construction real estate — — — — Commercial real estate 5 984 4 949 Consumer loans — — — — Commercial loans 7 1,707 7 1,397 Total 23 $ 6,387 12 $ 3,241 Residential Real Estate Foreclosures |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 5: Premises and Equipment Following is a summary of premises and equipment: (dollars in thousands) December 31, 2021 June 30, 2021 Land $ 12,458 $ 12,452 Buildings and improvements 59,583 56,422 Construction in progress 49 1,158 Furniture, fixtures, equipment and software 19,709 18,985 Automobiles 120 120 Operating leases ROU asset 2,700 2,770 94,619 91,907 Less accumulated depreciation 29,545 27,830 $ 65,074 $ 64,077 Leases. All of the Company’s leases are classified as operating leases. These operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets. ASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%. The expected lease terms range from 18 months to 20 years. December 31, 2021 June 30, 2021 Consolidated Balance Sheet Operating leases ROU asset $ 2,700 $ 2,770 Operating leases liability $ 2,700 $ 2,770 Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 98 $ 63 $ 199 $ 135 (includes short-term lease costs) Supplemental disclosures of cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 85 $ 58 $ 169 $ 126 ROU assets obtained in exchange for operating lease obligations: $ — $ — $ — $ — At December 31, 2021, future expected lease payments for leases with terms exceeding one year were as follows: (dollars in thousands) 2022 $ 169 2023 338 2024 338 2025 330 2026 320 Thereafter 2,927 Future lease payments expected $ 4,422 The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the three- and six-month periods ended December 31, 2021, income recognized from these lessor agreements was $70,000 and $145,000, respectively. For the three- and six-month periods ended December 31, 2020, income recognized from these lessor agreements was $81,000 and $156,000, respectively |
Deposits
Deposits | 6 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | Note 6: Deposits Deposits are summarized as follows: (dollars in thousands) December 31, 2021 June 30, 2021 Non-interest bearing accounts $ 404,410 $ 358,418 NOW accounts 1,083,853 925,280 Money market deposit accounts 263,007 253,614 Savings accounts 246,477 230,905 Certificates 554,505 562,586 Total Deposit Accounts $ 2,552,252 $ 2,330,803 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
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, (dollars in thousands except per share data) 2021 2020 2021 2020 Net income $ 11,985 $ 12,048 $ 24,731 $ 22,033 Less: distributed earnings allocated to participating securities (8) (4) (14) (8) Less: undistributed earnings allocated to participating securities (46) (30) (85) (56) Net income available to common shareholders $ 11,931 $ 12,014 $ 24,632 $ 21,969 Weighted-average common shares outstanding, including participating securities 8,887,303 9,089,735 8,893,149 9,108,301 Less: weighted-average participating securities outstanding (restricted shares) (39,920) (25,410) (35,883) (26,335) Denominator for basic earnings per share - Weighted-average shares outstanding 8,847,383 9,064,325 8,857,266 9,081,966 Effect of dilutive securities stock options or awards 21,780 2,909 15,977 2,220 Denominator for diluted earnings per share 8,869,163 9,067,234 8,873,243 9,084,186 Basic earnings per share available to common stockholders $ 1.35 $ 1.33 $ 2.78 $ 2.42 Diluted earnings per share available to common stockholders $ 1.35 $ 1.32 $ 2.78 $ 2.42 Certain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 0 were excluded from the computation of diluted earnings per share for the three- and six-month periods ended December 31, 2021, while outstanding options and shares of restricted stock totaling 50,500 were excluded from the computation of diluted earnings per share for the three- and six-month periods ended December 31, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes. | Note 8: Income Taxes The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state examinations by tax authorities for tax years ending June 30, 2017 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented. The Company’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, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Income taxes Current $ 2,785 $ 3,139 $ 6,262 $ 5,903 Deferred 503 14 513 (3) Total income tax provision $ 3,288 $ 3,153 $ 6,775 $ 5,900 The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows: (dollars in thousands) December 31, 2021 June 30, 2021 Deferred tax assets: Provision for losses on loans $ 7,586 $ 7,626 Accrued compensation and benefits 621 826 NOL carry forwards acquired 122 147 Unrealized loss on other real estate 227 180 Other — 182 Total deferred tax assets 8,556 8,961 Deferred tax liabilities: Purchase accounting adjustments 242 210 Depreciation 1,590 1,842 FHLB stock dividends 120 120 Prepaid expenses 256 283 Unrealized gain on available for sale securities 286 821 Other 1,623 1,193 Total deferred tax liabilities 4,117 4,469 Net deferred tax asset $ 4,439 $ 4,492 As of December 31, 2021, the Company had approximately $706,000 and $0 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., and the April 2020 acquisition of Central Federal Savings and Loan. 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 Company’s actual income tax expense is shown below: For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Tax at statutory rate $ 3,207 $ 3,192 $ 6,616 $ 5,866 Increase (reduction) in taxes resulting from: Nontaxable municipal income (87) (108) (193) (211) State tax, net of Federal benefit 216 261 468 502 Cash surrender value of Bank-owned life insurance (59) (205) (118) (263) Tax credit benefits (10) (5) (21) (9) Other, net 21 18 23 15 Actual provision $ 3,288 $ 3,153 $ 6,775 $ 5,900 For the three- and six- month periods ended December 31, 2021 and 2020, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR). Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits. |
401(k) Retirement Plan
401(k) Retirement Plan | 6 Months Ended |
Dec. 31, 2021 | |
401(k) Retirement Plan | |
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 “safe harbor” matching contributions 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 2021. For fiscal 2022, 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, 2021, retirement plan expenses recognized for the Plan totaled approximately $428,000 and $918,000, respectively, as compared to $413,000 and $869,000 , respectively, for the same periods 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 . |
Subordinated Debt
Subordinated Debt | 6 Months Ended |
Dec. 31, 2021 | |
Subordinated Debt. | |
Subordinated Debt | Note 10: Subordinated Debt In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years , and bear interest at a floating rate based on LIBOR. 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 (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At December 31, 2021, the Debentures carried an interest rate of 2.97%. The balance of the Debentures outstanding was $7.2 million at December 31, and June 30, 2021. The Company used the net proceeds from the sale of the Debentures 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. At December 31, 2021, the current rate was 2.65%. The carrying value of the debt securities was approximately $2.7 million at December 31, and June 30, 2021. 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. At December 31, 2021, the current rate was 2.00 %. The carrying value of the debt securities was approximately $5.4 million and $5.3 million at December 31, and June 30, 2021, respectively. The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $460,000 at December 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
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, 2021 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) Obligations of state and political subdivisions $ 47,289 $ — $ 47,289 $ — Corporate obligations 19,770 — 19,770 — Other securities 567 — 567 — MBS and CMOs 138,957 — 138,957 — Fair Value Measurements at June 30, 2021, 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) Obligations of state and political subdivisions $ 47,696 $ — $ 47,696 $ — Corporate obligations 20,311 — 20,311 — Other securities 672 — 672 — MBS and CMOs 138,341 — 138,341 — 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. Fair Value Measurements at December 31, 2021 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 $ 1,050 $ — $ — $ 1,050 Fair Value Measurements at June 30, 2021, 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) Foreclosed and repossessed assets held for sale $ 280 $ — $ — $ 280 The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended December 31, 2021 and 2020: For the three months ended (dollars in thousands) December 31, 2021 December 31, 2020 Foreclosed and repossessed assets held for sale $ (285) $ (24) Total losses on assets measured on a non-recurring basis $ (285) $ (24) 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. Foreclosed and Repossessed Assets Held for Sale. Unobservable (Level 3) Inputs. Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) December 31, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,050 Third party appraisal Marketability discount 8.0% - 24.5 % 23.7 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 280 Third party appraisal Marketability discount 7.2% - 80.6 % 37.1 % Fair Value of Financial Instruments. 30, 2021. December 31, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 184,502 $ 184,502 $ — $ — Interest-bearing time deposits 981 — 981 — Stock in FHLB 5,121 — 5,121 — Stock in Federal Reserve Bank of St. Louis 5,031 — 5,031 — Loans receivable, net 2,358,585 — — 2,370,268 Accrued interest receivable 10,714 — 10,714 — Financial liabilities Deposits 2,552,252 1,997,747 — 556,052 Advances from FHLB 36,512 — 37,043 — Accrued interest payable 680 — 680 — Subordinated debt 15,294 — — 16,581 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 123,592 $ 123,592 $ — $ — Interest-bearing time deposits 979 — 979 — Stock in FHLB 5,873 — 5,873 — Stock in Federal Reserve Bank of St. Louis 5,031 — 5,031 — Loans receivable, net 2,200,244 — — 2,218,762 Accrued interest receivable 10,079 — 10,079 — Financial liabilities Deposits 2,330,803 1,768,217 — 565,123 Advances from FHLB 57,529 — 58,587 — Accrued interest payable 779 — 779 — Subordinated debt 15,243 — — 15,468 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Business Combinations
