Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Period End date | Mar. 31, 2024 | |
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 | 11,355,266 | |
Fiscal Year End | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 168,273 | $ 53,979 |
Interest-bearing time deposits | 490 | 1,242 |
Available for sale securities | 433,689 | 417,554 |
Stock in FHLB of Des Moines | 8,667 | 11,540 |
Stock in Federal Reserve Bank of St. Louis | 9,067 | 9,061 |
Loans receivable, net of ACL of $51,336 and $47,820 at March 31, 2024 and June 30, 2023, respectively | 3,719,858 | 3,571,078 |
Accrued interest receivable | 21,807 | 18,871 |
Premises and equipment, net | 95,801 | 92,397 |
Bank owned life insurance - cash surrender value | 73,101 | 71,684 |
Goodwill | 50,727 | 50,773 |
Other intangible assets, net | 27,322 | 30,472 |
Prepaid expenses and other assets | 38,190 | 31,560 |
Total assets | 4,646,992 | 4,360,211 |
Liabilities and Stockholders' Equity | ||
Deposits | 3,995,510 | 3,725,540 |
Advances from FHLB | 102,043 | 133,514 |
Accounts payable and other liabilities | 34,747 | 27,271 |
Accrued interest payable | 11,965 | 4,723 |
Subordinated debt | 23,143 | 23,105 |
Total liabilities | 4,167,408 | 3,914,153 |
Common stock, $.01 par value; 25,000,000 shares authorized; 11,959,157 and 11,919,087 shares issued at March 31, 2024 and June 30, 2023, respectively | 120 | 119 |
Additional paid-in capital | 219,591 | 218,260 |
Retained earnings | 300,227 | 270,720 |
Treasury stock of 593,063 and 588,625 shares at March 31, 2024 and June 30, 2023, respectively, at cost | (21,303) | (21,116) |
Accumulated other comprehensive loss | (19,051) | (21,925) |
Total stockholders' equity | 479,584 | 446,058 |
Total liabilities and stockholders' equity | $ 4,646,992 | $ 4,360,211 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Loans And Leases Receivable Allowance | $ 51,336 | $ 47,820 |
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 | 11,959,157 | 11,919,087 |
Treasury Stock | 593,063 | 588,625 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Income | ||||
Loans | $ 55,952,000 | $ 43,115,000 | $ 164,063,000 | $ 113,288,000 |
Investment securities | 1,729,000 | 2,076,000 | 5,217,000 | 3,519,000 |
Mortgage-backed securities | 3,757,000 | 1,652,000 | 10,614,000 | 3,654,000 |
Other interest-earning assets | 2,587,000 | 1,443,000 | 3,813,000 | 1,672,000 |
Total interest income | 64,025,000 | 48,286,000 | 183,707,000 | 122,133,000 |
Interest Expense | ||||
Deposits | 28,021,000 | 13,705,000 | 74,032,000 | 28,061,000 |
Securities sold under agreements to repurchase | 213,000 | 213,000 | ||
Advances from FHLB | 1,060,000 | 206,000 | 3,978,000 | 2,300,000 |
Subordinated debt | 435,000 | 395,000 | 1,309,000 | 1,033,000 |
Total interest expense | 29,516,000 | 14,519,000 | 79,319,000 | 31,607,000 |
Net Interest Income | 34,509,000 | 33,767,000 | 104,388,000 | 90,526,000 |
Provision for Credit Losses | 900,000 | 10,072,000 | 2,700,000 | 16,266,000 |
Net Interest Income After Provision for Credit Losses | 33,609,000 | 23,695,000 | 101,688,000 | 74,260,000 |
Noninterest Income | ||||
Deposit account charges and related fees | 1,847,000 | 2,089,000 | 5,421,000 | 5,578,000 |
Bank card interchange income | 1,301,000 | 1,374,000 | 3,974,000 | 3,471,000 |
Loan late charges | 150,000 | 161,000 | 409,000 | 402,000 |
Loan servicing fees | 267,000 | 265,000 | 783,000 | 834,000 |
Other loan fees | 757,000 | 465,000 | 1,758,000 | 1,959,000 |
Net realized gains on sale of loans | 99,000 | 132,000 | 616,000 | 550,000 |
Net realized losses on sale of AFS securities | (807,000) | (1,489,000) | ||
Earnings on bank owned life insurance | 483,000 | 368,000 | 1,413,000 | 1,006,000 |
Insurance brokerage commissions | 312,000 | 349,000 | 886,000 | 899,000 |
Wealth management | 866,000 | 463,000 | 2,329,000 | 1,241,000 |
Other income | 309,000 | 618,000 | 977,000 | 1,314,000 |
Total noninterest income | 5,584,000 | 6,284,000 | 17,077,000 | 17,254,000 |
Noninterest Expense | ||||
Compensation and benefits | 13,750,000 | 14,188,000 | 39,360,000 | 33,733,000 |
Occupancy and equipment, net | 3,623,000 | 3,024,000 | 10,615,000 | 7,914,000 |
Data processing expense | 2,349,000 | 2,505,000 | 7,039,000 | 5,380,000 |
Telecommunications expense | 464,000 | 449,000 | 1,460,000 | 1,127,000 |
Deposit insurance premiums | 677,000 | 231,000 | 1,824,000 | 710,000 |
Legal and professional fees | 412,000 | 2,324,000 | 1,215,000 | 3,587,000 |
Advertising | 622,000 | 409,000 | 1,479,000 | 1,074,000 |
Postage and office supplies | 344,000 | 331,000 | 929,000 | 779,000 |
Intangibles amortization | 1,018,000 | 812,000 | 3,053,000 | 1,615,000 |
Foreclosed property expenses | 60,000 | 280,000 | 96,000 | 275,000 |
Other operating expense | 1,730,000 | 2,439,000 | 5,546,000 | 5,356,000 |
Total noninterest expense | 25,049,000 | 26,992,000 | 72,616,000 | 61,550,000 |
Income Before Income Taxes | 14,144,000 | 2,987,000 | 46,149,000 | 29,964,000 |
Income Taxes | 2,837,000 | 578,000 | 9,497,000 | 6,288,000 |
Net Income | $ 11,307,000 | $ 2,409,000 | $ 36,652,000 | $ 23,676,000 |
Basic earnings per share | $ 1 | $ 0.22 | $ 3.23 | $ 2.42 |
Diluted earnings per share | 0.99 | 0.22 | 3.22 | 2.41 |
Dividends paid | $ 0.21 | $ 0.21 | $ 0.63 | $ 0.63 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income | $ 11,307 | $ 2,409 | $ 36,652 | $ 23,676 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available-for-sale | (1,130) | 901 | 2,195 | (756) |
Less: reclassification adjustment for realized losses included in net income | (807) | (1,489) | ||
Tax (expense) benefit | 72 | (198) | (810) | 166 |
Total other comprehensive income (loss) | (251) | 703 | 2,874 | (590) |
Comprehensive Income | $ 11,056 | $ 3,112 | $ 39,526 | $ 23,086 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, Common Stock | Accumulated Other Comprehensive Loss | Total |
BEGINNING BALANCE at Jun. 30, 2022 | $ 98 | $ 119,162 | $ 240,115 | $ (21,116) | $ (17,487) | $ 320,772 |
Net Income | 23,676 | 23,676 | ||||
Change in unrealized loss on available for sale securities | (590) | (590) | ||||
Dividends paid on common stock | (6,252) | (6,252) | ||||
Stock option expense | 177 | 177 | ||||
Stock grant expense | 584 | 584 | ||||
Common Stock Issued | 21 | 98,259 | 98,280 | |||
ENDING BALANCE at Mar. 31, 2023 | 119 | 218,182 | 257,539 | (21,116) | (18,077) | 436,647 |
BEGINNING BALANCE at Dec. 31, 2022 | 98 | 119,271 | 257,506 | (21,116) | (18,780) | 336,979 |
Net Income | 2,409 | 2,409 | ||||
Change in unrealized loss on available for sale securities | 703 | 703 | ||||
Dividends paid on common stock | (2,376) | (2,376) | ||||
Stock option expense | 68 | 68 | ||||
Stock grant expense | 584 | 584 | ||||
Common Stock Issued | 21 | 98,259 | 98,280 | |||
ENDING BALANCE at Mar. 31, 2023 | 119 | 218,182 | 257,539 | (21,116) | (18,077) | 436,647 |
BEGINNING BALANCE at Jun. 30, 2023 | 119 | 218,260 | 270,720 | (21,116) | (21,925) | 446,058 |
Net Income | 36,652 | 36,652 | ||||
Change in unrealized loss on available for sale securities | 2,874 | 2,874 | ||||
Dividends paid on common stock | (7,145) | (7,145) | ||||
Stock option expense | 283 | 283 | ||||
Stock grant expense | 657 | 657 | ||||
Stock options exercised | 391 | 391 | ||||
Exercise of stock options | 391 | |||||
Common Stock Issued | 1 | 1 | ||||
Treasury stock purchased | (187) | (187) | ||||
ENDING BALANCE at Mar. 31, 2024 | 120 | 219,591 | 300,227 | (21,303) | (19,051) | 479,584 |
BEGINNING BALANCE at Dec. 31, 2023 | 119 | 218,675 | 291,304 | (21,116) | (18,800) | 470,182 |
Net Income | 11,307 | 11,307 | ||||
Change in unrealized loss on available for sale securities | (251) | (251) | ||||
Dividends paid on common stock | (2,384) | (2,384) | ||||
Stock option expense | 84 | 84 | ||||
Stock grant expense | 657 | 657 | ||||
Stock options exercised | 175 | 175 | ||||
Common Stock Issued | 1 | 1 | ||||
Treasury stock purchased | (187) | (187) | ||||
ENDING BALANCE at Mar. 31, 2024 | $ 120 | $ 219,591 | $ 300,227 | $ (21,303) | $ (19,051) | $ 479,584 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||
Dividends paid on common stock | $ 0.21 | $ 0.21 | $ 0.63 | $ 0.63 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 36,652,000 | $ 23,676,000 |
Items not requiring (providing) cash: | ||
Depreciation | 4,452,000 | 3,429,000 |
Gain on disposal of fixed assets | (13,000) | (317,000) |
Stock option and stock grant expense | 940,000 | 761,000 |
Loss on sale/write-down of REO | 55,000 | 140,000 |
Amortization of intangible assets | 3,053,000 | 1,615,000 |
Accretion of purchase accounting adjustments | (4,277,000) | (2,166,000) |
Increase in cash surrender value of bank owned life insurance (BOLI) | (1,413,000) | (1,006,000) |
Provision for credit losses | 2,700,000 | 16,266,000 |
Loss realized on sale of AFS securities | 1,489,000 | |
Net (accretion) amortization of premiums and discounts on securities | (500,000) | 646,000 |
Originations of loans held for sale | (16,263,000) | (14,673,000) |
Proceeds from sales of loans held for sale | 16,021,000 | 14,723,000 |
Gain on sales of loans held for sale | (616,000) | (550,000) |
Changes in: | ||
Accrued interest receivable | (2,936,000) | (2,901,000) |
Prepaid expenses and other assets | (848,000) | (815,000) |
Accounts payable and other liabilities | 8,889,000 | 136,000 |
Deferred income taxes | 420,000 | (1,981,000) |
Accrued interest payable | 7,242,000 | 2,383,000 |
Net cash provided by operating activities | 55,047,000 | 39,366,000 |
Cash flows from investing activities: | ||
Net increase in loans | (149,660,000) | (311,095,000) |
Net change in interest-bearing deposits | 744,000 | 1,244,000 |
Proceeds from maturities of available for sale securities | 28,032,000 | 27,987,000 |
Proceeds from sales of available for sale securities | 29,375,000 | 136,714,000 |
Net redemptions (purchases) of Federal Home Loan Bank stock | 2,873,000 | (788,000) |
Net purchases of Federal Reserve Bank of St. Louis stock | (6,000) | (2,701,000) |
Purchases of available-for-sale securities | (70,848,000) | (131,827,000) |
Purchases of long-term investment | (160,000) | (165,000) |
Purchases of premises and equipment | (7,125,000) | (4,225,000) |
Net cash received in acquisition | 210,704,000 | |
Investments in state & federal tax credits | (6,494,000) | (4,423,000) |
Proceeds from sale of fixed assets | 16,000 | 3,464,000 |
Proceeds from sale of foreclosed assets | 992,000 | 1,122,000 |
Proceeds from BOLI claim | 270,000 | |
Net cash used in investing activities | (172,261,000) | (73,719,000) |
Cash flows from financing activities: | ||
Net decrease in demand deposits and savings accounts | (10,304,000) | (104,729,000) |
Net increase in certificates of deposits | 280,292,000 | 193,749,000 |
Net decrease in securities sold under agreements to repurchase | (27,629,000) | |
Proceeds from Federal Home Loan Bank advances | 271,000,000 | 1,579,630,000 |
Repayments of Federal Home Loan Bank advances | (302,539,000) | (1,572,668,000) |
Exercise of stock options | 391,000 | |
Purchase of treasury stock | (187,000) | |
Dividends paid on common stock | (7,145,000) | (6,252,000) |
Net cash provided by financing activities | 231,508,000 | 62,101,000 |
Increase in cash and cash equivalents | 114,294,000 | 27,748,000 |
Cash and cash equivalents at beginning of period | 53,979,000 | 86,792,000 |
Cash and cash equivalents at end of period | 168,273,000 | 114,540,000 |
Noncash investing and financing activities: | ||
Conversion of loans to foreclosed real estate | 1,742,000 | 1,073,000 |
Conversion of loans to repossessed assets | 191,000 | 58,000 |
Right of use assets obtained in exchange for lease obligations: Operating Leases | 734,000 | 82,000 |
Cash paid during the period for: | ||
Interest (net of interest credited) | 5,984,000 | 3,717,000 |
Income taxes | $ 1,882,000 | 4,062,000 |
Citizens Bancshares Company | ||
In conjunction with the acquisition, liabilities were assumed as follows: | ||
Fair value of assets acquired | 1,019,722,000 | |
Less: common stock issued | 98,280,000 | |
Cash paid | 34,889,000 | |
Liabilities assumed | $ 886,553,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited interim condensed 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, 2023, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and nine- month periods ended March 31, 2024, 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, 2023 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 | 9 Months Ended |
Mar. 31, 2024 | |
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 condensed 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. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, estimated fair values of purchased loans, and certain other assumptions and judgmental factors relating to investment securities. 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 loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the Allowance for Credit Losses (“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. 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 March 31, 2024, or June 30, 2023. 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. 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 a provision for credit losses (“PCL”) charged to current earnings. The ACL is increased by the provision for credit 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, the Company utilizes 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 to include 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. 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. 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. 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 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, if any, 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. Non-Employee 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. Wealth Management Assets and Fees. New Accounting Pronouncements: In January 2021, the Financial Accounting Standards Board (“FASB”), published ASU 2021-01, “Reference Rate Reform. (Topic 848)”. ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amended the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. Originally, the amendments in this update did not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022 except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). With the issuance of ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2021-01 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not expect adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. On July 1, 2023, the Company adopted ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors” for entities that have adopted the CECL model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2022-02 also requires that public business entities disclose current-period gross charge offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost.” The adoption of this update did not have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 was issued to address requests by investors and creditors for enhanced transparency and decision usefulness of income tax disclosures. Public business entities (PBEs) would be required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdictions that result in significant differences between the statutory and effective tax rates. All entities would be required to annually disclose taxes paid disaggregated by federal, state, and foreign taxes, as well as disaggregating taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. The ASU is effective for PBEs for fiscal years beginning after December 15, 2024. The Company does not expect adoption of ASU 2023-09 to have a material impact on its consolidated financial statements |
Available for Sale Securities
Available for Sale Securities | 9 Months Ended |
Mar. 31, 2024 | |
Available for Sale Securities | |