Business Combinations | 6 Months Ended |
Dec. 31, 2021 | |
Business Combinations | |
Business Combinations | Note 12: Business Combinations On September 28, 2021 the Company announced the signing of an agreement and plan of merger whereby Fortune Financial Corporation (”Fortune”), and its wholly owned subsidiary, FortuneBank (“FB”), will be acquired by the Company in a stock and cash transaction valued at approximately $29.9 million. On December 15, 2021, the Company completed its acquisition of the Cairo, Illinois, branch (“Cairo”) of First National Bank, Oldham, South Dakota. The deal resulted in Southern Bank relocating its facility from its prior location to the First National Bank location in Cairo. The Company views the acquisition and updates to the new facility as an expression of its continuing commitment to the Cairo community. For the three- and six-month periods ended December 31, 2021, the Company incurred $24,000 of third-party acquisition-related costs, included in noninterest expense in the Company’s consolidated statements of income. 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 Cairo acquisition is detailed in the following table. First National Bank - Cairo Branch Fair Value of Consideration Transferred (dollars in thousands) Cash $ (26,932) Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 220 Loans 408 Premises and equipment 468 Identifiable intangible assets 168 Miscellaneous other assets 1 Deposits (28,540) Miscellaneous other liabilities (99) Total identifiable net liabilities (27,374) Goodwill $ 442 Of the total purchase price, $168,000 has been allocated to core deposit intangible, and will be amortized over seven years on a straight line basis. Additionally, 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 Southern Bank existing facility with the acquired Cairo branch. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Organization | 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 the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates. On July 1, 2020, Financial Instruments – Credit Losses which created material changes to the existing critical accounting policy that existed at June 30, 2020 . Effective July 1, 2020 , the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Interest-bearing Time Deposits | Interest-bearing Time Deposits. |
Available for Sale Securities | 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. For AFS securities with fair value less than amortized cost 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 income. 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, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation. At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at December 31, 2021, or June 30, 2021. Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
Federal Reserve Bank and Federal Home Loan Bank Stock | Federal Reserve Bank and Federal Home Loan Bank Stock. |
Loans | Loans. Loans are generally stated at unpaid principal balances, less the ACL, any net deferred loan origination fees, and unamortized premiums or discounts on purchased 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. At December 31, 2021, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at June 30, 2021 or December 31, 2021. See further disclosure in Note 4: Loans and Allowance for Credit Losses. 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 ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL 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. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term historical averages. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on statistical analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020. 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. |
Off-Balance Sheet Credit Exposures | Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020. |
Foreclosed Real Estate | 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 | 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 three |
Bank Owned Life Insurance | Bank Owned Life Insurance. |
Goodwill | Goodwill. |
Intangible Assets | Intangible Assets. five 2024 |
Income Taxes | 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, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31. |
Incentive Plan | Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense. |
Outside Directors' Retirement | 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. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. |
Stock Options | Stock Options. |
Earnings Per Share | Earnings Per Share. |
Comprehensive Income | Comprehensive Income. |
Transfers Between Fair Value Hierarchy Levels | Transfers Between Fair Value Hierarchy Levels. |
Reclassifications | Reclassifications. Certain immaterial revisions have been made to the 2021 consolidated financial statements to reclassify the provision for off-balance sheet credit exposure out of noninterest expense and combine with provision for credit losses on the income statement. The revisions did not have a significant impact on the financial statement line items impacted and have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on net income or retained earnings. |
New Accounting Pronouncements | New Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated 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. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially. The following table illustrates the impact of adoption of ASU 2016-13: July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company’s operations, financial position or disclosures. In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”. The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 is not expected to have a material impact on the Company’s consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Organization and Summary of Significant Accounting Policies | |
Schedule of Adoption of ASU 2016-13 | July 1, 2020 As reported As reported Impact of under prior to adoption (dollars in thousands) ASU 2016-13 ASU 2016-13 ASU 2016-13 Loans receivable $ 2,142,363 $ 2,141,929 $ 434 Allowance for credit losses on loans: Real Estate Loans: Residential 8,396 4,875 3,521 Construction 1,889 2,010 (121) Commercial 15,988 12,132 3,856 Consumer loans 2,247 1,182 1,065 Commercial loans 5,952 4,940 1,012 Total allowance for credit losses on loans $ 34,472 $ 25,139 $ 9,333 Total allowance for credit losses on off-balance sheet credit exposures $ 2,227 $ 1,959 $ 268 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Securities | |
Schedule of Available for Sale Securities | December 31, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 46,042 $ 1,335 $ (88) $ — $ 47,289 Corporate obligations 19,817 278 (325) — 19,770 Other securities 566 1 — — 567 Total debt and equity securities 66,425 1,614 (413) — 67,626 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 58,941 576 (653) — 58,864 Commercial MBS issued by GSEs 38,256 852 (556) — 38,552 CMOs issued by GSEs 41,663 352 (474) — 41,541 Total MBS and CMOs 138,860 1,780 (1,683) — 138,957 Total AFS securities $ 205,285 $ 3,394 $ (2,096) $ — $ 206,583 June 30, 2021 Gross Gross Allowance Estimated Amortized Unrealized Unrealized for Fair (dollars in thousands) Cost Gains Losses Credit Losses Value Debt and equity securities: Obligations of states and political subdivisions $ 46,257 $ 1,479 $ (40) $ — 47,696 Corporate obligations 20,356 290 (335) — 20,311 Other securities 647 25 — — 672 Total debt and equity securities 67,260 1,794 (375) — 68,679 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 64,400 932 (379) — 64,953 Commercial MBS issued by GSEs 35,425 1,394 (338) — 36,481 CMOs issued by GSEs 36,201 755 (49) — 36,907 Total MBS and CMOs 136,026 3,081 (766) — 138,341 Total AFS securities $ 203,286 $ 4,875 $ (1,141) $ — $ 207,020 |
Schedule of amortized cost and fair value of available-for-sale securities, by contractual maturity | December 31, 2021 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 1,549 $ 1,553 After one year but less than five years 6,204 6,317 After five years but less than ten years 29,557 30,064 After ten years 29,115 29,692 Total investment securities 66,425 67,626 MBS and CMOs 138,860 138,957 Total AFS securities $ 205,285 $ 206,583 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value {1} | December 31, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) Obligations of state and political subdivisions $ 6,412 $ 88 $ — $ — $ 6,412 $ 88 Corporate obligations 4,364 39 6,167 286 10,531 325 MBS and CMOs 72,113 1,301 10,819 382 82,932 1,683 Total AFS securities $ 82,889 $ 1,428 $ 16,986 $ 668 $ 99,875 $ 2,096 June 30, 2021 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) Obligations of state and political subdivisions $ 3,177 $ 40 $ — $ — $ 3,177 $ 40 Corporate obligations 9,331 79 720 256 10,051 335 MBS and CMOs 53,893 764 70 2 53,963 766 Total AFS securities $ 66,401 $ 883 $ 790 $ 258 $ 67,191 $ 1,141 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Credit Losses | |
Schedule of classes of loans | (dollars in thousands) December 31, 2021 June 30, 2021 Real Estate Loans: Residential $ 809,196 $ 721,216 Construction 247,968 208,824 Commercial 963,299 889,793 Consumer loans 81,049 77,674 Commercial loans 390,262 414,124 2,491,774 2,311,631 Loans in process (100,351) (74,540) Deferred loan fees, net (309) (3,625) Allowance for credit losses (32,529) (33,222) Total loans $ 2,358,585 $ 2,200,244 |
Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods | At period end and for the six months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 11,192 $ 2,170 $ 14,535 $ 916 $ 4,409 $ 33,222 Provision (benefit) charged to expense (404) (44) 192 (112) (311) (679) Losses charged off (32) — — (25) (11) (68) Recoveries 1 — — 51 2 54 Balance, end of period $ 10,757 $ 2,126 $ 14,727 $ 830 $ 4,089 $ 32,529 At period end and for the three months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 10,634 $ 2,045 $ 14,883 $ 873 $ 4,108 $ 32,543 Provision charged to expense 123 81 (156) (40) (8) — Losses charged off — — — (13) (11) (24) Recoveries — — — 10 — 10 Balance, end of period $ 10,757 $ 2,126 $ 14,727 $ 830 $ 4,089 $ 32,529 At period end and for the six months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period prior to adoption of CECL $ 4,875 $ 2,010 $ 12,132 $ 1,182 $ 4,940 $ 25,139 Impact of CECL adoption 3,521 (121) 3,856 1,065 1,012 9,333 Provision charged to expense 2,112 498 (750) (823) 348 1,385 Losses charged off (110) — — (72) (234) (416) Recoveries — — 1 10 19 30 Balance, end of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 At period end and for the three months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $ 8,629 $ 1,892 $ 16,050 $ 2,305 $ 6,208 $ 35,084 Provision charged to expense 1,859 495 (811) (882) (49) 612 Losses charged off (90) — — (67) (89) (246) Recoveries — — — 6 15 21 Balance, end of period $ 10,398 $ 2,387 $ 15,239 $ 1,362 $ 6,085 $ 35,471 |