Available for Sale Securities | Note 3: Available for Sale Securities The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following: March 31, 2024 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 $ 30,008 $ 25 $ (1,925) $ — $ 28,108 Corporate obligations 35,826 126 (2,139) — 33,813 Asset backed securities 63,561 1,514 (280) — 64,795 Other securities 5,657 21 (70) — 5,608 Total debt and equity securities 135,052 1,686 (4,414) — 132,324 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 107,807 645 (7,471) — 100,981 Commercial MBS issued by GSEs 65,311 150 (6,404) — 59,057 CMOs issued by GSEs 149,899 58 (8,630) — 141,327 Total MBS and CMOs 323,017 853 (22,505) — 301,365 Total AFS securities $ 458,069 $ 2,539 $ (26,919) $ — $ 433,689 June 30, 2023 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 $ 45,285 $ 20 $ (2,737) $ — $ 42,568 Corporate obligations 35,700 19 (3,181) — 32,538 Asset backed securities 67,897 1,274 (545) 68,626 Other securities 3,587 39 (56) — 3,570 Total debt and equity securities 152,469 1,352 (6,519) — 147,302 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 97,612 122 (7,610) — 90,124 Commercial MBS issued by GSEs 60,333 11 (6,959) — 53,385 CMOs issued by GSEs 135,202 9 (8,468) — 126,743 Total MBS and CMOs 293,147 142 (23,037) — 270,252 Total AFS securities $ 445,616 $ 1,494 $ (29,556) $ — $ 417,554 The amortized cost and estimated fair value of investment and MBS, 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. March 31, 2024 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 1,455 $ 1,438 After one year but less than five years 25,465 24,522 After five years but less than ten years 59,624 57,701 After ten years 48,508 48,663 Total investment securities 135,052 132,324 MBS and CMOs 323,017 301,365 Total AFS securities $ 458,069 $ 433,689 The carrying value of investment and MBS pledged as collateral to secure public deposits amounted to $268.0 million and $253.9 million at March 31, 2024 and June 30, 2023, respectively. The securities pledged consist of marketable securities, including $137.3 million and $129.2 million of MBS, $107.5 million and $94.8 million of CMOs, $18.7 million and $26.5 million of State and Political Subdivisions Obligations, and $4.5 million and $3.4 million of Other Securities at March 31, 2024 and June 30, 2023, 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 March 31, 2024 and June 30, 2023: March 31, 2024 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 1,831 $ 8 $ 21,855 $ 1,917 $ 23,686 $ 1,925 Corporate obligations — — 26,908 2,139 26,908 2,139 Asset backed securities — — 10,464 280 10,464 280 Other securities 4,709 24 284 46 4,993 70 MBS and CMOs 72,766 831 188,120 21,674 260,886 22,505 Total AFS securities $ 79,306 $ 863 $ 247,631 $ 26,056 $ 326,937 $ 26,919 June 30, 2023 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 11,574 $ 184 $ 26,763 $ 2,553 $ 38,337 $ 2,737 Corporate obligations 14,709 1,074 13,821 2,107 28,530 3,181 Asset backed securities 22,628 263 698 282 23,326 545 Other securities 1,970 11 350 45 2,320 56 MBS and CMOs 87,354 1,525 145,673 21,512 233,027 23,037 Total AFS securities $ 138,235 $ 3,057 $ 187,305 $ 26,499 $ 325,540 $ 29,556 Obligations of state and political subdivisions Corporate and other Obligations. Asset-Backed securities. MBS and CMOs The Company does not believe that any individual unrealized loss as of March 31, 2024, 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 | 9 Months Ended |
Mar. 31, 2024 | |
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) March 31, 2024 June 30, 2023 Real Estate Loans: Residential $ 1,200,723 $ 1,133,417 Construction 432,030 550,052 Commercial 1,608,935 1,562,379 Consumer loans 140,123 133,515 Commercial loans 616,603 599,030 3,998,414 3,978,393 Loans in process (226,969) (359,196) Deferred loan fees, net (251) (299) Allowance for credit losses (51,336) (47,820) Total loans $ 3,719,858 $ 3,571,078 The Company’s lending activities consist of originating 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 March 31, 2024, the Bank had purchased participations in 69 loans totaling $174.6 million, as compared to 86 loans totaling $155.6 million at June 30, 2023. Residential Mortgage Lending. periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. 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 market area. The majority of the multi-family residential loans that have been 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 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 and supply, 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 for a 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 12 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 provide the Company an opportunity to assess risk. At March 31, 2024, construction loans outstanding included 41 loans, totaling $18.0 million, for which a modification had been agreed to. At June 30, 2023, construction loans outstanding included 53 loans, totaling $33.4 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 modifications to borrowers experiencing financial difficulty. Consumer Lending Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 90% 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 the 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 66 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 to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay. Commercial Business Lending Allowance for Credit Losses. The PCL for the three- and nine- month periods ended March 31, 2024, was $900,000 and $2.7 million, respectively, compared to $10.1 million and $16.3 million in the same periods of the prior fiscal year. The PCL for the nine- month period ended March 31, 2024 was the result of a $4.9 million provision attributable to the ACL for loan balances outstanding, partially offset by a recovery of $2.2 million in provision attributable to the allowance for off-balance sheet credit exposures. In the same period of the prior fiscal year, the ACL required for PCD loans acquired in the Citizens merger was $1.1 million, and was funded through purchase accounting adjustments, while the ACL required for non-PCD loans acquired in the Citizens merger was $5.2 million, and was funded through a charge to PCL. Additionally, the allowance for off-balance sheet credit exposures in the prior period was increased by $1.8 million due to the Citizens merger and funded through a charge to PCL. Exclusive of the charges required as a result of the Citizens merger, the Company would have recorded a PCL of approximately $3.1 million and $9.3 million for the three- and nine-month periods ended March 31, 2023, respectively, of which $2.0 million and $6.6 million, respectively, were attributable to the required ACL for loan balances outstanding, while $1.1 million and $2.7 million, respectively, were attributable to the required allowance for off-balance sheet credit exposures, for the three- and nine-month periods. The Company’s assessment of the economic outlook at March 31, 2024, was slightly improved as compared to the assessment as of June 30, 2023. Qualitative adjustments in the Company’s ACL model were slightly decreased based on a reduction in the pace of growth in the Company’s loan portfolio. The Company modestly increased ACL adjustments to some individually analyzed classified loans that have been slow to recover from the COVID-19 pandemic and other smaller balance loans. As a percentage of average loans outstanding, the Company recorded net charge offs of five basis points (annualized) for the first nine months of fiscal 2024 compared to two basis points in the same period of the prior fiscal year. Decreased provisioning for off-balance sheet credit exposures is attributable primarily to changes in the level of outstanding credit commitments. The Company has estimated its expected credit losses as of March 31, 2024, under ASC 326-20, and management believes the ACL as of that date is adequate based on that estimate. Specifically, management considered the following primary qualitative items in its estimate of the ACL: ● economic conditions and projections as provided by Moody’s Analytics, including baseline and downside scenarios, were utilized in the Company’s estimate at March 31, 2024. 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 stable risk factor, relative to June 30, 2023; ● the pace of growth of the Company’s loan portfolio, exclusive of acquisitions or government guaranteed loans, relative to overall economic growth. This measure is considered to be a moderate and slightly decreasing risk factor, relative to June 30, 2023; ● levels and trends for loan delinquencies nationally and in the region. This is considered to be a low and stable risk factor, relative to June 30, 2023; PCD Loans. The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, the net premium or net discount is adjusted to reflect the Company’s allowance for credit losses recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans. Loans that the Company acquired from Citizens and Fortune, that at the time of acquisition had more-than-insignificant deterioration of credit quality since origination, are classified as PCD loans and presented in the tables below at acquisition carrying value: (dollars in thousands) January 20, 2023 PCD Loans – Citizens Purchase price of PCD loans at acquisition $ 27,481 Allowance for credit losses at acquisition (1,121) Fair value of PCD loans at acquisition $ 26,360 (dollars in thousands) February 25, 2022 PCD Loans – Fortune Purchase price of PCD loans at acquisition $ 15,055 Allowance for credit losses at acquisition (120) Fair value of PCD loans at acquisition $ 14,935 The following tables present the balance in the ACL based on portfolio segment as of March 31, 2024 and 2023, and activity in the ACL for the three- and nine- month periods ended March 31, 2024 and 2023: At period end and for the nine months ended March 31, 2024 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 15,641 $ 2,664 $ 22,838 $ 909 $ 5,768 $ 47,820 Provision (benefit) charged to expense (151) (28) 4,250 185 594 4,850 Losses charged off (133) (289) (496) (263) (249) (1,430) Recoveries — — 18 69 9 96 Balance, end of period $ 15,357 $ 2,347 $ 26,610 $ 900 $ 6,122 $ 51,336 At period end and for the three months ended March 31, 2024 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 15,096 $ 2,864 $ 25,177 $ 890 $ 6,057 $ 50,084 Provision (benefit) charged to expense 262 (517) 1,433 53 127 1,358 Losses charged off (1) — — (48) (65) (114) Recoveries — — — 5 3 8 Balance, end of period $ 15,357 $ 2,347 $ 26,610 $ 900 $ 6,122 $ 51,336 At period end and for the nine months ended March 31, 2023 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 4,462 1,406 1,324 283 4,325 11,800 Losses charged off (2) — (245) (189) (17) (453) Recoveries 1 — — 18 6 25 Balance, end of period $ 13,465 $ 3,638 $ 18,545 $ 986 $ 9,051 $ 45,685 At period end and for the three months ended March 31, 2023 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 12,499 $ 2,754 $ 16,806 $ 761 $ 4,663 $ 37,483 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 870 872 1,111 165 4,167 7,185 Losses charged off — — — (113) — (113) Recoveries — — — 9 — 9 Balance, end of period $ 13,465 $ 3,638 $ 18,545 $ 986 $ 9,051 $ 45,685 The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of March 31, 2024 and 2023, and activity in the allowance for the three- and nine- month periods ended March 31, 2024 and 2023: At period end and for the nine months ended March 31, 2024 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 $ 71 $ 4,809 $ 475 $ 73 $ 860 $ 6,288 Provision (benefit) charged to expense 32 (2,179) (59) — 56 (2,150) Balance, end of period $ 103 $ 2,630 $ 416 $ 73 $ 916 $ 4,138 At period end and for the three months ended March 31, 2024 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 $ 77 $ 3,083 $ 469 $ 68 $ 899 $ 4,596 Provision (benefit) charged to expense 26 (453) (53) 5 17 (458) Balance, end of period $ 103 $ 2,630 $ 416 $ 73 $ 916 $ 4,138 At period end and for the nine months ended March 31, 2023 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 $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 Provision (benefit) charged to expense 47 3,400 (80) 41 1,058 4,466 Balance, end of period $ 105 $ 5,578 $ 341 $ 102 $ 1,698 $ 7,824 At period end and for the three months ended March 31, 2023 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 $ 70 $ 3,629 $ 480 $ 56 $ 702 $ 4,937 Provision (benefit) charged to expense 35 1,949 (139) 46 996 2,887 Balance, end of period $ 105 $ 5,578 $ 341 $ 102 $ 1,698 $ 7,824 The current fiscal year-to-date gross charge-offs by loan class and year of origination is presented in the following table: Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior loans Total Real Estate Loans: Residential $ — $ — $ — $ 97 $ — $ 36 $ — $ 133 Construction — 100 78 111 — — — 289 Commercial — 496 — — — — — 496 Consumer loans 7 123 97 29 — 7 — 263 Commercial loans — 59 180 10 — — — 249 Total current-period gross charge-offs $ 7 $ 778 $ 355 $ 247 $ — $ 43 $ — $ 1,430 Credit Quality Indicators annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings: 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 March 31, 2024. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior loans Total Residential Real Estate Pass $ 144,167 $ 321,471 $ 291,486 $ 240,540 $ 88,617 $ 99,045 $ 11,265 $ 1,196,591 Watch 772 248 87 543 100 212 — 1,962 Special Mention — — — — — — — — Substandard 30 869 467 190 94 520 — 2,170 Doubtful — — — — — — — — Total Residential Real Estate $ 144,969 $ 322,588 $ 292,040 $ 241,273 $ 88,811 $ 99,777 $ 11,265 $ 1,200,723 Construction Real Estate Pass $ 53,463 $ 131,996 $ 19,602 $ — $ — $ — $ — $ 205,061 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total Construction Real Estate $ 53,463 $ 131,996 $ 19,602 $ — $ — $ — $ — $ 205,061 Commercial Real Estate Pass $ 199,494 $ 404,802 $ 459,603 $ 250,979 $ 79,670 $ 104,358 $ 43,014 $ 1,541,920 Watch 1,019 23,038 1,392 155 4,112 77 520 30,313 Special Mention — — — — — — — — Substandard 5,083 1,482 28,198 162 34 929 814 36,702 Doubtful — — — — — — — — Total Commercial Real Estate $ 205,596 $ 429,322 $ 489,193 $ 251,296 $ 83,816 $ 105,364 $ 44,348 $ 1,608,935 Consumer Pass $ 24,221 $ 21,497 $ 8,513 $ 3,436 $ 1,002 $ 1,175 $ 79,919 $ 139,763 Watch 3 — — — — — — 3 Special Mention — — — — — — — — Substandard 1 23 18 4 20 193 98 357 Doubtful — — — — — — — — Total Consumer $ 24,225 $ 21,520 $ 8,531 $ 3,440 $ 1,022 $ 1,368 $ 80,017 $ 140,123 Commercial Pass $ 136,749 $ 87,926 $ 58,761 $ 57,240 $ 7,220 $ 12,207 $ 249,891 $ 609,994 Watch 1,525 323 101 — — 17 537 2,503 Special Mention — — — — — — — — Substandard 564 751 1,182 108 261 905 335 4,106 Doubtful — — — — — — — — Total Commercial $ 138,838 $ 89,000 $ 60,044 $ 57,348 $ 7,481 $ 13,129 $ 250,763 $ 616,603 Total Loans Pass $ 558,094 $ 967,692 $ 837,965 $ 552,195 $ 176,509 $ 216,785 $ 384,089 $ 3,693,329 Watch 3,319 23,609 1,580 698 4,212 306 1,057 34,781 Special Mention — — — — — — — — Substandard 5,678 3,125 29,865 464 409 2,547 1,247 43,335 Doubtful — — — — — — — — Total $ 567,091 $ 994,426 $ 869,410 $ 553,357 $ 181,130 $ 219,638 $ 386,393 $ 3,771,445 At March 31, 2024, PCD loans comprised $40.0 million of credits rated “Pass”; $8.5 million of credits rated “Watch”; none rated “Special Mention”; $3.4 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, 2023. This table includes PCD loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification: Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior loans Total Residential Real Estate Pass $ 328,142 $ 312,853 $ 252,077 $ 103,735 $ 25,651 $ 96,035 $ 9,100 $ 1,127,593 Watch 1,214 1,136 616 108 198 27 5 3,304 Special Mention — — — — — — — — Substandard 837 316 510 — — 857 — 2,520 Doubtful — — — — — — — — Total Residential Real Estate $ 330,193 $ 314,305 $ 253,203 $ 103,843 $ 25,849 $ 96,919 $ 9,105 $ 1,133,417 Construction Real Estate Pass $ 124,479 $ 50,011 $ 10,946 $ 3,190 $ — $ — $ 941 $ 189,567 Watch 280 — — — — — — 280 Special Mention — — — — — — — — Substandard 330 679 — — — — — 1,009 Doubtful — — — — — — — — Total Construction Real Estate $ 125,089 $ 50,690 $ 10,946 $ 3,190 $ — $ — $ 941 $ 190,856 Commercial Real Estate Pass $ 462,643 $ 474,140 $ 279,921 $ 89,272 $ 74,653 $ 83,871 $ 37,443 $ 1,501,943 Watch 8,122 5,382 163 3,879 — 117 — 17,663 Special Mention 2,940 — — — — — — 2,940 Substandard 7,690 26,465 2,425 288 473 1,735 757 39,833 Doubtful — — — — — — — — Total Commercial Real Estate $ 481,395 $ 505,987 $ 282,509 $ 93,439 $ 75,126 $ 85,723 $ 38,200 $ 1,562,379 Consumer Pass $ 36,003 $ 14,530 $ 5,446 $ 1,692 $ 717 $ 1,379 $ 73,225 $ 132,992 Watch 71 — 62 — — — — 133 Special Mention — — — — — — — — Substandard 33 2 1 — — 41 313 390 Doubtful — — — — — — — — Total Consumer $ 36,107 $ 14,532 $ 5,509 $ 1,692 $ 717 $ 1,420 $ 73,538 $ 133,515 Commercial Pass $ 138,500 $ 83,011 $ 71,054 $ 10,723 $ 6,239 $ 10,657 $ 272,710 $ 592,894 Watch 698 211 91 3 — — 2,549 3,552 Special Mention — — — — — — — — Substandard 860 329 128 184 175 574 334 2,584 Doubtful — — — — — — — — Total Commercial $ 140,058 $ 83,551 $ 71,273 $ 10,910 $ 6,414 $ 11,231 $ 275,593 $ 599,030 Total Loans Pass $ 1,089,767 $ 934,545 $ 619,444 $ 208,612 $ 107,260 $ 191,942 $ 393,419 $ 3,544,989 Watch 10,385 6,729 932 3,990 198 144 2,554 24,932 Special Mention 2,940 — — — — — — 2,940 Substandard 9,750 27,791 3,064 472 648 3,207 1,404 46,336 Doubtful — — — — — — — — Total $ 1,112,842 $ 969,065 $ 623,440 $ 213,074 $ 108,106 $ 195,293 $ 397,377 $ 3,619,197 At June 30, 2023, PCD loans comprised $37.4 million of credits rated “Pass”; $12.7 million of credits rated “Watch”, none rated “Special Mention”, $6.3 million of credits rated “Substandard” and none rated “Doubtful”. Past-due Loans March 31, 2024 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Accruing (dollars in thousands) Real Estate Loans: Residential $ 1,068 $ 334 $ 879 $ 2,281 $ 1,198,442 $ 1,200,723 $ 81 Construction 486 69 — 555 204,506 205,061 — Commercial 442 129 1,112 1,683 1,607,252 1,608,935 — Consumer loans 795 257 193 1,245 138,878 140,123 — Commercial loans 1,613 333 930 2,876 613,727 616,603 — Total loans $ 4,404 $ 1,122 $ 3,114 $ 8,640 $ 3,762,805 $ 3,771,445 $ 81 June 30, 2023 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Accruing (dollars in thousands) Real Estate Loans: Residential $ 1,984 $ 401 $ 483 $ 2,868 $ 1,130,549 $ 1,133,417 $ 109 Construction 443 311 698 1,452 189,404 190,856 — Commercial 616 1,854 1,580 4,050 1,558,329 1,562,379 — Consumer loans 456 124 212 792 132,723 133,515 — Commercial loans 713 77 789 1,579 597,451 599,030 — Total loans $ 4,212 $ 2,767 $ 3,762 $ 10,741 $ 3,608,456 $ 3,619,197 $ 109 At March 31, 2024, and June 30, 2023 there was no PCD loan that was 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. March 31, 2024 Amortized cost basis of loans determined to be Related allowance (dollars in thousands) collateral dependent for credit losses Real estate loans 1- to 4-family residential real estate $ 807 $ 126 Commercial real estate 23,230 9,269 Commercial 1,178 494 Total loans $ 25,215 $ 9,889 June 30, 2023 Amortized cost basis of loans determined to be Related allowance (dollars in thousands) collateral dependent for credit losses Real estate loans 1- to 4-family residential $ 837 $ 156 Construction real estate 642 79 Commercial real estate 4,897 666 Total loans $ 6,376 $ 901 The increase in commercial real estate collateral dependent loans is due primarily to two metropolitan area hotel relationships being individually analyzed as of March 31, 2024; the Company was previously evaluating its non-owner occupied commercial real estate pool for qualitative adjustments related to similar loans. Nonaccrual Loans (dollars in thousands) March 31, 2024 June 30, 2023 Residential real estate $ 1,416 $ 934 Construction real estate — 698 Commercial real estate 3,250 4,564 Consumer loans 674 256 Commercial loans 1,989 1,091 Total loans $ 7,329 $ 7,543 At March 31, 2024, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three- and nine- month periods ended March 31, 2024 and 2023, was immaterial. Modifications to Borrowers Experiencing Financial Difficulty. During the three- month period ended March 31, 2024, there were no loan modifications made for borrowers experiencing financial difficulty. During the nine- month period ended March 31, 2024, certain loan modifications were made to loans for borrowers experiencing financial difficulty. They are shown, segregated by class, in the table below: For the nine-month periods ended March 31, 2024 Number of Recorded (dollars in thousands) modifications Investment Residential real estate — $ — Construction real estate — — Commercial real estate — — Consumer loans — — Commercial loans 2 859 Total 2 $ 859 Performing loans classified as modifications to borrowers experiencing financial difficulty outstanding at March 31, 2024 are shown in the following table segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below. March 31, 2024 Term Interest Total Class of Principal Payment Extension Rate Financing Forgiveness Delays Modifications Reduction Receivable (dollars in thousands) Residential real estate $ — $ — $ 807 $ — 0.07 % Construction real estate — — — — — % Commercial real estate — — 23,627 — 1.47 % |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Mar. 31, 2024 | |
Premises and Equipment | |
Premises and Equipment | Note 5: Premises and Equipment Following is a summary of premises and equipment: (dollars in thousands) March 31, 2024 June 30, 2023 Land $ 15,380 $ 15,415 Buildings and improvements 83,982 79,661 Construction in progress 347 450 Furniture, fixtures, equipment and software 27,095 26,404 Automobiles 112 122 Operating leases ROU asset 6,859 6,125 133,775 128,177 Less accumulated depreciation 37,974 35,780 $ 95,801 $ 92,397 Leases. All of the Company’s leases are classified as operating leases. These operating leases are 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. In the February 2022 acquisition of Fortune, the Company assumed a ground lease with an entity that is controlled by a Company insider. This property is in St. Louis County, MO and is in its fourth year of a twenty year term. 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 expected lease terms range from 18 months to 20 years. March 31, 2024 June 30, 2023 Consolidated Balance Sheet Operating leases ROU asset $ 6,859 $ 6,125 Operating leases liability $ 6,859 $ 6,125 For the three-month periods ended For the nine-month periods ended March 31, March 31, (dollars in thousands) 2024 2023 2024 2023 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 294 $ 189 $ 880 $ 467 (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 $ 208 $ 148 $ 623 $ 354 ROU assets obtained in exchange for operating lease obligations: $ — $ — $ 2,445 $ — At March 31, 2024, future expected lease payments for leases with terms exceeding one year were as follows: (dollars in thousands) 2024 $ 215 2025 806 2026 754 2027 742 2028 728 Thereafter 8,930 Future lease payments expected $ 12,175 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 nine- month periods ended March 31, 2024, income recognized from these lessor agreements was , respectively. For the three- and nine- month periods ended March 31, 2023, income recognized from these lessor agreements was |
Deposits
Deposits | 9 Months Ended |
Mar. 31, 2024 | |
Deposits | |
Deposits | Note 6: Deposits Deposits are summarized as follows: (dollars in thousands) March 31, 2024 June 30, 2023 Non-interest bearing accounts $ 525,959 $ 597,600 NOW accounts 1,300,358 1,328,423 Money market deposit accounts 369,653 452,728 Savings accounts 455,212 282,753 Certificates 1,344,328 1,064,036 Total Deposit Accounts $ 3,995,510 $ 3,725,540 Brokered certificates totaled $176.9 million at March 31, 2024, compared to $146.5 million at June 30, 2023. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2024 | |
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 Nine months ended March 31, March 31, (dollars in thousands except per share data) 2024 2023 2024 2023 Net income $ 11,307 $ 2,409 $ 36,652 $ 23,676 Less: distributed earnings allocated to participating securities (12) (10) (37) (31) Less: undistributed earnings allocated to participating securities (46) (8) (151) (89) Net income available to common shareholders $ 11,249 $ 2,391 $ 36,464 $ 23,556 Denominator for basic earnings per share - Weighted-average shares outstanding 11,301,577 10,843,689 11,298,174 9,739,673 Effect of dilutive securities stock options or awards 10,971 14,652 9,260 20,459 Denominator for diluted earnings per share 11,312,548 10,858,341 11,307,434 9,760,132 Basic earnings per share available to common stockholders $ 1.00 $ 0.22 $ 3.23 $ 2.42 Diluted earnings per share available to common stockholders $ 0.99 $ 0.22 $ 3.22 $ 2.41 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 75,000 and 79,830 were excluded from the computation of diluted earnings per share for the three- and nine- month periods ended March 31, 2024, respectively, while outstanding options and shares of restricted stock totaling 84,740 and 66,440 were excluded from the computation of diluted earnings per share for the three- and nine- month periods ended March 31, 2023, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
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 examinations by tax authorities for tax years ending June 30, 2019 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 nine-month periods ended (dollars in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Income taxes Current $ 2,417 $ 2,572 $ 9,077 $ 8,269 Deferred 420 (1,994) 420 (1,981) Total income tax provision $ 2,837 $ 578 $ 9,497 $ 6,288 The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows: (dollars in thousands) March 31, 2024 June 30, 2023 Deferred tax assets: Provision for losses on loans $ 12,070 $ 12,101 Accrued compensation and benefits 969 974 NOL carry forwards acquired 123 709 Low income tax credit carry forward 595 1,192 Unrealized loss on other real estate 949 818 Unrealized loss on available for sale securities 5,363 6,174 Total deferred tax assets 20,069 21,968 Deferred tax liabilities: Purchase accounting adjustments 2,449 2,348 Depreciation 4,684 4,276 FHLB stock dividends 120 120 Prepaid expenses 677 728 Other 509 1,636 Total deferred tax liabilities 8,439 9,108 Net deferred tax asset $ 11,630 $ 12,860 As of March 31, 2024, the Company had approximately $557,000 in federal net operating loss carryforwards, which were acquired in the July 2009 Southern Bank of Commerce merger, the February 2014 Citizens State Bankshares of Bald Knob, Inc. merger, the April 2020 Central Federal Savings and Loan merger, the February 2022 Fortune merger, and the January 2023 Citizens merger. 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 2030. 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 nine-month periods ended (dollars in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Tax at statutory rate $ 2,970 $ 627 $ 9,692 $ 6,292 Increase (reduction) in taxes resulting from: Nontaxable municipal income (124) (54) (349) (211) State tax, net of Federal benefit 61 (179) 356 — Cash surrender value of Bank-owned life insurance (101) (77) (297) (211) Tax credit benefits (3) (3) (10) (7) Other, net 34 264 105 425 Actual provision $ 2,837 $ 578 $ 9,497 $ 6,288 For the three- and nine- month periods ended March 31, 2024 and 2023, 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 | 9 Months Ended |
Mar. 31, 2024 | |
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 , and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and nine- month period ended March 31, 2024, retirement plan expenses recognized for the Plan totaled approximately million 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 |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Mar. 31, 2024 | |
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 SOFR. 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 March 31, 2024, the Debentures carried an interest rate of 8.34%. The balance of the Debentures outstanding was $7.2 million at both March 31, 2024 and June 30, 2023. The Company used its net proceeds for working capital and investment in its subsidiaries. In connection with the October 2013 Ozarks Legacy Community Financial, Inc. (OLCF) merger, 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 SOFR, are now redeemable at par, and mature in 2035. At March 31, 2024, the current rate was 8.04%. The carrying value of the debt securities was approximately $2.8 million and $2.7 million at March 31, 2024 and June 30, 2023, respectively. In connection with the August 2014 Peoples Service Company, Inc. (PSC) merger, 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 SOFR, are now redeemable at par, and mature in 2035. At March 31, 2024, the current rate was 7.39%. The carrying value of the debt securities was approximately $5.5 million at both March 31, 2024 and June 30, 2023. 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 $467,000 and $464,000 at March 31, 2024 and June 30, 2023, respectively. In connection with the February 2022 Fortune merger, the Company assumed $7.5 million in fixed-to-floating rate subordinated notes. The notes had been issued in May 2021 by Fortune to a multi-lender group, bear interest through May 2026 at a fixed rate of 4.5% and will bear interest thereafter at SOFR plus 3.77%. The notes will be redeemable at par beginning in May 2026, and mature in May 2031. The carrying value of the notes was approximately $7.6 million and $7.7 million at March 31, 2024 and June 30, 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 $ 28,108 $ — $ 28,108 $ — Corporate obligations 33,813 — 33,813 — Asset backed securities 64,795 — 64,795 — Other securities 5,608 — 5,608 — MBS and CMOs 301,365 — 301,365 — Fair Value Measurements at June 30, 2023, 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 $ 42,568 $ — $ 42,568 $ — Corporate obligations 32,538 — 32,538 — Asset backed securities 68,626 — 68,626 — Other securities 3,570 — 3,570 — MBS and CMOs 270,252 — 270,252 — 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 March 31, 2024 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 $ 759 $ — $ — $ 759 Fair Value Measurements at June 30, 2023, 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 $ 1,472 $ — $ — $ 1,472 The following table presents losses recognized on assets measured on a non-recurring basis for the nine -month periods ended March 31, 2024 and 2023: For the nine months ended (dollars in thousands) March 31, 2024 March 31, 2023 Foreclosed and repossessed assets held for sale $ (687) $ (123) Total losses on assets measured on a non-recurring basis $ (687) $ (123) 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) March 31, 2024 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 759 Third party appraisal Marketability discount 17.9 - 17.9 % 17.9 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2023 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,472 Third party appraisal Marketability discount 14.9 - 14.9 % 14.9 % Fair Value of Financial Instruments. 30, 2023. March 31, 2024 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 $ 168,273 $ 168,273 $ — $ — Interest-bearing time deposits 490 — 490 — Stock in FHLB 8,667 — 8,667 — Stock in Federal Reserve Bank of St. Louis 9,067 — 9,067 — Loans receivable, net 3,719,858 — — 3,583,300 Accrued interest receivable 21,807 — 21,807 — Financial liabilities Deposits 3,995,510 2,651,184 — 1,337,030 Advances from FHLB 102,043 — 100,869 — Accrued interest payable 11,965 — 11,965 — Subordinated debt 23,143 — — 20,458 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2023 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 $ 53,979 $ 53,979 $ — $ — Interest-bearing time deposits 1,242 — 1,242 — Stock in FHLB 11,540 — 11,540 — Stock in Federal Reserve Bank of St. Louis 9,061 — 9,061 — Loans receivable, net 3,571,078 — — 3,393,791 Accrued interest receivable 18,871 — 18,871 — Financial liabilities Deposits 3,725,540 2,661,479 — 1,053,650 Advances from FHLB 133,514 — 131,821 — Accrued interest payable 4,723 — 4,723 — Subordinated debt 23,105 — — 20,318 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2024 | |