Schedule of Allowance for off-balance credit exposure | At period end and for the six months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 37 $ 502 $ 188 $ 218 $ 860 $ 1,805 Provision (benefit) charged to expense (3) 1,171 (18) (160) (616) 374 Balance, end of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 At period end and for the three months ended December 31, 2021 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 Provision (benefit) charged to expense — — — — — — Balance, end of period $ 34 $ 1,673 $ 170 $ 58 $ 244 $ 2,179 At period end and for the six months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period prior to CECL adoption $ 19 $ 769 $ 172 $ 153 $ 846 $ 1,959 Impact of CECL adoption 35 (167) 95 197 108 268 Provision (benefit) charged to expense (5) 340 18 (100) 362 615 Balance, end of period $ 49 $ 942 $ 285 $ 250 $ 1,316 $ 2,842 At period end and for the three months ended December 31, 2020 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for off-balance sheet credit exposure: Balance, beginning of period prior to CECL adoption $ 59 $ 768 $ 299 $ 354 $ 973 $ 2,453 Provision (benefit) charged to expense (10) 174 (14) (105) 343 388 Balance, end of period $ 49 $ 942 $ 285 $ 250 $ 1,316 $ 2,842 |
Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity | (dollars in thousands) Revolving 2022 2021 2020 2019 2018 Prior loans Total Residential Real Estate Pass $ 208,789 $ 311,065 $ 155,440 $ 27,199 $ 25,075 $ 72,099 $ 6,572 $ 806,239 Watch 84 323 — 384 — 10 — 801 Special Mention — — — — — — — — Substandard 483 1,038 151 192 52 240 — 2,156 Doubtful — — — — — — — — Total Residential Real Estate $ 209,356 $ 312,426 $ 155,591 $ 27,775 $ 25,127 $ 72,349 $ 6,572 $ 809,196 Construction Real Estate Pass $ 65,140 $ 50,291 $ 31,935 $ — $ — $ — $ 65 $ 147,431 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — 186 — — — — — 186 Doubtful — — — — — — — — Total Construction Real Estate $ 65,140 $ 50,477 $ 31,935 $ — $ — $ — $ 65 $ 147,617 Commercial Real Estate Pass $ 257,283 $ 285,607 $ 97,132 $ 93,309 $ 57,468 $ 106,491 $ 22,931 $ 920,221 Watch 288 3,968 2,340 22 694 245 1,261 8,818 Special Mention 23,425 — — — — — 300 23,725 Substandard 3,982 4,399 1,124 13 25 96 69 9,708 Doubtful — — — 827 — — — 827 Total Commercial Real Estate $ 284,978 $ 293,974 $ 100,596 $ 94,171 $ 58,187 $ 106,832 $ 24,561 $ 963,299 Consumer Pass $ 16,295 $ 16,061 $ 5,706 $ 2,091 $ 657 $ 841 $ 39,166 $ 80,817 Watch — 76 — — — — 48 124 Special Mention — — — — — — — — Substandard — 64 — 1 — 31 12 108 Doubtful — — — — — — — — Total Consumer $ 16,295 $ 16,201 $ 5,706 $ 2,092 $ 657 $ 872 $ 39,226 $ 81,049 Commercial Pass $ 59,615 $ 130,942 $ 26,276 $ 14,196 $ 4,119 $ 11,757 $ 138,619 $ 385,524 Watch 697 1,072 58 40 — 197 326 2,390 Special Mention — — — — — — — — Substandard 22 524 38 258 — 172 1,334 2,348 Doubtful — — — — — — — — Total Commercial $ 60,334 $ 132,538 $ 26,372 $ 14,494 $ 4,119 $ 12,126 $ 140,279 $ 390,262 Total Loans Pass $ 607,122 $ 793,966 $ 316,489 $ 136,795 $ 87,319 $ 191,188 $ 207,353 $ 2,340,232 Watch 1,069 5,439 2,398 446 694 452 1,635 12,133 Special Mention 23,425 — — — — — 300 23,725 Substandard 4,487 6,211 1,313 464 77 539 1,415 14,506 Doubtful — — — 827 — — — 827 Total $ 636,103 $ 805,616 $ 320,200 $ 138,532 $ 88,090 $ 192,179 $ 210,703 $ 2,391,423 (dollars in thousands) Revolving 2021 2020 2019 2018 2017 Prior loans Total Residential Real Estate Pass $ 361,876 $ 175,772 $ 43,576 $ 32,929 $ 23,267 $ 71,592 $ 5,557 $ 714,569 Watch 328 70 410 — 89 809 — 1,706 Special Mention — — — — — — — — Substandard 4,288 89 — 92 — 472 — 4,941 Doubtful — — — — — — — — Total Residential Real Estate $ 366,492 $ 175,931 $ 43,986 $ 33,021 $ 23,356 $ 72,873 $ 5,557 $ 721,216 Construction Real Estate Pass $ 88,371 $ 45,866 $ — $ — $ — $ — $ — $ 134,237 Watch — — — — — — — — Special Mention — — — — — — — — Substandard 47 — — — — — — 47 Doubtful — — — — — — — — Total Construction Real Estate $ 88,418 $ 45,866 $ — $ — $ — $ — $ — $ 134,284 Commercial Real Estate Pass $ 351,732 $ 147,670 $ 104,746 $ 75,967 $ 70,927 $ 61,194 $ 23,699 $ 835,935 Watch 4,456 2,365 9,502 1,377 726 10 810 19,246 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 8,191 1,137 505 31 5 99 69 10,037 Doubtful — — 850 — — — — 850 Total Commercial Real Estate $ 364,379 $ 159,978 $ 115,603 $ 79,168 $ 84,484 $ 61,303 $ 24,878 $ 889,793 Consumer Pass $ 23,858 $ 8,626 $ 3,597 $ 1,126 $ 534 $ 650 $ 39,071 $ 77,462 Watch 80 — — — — — 48 128 Special Mention — — — — — — — — Substandard — — — 30 30 — 24 84 Doubtful — — — — — — — — Total Consumer $ 23,938 $ 8,626 $ 3,597 $ 1,156 $ 564 $ 650 $ 39,143 $ 77,674 Commercial Pass $ 189,280 $ 42,549 $ 17,960 $ 5,591 $ 7,265 $ 9,120 $ 136,603 $ 408,368 Watch 1,551 262 1,323 22 — — 463 3,621 Special Mention — — — — — — — — Substandard 594 81 305 — 176 — 979 2,135 Doubtful — — — — — — — — Total Commercial $ 191,425 $ 42,892 $ 19,588 $ 5,613 $ 7,441 $ 9,120 $ 138,045 $ 414,124 Total Loans Pass $ 1,015,117 $ 420,483 $ 169,879 $ 115,613 $ 101,993 $ 142,556 $ 204,930 $ 2,170,571 Watch 6,415 2,697 11,235 1,399 815 819 1,321 24,701 Special Mention — 8,806 — 1,793 12,826 — 300 23,725 Substandard 13,120 1,307 810 153 211 571 1,072 17,244 Doubtful — — 850 — — — — 850 Total $ 1,034,652 $ 433,293 $ 182,774 $ 118,958 $ 115,845 $ 143,946 $ 207,623 $ 2,237,091 |
Schedule of company's loan portfolio aging analysis | December 31, 2021 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 $ 601 $ 520 $ 638 $ 1,759 $ 807,437 $ 809,196 $ — Construction — — — — 147,617 147,617 — Commercial 397 471 — 868 962,431 963,299 — Consumer loans 326 120 69 515 80,534 81,049 — Commercial loans 171 6 27 204 390,058 390,262 — Total loans $ 1,495 $ 1,117 $ 734 $ 3,346 $ 2,388,077 $ 2,391,423 $ — June 30, 2021 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 $ 312 $ 364 $ 613 $ 1,289 $ 719,927 $ 721,216 $ — Construction — — 30 30 134,254 134,284 — Commercial 363 — 374 737 889,056 889,793 — Consumer loans 195 66 84 345 77,329 77,674 — Commercial loans 368 939 110 1,417 412,707 414,124 — Total loans $ 1,238 $ 1,369 $ 1,211 $ 3,818 $ 2,233,273 $ 2,237,091 $ — |
Schedule of company's collateral dependent loans and related ACL | December 31, 2021 Amortized cost basis of loans determined to be Related allowance collateral dependent for credit losses (dollars in thousands) Residential real estate loans 1- to 4-family residential loans $ 880 $ 208 Total loans $ 880 $ 208 June 30, 2021 Amortized cost basis of loans determined to be Related allowance collateral dependent for credit losses (dollars in thousands) Residential real estate loans 1- to 4-family residential loans $ 895 $ 223 Total loans $ 895 $ 223 |
Schedule of Company's nonaccrual loans | (dollars in thousands) December 31, 2021 June 30, 2021 Residential real estate $ 1,011 $ 3,235 Construction real estate — 30 Commercial real estate 1,631 1,914 Consumer loans 76 100 Commercial loans 245 589 Total loans $ 2,963 $ 5,868 |
Certain loans modified classified as TDRs | For the six-month periods ended December 31, 2021 December 31, 2020 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 1 $ 151 1 $ 96 Construction real estate — — — — Commercial real estate — — 2 1,798 Consumer loans — — — — Commercial loans — — 1 33 Total 1 $ 151 4 $ 1,927 |
Performing loans classified as TDRs and outstanding , segregated by class | December 31, 2021 June 30, 2021 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate 11 $ 3,696 1 $ 895 Construction real estate — — — — Commercial real estate 5 984 4 949 Consumer loans — — — — Commercial loans 7 1,707 7 1,397 Total 23 $ 6,387 12 $ 3,241 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of summary of premises and equipment | (dollars in thousands) December 31, 2021 June 30, 2021 Land $ 12,458 $ 12,452 Buildings and improvements 59,583 56,422 Construction in progress 49 1,158 Furniture, fixtures, equipment and software 19,709 18,985 Automobiles 120 120 Operating leases ROU asset 2,700 2,770 94,619 91,907 Less accumulated depreciation 29,545 27,830 $ 65,074 $ 64,077 |
Schedule of calculated amount of right of use assets and lease liabilities | December 31, 2021 June 30, 2021 Consolidated Balance Sheet Operating leases ROU asset $ 2,700 $ 2,770 Operating leases liability $ 2,700 $ 2,770 Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 98 $ 63 $ 199 $ 135 (includes short-term lease costs) Supplemental disclosures of cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 85 $ 58 $ 169 $ 126 ROU assets obtained in exchange for operating lease obligations: $ — $ — $ — $ — |
Schedule of Future Minimum Rental Payments for Operating Leases | (dollars in thousands) 2022 $ 169 2023 338 2024 338 2025 330 2026 320 Thereafter 2,927 Future lease payments expected $ 4,422 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of deposits | (dollars in thousands) December 31, 2021 June 30, 2021 Non-interest bearing accounts $ 404,410 $ 358,418 NOW accounts 1,083,853 925,280 Money market deposit accounts 263,007 253,614 Savings accounts 246,477 230,905 Certificates 554,505 562,586 Total Deposit Accounts $ 2,552,252 $ 2,330,803 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | Three months ended Six months ended December 31, December 31, (dollars in thousands except per share data) 2021 2020 2021 2020 Net income $ 11,985 $ 12,048 $ 24,731 $ 22,033 Less: distributed earnings allocated to participating securities (8) (4) (14) (8) Less: undistributed earnings allocated to participating securities (46) (30) (85) (56) Net income available to common shareholders $ 11,931 $ 12,014 $ 24,632 $ 21,969 Weighted-average common shares outstanding, including participating securities 8,887,303 9,089,735 8,893,149 9,108,301 Less: weighted-average participating securities outstanding (restricted shares) (39,920) (25,410) (35,883) (26,335) Denominator for basic earnings per share - Weighted-average shares outstanding 8,847,383 9,064,325 8,857,266 9,081,966 Effect of dilutive securities stock options or awards 21,780 2,909 15,977 2,220 Denominator for diluted earnings per share 8,869,163 9,067,234 8,873,243 9,084,186 Basic earnings per share available to common stockholders $ 1.35 $ 1.33 $ 2.78 $ 2.42 Diluted earnings per share available to common stockholders $ 1.35 $ 1.32 $ 2.78 $ 2.42 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of Income Tax Provision | For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Income taxes Current $ 2,785 $ 3,139 $ 6,262 $ 5,903 Deferred 503 14 513 (3) Total income tax provision $ 3,288 $ 3,153 $ 6,775 $ 5,900 |
Schedule of components of net deferred tax assets | (dollars in thousands) December 31, 2021 June 30, 2021 Deferred tax assets: Provision for losses on loans $ 7,586 $ 7,626 Accrued compensation and benefits 621 826 NOL carry forwards acquired 122 147 Unrealized loss on other real estate 227 180 Other — 182 Total deferred tax assets 8,556 8,961 Deferred tax liabilities: Purchase accounting adjustments 242 210 Depreciation 1,590 1,842 FHLB stock dividends 120 120 Prepaid expenses 256 283 Unrealized gain on available for sale securities 286 821 Other 1,623 1,193 Total deferred tax liabilities 4,117 4,469 Net deferred tax asset $ 4,439 $ 4,492 |
Schedule of reconciliation of income tax expense at the statutory rate | For the three-month periods ended For the six-month periods ended (dollars in thousands) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Tax at statutory rate $ 3,207 $ 3,192 $ 6,616 $ 5,866 Increase (reduction) in taxes resulting from: Nontaxable municipal income (87) (108) (193) (211) State tax, net of Federal benefit 216 261 468 502 Cash surrender value of Bank-owned life insurance (59) (205) (118) (263) Tax credit benefits (10) (5) (21) (9) Other, net 21 18 23 15 Actual provision $ 3,288 $ 3,153 $ 6,775 $ 5,900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at December 31, 2021 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) Obligations of state and political subdivisions $ 47,289 $ — $ 47,289 $ — Corporate obligations 19,770 — 19,770 — Other securities 567 — 567 — MBS and CMOs 138,957 — 138,957 — Fair Value Measurements at June 30, 2021, 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) Obligations of state and political subdivisions $ 47,696 $ — $ 47,696 $ — Corporate obligations 20,311 — 20,311 — Other securities 672 — 672 — MBS and CMOs 138,341 — 138,341 — |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at December 31, 2021 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 $ 1,050 $ — $ — $ 1,050 Fair Value Measurements at June 30, 2021, 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) Foreclosed and repossessed assets held for sale $ 280 $ — $ — $ 280 |
Losses Recognized on Assets Measured on a Nonrecurring Basis | For the three months ended (dollars in thousands) December 31, 2021 December 31, 2020 Foreclosed and repossessed assets held for sale $ (285) $ (24) Total losses on assets measured on a non-recurring basis $ (285) $ (24) |
Fair Value Option, Disclosures | Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) December 31, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,050 Third party appraisal Marketability discount 8.0% - 24.5 % 23.7 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2021 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 280 Third party appraisal Marketability discount 7.2% - 80.6 % 37.1 % |
Schedule of Financial Instruments | December 31, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 184,502 $ 184,502 $ — $ — Interest-bearing time deposits 981 — 981 — Stock in FHLB 5,121 — 5,121 — Stock in Federal Reserve Bank of St. Louis 5,031 — 5,031 — Loans receivable, net 2,358,585 — — 2,370,268 Accrued interest receivable 10,714 — 10,714 — Financial liabilities Deposits 2,552,252 1,997,747 — 556,052 Advances from FHLB 36,512 — 37,043 — Accrued interest payable 680 — 680 — Subordinated debt 15,294 — — 16,581 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2021 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 123,592 $ 123,592 $ — $ — Interest-bearing time deposits 979 — 979 — Stock in FHLB 5,873 — 5,873 — Stock in Federal Reserve Bank of St. Louis 5,031 — 5,031 — Loans receivable, net 2,200,244 — — 2,218,762 Accrued interest receivable 10,079 — 10,079 — Financial liabilities Deposits 2,330,803 1,768,217 — 565,123 Advances from FHLB 57,529 — 58,587 — Accrued interest payable 779 — 779 — Subordinated debt 15,243 — — 15,468 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
First National Bank, Cairo | |
Schedule of Purchase price | First National Bank - Cairo Branch Fair Value of Consideration Transferred (dollars in thousands) Cash $ (26,932) Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 220 Loans 408 Premises and equipment 468 Identifiable intangible assets 168 Miscellaneous other assets 1 Deposits (28,540) Miscellaneous other liabilities (99) Total identifiable net liabilities (27,374) Goodwill $ 442 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Organization (Details) $ in Billions | Dec. 31, 2021USD ($) |
Organization and Summary of Significant Accounting Policies | |
Assets of the REIT | $ 1.2 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Cash and Cash Equivalents [Line Items] | ||
Term of interest bearing deposits | 7 years | |
Interest-bearing deposits in other depository institutions | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 148.8 | $ 83.2 |
Deposits are held in various commercial banks | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 1.8 | $ 1.8 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Loans (Details) - Impact of adoption ASU 2016-13 - USD ($) | Jul. 01, 2020 | Jun. 30, 2020 |
Increase to ACL | $ 8,900,000 | |
Purchased credit deteriorated ("PCD") loans | ||
Increase to ACL | $ 434,000 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details) | 6 Months Ended |
Dec. 31, 2021 | |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | P3Y |
Minimum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | P7Y |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | P3Y |
Maximum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | P40Y |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | P7Y |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment loss on goodwill | $ 0 | $ 0 |
Intangible assets, net | 1,900,000 | |
Core deposit intangible assets, amortization method | using the straight line method | |
2024 | $ 1,400,000 | |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 15,400,000 | 15,300,000 |
Intangibles assets, accumulated amortization | 10,700,000 | 10,100,000 |
Remainder of fiscal 2022 | 689,000 | |
2023 | 1,400,000 | |
2025 | 831,000 | |
Thereafter | 412,000 | |
Impairment of intangible assets | 0 | |
Other identifiable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 3,800,000 | 3,800,000 |
Intangibles assets, accumulated amortization | 3,800,000 | $ 3,800,000 |
Impairment of intangible assets | 0 | |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 1,900,000 | |
Minimum | Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amortization period | 5 years | |
Maximum | Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amortization period | 7 years |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Outside Directors' Retirement (Details) | 6 Months Ended |
Dec. 31, 2021age | |
Organization and Summary of Significant Accounting Policies | |
Requisite period | 60 |
Vesting period | 5 years |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) | Jul. 01, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Allowance for Credit Loss on loans | $ 25,139,000 | $ 32,529,000 | $ 32,543,000 | $ 33,222,000 | $ 35,471,000 | $ 35,084,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 1,959,000 | 2,179,000 | 2,179,000 | 1,805,000 | 2,842,000 | 2,453,000 | |
Accounting Standards Update 2016-13 | |||||||
Loans receivable | 2,141,929,000 | ||||||
Allowance for Credit Loss on loans | 25,139,000 | ||||||
Total allowance for credit losses on off-balance sheet credit exposures | 1,959,000 | ||||||
As reported under ASU 2016-13 | |||||||
Adjustment to the reserve for unfunded commitments | $ 268,000 | ||||||
Retained earnings | 7,200,000 | ||||||
As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Loans receivable | 2,142,363,000 | ||||||
Allowance for Credit Loss on loans | 34,472,000 | ||||||
Total allowance for credit losses on off-balance sheet credit exposures | 2,227,000 | ||||||
Impact of adoption ASU 2016-13 | |||||||
Increase to ACL | 8,900,000 | ||||||
PCD, increase in ALLL | 434,000 | ||||||
Total allowance for credit losses on off-balance sheet credit exposures | 268,000 | ||||||
Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Loans receivable | 434,000 | ||||||
Allowance for Credit Loss on loans | 9,333,000 | ||||||
Total allowance for credit losses on off-balance sheet credit exposures | 268,000 | ||||||
Impact of adoption ASU 2016-13 | Purchased credit deteriorated ("PCD") loans | |||||||
Increase to ACL | 434,000 | ||||||
Residential and commercial real estate loans | Purchased credit deteriorated ("PCD") loans | |||||||
Loans receivable | 434,000 | ||||||
Residential Real Estate | |||||||
Allowance for Credit Loss on loans | 4,875,000 | 10,757,000 | 10,634,000 | 11,192,000 | 10,398,000 | 8,629,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 19,000 | 34,000 | 34,000 | 37,000 | 49,000 | 59,000 | |
Residential Real Estate | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 4,875,000 | ||||||
Residential Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 8,396,000 | ||||||
Residential Real Estate | Impact of adoption ASU 2016-13 | |||||||
Total allowance for credit losses on off-balance sheet credit exposures | 35,000 | ||||||
Residential Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 3,521,000 | ||||||
Construction Real Estate | |||||||
Allowance for Credit Loss on loans | 2,010,000 | 2,126,000 | 2,045,000 | 2,170,000 | 2,387,000 | 1,892,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 769,000 | 1,673,000 | 1,673,000 | 502,000 | 942,000 | 768,000 | |