Business Combinations | |
Business Combinations | Note 12: Business Combinations On January 20, 2023, the Company completed its acquisition of Citizens and its wholly owned subsidiary, Citizens Bank, in a stock and cash transaction. In late February 2023, the Company merged Citizens Bank with and into Southern Bank, coincident to the data systems conversion. Under the acquisition method of accounting, the total purchase price is allocated to the net tangible and intangible assets acquired based on their estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Citizens acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Citizens Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $ 34,889 Common stock, at fair value 98,280 Total consideration $ 133,169 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 243,225 Investment securities 226,497 Loans 447,388 Premises and equipment 23,430 BOLI 21,733 Identifiable intangible assets 24,645 Miscellaneous other assets 9,366 Deposits (851,140) Securities sold under agreements to repurchase (27,629) Miscellaneous other liabilities (7,784) Total identifiable net assets 109,731 Goodwill $ 23,438 Of the total purchase price, $22.1 million was allocated to core deposit intangible, and is being amortized over ten years on a straight line basis, $2.6 million was allocated to the intangible related to the acquired trust and wealth management business line and is being amortized over ten years on a straight line basis, and $23.4 million was allocated to goodwill. None of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and Citizens Bank. To the extent that management revises any of the fair value of the above fair value adjustments as a result of continuing evaluation, the amount of goodwill recorded in the merger will change. The Company acquired the $461.5 million loan portfolio at an estimated fair value discount of $14.1 million. The excess of expected cash flows above the fair value of the performing portion of loans is being accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Loans acquired that were not subject to guidance relating to PCD loans include loans with a fair value of $419.5 million and gross contractual amounts receivable of $520.0 million at the date of acquisition. Management identified 48 PCD loans, with a book balance of $27.5 million, associated with the Citizens acquisition (ASC 310-30). The acquired business contributed revenues of $14.7 million and earnings of $2.5 million for the period from July 1, 2023 through March 31, 2024. The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on the first day of each period: Pro Forma For the three months ended March 31, (dollars in thousands) 2024 2023 Revenue $ 40,093 $ 43,232 Earnings $ 11,307 $ 4,103 Pro Forma For the nine months ended March 31, (dollars in thousands) 2024 2023 Revenue $ 121,465 $ 138,709 Earnings $ 36,652 $ 35,595 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
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 condensed 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. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, estimated fair values of purchased loans, and certain other assumptions and judgmental factors relating to investment securities. |
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 loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the Allowance for Credit Losses (“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. 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 March 31, 2024, or June 30, 2023. 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. 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 a provision for credit losses (“PCL”) charged to current earnings. The ACL is increased by the provision for credit 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, the Company utilizes 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 to include 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. 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. 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. |
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 |
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, if any, 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 | 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. |
Non-Employee Directors' Retirement | Non-Employee 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. |
Wealth Management Assets and Fees | Wealth Management Assets and Fees. |
New Accounting Pronouncements | New Accounting Pronouncements: In January 2021, the Financial Accounting Standards Board (“FASB”), published ASU 2021-01, “Reference Rate Reform. (Topic 848)”. ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amended the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. Originally, the amendments in this update did not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022 except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). With the issuance of ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, the sunset date for adoption of ASU 2021-01 was extended from December 31, 2022 to December 31, 2024. The Company is evaluating the impact of this ASU but does not expect it to have a material impact on the Company’s consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023. The Company does not expect adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. On July 1, 2023, the Company adopted ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors” for entities that have adopted the CECL model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2022-02 also requires that public business entities disclose current-period gross charge offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments – Credit Losses – Measured at Amortized Cost.” The adoption of this update did not have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 was issued to address requests by investors and creditors for enhanced transparency and decision usefulness of income tax disclosures. Public business entities (PBEs) would be required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdictions that result in significant differences between the statutory and effective tax rates. All entities would be required to annually disclose taxes paid disaggregated by federal, state, and foreign taxes, as well as disaggregating taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. The ASU is effective for PBEs for fiscal years beginning after December 15, 2024. The Company does not expect adoption of ASU 2023-09 to have a material impact on its consolidated financial statements |
Available for Sale Securities (
Available for Sale Securities (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Available for Sale Securities | |
Schedule of available for sale securities | March 31, 2024 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 $ 30,008 $ 25 $ (1,925) $ — $ 28,108 Corporate obligations 35,826 126 (2,139) — 33,813 Asset backed securities 63,561 1,514 (280) — 64,795 Other securities 5,657 21 (70) — 5,608 Total debt and equity securities 135,052 1,686 (4,414) — 132,324 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 107,807 645 (7,471) — 100,981 Commercial MBS issued by GSEs 65,311 150 (6,404) — 59,057 CMOs issued by GSEs 149,899 58 (8,630) — 141,327 Total MBS and CMOs 323,017 853 (22,505) — 301,365 Total AFS securities $ 458,069 $ 2,539 $ (26,919) $ — $ 433,689 June 30, 2023 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 $ 45,285 $ 20 $ (2,737) $ — $ 42,568 Corporate obligations 35,700 19 (3,181) — 32,538 Asset backed securities 67,897 1,274 (545) 68,626 Other securities 3,587 39 (56) — 3,570 Total debt and equity securities 152,469 1,352 (6,519) — 147,302 Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs): Residential MBS issued by governmental sponsored enterprises (GSEs) 97,612 122 (7,610) — 90,124 Commercial MBS issued by GSEs 60,333 11 (6,959) — 53,385 CMOs issued by GSEs 135,202 9 (8,468) — 126,743 Total MBS and CMOs 293,147 142 (23,037) — 270,252 Total AFS securities $ 445,616 $ 1,494 $ (29,556) $ — $ 417,554 |
Schedule of amortized cost and fair value of available-for-sale securities, by contractual maturity | March 31, 2024 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $ 1,455 $ 1,438 After one year but less than five years 25,465 24,522 After five years but less than ten years 59,624 57,701 After ten years 48,508 48,663 Total investment securities 135,052 132,324 MBS and CMOs 323,017 301,365 Total AFS securities $ 458,069 $ 433,689 |
Schedule of available-for-sale securities, continuous unrealized loss position and fair Value | March 31, 2024 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 1,831 $ 8 $ 21,855 $ 1,917 $ 23,686 $ 1,925 Corporate obligations — — 26,908 2,139 26,908 2,139 Asset backed securities — — 10,464 280 10,464 280 Other securities 4,709 24 284 46 4,993 70 MBS and CMOs 72,766 831 188,120 21,674 260,886 22,505 Total AFS securities $ 79,306 $ 863 $ 247,631 $ 26,056 $ 326,937 $ 26,919 June 30, 2023 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized (dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Obligations of state and political subdivisions $ 11,574 $ 184 $ 26,763 $ 2,553 $ 38,337 $ 2,737 Corporate obligations 14,709 1,074 13,821 2,107 28,530 3,181 Asset backed securities 22,628 263 698 282 23,326 545 Other securities 1,970 11 350 45 2,320 56 MBS and CMOs 87,354 1,525 145,673 21,512 233,027 23,037 Total AFS securities $ 138,235 $ 3,057 $ 187,305 $ 26,499 $ 325,540 $ 29,556 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Loans and Allowance for Credit Losses | |
Schedule of classes of loans | (dollars in thousands) March 31, 2024 June 30, 2023 Real Estate Loans: Residential $ 1,200,723 $ 1,133,417 Construction 432,030 550,052 Commercial 1,608,935 1,562,379 Consumer loans 140,123 133,515 Commercial loans 616,603 599,030 3,998,414 3,978,393 Loans in process (226,969) (359,196) Deferred loan fees, net (251) (299) Allowance for credit losses (51,336) (47,820) Total loans $ 3,719,858 $ 3,571,078 |
Schedule of PCD loans | (dollars in thousands) January 20, 2023 PCD Loans – Citizens Purchase price of PCD loans at acquisition $ 27,481 Allowance for credit losses at acquisition (1,121) Fair value of PCD loans at acquisition $ 26,360 (dollars in thousands) February 25, 2022 PCD Loans – Fortune Purchase price of PCD loans at acquisition $ 15,055 Allowance for credit losses at acquisition (120) Fair value of PCD loans at acquisition $ 14,935 |
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 nine months ended March 31, 2024 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 15,641 $ 2,664 $ 22,838 $ 909 $ 5,768 $ 47,820 Provision (benefit) charged to expense (151) (28) 4,250 185 594 4,850 Losses charged off (133) (289) (496) (263) (249) (1,430) Recoveries — — 18 69 9 96 Balance, end of period $ 15,357 $ 2,347 $ 26,610 $ 900 $ 6,122 $ 51,336 At period end and for the three months ended March 31, 2024 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 15,096 $ 2,864 $ 25,177 $ 890 $ 6,057 $ 50,084 Provision (benefit) charged to expense 262 (517) 1,433 53 127 1,358 Losses charged off (1) — — (48) (65) (114) Recoveries — — — 5 3 8 Balance, end of period $ 15,357 $ 2,347 $ 26,610 $ 900 $ 6,122 $ 51,336 At period end and for the nine months ended March 31, 2023 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 8,908 $ 2,220 $ 16,838 $ 710 $ 4,516 $ 33,192 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 4,462 1,406 1,324 283 4,325 11,800 Losses charged off (2) — (245) (189) (17) (453) Recoveries 1 — — 18 6 25 Balance, end of period $ 13,465 $ 3,638 $ 18,545 $ 986 $ 9,051 $ 45,685 At period end and for the three months ended March 31, 2023 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for credit losses: Balance, beginning of period $ 12,499 $ 2,754 $ 16,806 $ 761 $ 4,663 $ 37,483 Initial ACL on PCD loans 96 12 628 164 221 1,121 Provision charged to expense 870 872 1,111 165 4,167 7,185 Losses charged off — — — (113) — (113) Recoveries — — — 9 — 9 Balance, end of period $ 13,465 $ 3,638 $ 18,545 $ 986 $ 9,051 $ 45,685 |
Schedule of allowance for off-balance credit exposure | At period end and for the nine months ended March 31, 2024 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 $ 71 $ 4,809 $ 475 $ 73 $ 860 $ 6,288 Provision (benefit) charged to expense 32 (2,179) (59) — 56 (2,150) Balance, end of period $ 103 $ 2,630 $ 416 $ 73 $ 916 $ 4,138 At period end and for the three months ended March 31, 2024 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 $ 77 $ 3,083 $ 469 $ 68 $ 899 $ 4,596 Provision (benefit) charged to expense 26 (453) (53) 5 17 (458) Balance, end of period $ 103 $ 2,630 $ 416 $ 73 $ 916 $ 4,138 At period end and for the nine months ended March 31, 2023 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 $ 58 $ 2,178 $ 421 $ 61 $ 640 $ 3,358 Provision (benefit) charged to expense 47 3,400 (80) 41 1,058 4,466 Balance, end of period $ 105 $ 5,578 $ 341 $ 102 $ 1,698 $ 7,824 At period end and for the three months ended March 31, 2023 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 $ 70 $ 3,629 $ 480 $ 56 $ 702 $ 4,937 Provision (benefit) charged to expense 35 1,949 (139) 46 996 2,887 Balance, end of period $ 105 $ 5,578 $ 341 $ 102 $ 1,698 $ 7,824 |
Schedule of Gross charge-offs by loan class and year of origination | Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior loans Total Real Estate Loans: Residential $ — $ — $ — $ 97 $ — $ 36 $ — $ 133 Construction — 100 78 111 — — — 289 Commercial — 496 — — — — — 496 Consumer loans 7 123 97 29 — 7 — 263 Commercial loans — 59 180 10 — — — 249 Total current-period gross charge-offs $ 7 $ 778 $ 355 $ 247 $ — $ 43 $ — $ 1,430 |
Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity | Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior loans Total Residential Real Estate Pass $ 144,167 $ 321,471 $ 291,486 $ 240,540 $ 88,617 $ 99,045 $ 11,265 $ 1,196,591 Watch 772 248 87 543 100 212 — 1,962 Special Mention — — — — — — — — Substandard 30 869 467 190 94 520 — 2,170 Doubtful — — — — — — — — Total Residential Real Estate $ 144,969 $ 322,588 $ 292,040 $ 241,273 $ 88,811 $ 99,777 $ 11,265 $ 1,200,723 Construction Real Estate Pass $ 53,463 $ 131,996 $ 19,602 $ — $ — $ — $ — $ 205,061 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total Construction Real Estate $ 53,463 $ 131,996 $ 19,602 $ — $ — $ — $ — $ 205,061 Commercial Real Estate Pass $ 199,494 $ 404,802 $ 459,603 $ 250,979 $ 79,670 $ 104,358 $ 43,014 $ 1,541,920 Watch 1,019 23,038 1,392 155 4,112 77 520 30,313 Special Mention — — — — — — — — Substandard 5,083 1,482 28,198 162 34 929 814 36,702 Doubtful — — — — — — — — Total Commercial Real Estate $ 205,596 $ 429,322 $ 489,193 $ 251,296 $ 83,816 $ 105,364 $ 44,348 $ 1,608,935 Consumer Pass $ 24,221 $ 21,497 $ 8,513 $ 3,436 $ 1,002 $ 1,175 $ 79,919 $ 139,763 Watch 3 — — — — — — 3 Special Mention — — — — — — — — Substandard 1 23 18 4 20 193 98 357 Doubtful — — — — — — — — Total Consumer $ 24,225 $ 21,520 $ 8,531 $ 3,440 $ 1,022 $ 1,368 $ 80,017 $ 140,123 Commercial Pass $ 136,749 $ 87,926 $ 58,761 $ 57,240 $ 7,220 $ 12,207 $ 249,891 $ 609,994 Watch 1,525 323 101 — — 17 537 2,503 Special Mention — — — — — — — — Substandard 564 751 1,182 108 261 905 335 4,106 Doubtful — — — — — — — — Total Commercial $ 138,838 $ 89,000 $ 60,044 $ 57,348 $ 7,481 $ 13,129 $ 250,763 $ 616,603 Total Loans Pass $ 558,094 $ 967,692 $ 837,965 $ 552,195 $ 176,509 $ 216,785 $ 384,089 $ 3,693,329 Watch 3,319 23,609 1,580 698 4,212 306 1,057 34,781 Special Mention — — — — — — — — Substandard 5,678 3,125 29,865 464 409 2,547 1,247 43,335 Doubtful — — — — — — — — Total $ 567,091 $ 994,426 $ 869,410 $ 553,357 $ 181,130 $ 219,638 $ 386,393 $ 3,771,445 Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior loans Total Residential Real Estate Pass $ 328,142 $ 312,853 $ 252,077 $ 103,735 $ 25,651 $ 96,035 $ 9,100 $ 1,127,593 Watch 1,214 1,136 616 108 198 27 5 3,304 Special Mention — — — — — — — — Substandard 837 316 510 — — 857 — 2,520 Doubtful — — — — — — — — Total Residential Real Estate $ 330,193 $ 314,305 $ 253,203 $ 103,843 $ 25,849 $ 96,919 $ 9,105 $ 1,133,417 Construction Real Estate Pass $ 124,479 $ 50,011 $ 10,946 $ 3,190 $ — $ — $ 941 $ 189,567 Watch 280 — — — — — — 280 Special Mention — — — — — — — — Substandard 330 679 — — — — — 1,009 Doubtful — — — — — — — — Total Construction Real Estate $ 125,089 $ 50,690 $ 10,946 $ 3,190 $ — $ — $ 941 $ 190,856 Commercial Real Estate Pass $ 462,643 $ 474,140 $ 279,921 $ 89,272 $ 74,653 $ 83,871 $ 37,443 $ 1,501,943 Watch 8,122 5,382 163 3,879 — 117 — 17,663 Special Mention 2,940 — — — — — — 2,940 Substandard 7,690 26,465 2,425 288 473 1,735 757 39,833 Doubtful — — — — — — — — Total Commercial Real Estate $ 481,395 $ 505,987 $ 282,509 $ 93,439 $ 75,126 $ 85,723 $ 38,200 $ 1,562,379 Consumer Pass $ 36,003 $ 14,530 $ 5,446 $ 1,692 $ 717 $ 1,379 $ 73,225 $ 132,992 Watch 71 — 62 — — — — 133 Special Mention — — — — — — — — Substandard 33 2 1 — — 41 313 390 Doubtful — — — — — — — — Total Consumer $ 36,107 $ 14,532 $ 5,509 $ 1,692 $ 717 $ 1,420 $ 73,538 $ 133,515 Commercial Pass $ 138,500 $ 83,011 $ 71,054 $ 10,723 $ 6,239 $ 10,657 $ 272,710 $ 592,894 Watch 698 211 91 3 — — 2,549 3,552 Special Mention — — — — — — — — Substandard 860 329 128 184 175 574 334 2,584 Doubtful — — — — — — — — Total Commercial $ 140,058 $ 83,551 $ 71,273 $ 10,910 $ 6,414 $ 11,231 $ 275,593 $ 599,030 Total Loans Pass $ 1,089,767 $ 934,545 $ 619,444 $ 208,612 $ 107,260 $ 191,942 $ 393,419 $ 3,544,989 Watch 10,385 6,729 932 3,990 198 144 2,554 24,932 Special Mention 2,940 — — — — — — 2,940 Substandard 9,750 27,791 3,064 472 648 3,207 1,404 46,336 Doubtful — — — — — — — — Total $ 1,112,842 $ 969,065 $ 623,440 $ 213,074 $ 108,106 $ 195,293 $ 397,377 $ 3,619,197 |
Schedule of company's loan portfolio aging analysis | March 31, 2024 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Accruing (dollars in thousands) Real Estate Loans: Residential $ 1,068 $ 334 $ 879 $ 2,281 $ 1,198,442 $ 1,200,723 $ 81 Construction 486 69 — 555 204,506 205,061 — Commercial 442 129 1,112 1,683 1,607,252 1,608,935 — Consumer loans 795 257 193 1,245 138,878 140,123 — Commercial loans 1,613 333 930 2,876 613,727 616,603 — Total loans $ 4,404 $ 1,122 $ 3,114 $ 8,640 $ 3,762,805 $ 3,771,445 $ 81 June 30, 2023 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Accruing (dollars in thousands) Real Estate Loans: Residential $ 1,984 $ 401 $ 483 $ 2,868 $ 1,130,549 $ 1,133,417 $ 109 Construction 443 311 698 1,452 189,404 190,856 — Commercial 616 1,854 1,580 4,050 1,558,329 1,562,379 — Consumer loans 456 124 212 792 132,723 133,515 — Commercial loans 713 77 789 1,579 597,451 599,030 — Total loans $ 4,212 $ 2,767 $ 3,762 $ 10,741 $ 3,608,456 $ 3,619,197 $ 109 |
Schedule of company's collateral dependent loans and related ACL | March 31, 2024 Amortized cost basis of loans determined to be Related allowance (dollars in thousands) collateral dependent for credit losses Real estate loans 1- to 4-family residential real estate $ 807 $ 126 Commercial real estate 23,230 9,269 Commercial 1,178 494 Total loans $ 25,215 $ 9,889 June 30, 2023 Amortized cost basis of loans determined to be Related allowance (dollars in thousands) collateral dependent for credit losses Real estate loans 1- to 4-family residential $ 837 $ 156 Construction real estate 642 79 Commercial real estate 4,897 666 Total loans $ 6,376 $ 901 The increase in commercial real estate collateral dependent loans is due primarily to two metropolitan area hotel relationships being individually analyzed as of March 31, 2024; the Company was previously evaluating its non-owner occupied commercial real estate pool for qualitative adjustments related to similar loans. |
Schedule of company's nonaccrual loans | (dollars in thousands) March 31, 2024 June 30, 2023 Residential real estate $ 1,416 $ 934 Construction real estate — 698 Commercial real estate 3,250 4,564 Consumer loans 674 256 Commercial loans 1,989 1,091 Total loans $ 7,329 $ 7,543 |
Schedule of performing loans classified as TDRs and outstanding, segregated by class | For the nine-month periods ended March 31, 2024 Number of Recorded (dollars in thousands) modifications Investment Residential real estate — $ — Construction real estate — — Commercial real estate — — Consumer loans — — Commercial loans 2 859 Total 2 $ 859 June 30, 2023 Number of Recorded (dollars in thousands) modifications Investment Residential real estate 10 $ 3,438 Construction real estate — — Commercial real estate 6 24,017 Consumer loans — — Commercial loans 6 2,310 Total 22 $ 29,765 |
Schedule of performing loans classified as modifications to borrowers experiencing financial difficulty | March 31, 2024 Term Interest Total Class of Principal Payment Extension Rate Financing Forgiveness Delays Modifications Reduction Receivable (dollars in thousands) Residential real estate $ — $ — $ 807 $ — 0.07 % Construction real estate — — — — — % Commercial real estate — — 23,627 — 1.47 % Consumer loans — — — — — % Commercial loans — 235 179 — 0.07 % Total $ — $ 235 $ 24,613 $ — 0.66 % |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Premises and Equipment | |
Schedule of summary of premises and equipment | (dollars in thousands) March 31, 2024 June 30, 2023 Land $ 15,380 $ 15,415 Buildings and improvements 83,982 79,661 Construction in progress 347 450 Furniture, fixtures, equipment and software 27,095 26,404 Automobiles 112 122 Operating leases ROU asset 6,859 6,125 133,775 128,177 Less accumulated depreciation 37,974 35,780 $ 95,801 $ 92,397 |
Schedule of calculated amount of right of use assets and lease liabilities | March 31, 2024 June 30, 2023 Consolidated Balance Sheet Operating leases ROU asset $ 6,859 $ 6,125 Operating leases liability $ 6,859 $ 6,125 For the three-month periods ended For the nine-month periods ended March 31, March 31, (dollars in thousands) 2024 2023 2024 2023 Consolidated Statement of Income Operating lease costs classified as occupancy and equipment expense $ 294 $ 189 $ 880 $ 467 (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 $ 208 $ 148 $ 623 $ 354 ROU assets obtained in exchange for operating lease obligations: $ — $ — $ 2,445 $ — |
Schedule of Future Minimum Rental Payments for Operating Leases | (dollars in thousands) 2024 $ 215 2025 806 2026 754 2027 742 2028 728 Thereafter 8,930 Future lease payments expected $ 12,175 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Deposits | |
Schedule of deposits | (dollars in thousands) March 31, 2024 June 30, 2023 Non-interest bearing accounts $ 525,959 $ 597,600 NOW accounts 1,300,358 1,328,423 Money market deposit accounts 369,653 452,728 Savings accounts 455,212 282,753 Certificates 1,344,328 1,064,036 Total Deposit Accounts $ 3,995,510 $ 3,725,540 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | Three months ended Nine months ended March 31, March 31, (dollars in thousands except per share data) 2024 2023 2024 2023 Net income $ 11,307 $ 2,409 $ 36,652 $ 23,676 Less: distributed earnings allocated to participating securities (12) (10) (37) (31) Less: undistributed earnings allocated to participating securities (46) (8) (151) (89) Net income available to common shareholders $ 11,249 $ 2,391 $ 36,464 $ 23,556 Denominator for basic earnings per share - Weighted-average shares outstanding 11,301,577 10,843,689 11,298,174 9,739,673 Effect of dilutive securities stock options or awards 10,971 14,652 9,260 20,459 Denominator for diluted earnings per share 11,312,548 10,858,341 11,307,434 9,760,132 Basic earnings per share available to common stockholders $ 1.00 $ 0.22 $ 3.23 $ 2.42 Diluted earnings per share available to common stockholders $ 0.99 $ 0.22 $ 3.22 $ 2.41 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Schedule of income tax provision | For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Income taxes Current $ 2,417 $ 2,572 $ 9,077 $ 8,269 Deferred 420 (1,994) 420 (1,981) Total income tax provision $ 2,837 $ 578 $ 9,497 $ 6,288 |
Schedule of components of net deferred tax assets | (dollars in thousands) March 31, 2024 June 30, 2023 Deferred tax assets: Provision for losses on loans $ 12,070 $ 12,101 Accrued compensation and benefits 969 974 NOL carry forwards acquired 123 709 Low income tax credit carry forward 595 1,192 Unrealized loss on other real estate 949 818 Unrealized loss on available for sale securities 5,363 6,174 Total deferred tax assets 20,069 21,968 Deferred tax liabilities: Purchase accounting adjustments 2,449 2,348 Depreciation 4,684 4,276 FHLB stock dividends 120 120 Prepaid expenses 677 728 Other 509 1,636 Total deferred tax liabilities 8,439 9,108 Net deferred tax asset $ 11,630 $ 12,860 |
Schedule of reconciliation of income tax expense at the statutory rate | For the three-month periods ended For the nine-month periods ended (dollars in thousands) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Tax at statutory rate $ 2,970 $ 627 $ 9,692 $ 6,292 Increase (reduction) in taxes resulting from: Nontaxable municipal income (124) (54) (349) (211) State tax, net of Federal benefit 61 (179) 356 — Cash surrender value of Bank-owned life insurance (101) (77) (297) (211) Tax credit benefits (3) (3) (10) (7) Other, net 34 264 105 425 Actual provision $ 2,837 $ 578 $ 9,497 $ 6,288 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Schedule of fair value assets measured on recurring basis | Fair Value Measurements at March 31, 2024, 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 $ 28,108 $ — $ 28,108 $ — Corporate obligations 33,813 — 33,813 — Asset backed securities 64,795 — 64,795 — Other securities 5,608 — 5,608 — MBS and CMOs 301,365 — 301,365 — Fair Value Measurements at June 30, 2023, 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 $ 42,568 $ — $ 42,568 $ — Corporate obligations 32,538 — 32,538 — Asset backed securities 68,626 — 68,626 — Other securities 3,570 — 3,570 — MBS and CMOs 270,252 — 270,252 — |
Schedule of fair value of nonrecurring measurements | Fair Value Measurements at March 31, 2024 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 $ 759 $ — $ — $ 759 Fair Value Measurements at June 30, 2023, 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 $ 1,472 $ — $ — $ 1,472 |
Schedule of losses recognized on assets measured on a nonrecurring basis | For the nine months ended (dollars in thousands) March 31, 2024 March 31, 2023 Foreclosed and repossessed assets held for sale $ (687) $ (123) Total losses on assets measured on a non-recurring basis $ (687) $ (123) |
Schedule of level 3 fair value measurements | Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) March 31, 2024 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 759 Third party appraisal Marketability discount 17.9 - 17.9 % 17.9 % Range Fair value at Valuation Unobservable of Weighted-average (dollars in thousands) June 30, 2023 technique inputs inputs applied inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $ 1,472 Third party appraisal Marketability discount 14.9 - 14.9 % 14.9 % |
Schedule of financial instruments | March 31, 2024 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 $ 168,273 $ 168,273 $ — $ — Interest-bearing time deposits 490 — 490 — Stock in FHLB 8,667 — 8,667 — Stock in Federal Reserve Bank of St. Louis 9,067 — 9,067 — Loans receivable, net 3,719,858 — — 3,583,300 Accrued interest receivable 21,807 — 21,807 — Financial liabilities Deposits 3,995,510 2,651,184 — 1,337,030 Advances from FHLB 102,043 — 100,869 — Accrued interest payable 11,965 — 11,965 — Subordinated debt 23,143 — — 20,458 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — June 30, 2023 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 $ 53,979 $ 53,979 $ — $ — Interest-bearing time deposits 1,242 — 1,242 — Stock in FHLB 11,540 — 11,540 — Stock in Federal Reserve Bank of St. Louis 9,061 — 9,061 — Loans receivable, net 3,571,078 — — 3,393,791 Accrued interest receivable 18,871 — 18,871 — Financial liabilities Deposits 3,725,540 2,661,479 — 1,053,650 Advances from FHLB 133,514 — 131,821 — Accrued interest payable 4,723 — 4,723 — Subordinated debt 23,105 — — 20,318 Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Schedule of unaudited pro forma | Pro Forma For the three months ended March 31, (dollars in thousands) 2024 2023 Revenue $ 40,093 $ 43,232 Earnings $ 11,307 $ 4,103 Pro Forma For the nine months ended March 31, (dollars in thousands) 2024 2023 Revenue $ 121,465 $ 138,709 Earnings $ 36,652 $ 35,595 |
Citizens | |
Schedule of purchase price | Citizens Bancshares Company Fair Value of Consideration Transferred (dollars in thousands) Cash $ 34,889 Common stock, at fair value 98,280 Total consideration $ 133,169 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 243,225 Investment securities 226,497 Loans 447,388 Premises and equipment 23,430 BOLI 21,733 Identifiable intangible assets 24,645 Miscellaneous other assets 9,366 Deposits (851,140) Securities sold under agreements to repurchase (27,629) Miscellaneous other liabilities (7,784) Total identifiable net assets 109,731 Goodwill $ 23,438 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Organization (Details) $ in Billions | Mar. 31, 2024 USD ($) |
Organization and Summary of Significant Accounting Policies | |
Assets of the REIT | $ 1.4 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Cash and Cash Equivalents [Line Items] | ||
Term of interest bearing deposits | 3 years | |
Interest-bearing deposits in other depository institutions | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 112.5 | $ 3.8 |
Deposits are held in various commercial banks | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 1.8 | $ 1.3 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Loans (Details) | 9 Months Ended |
Mar. 31, 2024 item | |
Organization and Summary of Significant Accounting Policies | |
Number of loan portfolio pools | 24 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details) | Mar. 31, 2024 |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 3 years |
Minimum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 7 years |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 3 years |
Maximum | Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 40 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated lives (in years) | 7 years |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment loss on goodwill | $ 0 | $ 0 |
Core deposit intangible assets, amortization method | using the straight line method | |
Impairment of intangible assets | $ 0 | 0 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 39.1 | 39.1 |
Intangibles assets, accumulated amortization | 16.9 | 14 |
Remainder of fiscal 2024 | 1 | |
2025 | 3.5 | |
2026 | 3 | |
2027 | 2.7 | |
2028 | 2.7 | |
Thereafter | 11.5 | |
Other identifiable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6.4 | 6.4 |
Intangibles assets, accumulated amortization | 4.1 | 3.9 |
Mortgage and SBA servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2.8 | $ 2.9 |