Construction Real Estate | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 2,010,000 | ||||||
Construction Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 1,889,000 | ||||||
Construction Real Estate | Impact of adoption ASU 2016-13 | |||||||
Total allowance for credit losses on off-balance sheet credit exposures | (167,000) | ||||||
Construction Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | (121,000) | ||||||
Commercial Real Estate | |||||||
Allowance for Credit Loss on loans | 12,132,000 | 14,727,000 | 14,883,000 | 14,535,000 | 15,239,000 | 16,050,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 172,000 | 170,000 | 170,000 | 188,000 | 285,000 | 299,000 | |
Commercial Real Estate | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 12,132,000 | ||||||
Commercial Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 15,988,000 | ||||||
Commercial Real Estate | Impact of adoption ASU 2016-13 | |||||||
Total allowance for credit losses on off-balance sheet credit exposures | 95,000 | ||||||
Commercial Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 3,856,000 | ||||||
Consumer loans | |||||||
Allowance for Credit Loss on loans | 1,182,000 | 830,000 | 873,000 | 916,000 | 1,362,000 | 2,305,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 153,000 | 58,000 | 58,000 | 218,000 | 250,000 | 354,000 | |
Consumer loans | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 1,182,000 | ||||||
Consumer loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 2,247,000 | ||||||
Consumer loans | Impact of adoption ASU 2016-13 | |||||||
Total allowance for credit losses on off-balance sheet credit exposures | 197,000 | ||||||
Consumer loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 1,065,000 | ||||||
Commercial loans | |||||||
Allowance for Credit Loss on loans | 4,940,000 | 4,089,000 | 4,108,000 | 4,409,000 | 6,085,000 | 6,208,000 | |
Total allowance for credit losses on off-balance sheet credit exposures | 846,000 | $ 244,000 | $ 244,000 | $ 860,000 | 1,316,000 | $ 973,000 | |
Commercial loans | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | $ 4,940,000 | ||||||
Commercial loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | 5,952,000 | ||||||
Commercial loans | Impact of adoption ASU 2016-13 | |||||||
Total allowance for credit losses on off-balance sheet credit exposures | $ 108,000 | ||||||
Commercial loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13 | |||||||
Allowance for Credit Loss on loans | $ 1,012,000 |
Securities - Amortized cost, gr
Securities - Amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | $ 205,285 | $ 203,286 |
Gross Unrealized Gains | 3,394 | 4,875 |
Gross Unrealized Losses | (2,096) | (1,141) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 206,583 | 207,020 |
US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 46,042 | 46,257 |
Gross Unrealized Gains | 1,335 | 1,479 |
Gross Unrealized Losses | (88) | (40) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 47,289 | 47,696 |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 19,817 | 20,356 |
Gross Unrealized Gains | 278 | 290 |
Gross Unrealized Losses | (325) | (335) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 19,770 | 20,311 |
Other Debt Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 566 | 647 |
Gross Unrealized Gains | 1 | 25 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 567 | 672 |
Debt and Equity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 66,425 | 67,260 |
Gross Unrealized Gains | 1,614 | 1,794 |
Gross Unrealized Losses | (413) | (375) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 67,626 | 68,679 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 58,941 | 64,400 |
Gross Unrealized Gains | 576 | 932 |
Gross Unrealized Losses | (653) | (379) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 58,864 | 64,953 |
Commercial MBS issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 38,256 | 35,425 |
Gross Unrealized Gains | 852 | 1,394 |
Gross Unrealized Losses | (556) | (338) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 38,552 | 36,481 |
CMOs issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 41,663 | 36,201 |
Gross Unrealized Gains | 352 | 755 |
Gross Unrealized Losses | (474) | (49) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 41,541 | 36,907 |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortzied Cost | 138,860 | 136,026 |
Gross Unrealized Gains | 1,780 | 3,081 |
Gross Unrealized Losses | (1,683) | (766) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | $ 138,957 | $ 138,341 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Available-for-sale Securities, by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Amortized Cost | ||
Within one year | $ 1,549 | |
After one year but less than five years | 6,204 | |
After five years but less than ten years | 29,557 | |
After ten years | 29,115 | |
Total investment securities | 66,425 | |
Total AFS securities, Amortzied Cost | 205,285 | $ 203,286 |
Estimated Fair Value | ||
Within one year | 1,553 | |
After one year but less than five years | 6,317 | |
After five years but less than ten years | 30,064 | |
After ten years | 29,692 | |
Total investment securities | 67,626 | |
Available for sale securities | 206,583 | 207,020 |
Debt and Equity Securities | ||
Amortized Cost | ||
Total AFS securities, Amortzied Cost | 66,425 | 67,260 |
Estimated Fair Value | ||
Available for sale securities | 67,626 | 68,679 |
Total MBS and CMOs | ||
Amortized Cost | ||
Total AFS securities, Amortzied Cost | 138,860 | 136,026 |
Estimated Fair Value | ||
Available for sale securities | $ 138,957 | $ 138,341 |
Securities - Investments Pledge
Securities - Investments Pledged as Collateral to Secure Public Deposits and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | $ 181.3 | $ 155.6 |
Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | 104.1 | |
Mortgage-Backed Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | 95.4 | |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | 31.5 | 18.8 |
US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | $ 45.7 | $ 41.4 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value, Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2021USD ($)security | Jun. 30, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 82,889 | $ 66,401 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,428 | 883 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value | 16,986 | 790 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses | 668 | 258 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 99,875 | 67,191 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 2,096 | 1,141 |
US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 6,412 | 3,177 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 88 | 40 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,412 | 3,177 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 88 | 40 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 13 | |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 4,364 | 9,331 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 39 | 79 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value | 6,167 | 720 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses | 286 | 256 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,531 | 10,051 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 325 | 335 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 3 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 6 | |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 72,113 | 53,893 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,301 | 764 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value | 10,819 | 70 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses | 382 | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 82,932 | 53,963 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 1,683 | $ 766 |
Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of individual securities in an unrealized loss position for less than 12 months | security | 29 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 5 |
Securities - Other Securities P
Securities - Other Securities Policy: Pooled Trust Preferred Securities (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Securities | ||||
Number of Pooled Trust Preferred Securities | 2 | 2 | ||
Fair Value of Pooled Trust Preferred Securities Held | $ 766,000 | $ 766,000 | ||
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More | 211,000 | 211,000 | ||
Credit losses recognized on investments | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Classes of loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | $ 2,491,774 | $ 2,311,631 | ||||
Loans in Process | (100,351) | (74,540) | ||||
Deferred loan fees, net | (309) | (3,625) | ||||
Allowance for credit losses | (32,529) | (33,222) | $ (32,543) | $ (35,471) | $ (35,084) | $ (25,139) |
Total loans | $ 2,358,585 | $ 2,200,244 | ||||
Number of purchased participation loans | 21 | 23 | ||||
Purchased participation loans | $ 96,900 | $ 83,000 | ||||
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | 809,196 | 721,216 | ||||
Allowance for credit losses | (10,757) | (11,192) | (10,634) | (10,398) | (8,629) | (4,875) |
Construction Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | 247,968 | 208,824 | ||||
Allowance for credit losses | (2,126) | (2,170) | (2,045) | (2,387) | (1,892) | (2,010) |
Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | 963,299 | 889,793 | ||||
Allowance for credit losses | (14,727) | (14,535) | (14,883) | (15,239) | (16,050) | (12,132) |
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | 81,049 | 77,674 | ||||
Allowance for credit losses | (830) | (916) | (873) | (1,362) | (2,305) | (1,182) |
Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real Estate Loans | 390,262 | 414,124 | ||||
Allowance for credit losses | $ (4,089) | $ (4,409) | $ (4,108) | $ (6,085) | $ (6,208) | $ (4,940) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Classes of loans information (Details) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | |
Provision for credit losses, credit (charges) | $ 0 | $ 1,000,000 | $ (305,000) | $ 2,000,000 | |
ACL | $ 32,529,000 | $ 32,529,000 | $ 33,222,000 | ||
Residential Real Estate. | |||||