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 | 10 years |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Wealth Management Assets and Fees (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Organization and Summary of Significant Accounting Policies | ||
Fiduciary assets | $ 104.8 | $ 102 |
Investment management assets | $ 480 | $ 464.2 |
Available for Sale Securities -
Available for Sale Securities - Amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | $ 458,069 | $ 445,616 |
Gross Unrealized Gains | 2,539 | 1,494 |
Gross Unrealized Losses | (26,919) | (29,556) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 433,689 | 417,554 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 30,008 | 45,285 |
Gross Unrealized Gains | 25 | 20 |
Gross Unrealized Losses | (1,925) | (2,737) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 28,108 | 42,568 |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 35,826 | 35,700 |
Gross Unrealized Gains | 126 | 19 |
Gross Unrealized Losses | (2,139) | (3,181) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 33,813 | 32,538 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 63,561 | 67,897 |
Gross Unrealized Gains | 1,514 | 1,274 |
Gross Unrealized Losses | (280) | (545) |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 64,795 | 68,626 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 5,657 | 3,587 |
Gross Unrealized Gains | 21 | 39 |
Gross Unrealized Losses | (70) | (56) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 5,608 | 3,570 |
Debt and Equity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 135,052 | 152,469 |
Gross Unrealized Gains | 1,686 | 1,352 |
Gross Unrealized Losses | (4,414) | (6,519) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 132,324 | 147,302 |
Residential MBS issued by governmental sponsored enterprises (GSEs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 107,807 | 97,612 |
Gross Unrealized Gains | 645 | 122 |
Gross Unrealized Losses | (7,471) | (7,610) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 100,981 | 90,124 |
Commercial MBS issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 65,311 | 60,333 |
Gross Unrealized Gains | 150 | 11 |
Gross Unrealized Losses | (6,404) | (6,959) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 59,057 | 53,385 |
CMOs issued by GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 149,899 | 135,202 |
Gross Unrealized Gains | 58 | 9 |
Gross Unrealized Losses | (8,630) | (8,468) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 141,327 | 126,743 |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total AFS securities, Amortized Cost | 323,017 | 293,147 |
Gross Unrealized Gains | 853 | 142 |
Gross Unrealized Losses | (22,505) | (23,037) |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | $ 301,365 | $ 270,252 |
Available for Sale Securities_2
Available for Sale Securities - Amortized Cost and Fair Value of Available-for-sale Securities, by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Amortized Cost | ||
Within one year | $ 1,455 | |
After one year but less than five years | 25,465 | |
After five years but less than ten years | 59,624 | |
After ten years | 48,508 | |
Total investment securities | 135,052 | |
Total AFS securities, Amortized Cost | 458,069 | $ 445,616 |
Estimated Fair Value | ||
Within one year | 1,438 | |
After one year but less than five years | 24,522 | |
After five years but less than ten years | 57,701 | |
After ten years | 48,663 | |
Total investment securities | 132,324 | |
Total AFS securities | 433,689 | 417,554 |
Total MBS and CMOs | ||
Amortized Cost | ||
Investment securities, without single maturity | 323,017 | |
Total AFS securities, Amortized Cost | 323,017 | 293,147 |
Estimated Fair Value | ||
Investment securities, without single maturity | 301,365 | |
Total AFS securities | $ 301,365 | $ 270,252 |
Available for Sale Securities_3
Available for Sale Securities - Investments Pledged as Collateral to Secure Public Deposits and Securities Sold Under Agreements to Repurchase (Details) - Pledged as collateral - Public deposits - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | $ 268 | $ 253.9 |
Asset backed securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 137.3 | 129.2 |
Collateralized Mortgage Obligations | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 107.5 | 94.8 |
US States and Political Subdivisions Debt Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | 18.7 | 26.5 |
Other securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase | $ 4.5 | $ 3.4 |
Available for Sale Securities_4
Available for Sale Securities - Gross Unrealized Losses and Fair Value, Continuous Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Jun. 30, 2023 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 79,306 | $ 138,235 |
Less than 12 Months, Unrealized Losses | 863 | 3,057 |
12 Months or more, Fair Value | 247,631 | 187,305 |
12 Months or more, Unrealized Losses | 26,056 | 26,499 |
Fair Value, Total | 326,937 | 325,540 |
Unrealized Losses , Total | 26,919 | 29,556 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 1,831 | 11,574 |
Less than 12 Months, Unrealized Losses | 8 | 184 |
12 Months or more, Fair Value | 21,855 | 26,763 |
12 Months or more, Unrealized Losses | 1,917 | 2,553 |
Fair Value, Total | 23,686 | 38,337 |
Unrealized Losses , Total | $ 1,925 | 2,737 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 5 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 45 | |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 14,709 | |
Less than 12 Months, Unrealized Losses | 1,074 | |
12 Months or more, Fair Value | $ 26,908 | 13,821 |
12 Months or more, Unrealized Losses | 2,139 | 2,107 |
Fair Value, Total | 26,908 | 28,530 |
Unrealized Losses , Total | $ 2,139 | 3,181 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 1 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 19 | |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 22,628 | |
Less than 12 Months, Unrealized Losses | 263 | |
12 Months or more, Fair Value | $ 10,464 | 698 |
12 Months or more, Unrealized Losses | 280 | 282 |
Fair Value, Total | 10,464 | 23,326 |
Unrealized Losses , Total | $ 280 | 545 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 0 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 6 | |
Other securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 4,709 | 1,970 |
Less than 12 Months, Unrealized Losses | 24 | 11 |
12 Months or more, Fair Value | 284 | 350 |
12 Months or more, Unrealized Losses | 46 | 45 |
Fair Value, Total | 4,993 | 2,320 |
Unrealized Losses , Total | 70 | 56 |
Total MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | 72,766 | 87,354 |
Less than 12 Months, Unrealized Losses | 831 | 1,525 |
12 Months or more, Fair Value | 188,120 | 145,673 |
12 Months or more, Unrealized Losses | 21,674 | 21,512 |
Fair Value, Total | 260,886 | 233,027 |
Unrealized Losses , Total | $ 22,505 | $ 23,037 |
Number of individual securities in an unrealized loss position for less than 12 months | security | 21 | |
Number of individual securities in an unrealized loss position for more than 12 months | security | 113 |
Available for Sale Securities_5
Available for Sale Securities - Other Securities Policy: Pooled Trust Preferred Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Available for Sale Securities | ||||
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 | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | $ 3,998,414 | $ 3,978,393 | ||||
Loans in Process | (226,969) | (359,196) | ||||
Deferred loan fees, net | (251) | (299) | ||||
Allowance for credit losses | (51,336) | (47,820) | $ (50,084) | $ (45,685) | $ (37,483) | $ (33,192) |
Total loans | $ 3,719,858 | $ 3,571,078 | ||||
Number of purchased participation loans | loan | 69 | 86 | ||||
Purchased participation loans | $ 174,600 | $ 155,600 | ||||
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | 1,200,723 | 1,133,417 | ||||
Allowance for credit losses | (15,357) | (15,641) | (15,096) | (13,465) | (12,499) | (8,908) |
Construction Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | 432,030 | 550,052 | ||||
Allowance for credit losses | (2,347) | (2,664) | (2,864) | (3,638) | (2,754) | (2,220) |
Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | 1,608,935 | 1,562,379 | ||||
Allowance for credit losses | (26,610) | (22,838) | (25,177) | (18,545) | (16,806) | (16,838) |
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | 140,123 | 133,515 | ||||
Allowance for credit losses | (900) | (909) | (890) | (986) | (761) | (710) |
Commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans before fees gross | 616,603 | 599,030 | ||||
Allowance for credit losses | $ (6,122) | $ (5,768) | $ (6,057) | $ (9,051) | $ (4,663) | $ (4,516) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Classes of loans information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 20, 2023 USD ($) | Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) loan | |
Provision for credit losses | $ 900,000 | $ 10,072,000 | $ 2,700,000 | $ 16,266,000 | ||
Allowance for credit losses, loans | 1,358,000 | 7,185,000 | 4,850,000 | 11,800,000 | ||
Provision (recovery) for off balance sheet credit exposure | (458,000) | 2,887,000 | $ (2,150,000) | 4,466,000 | ||
Impact of acquisition on provision on credit losses (PCL) | 3,100,000 | 9,300,000 | ||||
Impact of acquisition on allowance for credit losses (ACL) | 2,000,000 | 6,600,000 | ||||
Impact of acquisition on off-balance sheet credit exposure | 1,100,000 | 2,700,000 | ||||
Net charge offs on average loans outstanding (as percentage) | 0.05% | |||||
Citizens Bancshares Company | ||||||
Allowance for credit losses, loans | $ 5,200,000 | |||||
Provision (recovery) for off balance sheet credit exposure | 1,800,000 | |||||
Allowance for credit losses for purchased credit deteriorated (PCD) | $ 1,121,000 | $ 1,100,000 | ||||
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 | ||||||
Allowance for credit losses, loans | 262,000 | 870,000 | $ (151,000) | 4,462,000 | ||
Provision (recovery) for off balance sheet credit exposure | 26,000 | 35,000 | $ 32,000 | 47,000 | ||
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 | |||||
Residential Real Estate | Residential Real Estate. | ||||||
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years) | 30 years | |||||
Residential Real Estate | Residential Real Estate. | Single Family | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90% | |||||
Residential Real Estate | Residential Real Estate. | Multifamily | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 85% | |||||
Amortization period of loans | 25 years | |||||
Amortization period of multi-family residential loans if balloon maturities | 10 years | |||||
Commercial Real Estate | ||||||
Allowance for credit losses, loans | 1,433,000 | 1,111,000 | $ 4,250,000 | 1,324,000 | ||
Provision (recovery) for off balance sheet credit exposure | (53,000) | (139,000) | $ (59,000) | (80,000) | ||
Commercial Real Estate | Maximum | ||||||
Amortization period of loans | 25 years | |||||
Construction Real Estate | ||||||
Allowance for credit losses, loans | (517,000) | 872,000 | $ (28,000) | 1,406,000 | ||
Provision (recovery) for off balance sheet credit exposure | (453,000) | 1,949,000 | $ (2,179,000) | 3,400,000 | ||
Construction Real Estate | Minimum | ||||||
Maturities of multifamily or commercial construction loans | 12 months | |||||
Construction Real Estate | Average | ||||||
Average term of construction loans | 12 months | |||||
Construction Real Estate | Maximum | ||||||
Amortization period of loans | 30 years | |||||
Maturities of multifamily or commercial construction loans | 36 months | |||||
Consumer loans | ||||||
Amortization period of loans | 66 months | |||||
Allowance for credit losses, loans | 53,000 | 165,000 | $ 185,000 | 283,000 | ||
Provision (recovery) for off balance sheet credit exposure | 5,000 | 46,000 | 41,000 | |||
Consumer loans | Home Equity Loan | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 90% | |||||
Amortization period of loans | 10 years | |||||
Consumer loans | Automobile loans | ||||||
Maximum percentage of appraised value or purchase price that loans cannot exceed | 100% | |||||
Amortization period of loans | 66 months | |||||
Commercial loans | ||||||
Amortization period of loans | 5 years | |||||
Amortization period of multi-family residential loans if balloon maturities | 1 year | |||||
Allowance for credit losses, loans | 127,000 | 4,167,000 | $ 594,000 | 4,325,000 | ||
Provision (recovery) for off balance sheet credit exposure | $ 17,000 | $ 996,000 | $ 56,000 | $ 1,058,000 | ||
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 | loan | 41 | 41 | 53 | |||
Construction loans outstanding, for which a modification had been agreed to | $ 18,000,000 | $ 18,000,000 | $ 33,400,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - PCD Loans Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 20, 2023 | Feb. 25, 2022 | Jun. 30, 2023 | |
Citizens Bancshares Company | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchase price of PCD loans at acquisition | $ 27,481 | ||
Allowance for credit losses at acquisition | (1,121) | $ (1,100) | |
Fair value of PCD loans at acquisition | $ 26,360 | ||
Fortune | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchase price of PCD loans at acquisition | $ 15,055 | ||
Allowance for credit losses at acquisition | (120) | ||
Fair value of PCD loans at acquisition | $ 14,935 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Balance and activity in the Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Allowance for credit losses: | |||||
Balance, beginning of period | $ 50,084 | $ 37,483 | $ 47,820 | $ 33,192 | $ 33,192 |
Provision (benefit) charged to expense | 1,358 | 7,185 | 4,850 | 11,800 | |
Losses charged off | (114) | (113) | (1,430) | (453) | |
Recoveries | 8 | 9 | 96 | 25 | |
Balance, end of period | 51,336 | 45,685 | 51,336 | 45,685 | 47,820 |
Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | 1,121 | 1,121 | |||
Residential Real Estate | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 15,096 | 12,499 | 15,641 | 8,908 | 8,908 |
Provision (benefit) charged to expense | 262 | 870 | (151) | 4,462 | |
Losses charged off | (1) | (133) | (2) | ||
Recoveries | 1 | ||||
Balance, end of period | 15,357 | 13,465 | 15,357 | 13,465 | 15,641 |
Residential Real Estate | Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | 96 | 96 | |||
Construction Real Estate | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 2,864 | 2,754 | 2,664 | 2,220 | 2,220 |
Provision (benefit) charged to expense | (517) | 872 | (28) | 1,406 | |
Losses charged off | (289) | ||||
Balance, end of period | 2,347 | 3,638 | 2,347 | 3,638 | 2,664 |
Construction Real Estate | Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | 12 | 12 | |||
Commercial Real Estate | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 25,177 | 16,806 | 22,838 | 16,838 | 16,838 |
Provision (benefit) charged to expense | 1,433 | 1,111 | 4,250 | 1,324 | |
Losses charged off | (496) | (245) | |||
Recoveries | 18 | ||||
Balance, end of period | 26,610 | 18,545 | 26,610 | 18,545 | 22,838 |
Commercial Real Estate | Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | 628 | 628 | |||
Consumer loans | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 890 | 761 | 909 | 710 | 710 |
Provision (benefit) charged to expense | 53 | 165 | 185 | 283 | |
Losses charged off | (48) | (113) | (263) | (189) | |
Recoveries | 5 | 9 | 69 | 18 | |
Balance, end of period | 900 | 986 | 900 | 986 | 909 |
Consumer loans | Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | 164 | 164 | |||
Commercial loans | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 6,057 | 4,663 | 5,768 | 4,516 | 4,516 |
Provision (benefit) charged to expense | 127 | 4,167 | 594 | 4,325 | |
Losses charged off | (65) | (249) | (17) | ||
Recoveries | 3 | 9 | 6 | ||
Balance, end of period | $ 6,122 | 9,051 | $ 6,122 | 9,051 | $ 5,768 |
Commercial loans | Impact of adoption ASU | |||||
Allowance for credit losses: | |||||
Initial ACL on PCD loans | $ 221 | $ 221 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Allowance for off-balance credit exposure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | $ 4,596 | $ 4,937 | $ 6,288 | $ 3,358 | $ 3,358 |
Provision (benefit) charged to expense | (458) | 2,887 | (2,150) | 4,466 | |
Balance, end of period | 4,138 | 7,824 | 4,138 | 7,824 | 6,288 |
Residential Real Estate | |||||
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | 77 | 70 | 71 | 58 | 58 |
Provision (benefit) charged to expense | 26 | 35 | 32 | 47 | |
Balance, end of period | 103 | 105 | 103 | 105 | 71 |
Construction Real Estate | |||||
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | 3,083 | 3,629 | 4,809 | 2,178 | 2,178 |
Provision (benefit) charged to expense | (453) | 1,949 | (2,179) | 3,400 | |
Balance, end of period | 2,630 | 5,578 | 2,630 | 5,578 | 4,809 |
Commercial Real Estate | |||||
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | 469 | 480 | 475 | 421 | 421 |
Provision (benefit) charged to expense | (53) | (139) | (59) | (80) | |
Balance, end of period | 416 | 341 | 416 | 341 | 475 |
Consumer loans | |||||
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | 68 | 56 | 73 | 61 | 61 |
Provision (benefit) charged to expense | 5 | 46 | 41 | ||
Balance, end of period | 73 | 102 | 73 | 102 | 73 |
Commercial loans | |||||
Allowance for off-balance sheet credit exposure: | |||||
Balance, beginning of period | 899 | 702 | 860 | 640 | 640 |
Provision (benefit) charged to expense | 17 | 996 | 56 | 1,058 | |
Balance, end of period | $ 916 | $ 1,698 | $ 916 | $ 1,698 | $ 860 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Gross Charge-offs by Loan Class and Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2024 | $ 7 | |||
2023 | 778 | |||
2022 | 355 | |||
2021 | 247 | |||
Prior | 43 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | $ 114 | $ 113 | 1,430 | $ 453 |
Residential Real Estate | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2021 | 97 | |||
Prior | 36 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | 1 | 133 | 2 | |
Construction Real Estate | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 100 | |||
2022 | 78 | |||
2021 | 111 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | 289 | |||
Commercial Real Estate | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 496 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | 496 | 245 | ||
Consumer loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2024 | 7 | |||
2023 | 123 | |||
2022 | 97 | |||
2021 | 29 | |||
Prior | 7 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | 48 | $ 113 | 263 | 189 |
Commercial loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 59 | |||
2022 | 180 | |||
2021 | 10 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, Total | $ 65 | $ 249 | $ 17 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Credit risk profile based on rating category and year of origination (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
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 | |
2024 / 2023 | 567,091 | $ 1,112,842 |
2023 / 2022 | 994,426 | 969,065 |
2022 / 2021 | 869,410 | 623,440 |
2021 / 2020 | 553,357 | 213,074 |
2020 / 2019 | 181,130 | 108,106 |
Prior | 219,638 | 195,293 |
Revolving loans | 386,393 | 397,377 |
Total | 3,771,445 | 3,619,197 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 558,094 | 1,089,767 |
2023 / 2022 | 967,692 | 934,545 |
2022 / 2021 | 837,965 | 619,444 |
2021 / 2020 | 552,195 | 208,612 |
2020 / 2019 | 176,509 | 107,260 |
Prior | 216,785 | 191,942 |
Revolving loans | 384,089 | 393,419 |
Total | 3,693,329 | 3,544,989 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 3,319 | 10,385 |
2023 / 2022 | 23,609 | 6,729 |
2022 / 2021 | 1,580 | 932 |
2021 / 2020 | 698 | 3,990 |
2020 / 2019 | 4,212 | 198 |
Prior | 306 | 144 |
Revolving loans | 1,057 | 2,554 |
Total | 34,781 | 24,932 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 2,940 | |
Total | 2,940 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 5,678 | 9,750 |
2023 / 2022 | 3,125 | 27,791 |
2022 / 2021 | 29,865 | 3,064 |
2021 / 2020 | 464 | 472 |
2020 / 2019 | 409 | 648 |
Prior | 2,547 | 3,207 |
Revolving loans | 1,247 | 1,404 |
Total | 43,335 | 46,336 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 144,969 | 330,193 |
2023 / 2022 | 322,588 | 314,305 |
2022 / 2021 | 292,040 | 253,203 |
2021 / 2020 | 241,273 | 103,843 |
2020 / 2019 | 88,811 | 25,849 |
Prior | 99,777 | 96,919 |
Revolving loans | 11,265 | 9,105 |
Total | 1,200,723 | 1,133,417 |
Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 144,167 | 328,142 |
2023 / 2022 | 321,471 | 312,853 |
2022 / 2021 | 291,486 | 252,077 |
2021 / 2020 | 240,540 | 103,735 |
2020 / 2019 | 88,617 | 25,651 |
Prior | 99,045 | 96,035 |
Revolving loans | 11,265 | 9,100 |
Total | 1,196,591 | 1,127,593 |
Residential Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 772 | 1,214 |
2023 / 2022 | 248 | 1,136 |
2022 / 2021 | 87 | 616 |
2021 / 2020 | 543 | 108 |
2020 / 2019 | 100 | 198 |
Prior | 212 | 27 |
Revolving loans | 5 | |
Total | 1,962 | 3,304 |
Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 30 | 837 |
2023 / 2022 | 869 | 316 |
2022 / 2021 | 467 | 510 |
2021 / 2020 | 190 | |
2020 / 2019 | 94 | |
Prior | 520 | 857 |
Total | 2,170 | 2,520 |
Construction Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 53,463 | 125,089 |
2023 / 2022 | 131,996 | 50,690 |
2022 / 2021 | 19,602 | 10,946 |
2021 / 2020 | 3,190 | |
Revolving loans | 941 | |
Total | 205,061 | 190,856 |
Construction Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 53,463 | 124,479 |
2023 / 2022 | 131,996 | 50,011 |
2022 / 2021 | 19,602 | 10,946 |
2021 / 2020 | 3,190 | |
Revolving loans | 941 | |
Total | 205,061 | 189,567 |
Construction Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 280 | |
Total | 280 | |
Construction Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 330 | |
2023 / 2022 | 679 | |
Total | 1,009 | |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 205,596 | 481,395 |
2023 / 2022 | 429,322 | 505,987 |
2022 / 2021 | 489,193 | 282,509 |
2021 / 2020 | 251,296 | 93,439 |
2020 / 2019 | 83,816 | 75,126 |
Prior | 105,364 | 85,723 |
Revolving loans | 44,348 | 38,200 |
Total | 1,608,935 | 1,562,379 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 199,494 | 462,643 |
2023 / 2022 | 404,802 | 474,140 |
2022 / 2021 | 459,603 | 279,921 |
2021 / 2020 | 250,979 | 89,272 |
2020 / 2019 | 79,670 | 74,653 |
Prior | 104,358 | 83,871 |
Revolving loans | 43,014 | 37,443 |
Total | 1,541,920 | 1,501,943 |
Commercial Real Estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 1,019 | 8,122 |
2023 / 2022 | 23,038 | 5,382 |
2022 / 2021 | 1,392 | 163 |
2021 / 2020 | 155 | 3,879 |
2020 / 2019 | 4,112 | |
Prior | 77 | 117 |
Revolving loans | 520 | |
Total | 30,313 | 17,663 |
Commercial Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 2,940 | |
Total | 2,940 | |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 5,083 | 7,690 |
2023 / 2022 | 1,482 | 26,465 |
2022 / 2021 | 28,198 | 2,425 |
2021 / 2020 | 162 | 288 |
2020 / 2019 | 34 | 473 |
Prior | 929 | 1,735 |
Revolving loans | 814 | 757 |
Total | 36,702 | 39,833 |
Consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 24,225 | 36,107 |
2023 / 2022 | 21,520 | 14,532 |
2022 / 2021 | 8,531 | 5,509 |
2021 / 2020 | 3,440 | 1,692 |
2020 / 2019 | 1,022 | 717 |
Prior | 1,368 | 1,420 |
Revolving loans | 80,017 | 73,538 |
Total | 140,123 | 133,515 |
Consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 24,221 | 36,003 |
2023 / 2022 | 21,497 | 14,530 |
2022 / 2021 | 8,513 | 5,446 |
2021 / 2020 | 3,436 | 1,692 |
2020 / 2019 | 1,002 | 717 |
Prior | 1,175 | 1,379 |
Revolving loans | 79,919 | 73,225 |
Total | 139,763 | 132,992 |
Consumer loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 3 | 71 |
2022 / 2021 | 62 | |
Total | 3 | 133 |
Consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 1 | 33 |
2023 / 2022 | 23 | 2 |
2022 / 2021 | 18 | 1 |
2021 / 2020 | 4 | |
2020 / 2019 | 20 | |
Prior | 193 | 41 |
Revolving loans | 98 | 313 |
Total | 357 | 390 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 138,838 | 140,058 |
2023 / 2022 | 89,000 | 83,551 |
2022 / 2021 | 60,044 | 71,273 |
2021 / 2020 | 57,348 | 10,910 |
2020 / 2019 | 7,481 | 6,414 |
Prior | 13,129 | 11,231 |
Revolving loans | 250,763 | 275,593 |
Total | 616,603 | 599,030 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 136,749 | 138,500 |
2023 / 2022 | 87,926 | 83,011 |
2022 / 2021 | 58,761 | 71,054 |
2021 / 2020 | 57,240 | 10,723 |
2020 / 2019 | 7,220 | 6,239 |
Prior | 12,207 | 10,657 |
Revolving loans | 249,891 | 272,710 |
Total | 609,994 | 592,894 |
Commercial loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 1,525 | 698 |
2023 / 2022 | 323 | 211 |
2022 / 2021 | 101 | 91 |
2021 / 2020 | 3 | |
Prior | 17 | |
Revolving loans | 537 | 2,549 |
Total | 2,503 | 3,552 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 / 2023 | 564 | 860 |
2023 / 2022 | 751 | 329 |
2022 / 2021 | 1,182 | 128 |
2021 / 2020 | 108 | 184 |
2020 / 2019 | 261 | 175 |
Prior | 905 | 574 |
Revolving loans | 335 | 334 |
Total | $ 4,106 | $ 2,584 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Credit risk profile based on rating and payment activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 40,000,000 | $ 37,400,000 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | 8,500,000 | 12,700,000 |
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 | 3,400,000 | 6,300,000 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
PCD loans receivable, net of ACL | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Loan portfolio aging analysis (Details) $ in Thousands | Mar. 31, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 3,771,445 | $ 3,619,197 |
Greater than 90 Days Past Due and Accruing | $ 81 | $ 109 |
Number of PCD loans greater than 90 days past due | loan | 0 | 0 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 8,640 | $ 10,741 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 4,404 | 4,212 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,122 | 2,767 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,114 | 3,762 |
Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,762,805 | 3,608,456 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,200,723 | 1,133,417 |
Greater than 90 Days Past Due and Accruing | 81 | 109 |
Residential Real Estate | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,281 | 2,868 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,068 | 1,984 |
Residential Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 334 | 401 |
Residential Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 879 | 483 |
Residential Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,198,442 | 1,130,549 |
Construction Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 205,061 | 190,856 |
Construction Real Estate | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 555 | 1,452 |
Construction Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 486 | 443 |
Construction Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 69 | 311 |
Construction Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 698 | |
Construction Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 204,506 | 189,404 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,608,935 | 1,562,379 |
Commercial Real Estate | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,683 | 4,050 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 442 | 616 |
Commercial Real Estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 129 | 1,854 |
Commercial Real Estate | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,112 | 1,580 |
Commercial Real Estate | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,607,252 | 1,558,329 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 140,123 | 133,515 |
Consumer loans | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,245 | 792 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 795 | 456 |
Consumer loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 257 | 124 |
Consumer loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 193 | 212 |
Consumer loans | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 138,878 | 132,723 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 616,603 | 599,030 |
Commercial loans | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,876 | 1,579 |
Commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,613 | 713 |
Commercial loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 333 | 77 |
Commercial loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 930 | 789 |
Commercial loans | Current Loans, not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 613,727 | $ 597,451 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Total Loans Receivable | $ 3,771,445 | $ 3,619,197 | ||||
Related allowance for credit losses | 51,336 | $ 50,084 | 47,820 | $ 45,685 | $ 37,483 | $ 33,192 |
Collateral-dependent Loans | ||||||
Total Loans Receivable | 25,215 | 6,376 | ||||
Related allowance for credit losses | 9,889 | 901 | ||||
Residential Real Estate | ||||||
Total Loans Receivable | 1,200,723 | 1,133,417 | ||||
Related allowance for credit losses | 15,357 | 15,096 | 15,641 | 13,465 | 12,499 | 8,908 |
Residential Real Estate | Collateral-dependent Loans | 1- to 4-family residential loans | ||||||
Total Loans Receivable | 807 | 837 | ||||
Related allowance for credit losses | 126 | 156 | ||||
Construction Real Estate | ||||||
Total Loans Receivable | 205,061 | 190,856 | ||||
Related allowance for credit losses | 2,347 | 2,864 | 2,664 | 3,638 | 2,754 | 2,220 |
Construction Real Estate | Collateral-dependent Loans | ||||||
Total Loans Receivable | 642 | |||||
Related allowance for credit losses | 79 | |||||
Commercial Real Estate | ||||||
Total Loans Receivable | 1,608,935 | 1,562,379 | ||||
Related allowance for credit losses | 26,610 | 25,177 | 22,838 | 18,545 | 16,806 | 16,838 |
Commercial Real Estate | Collateral-dependent Loans | ||||||
Total Loans Receivable | 23,230 | 4,897 | ||||
Related allowance for credit losses | 9,269 | 666 | ||||
Commercial loans | ||||||
Total Loans Receivable | 616,603 | 599,030 | ||||
Related allowance for credit losses | 6,122 | $ 6,057 | $ 5,768 | $ 9,051 | $ 4,663 | $ 4,516 |
Commercial loans | Collateral-dependent Loans | ||||||
Total Loans Receivable | 1,178 | |||||
Related allowance for credit losses | $ 494 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 7,329,000 | $ 7,543,000 |
Nonaccrual loans individually evaluated for which no ACL was recorded | 0 | |
Residential Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 1,416,000 | 934,000 |
Construction Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 698,000 | |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 3,250,000 | 4,564,000 |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | 674,000 | 256,000 |
Commercial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans | $ 1,989,000 | $ 1,091,000 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Performing TDRs Segregated by Class (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | |
Number of modifications | loan | 2 | |
Recorded Investment, Loan modifications | $ 0 | |
Recorded Investment | $ 859,000 | |
Performing Loans | ||
Number of modifications | loan | 22 | |
Recorded Investment, Loan modifications | $ 29,765,000 | |
Residential Real Estate | Performing Loans | ||
Number of modifications | loan | 10 | |
Recorded Investment, Loan modifications | $ 3,438,000 | |
Commercial Real Estate | Performing Loans | ||
Number of modifications | loan | 6 | |
Recorded Investment, Loan modifications | $ 24,017,000 | |