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years) | 30 years | ||||
Amortization period of multi-family residential loans if balloon maturities | 10 years | ||||
Residential Real Estate. | Single Family | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90.00% | ||||
Residential Real Estate. | Multifamily | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 85.00% | ||||
Amortization period of loans | 25 years | ||||
Commercial | |||||
Amortization period of loans | 25 years | ||||
Term of fixed interest applicability on loans | 10 years | ||||
Term of variable interest applicability on loans | 7 years | ||||
Agricultural real estate terms if 80% loan-to-value ratio | 25 years | ||||
Agricultural real estate terms if 75% loan-to-value ratio | 30 years | ||||
Residential Real Estate | |||||
Amortization period of loans | 30 years | ||||
Residential Real Estate | Minimum | |||||
Maturities of single-family residential construction loans | 6 months | ||||
Residential Real Estate | Maximum | |||||
Maturities of single-family residential construction loans | 12 months | ||||
Commercial Real Estate | |||||
Amortization period of loans | 25 years | ||||
Construction Real Estate | |||||
Average term of construction loans | 9 months | ||||
Construction Real Estate | Minimum | |||||
Maturities of multifamily or commercial construction loans | 12 months | ||||
Construction Real Estate | Maximum | |||||
Maturities of multifamily or commercial construction loans | 24 months | ||||
Consumer loans | |||||
Amortization period of loans | 5 years | ||||
Consumer loans | Home Equity Loan | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100.00% | ||||
Amortization period of loans | 10 years | ||||
Consumer loans | Automobile loans | |||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100.00% | ||||
Amortization period of loans | 60 months | ||||
Commercial loans | |||||
Amortization period of loans | 5 years | ||||
Amortization period of multi-family residential loans if balloon maturities | 1 year | ||||
Modifications for the purpose of extending the maturity date | Construction Real Estate | |||||
Incremental period that the loan maturity can be extended to | 3 months | ||||
Number of construction loans outstanding, for which a modification had been agreed to | 50 | 50 | 48 | ||
Construction loans outstanding, for which a modification had been agreed to | $ 31,900,000 | $ 31,900,000 | $ 28,500,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Balance in the ACL and the recorded investment in loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses: | ||||
Balance, beginning of period | $ 32,543 | $ 35,084 | $ 33,222 | $ 25,139 |
Impact of CECL adoption | 9,333 | |||
Provision (benefit) charged to expense | 612 | (679) | 1,385 | |
Losses charged off | (24) | (246) | (68) | (416) |
Recoveries | 10 | 21 | 54 | 30 |
Balance, end of period | 32,529 | 35,471 | 32,529 | 35,471 |
Residential Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 10,634 | 8,629 | 11,192 | 4,875 |
Impact of CECL adoption | 3,521 | |||
Provision (benefit) charged to expense | 123 | 1,859 | (404) | 2,112 |
Losses charged off | (90) | (32) | (110) | |
Recoveries | 1 | |||
Balance, end of period | 10,757 | 10,398 | 10,757 | 10,398 |
Construction Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 2,045 | 1,892 | 2,170 | 2,010 |
Impact of CECL adoption | (121) | |||
Provision (benefit) charged to expense | 81 | 495 | (44) | 498 |
Balance, end of period | 2,126 | 2,387 | 2,126 | 2,387 |
Commercial Real Estate | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 14,883 | 16,050 | 14,535 | 12,132 |
Impact of CECL adoption | 3,856 | |||
Provision (benefit) charged to expense | (156) | (811) | 192 | (750) |
Recoveries | 1 | |||
Balance, end of period | 14,727 | 15,239 | 14,727 | 15,239 |
Consumer loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 873 | 2,305 | 916 | 1,182 |
Impact of CECL adoption | 1,065 | |||
Provision (benefit) charged to expense | (40) | (882) | (112) | (823) |
Losses charged off | (13) | (67) | (25) | (72) |
Recoveries | 10 | 6 | 51 | 10 |
Balance, end of period | 830 | 1,362 | 830 | 1,362 |
Commercial loans | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 4,108 | 6,208 | 4,409 | 4,940 |
Impact of CECL adoption | 1,012 | |||
Provision (benefit) charged to expense | (8) | (49) | (311) | 348 |
Losses charged off | (11) | (89) | (11) | (234) |
Recoveries | 15 | 2 | 19 | |
Balance, end of period | $ 4,089 | $ 6,085 | $ 4,089 | $ 6,085 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Allowance for off-balance credit exposure (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | $ 2,453 | $ 1,805 | $ 1,959 |
Provision (benefit) charged to expense | 388 | 374 | 615 |
Balance, end of period | 2,842 | 2,179 | 2,842 |
Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | 268 | 268 | |
Residential Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 59 | 37 | 19 |
Provision (benefit) charged to expense | (10) | (3) | (5) |
Balance, end of period | 49 | 34 | 49 |
Residential Real Estate | Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | 35 | 35 | |
Construction Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 768 | 502 | 769 |
Provision (benefit) charged to expense | 174 | 1,171 | 340 |
Balance, end of period | 942 | 1,673 | 942 |
Construction Real Estate | Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | (167) | (167) | |
Commercial Real Estate | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 299 | 188 | 172 |
Provision (benefit) charged to expense | (14) | (18) | 18 |
Balance, end of period | 285 | 170 | 285 |
Commercial Real Estate | Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | 95 | 95 | |
Consumer loans | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 354 | 218 | 153 |
Provision (benefit) charged to expense | (105) | (160) | (100) |
Balance, end of period | 250 | 58 | 250 |
Consumer loans | Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | 197 | 197 | |
Commercial loans | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, beginning of period | 973 | 860 | 846 |
Provision (benefit) charged to expense | 343 | (616) | 362 |
Balance, end of period | 1,316 | $ 244 | 1,316 |
Commercial loans | Impact of adoption ASU 2016-13 | |||
Allowance for off-balance sheet credit exposure: | |||
Balance, end of period | $ 108 | $ 108 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Credit risk profile based on rating category and year of origination (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amount of loan relationships subject to annual credit analysis | $ 3,000 | |
Loan relationships that are subject to independent annual review | 1,000 | |
Current fiscal year | 636,103 | $ 1,034,652 |
Year One | 805,616 | 433,293 |
Year Two | 320,200 | 182,774 |
Year Three | 138,532 | 118,958 |
Year Four | 88,090 | 115,845 |
Prior | 192,179 | 143,946 |
Revolving loans | 210,703 | 207,623 |
Total | 2,391,423 | 2,237,091 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 607,122 | 1,015,117 |
Year One | 793,966 | 420,483 |
Year Two | 316,489 | 169,879 |
Year Three | 136,795 | 115,613 |
Year Four | 87,319 | 101,993 |
Prior | 191,188 | 142,556 |
Revolving loans | 207,353 | 204,930 |
Total | 2,340,232 | 2,170,571 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,069 | 6,415 |
Year One | 5,439 | 2,697 |
Year Two | 2,398 | 11,235 |
Year Three | 446 | 1,399 |
Year Four | 694 | 815 |
Prior | 452 | 819 |
Revolving loans | 1,635 | 1,321 |
Total | 12,133 | 24,701 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 23,425 | |
Year One | 8,806 | |
Year Three | 1,793 | |
Year Four | 12,826 | |
Revolving loans | 300 | 300 |
Total | 23,725 | 23,725 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 4,487 | 13,120 |
Year One | 6,211 | 1,307 |
Year Two | 1,313 | 810 |
Year Three | 464 | 153 |
Year Four | 77 | 211 |
Prior | 539 | 571 |
Revolving loans | 1,415 | 1,072 |
Total | 14,506 | 17,244 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year Two | 850 | |
Year Three | 827 | |
Total | 827 | 850 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 209,356 | 366,492 |
Year One | 312,426 | 175,931 |
Year Two | 155,591 | 43,986 |
Year Three | 27,775 | 33,021 |
Year Four | 25,127 | 23,356 |
Prior | 72,349 | 72,873 |
Revolving loans | 6,572 | 5,557 |
Total | 809,196 | 721,216 |
Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 208,789 | 361,876 |
Year One | 311,065 | 175,772 |
Year Two | 155,440 | 43,576 |
Year Three | 27,199 | 32,929 |
Year Four | 25,075 | 23,267 |
Prior | 72,099 | 71,592 |
Revolving loans | 6,572 | 5,557 |
Total | 806,239 | 714,569 |
Residential Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 84 | 328 |
Year One | 323 | 70 |
Year Two | 410 | |
Year Three | 384 | |
Year Four | 89 | |
Prior | 10 | 809 |
Total | 801 | 1,706 |
Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 483 | 4,288 |
Year One | 1,038 | 89 |
Year Two | 151 | |
Year Three | 192 | 92 |
Year Four | 52 | |
Prior | 240 | 472 |
Total | 2,156 | 4,941 |
Construction Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 65,140 | 88,418 |
Year One | 50,477 | 45,866 |
Year Two | 31,935 | |
Revolving loans | 65 | |
Total | 147,617 | 134,284 |
Construction Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 65,140 | 88,371 |
Year One | 50,291 | 45,866 |
Year Two | 31,935 | |
Revolving loans | 65 | |
Total | 147,431 | 134,237 |
Construction Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 47 | |
Year One | 186 | |
Total | 186 | 47 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 284,978 | 364,379 |
Year One | 293,974 | 159,978 |
Year Two | 100,596 | 115,603 |
Year Three | 94,171 | 79,168 |
Year Four | 58,187 | 84,484 |
Prior | 106,832 | 61,303 |
Revolving loans | 24,561 | 24,878 |
Total | 963,299 | 889,793 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 257,283 | 351,732 |
Year One | 285,607 | 147,670 |
Year Two | 97,132 | 104,746 |
Year Three | 93,309 | 75,967 |
Year Four | 57,468 | 70,927 |
Prior | 106,491 | 61,194 |
Revolving loans | 22,931 | 23,699 |
Total | 920,221 | 835,935 |
Commercial Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 288 | 4,456 |
Year One | 3,968 | 2,365 |
Year Two | 2,340 | 9,502 |
Year Three | 22 | 1,377 |
Year Four | 694 | 726 |
Prior | 245 | 10 |
Revolving loans | 1,261 | 810 |
Total | 8,818 | 19,246 |
Commercial Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 23,425 | |
Year One | 8,806 | |
Year Three | 1,793 | |
Year Four | 12,826 | |
Revolving loans | 300 | 300 |
Total | 23,725 | 23,725 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 3,982 | 8,191 |
Year One | 4,399 | 1,137 |
Year Two | 1,124 | 505 |
Year Three | 13 | 31 |
Year Four | 25 | 5 |
Prior | 96 | 99 |
Revolving loans | 69 | 69 |
Total | 9,708 | 10,037 |
Commercial Real Estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year Two | 850 | |
Year Three | 827 | |
Total | 827 | 850 |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 16,295 | 23,938 |
Year One | 16,201 | 8,626 |
Year Two | 5,706 | 3,597 |
Year Three | 2,092 | 1,156 |
Year Four | 657 | 564 |
Prior | 872 | 650 |
Revolving loans | 39,226 | 39,143 |
Total | 81,049 | 77,674 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 16,295 | 23,858 |
Year One | 16,061 | 8,626 |
Year Two | 5,706 | 3,597 |
Year Three | 2,091 | 1,126 |
Year Four | 657 | 534 |
Prior | 841 | 650 |
Revolving loans | 39,166 | 39,071 |
Total | 80,817 | 77,462 |
Consumer loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 80 | |
Year One | 76 | |
Revolving loans | 48 | 48 |
Total | 124 | 128 |
Consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 64 | |
Year Three | 1 | 30 |
Year Four | 30 | |
Prior | 31 | |
Revolving loans | 12 | 24 |
Total | 108 | 84 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 60,334 | 191,425 |
Year One | 132,538 | 42,892 |
Year Two | 26,372 | 19,588 |
Year Three | 14,494 | 5,613 |
Year Four | 4,119 | 7,441 |
Prior | 12,126 | 9,120 |
Revolving loans | 140,279 | 138,045 |
Total | 390,262 | 414,124 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 59,615 | 189,280 |
Year One | 130,942 | 42,549 |
Year Two | 26,276 | 17,960 |
Year Three | 14,196 | 5,591 |
Year Four | 4,119 | 7,265 |
Prior | 11,757 | 9,120 |
Revolving loans | 138,619 | 136,603 |
Total | 385,524 | 408,368 |
Commercial loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 697 | 1,551 |
Year One | 1,072 | 262 |
Year Two | 58 | 1,323 |
Year Three | 40 | 22 |
Prior | 197 | |
Revolving loans | 326 | 463 |
Total | 2,390 | 3,621 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 22 | 594 |
Year One | 524 | 81 |
Year Two | 38 | 305 |
Year Three | 258 | |
Year Four | 176 | |
Prior | 172 | |
Revolving loans | 1,334 | 979 |
Total | $ 2,348 | $ 2,135 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Credit risk profile based on rating and payment activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 12,000,000 | $ 3,200,000 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 0 | 9,000,000 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 0 | 0 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 3,000,000 | 2,700,000 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 0 | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loan portfolio aging analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 2,391,423 | $ 2,237,091 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,495 | 1,238 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,117 | 1,369 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 734 | 1,211 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,346 | 3,818 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,388,077 | 2,233,273 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 809,196 | 721,216 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 601 | 312 |
Residential Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 520 | 364 |
Residential Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 638 | 613 |
Residential Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,759 | 1,289 |
Residential Real Estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 807,437 | 719,927 |
Construction Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 147,617 | 134,284 |
Construction Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 30 | |
Construction Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 30 | |
Construction Real Estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 147,617 | 134,254 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 963,299 | 889,793 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 397 | 363 |
Commercial Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 471 | |
Commercial Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 374 | |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 868 | 737 |
Commercial Real Estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 962,431 | 889,056 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 81,049 | 77,674 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 326 | 195 |
Consumer loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 120 | 66 |
Consumer loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 69 | 84 |
Consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 515 | 345 |
Consumer loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 80,534 | 77,329 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 390,262 | 414,124 |
Commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 171 | 368 |
Commercial loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 6 | 939 |
Commercial loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 27 | 110 |
Commercial loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 204 | 1,417 |
Commercial loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 390,058 | $ 412,707 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - CARES Act (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 2,391,423 | $ 2,237,091 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,388,077 | 2,233,273 |
Current | CARES Act | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 23,700 | 23,900 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,346 | 3,818 |
Total Past Due | CARES Act | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Related allowance for credit losses | $ 32,529 | $ 32,543 | $ 33,222 | $ 35,471 | $ 35,084 | $ 25,139 |
Collateral-dependent Loans | 1- to 4-family residential loans | ||||||
Amortized cost | 880 | 895 | ||||
Related allowance for credit losses | 208 | 223 | ||||
Residential Real Estate | ||||||
Related allowance for credit losses | 10,757 | $ 10,634 | 11,192 | $ 10,398 | $ 8,629 | $ 4,875 |
Residential Real Estate | Collateral-dependent Loans | ||||||
Amortized cost | 880 | 895 | ||||
Related allowance for credit losses | $ 208 | $ 223 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 2,963 | $ 5,868 |
Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 1,011 | 3,235 |
Construction Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 30 | |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 1,631 | 1,914 |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 76 | 100 |
Commercial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 245 | $ 589 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Performing Loans Classified as Troubled Debt Restructuring Loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | |
Number of modifications | loan | 1 | 4 | |
Recorded Investment | $ | $ 151 | $ 1,927 | |
Performing Loans | |||
Number of modifications | loan | 23 | 12 | |
Recorded Investment | $ | $ 6,387 | $ 3,241 | |
Residential Real Estate | |||
Number of modifications | loan | 1 | 1 | |
Recorded Investment | $ | $ 151 | $ 96 | |
Residential Real Estate | Performing Loans | |||
Number of modifications | loan | 11 | 1 | |
Recorded Investment | $ | $ 3,696 | $ 895 | |
Commercial Real Estate | |||
Number of modifications | loan | 2 | ||
Recorded Investment | $ | $ 1,798 | ||
Commercial Real Estate | Performing Loans | |||
Number of modifications | loan | 5 | 4 | |
Recorded Investment | $ | $ 984 | $ 949 | |
Commercial loans | |||
Number of modifications | loan | 1 | ||
Recorded Investment | $ | $ 33 | ||
Commercial loans | Performing Loans | |||
Number of modifications | loan | 7 | 7 | |
Recorded Investment | $ | $ 1,707 | $ 1,397 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Real Estate Foreclosures (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Repossessed assets | $ 514,000 | $ 622,000 |
Residential Real Estate. | Home Equity Loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Foreclosure proceedings in process | $ 272,000 | $ 533,000 |
Premises and Equipment - Summar
Premises and Equipment - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Premises and Equipment | ||
Land | $ 12,458 | $ 12,452 |
Buildings and improvements | 59,583 | 56,422 |
Construction in progress | 49 | 1,158 |
Furniture, fixtures, equipment and software | 19,709 | 18,985 |
Automobiles | 120 | 120 |
Operating leases ROU asset | 2,700 | 2,770 |
Property, Plant and Equipment, Gross | 94,619 | 91,907 |
Less accumulated depreciation | 29,545 | 27,830 |
Premises and equipment, net | $ 65,074 | $ 64,077 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($) | |
Number of leased properties | property | 5 | 5 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% | ||
Income recognized from lessor agreements | $ | $ 70 | $ 81 | $ 145 | $ 156 |
Minimum | ||||
Lessee Expected Lease Terms | 18 months | |||
Maximum | ||||
Lessee Expected Lease Terms | 20 years |
Premises and Equipment - Calcul
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Operating leases ROU asset | $ 2,700 | $ 2,700 | $ 2,770 | ||
Right of use assets obtained in exchange for lease obligations: Operating Leases | 70 | $ 40 | |||
Consolidated Balance Sheet [Member] | |||||
Operating leases ROU asset | 2,700 | 2,700 | 2,770 | ||
Operating leases liability | 2,700 | 2,700 | $ 2,770 | ||
Consolidated Statement Of Income [Member] | |||||
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs) | 98 | $ 63 | 199 | 135 | |
Supplemental Disclosures Of Cash Flow Information [Member] | Cash paid for amounts included in the measurement of lease liabilities | |||||
Operating cash flows from operating leases | $ 85 | $ 58 | $ 169 | $ 126 |
Premises and Equipment - Future
Premises and Equipment - Future expected lease payments for leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Premises and Equipment | |
2022 | $ 169 |
2023 | 338 |
2024 | 338 |
2025 | 330 |
2026 | 320 |
Thereafter | 2,927 |
Future lease payments expected | $ 4,422 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Deposits | ||
Non-interest bearing accounts | $ 404,410 | $ 358,418 |
NOW accounts | 1,083,853 | 925,280 |
Money market deposit accounts | 263,007 | 253,614 |
Savings accounts | 246,477 | 230,905 |
Certificates | 554,505 | 562,586 |
Total Deposit Accounts | $ 2,552,252 | $ 2,330,803 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share | ||||
Net Income | $ 11,985 | $ 12,048 | $ 24,731 | $ 22,033 |
Less: distributed earnings allocated to participating securities | (8) | (4) | (14) | (8) |
Less: undistributed earnings allocated to participating securities | 46 | 30 | 85 | 56 |
Net income available to common shareholders | $ 11,931 | $ 12,014 | $ 24,632 | $ 21,969 |
Weighted-average common shares outstanding, including participating securities | 8,887,303 | 9,089,735 | 8,893,149 | 9,108,301 |
Less: weighted-average participating securities outstanding (restricted shares) | (39,920) | (25,410) | (35,883) | (26,335) |
Weighted-average shares outstanding | 8,847,383 | 9,064,325 | 8,857,266 | 9,081,966 |
Effect of dilutive securities stock options or awards | 21,780 | 2,909 | 15,977 | 2,220 |
Denominator for diluted earnings per share | 8,869,163 | 9,067,234 | 8,873,243 | 9,084,186 |
Basic earnings per share available to common stockholders | $ 1.35 | $ 1.33 | $ 2.78 | $ 2.42 |
Basic earnings per share available to common stockholders | $ 1.35 | $ 1.32 | $ 2.78 | $ 2.42 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the computation of diluted earnings per share | 0 | 0 | ||
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the computation of diluted earnings per share | 50,500 | 50,500 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Current | $ 2,785 | $ 3,139 | $ 6,262 | $ 5,903 |
Deferred | 503 | 14 | 513 | (3) |
Total income tax provision | $ 3,288 | $ 3,153 | $ 6,775 | $ 5,900 |
Income Taxes - Schedule of net
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Income Taxes | ||
Provision for losses on loans | $ 7,586 | $ 7,626 |
Accrued compensation and benefits | 621 | 826 |
NOL carry forwards acquired | 122 | 147 |
Unrealized loss on other real estate | 227 | 180 |
Other | 0 | 182 |
Total deferred tax assets | 8,556 | 8,961 |
Purchase accounting adjustments | 242 | 210 |
Depreciation | 1,590 | 1,842 |
FHLB stock dividends | 120 | 120 |
Prepaid expenses | 256 | 283 |
Unrealized gain on available for sale securities | 286 | 821 |
Other | 1,623 | 1,193 |
Total deferred tax liabilities | 4,117 | 4,469 |
Net deferred tax assets | $ 4,439 | $ 4,492 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense at statutory rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Tax at statutory rate | $ 3,207 | $ 3,192 | $ 6,616 | $ 5,866 |
Nontaxable municipal income | (87) | (108) | (193) | (211) |
State tax, net of Federal benefit | 216 | 261 | 468 | 502 |
Cash surrender value of Bank-owned life insurance | (59) | (205) | (118) | (263) |
Tax credit benefits | (10) | (5) | (21) | (9) |
Other, net | 21 | 18 | 23 | 15 |
Actual provision | $ 3,288 | $ 3,153 | $ 6,775 | $ 5,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Interest or penalties on income taxes | $ 0 | |||
Federal Net Operating Loss Carryforwards | 706,000 | |||
State Net Operating Loss Carryforwards | $ 0 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
401(k) Retirement Plan (Details
401(k) Retirement Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Retirement plan expenses | $ 428,000 | $ 413,000 | $ 918,000 | $ 869,000 |
Vesting period | 5 years | |||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contributions of eligible compensation | 4.00% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2021 | Jun. 30, 2021 | |
Subordinated debt | $ 15,294,000 | $ 15,243,000 | ||
Prepaid Expenses and Other Current Assets | ||||
Investment, face amount | 505,000 | |||
Investment, carrying value | 460,000 | |||
Trust Preferred Securities | ||||
Subordinated debt | $ 7,200,000 | 7,200,000 | ||
Number of years after securities became redeemable | 5 years | |||
Interest rate (as a percent) | 2.97% | |||
Ozarks Legacy Community Financial, Inc. | ||||
Interest rate (as a percent) | 2.65% | |||
Floating rate | $ 3,100,000 | |||
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement | ||||
Floating rate | $ 2,700,000 | $ 2,700,000 | ||
Peoples Service Company, Inc. | ||||
Interest rate (as a percent) | 2.00% | |||
Floating rate | $ 6,500,000 | |||
Peoples Service Company, Inc. | Reported Value Measurement | ||||
Floating rate | $ 5,400,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of Assets Measured on a Recurring Basis and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Nonrecurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets held for sale | $ 1,050 | $ 280 |
Fair Value, Inputs, Level 3 | Nonrecurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets held for sale | 1,050 | 280 |
US States and Political Subdivisions Debt Securities | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 47,289 | 47,696 |
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 1 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 47,289 | 47,696 |
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 3 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate Obligations | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,770 | 20,311 |
Corporate Obligations | Fair Value, Inputs, Level 1 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,770 | 20,311 |
Corporate Obligations | Fair Value, Inputs, Level 3 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other Debt Obligations | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 567 | 672 |
Other Debt Obligations | Fair Value, Inputs, Level 1 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Other Debt Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 567 | 672 |
Other Debt Obligations | Fair Value, Inputs, Level 3 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Total MBS and CMOs | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 138,957 | 138,341 |
Total MBS and CMOs | Fair Value, Inputs, Level 1 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Total MBS and CMOs | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 138,957 | 138,341 |
Total MBS and CMOs | Fair Value, Inputs, Level 3 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses Recognized on Assets Measured on a Nonrecurring Basis (Details) - Nonrecurring Measurements - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total losses on assets measured on a non-recurring basis | $ (285) | $ (24) |
Foreclosed and repossessed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total losses on assets measured on a non-recurring basis | $ (285) | $ (24) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Nonrecurring Measurements - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | $ 1,050 | $ 280 |
Third party appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal | Third party appraisal |
Third party appraisal | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount | Marketability discount |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 23.7 | 37.1 |
Third party appraisal | Marketability discount | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Range of discounts Applied | 8.00% | 7.20% |
Third party appraisal | Marketability discount | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Range of discounts Applied | 24.50% | 80.60% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Financial assets | ||
Cash and cash equivalents | $ 184,502 | $ 123,592 |
Interest-bearing time deposits | 981 | 979 |
Stock in FHLB | 5,121 | 5,873 |
Stock in Federal Reserve Bank of St. Louis | 5,031 | 5,031 |
Loans receivable, net | 2,358,585 | 2,200,244 |
Accrued interest receivable | 10,714 | 10,079 |
Financial liabilities | ||
Deposits | 2,552,252 | 2,330,803 |
Advances from FHLB | 36,512 | 57,529 |
Accrued interest payable | 680 | 779 |
Subordinated debt | 15,294 | 15,243 |
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | 0 | |
Letters of credit | 0 | |
Lines of credit | 0 | |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 184,502 | 123,592 |
Financial liabilities | ||
Deposits | 1,997,747 | 1,768,217 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Interest-bearing time deposits | 981 | 979 |
Stock in FHLB | 5,121 | 5,873 |
Stock in Federal Reserve Bank of St. Louis | 5,031 | 5,031 |
Accrued interest receivable | 10,714 | 10,079 |
Financial liabilities | ||
Advances from FHLB | 37,043 | 58,587 |
Accrued interest payable | 680 | 779 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Loans receivable, net | 2,370,268 | 2,218,762 |
Financial liabilities | ||
Deposits | 556,052 | 565,123 |
Subordinated debt | $ 16,581 | $ 15,468 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | Dec. 15, 2021 | Sep. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 |
Goodwill | $ 14,532,000 | $ 14,532,000 | $ 14,089,000 | ||||
Assets | 2,919,063,000 | 2,919,063,000 | 2,700,530,000 | ||||
Loans, net of allowance | 2,358,585,000 | 2,358,585,000 | 2,200,244,000 | ||||
Deposits | 2,552,252,000 | 2,552,252,000 | 2,330,803,000 | ||||
Fortune Financial Corporation | |||||||
Core deposit intangible assets amortized period | 7 years | ||||||
Assets | 261,200,000 | ||||||
Loans, net of allowance | 199,400,000 | ||||||
Deposits | $ 219,600,000 | ||||||
Fortune Financial Corporation | |||||||
Transaction value | $ 29,900,000 | ||||||
Fortune Financial Corporation | Noninterest expense | |||||||
Acquisition related costs | $ 205,000 | $ 230,000 | |||||
First National Bank, Cairo | |||||||
Cash consideration | $ 26,932,000 | ||||||
Purchase price allocated to core deposit intangible | 168,000 | ||||||
Goodwill | $ 442,000 | ||||||
First National Bank, Cairo | Noninterest expense | |||||||
Acquisition related costs | $ 24,000 | $ 24,000 |
Business Combinations - Purchas
Business Combinations - Purchase price for the Cairo acquisition (Details) - USD ($) | Dec. 15, 2021 | Dec. 31, 2021 | Jun. 30, 2021 |
Goodwill | $ 14,532,000 | $ 14,089,000 | |
First National Bank, Cairo | |||
Cash | $ (26,932,000) | ||
Cash and cash equivalents | 220,000 | ||
Loans | 408,000 | ||
Premises and equipment | 468,000 | ||
Identifiable intangible assets | 168,000 | ||
Miscellaneous other assets | 1,000 | ||
Deposits | (28,540,000) | ||
Miscellaneous other liabilities | (99,000) | ||
Total identifiable net liabilities | (27,374,000) | ||
Goodwill | $ 442,000 |