Commercial loans | ||
Number of modifications | loan | 2 | |
Recorded Investment | $ 859,000 | |
Commercial loans | Performing Loans | ||
Number of modifications | loan | 6 | |
Recorded Investment, Loan modifications | $ 2,310,000 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Performing Loans Classified as Modifications to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Class of Financing Receivable | 0.66% |
Residential Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Class of Financing Receivable | 0.07% |
Commercial Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Class of Financing Receivable | 1.47% |
Commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Class of Financing Receivable | 0.07% |
Payment Delays | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | $ 235 |
Payment Delays | Commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | 235 |
Term Extension Modifications | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | 24,613 |
Term Extension Modifications | Residential Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | 807 |
Term Extension Modifications | Commercial Real Estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | 23,627 |
Term Extension Modifications | Commercial loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Recorded Investment, modifications | $ 179 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - TDRs Segregated by Class (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 loan | Mar. 31, 2024 USD ($) | Mar. 31, 2023 loan | |
Number of modifications | loan | 0 | 0 | |
Recorded Investment | $ 859 | ||
Commercial loans | |||
Recorded Investment | $ 859 |
Loans and Allowance for Cred_17
Loans and Allowance for Credit Losses - Real Estate Foreclosures (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Repossessed assets | $ 0 | $ 0 |
Residential Real Estate. | Home Equity Loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Foreclosure proceedings in process | $ 2,100,000 | $ 1,500,000 |
Premises and Equipment - Summar
Premises and Equipment - Summary of premises and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Premises and Equipment | ||
Land | $ 15,380 | $ 15,415 |
Buildings and improvements | 83,982 | 79,661 |
Construction in progress | 347 | 450 |
Furniture, fixtures, equipment and software | 27,095 | 26,404 |
Automobiles | 112 | 122 |
Operating leases ROU asset | 6,859 | 6,125 |
Property, Plant and Equipment, Gross | 133,775 | 128,177 |
Less accumulated depreciation | 37,974 | 35,780 |
Premises and equipment, net | $ 95,801 | $ 92,397 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | |
Number of leased properties | property | 13 | 13 | ||
Income recognized from lessor agreements | $ | $ 79,000 | $ 39,000 | $ 212,000 | $ 171,000 |
Minimum | ||||
Lessee Expected Lease Terms | P18M | |||
Maximum | ||||
Lessee Expected Lease Terms | P20Y |
Premises and Equipment - Calcul
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Right of use assets obtained in exchange for lease obligations: Operating Leases | $ 734 | $ 82 | |||
Consolidated Balance Sheet | |||||
Operating leases ROU asset | $ 6,859 | 6,859 | $ 6,125 | ||
Operating leases liability | 6,859 | 6,859 | $ 6,125 | ||
Consolidated Statement Of Income | |||||
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs) | 294 | $ 189 | 880 | 467 | |
Supplemental Disclosures Of Cash Flow Information | Cash paid for amounts included in the measurement of lease liabilities | |||||
Operating cash flows from operating leases | $ 208 | $ 148 | 623 | $ 354 | |
Right of use assets obtained in exchange for lease obligations: Operating Leases | $ 2,445 |
Premises and Equipment - Future
Premises and Equipment - Future expected lease payments for leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Premises and Equipment | |
2024 | $ 215 |
2025 | 806 |
2026 | 754 |
2027 | 742 |
2028 | 728 |
Thereafter | 8,930 |
Future lease payments expected | $ 12,175 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Deposits | ||
Non-interest bearing accounts | $ 525,959 | $ 597,600 |
NOW accounts | 1,300,358 | 1,328,423 |
Money market deposit accounts | 369,653 | 452,728 |
Savings accounts | 455,212 | 282,753 |
Certificates | 1,344,328 | 1,064,036 |
Total Deposit Accounts | $ 3,995,510 | $ 3,725,540 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Deposits | ||
Brokered certificates | $ 176.9 | $ 146.5 |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share | ||||
Net Income | $ 11,307 | $ 2,409 | $ 36,652 | $ 23,676 |
Less: distributed earnings allocated to participating securities | (12) | (10) | (37) | (31) |
Less: undistributed earnings allocated to participating securities | (46) | (8) | (151) | (89) |
Net income available to common shareholders | $ 11,249 | $ 2,391 | $ 36,464 | $ 23,556 |
Weighted-average shares outstanding | 11,301,577 | 10,843,689 | 11,298,174 | 9,739,673 |
Effect of dilutive securities stock options or awards | 10,971 | 14,652 | 9,260 | 20,459 |
Denominator for diluted earnings per share | 11,312,548 | 10,858,341 | 11,307,434 | 9,760,132 |
Basic earnings per share available to common stockholders | $ 1 | $ 0.22 | $ 3.23 | $ 2.42 |
Diluted earnings per share available to common stockholders | $ 0.99 | $ 0.22 | $ 3.22 | $ 2.41 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Details) - shares | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted earnings per share | 75,000 | 79,830 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted earnings per share | 84,740 | 66,440 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes | ||||
Current | $ 2,417 | $ 2,572 | $ 9,077 | $ 8,269 |
Deferred | 420 | (1,994) | 420 | (1,981) |
Total income tax provision | $ 2,837 | $ 578 | $ 9,497 | $ 6,288 |
Income Taxes - Schedule of net
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Deferred tax assets: | ||
Provision for losses on loans | $ 12,070 | $ 12,101 |
Accrued compensation and benefits | 969 | 974 |
NOL carry forwards acquired | 123 | 709 |
Low income tax credit carry forward | 595 | 1,192 |
Unrealized loss on other real estate | 949 | 818 |
Unrealized loss on available for sale securities | 5,363 | 6,174 |
Total deferred tax assets | 20,069 | 21,968 |
Deferred tax liabilities: | ||
Purchase accounting adjustments | 2,449 | 2,348 |
Depreciation | 4,684 | 4,276 |
FHLB stock dividends | 120 | 120 |
Prepaid expenses | 677 | 728 |
Other | 509 | 1,636 |
Total deferred tax liabilities | 8,439 | 9,108 |
Net deferred tax asset | $ 11,630 | $ 12,860 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense at statutory rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Tax at statutory rate | $ 2,970 | $ 627 | $ 9,692 | $ 6,292 |
Nontaxable municipal income | (124) | (54) | (349) | (211) |
State tax, net of Federal benefit | 61 | (179) | 356 | |
Cash surrender value of Bank-owned life insurance | (101) | (77) | (297) | (211) |
Tax credit benefits | (3) | (3) | (10) | (7) |
Other, net | 34 | 264 | 105 | 425 |
Total income tax provision | $ 2,837 | $ 578 | $ 9,497 | $ 6,288 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes | ||||
Interest or penalties on income taxes | $ 0 | |||
Federal net operating loss carryforwards | $ 557,000 | |||
Effective tax rate (as a percent) | 21% | 21% | 21% | 21% |
401(k) Retirement Plan (Details
401(k) Retirement Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Retirement plan expenses | $ 683,000 | $ 619,000 | $ 2,100,000 | $ 1,700,000 |
Vesting period | 5 years | |||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contributions of eligible compensation | 4% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 | May 31, 2021 | Aug. 31, 2014 | Oct. 31, 2013 | Mar. 31, 2024 | Jun. 30, 2023 | |
Subordinated debt | $ 23,143,000 | $ 23,105,000 | ||||
Investment, carrying value | 480,000,000 | 464,200,000 | ||||
Prepaid Expenses and Other Current Assets | ||||||
Investment, face amount | 505,000 | |||||
Investment, carrying value | $ 467,000 | 464,000 | ||||
Trust Preferred Securities | ||||||
Number of years after securities became redeemable | 5 years | |||||
Interest rate (as a percent) | 8.34% | |||||
Subordinated debt | $ 7,200,000 | 7,200,000 | ||||
Ozarks Legacy Community Financial, Inc. | ||||||
Interest rate (as a percent) | 8.04% | |||||
Assumed subordinated debt securities | $ 3,100,000 | |||||
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement | ||||||
Assumed subordinated debt securities | $ 2,800,000 | 2,700,000 | ||||
Peoples Service Company, Inc. | ||||||
Interest rate (as a percent) | 7.39% | |||||
Assumed subordinated debt securities | $ 6,500,000 | |||||
Peoples Service Company, Inc. | Reported Value Measurement | ||||||
Assumed subordinated debt securities | $ 5,500,000 | 5,500,000 | ||||
Fortune | Subordinated notes Issued in May 2021 | ||||||
Interest rate (as a percent) | 4.50% | |||||
Assumed subordinated debt securities | $ 7,500,000 | $ 7,600,000 | $ 7,700,000 | |||
Fortune | Subordinated notes Issued in May 2021 | Secured overnight financing rate | ||||||
Variable rate (as a percent) | 3.77% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of Assets Measured on a Recurring Basis and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
US States and Political Subdivisions Debt Securities [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 28,108 | $ 42,568 |
US States and Political Subdivisions Debt Securities [Member] | 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 [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,108 | 42,568 |
US States and Political Subdivisions Debt Securities [Member] | 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 Segment [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,813 | 32,538 |
Corporate Segment [Member] | 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 Segment [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,813 | 32,538 |
Corporate Segment [Member] | 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 |
Asset backed securities | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 64,795 | 68,626 |
Asset backed 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 |
Asset backed 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 | 64,795 | 68,626 |
Asset backed 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 |
Other securities [Member] | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,608 | 3,570 |
Other securities [Member] | 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 securities [Member] | Fair Value, Inputs, Level 2 | Recurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,608 | 3,570 |
Other securities [Member] | 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 | 301,365 | 270,252 |
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 | 301,365 | 270,252 |
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 |
Foreclosed and repossessed assets held for sale | Nonrecurring Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed and repossessed assets held for sale | 759 | 1,472 |
Foreclosed and repossessed assets held for sale | 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 | $ 759 | $ 1,472 |
Fair Value Measurements - Losse
Fair Value Measurements - Losses Recognized on Assets Measured on a Nonrecurring Basis (Details) - Nonrecurring Measurements - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total losses on assets measured on a non-recurring basis | $ (687) | $ (123) |
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 | $ (687) | $ (123) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Nonrecurring Measurements - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements Nonrecurring Unobservable Inputs | $ 759 | $ 1,472 |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 17.9 | 14.9 |
Investment, Type [Extensible Enumeration] | smbc:ForeclosedAndRepossessedAssetsMember | smbc:ForeclosedAndRepossessedAssetsMember |
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 |
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 | 17.90% | 14.90% |
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 | 17.90% | 14.90% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Financial assets | ||
Cash and cash equivalents | $ 168,273 | $ 53,979 |
Interest-bearing time deposits | 490 | 1,242 |
Stock in FHLB | 8,667 | 11,540 |
Stock in Federal Reserve Bank of St. Louis | 9,067 | 9,061 |
Loans receivable, net | 3,719,858 | 3,571,078 |
Accrued interest receivable | 21,807 | 18,871 |
Financial liabilities | ||
Deposits | 3,995,510 | 3,725,540 |
Advances from FHLB | 102,043 | 133,514 |
Accrued interest payable | 11,965 | 4,723 |
Subordinated debt | 23,143 | 23,105 |
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 | 168,273 | 53,979 |
Financial liabilities | ||
Deposits | 2,651,184 | 2,661,479 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Interest-bearing time deposits | 490 | 1,242 |
Stock in FHLB | 8,667 | 11,540 |
Stock in Federal Reserve Bank of St. Louis | 9,067 | 9,061 |
Accrued interest receivable | 21,807 | 18,871 |
Financial liabilities | ||
Advances from FHLB | 100,869 | 131,821 |
Accrued interest payable | 11,965 | 4,723 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Loans receivable, net | 3,583,300 | 3,393,791 |
Financial liabilities | ||
Deposits | 1,337,030 | 1,053,650 |
Subordinated debt | $ 20,458 | $ 20,318 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||||
Jan. 20, 2023 USD ($) loan | Feb. 25, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Goodwill | $ 50,727,000 | $ 50,727,000 | $ 50,773,000 | ||||
Citizens | |||||||
Identifiable intangible assets | $ 24,645,000 | ||||||
Goodwill | 23,438,000 | ||||||
Goodwill tax deductible | 0 | ||||||
Loan portfolio | 461,500,000 | ||||||
Fair value discount | 14,100,000 | ||||||
Fair value | 419,500,000 | ||||||
Gross | $ 520,000,000 | ||||||
Number of PCD loans identified | loan | 48 | ||||||
PCD loans | $ 27,481,000 | ||||||
Citizens | Noninterest expense | |||||||
Third-party acquisition-related costs incurred | $ 4,000 | $ 3,300,000 | $ 98,000 | $ 4,100,000 | |||
Citizens | Core Deposits | |||||||
Identifiable intangible assets | $ 22,100,000 | ||||||
Acquired intangible assets useful life (in years) | 10 years | ||||||
Citizens | Acquired trust and wealth management | |||||||
Identifiable intangible assets | $ 2,600,000 | ||||||
Acquired intangible assets useful life (in years) | 10 years | ||||||
Fortune | |||||||
PCD loans | $ 15,055,000 |
Business Combinations - Purchas
Business Combinations - Purchase price for the citizens bancshares acquisition (Details) - USD ($) $ in Thousands | Jan. 20, 2023 | Mar. 31, 2024 | Jun. 30, 2023 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Goodwill | $ 50,727 | $ 50,773 | |
Citizens | |||
Fair Value of Consideration Transferred | |||
Cash | $ 34,889 | ||
Common stock, at fair value | 98,280 | ||
Total consideration | 133,169 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash and cash equivalents | 243,225 | ||
Investment securities | 226,497 | ||
Loans | 447,388 | ||
Premises and equipment | 23,430 | ||
BOLI | 21,733 | ||
Identifiable intangible assets | 24,645 | ||
Miscellaneous other assets | 9,366 | ||
Deposits | (851,140) | ||
Securities sold under agreements to repurchase | (27,629) | ||
Miscellaneous other liabilities | (7,784) | ||
Total identifiable net assets | 109,731 | ||
Goodwill | $ 23,438 |
Business Combinations - Pro For
Business Combinations - Pro Forma (Details) - Citizens - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Acquired business contributed revenues | $ 14,700 | |||
Acquired business contributed earnings | 2,500 | |||
Revenue | $ 40,093 | $ 43,232 | 121,465 | $ 138,709 |
Earnings | $ 11,307 | $ 4,103 | $ 36,652 | $ 35,595 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 11,307 | $ 2,409 | $ 36,652 | $ 23,676 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |