SOUTHERN MISSOURI BANCORP, INC., 10-K/A filed on 3/21/2023
Amended Annual Report
v3.23.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2022
Sep. 09, 2022
Dec. 31, 2021
Cover [Abstract]      
Document Type 10-K/A    
Document Annual Report true    
Document Transition Report false    
Period End date Jun. 30, 2022    
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 Stock    
Trading Symbol SMBC    
Trading Exchange NASDAQ    
Voluntary filer No    
Well-known Seasoned Issuer No    
Current reporting status Yes    
Interactive Data Current Yes    
Filer Category Accelerated Filer    
Small Business false    
Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Shell Company false    
Number of common stock shares outstanding   9,229,151  
Fiscal Year End --06-30    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag true    
Public Float     $ 401.6
Amendment Description The sole purpose of this Amendment No. 1 on Form 10-K/A to our Annual Report on Form 10-K for the fiscal year ended June 30, 2022, is to update the Report of the Independent Registered Public Accounting Firm contained in Item 8 to address the adoption of ASU 2016-13, “Financial Instruments – Credit Losses,” also known as the current expected credit loss (“CECL”) standard, which was effective for the Company as of July 1, 2020. Reference to the new accounting standard was inadvertently omitted from the report filed with the original Form 10-K.  Other than the inclusion with this Amendment No. 1 of new certifications required by Rules 13a-14(a) and 13a-14(b) under the Securities Exchange Act of 1934, as amended, and an updated list of exhibits in Item 15, this Amendment No. 1 does not modify or update any other disclosures contained in our original Annual Report on Form 10-K for the fiscal year ended June 30, 2022.    
Auditor Name FORVIS    
Auditor Firm ID 686    
Auditor Location Decatur, Illinois    
v3.23.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Assets    
Cash and cash equivalents $ 86,792 $ 123,592
Interest-bearing time deposits 4,768 979
Available for sale securities (Note 2) 235,394 207,020
Stock in FHLB of Des Moines 5,893 5,873
Stock in Federal Reserve Bank of St. Louis 5,790 5,031
Loans receivable, net of ACL of $33,192 and $33,222 at June 30, 2022 and June 30, 2021, respectively (Note 3) 2,686,198 2,200,244
Accrued interest receivable 11,052 10,079
Premises and equipment, net (Note 4) 71,347 64,077
Bank owned life insurance - cash surrender value 48,705 43,817
Goodwill 27,288 14,089
Other intangible assets, net 8,175 7,129
Prepaid expenses and other assets 23,380 18,600
TOTAL ASSETS 3,214,782 2,700,530
Liabilities and Stockholders' Equity    
Deposits (Note 5) 2,815,075 2,330,803
Advances from FHLB (Note 6) 37,957 57,529
Accounts payable and other liabilities 17,122 12,753
Accrued interest payable 801 779
Subordinated debt (Note 7) 23,055 15,243
TOTAL LIABILITIES 2,894,010 2,417,107
Commitments and contingencies (Note 12)
Common stock, $.01 par value; 25,000,000 shares authorized; 9,815,736 and 9,361,629 shares issued at June 30, 2022 and June 30, 2021, respectively 98 94
Additional paid-in capital 119,162 95,585
Retained earnings 240,115 200,140
Treasury stock of 588,625 and 456,431 shares at June 30, 2022 and June 30, 2021, respectively, at cost (21,116) (15,278)
Accumulated other comprehensive income (loss) (17,487) 2,882
TOTAL STOCKHOLDERS' EQUITY 320,772 283,423
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,214,782 $ 2,700,530
v3.23.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
CONSOLIDATED BALANCE SHEETS    
Related allowance for credit losses $ 33,192 $ 33,222
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 25,000,000 25,000,000
Common Stock, Shares, Issued 9,815,736 9,361,629
Treasury Stock 588,625 456,431
v3.23.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Interest Income:      
Loans $ 111,495 $ 105,077 $ 102,129
Investment securities 2,197 2,130 1,992
Mortgage-backed securities 2,738 2,042 2,802
Other interest-earning assets 437 226 129
TOTAL INTEREST INCOME 116,867 109,475 107,052
Interest Expense:      
Deposits 11,822 14,889 24,084
Advances from FHLB 792 1,366 1,932
Note payable     112
Subordinated debt 686 534 788
TOTAL INTEREST EXPENSE 13,300 16,789 26,916
NET INTEREST INCOME 103,567 92,686 80,136
Provision for credit losses (Note 3) 1,487 (1,024) 6,002
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 102,080 93,710 74,134
Noninterest income:      
Deposit account charges and related fees 6,450 5,254 5,680
Bank card interchange income 4,224 3,913 3,073
Loan late charges 553 587 573
Loan servicing fees 946 1,454 196
Other loan fees 2,369 1,200 1,258
Net realized gains on sale of loans 1,598 3,980 1,630
Net realized gains on sale of AFS securities   90  
Earnings on bank owned life insurance 1,168 1,800 1,021
Other income 3,895 1,764 1,319
TOTAL NONINTEREST INCOME 21,203 20,042 14,750
Noninterest expense:      
Compensation and benefits 35,611 31,010 29,336
Occupancy and equipment, net 9,248 7,880 7,288
Data processing expense 5,996 4,812 5,173
Telecommunications expense 1,273 1,261 1,263
Deposit insurance premiums 743 766 155
Legal and professional fees 1,362 1,093 969
Advertising 1,496 1,080 1,227
Postage and office supplies 823 796 804
Intangible amortization 1,441 1,395 1,771
Foreclosed property expenses/losses 522 142 992
Other operating expense 4,864 3,812 4,826
TOTAL NONINTEREST EXPENSE 63,379 54,047 54,452
INCOME BEFORE INCOME TAXES 59,904 59,705 34,432
Income Taxes (Note 9)      
Current 13,352 10,844 6,890
Deferred (617) 1,681 (3)
Income Tax Expense (Benefit), Total 12,735 12,525 6,887
NET INCOME $ 47,169 $ 47,180 $ 27,545
Basic earnings per share $ 5.22 $ 5.22 $ 3.00
Diluted earnings per share 5.21 5.22 2.99
Dividends paid $ 0.80 $ 0.62 $ 0.60
v3.23.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
NET INCOME $ 47,169 $ 47,180 $ 27,545
Other comprehensive income (loss):      
Unrealized gains (losses) on securities available-for-sale (26,100) (1,925) 4,095
Less: reclassification adjustment for realized gains included in net income   90  
Defined benefit pension plan net gain (loss) (11) 6 6
Tax benefit (expense) 5,742 444 (901)
Total other comprehensive income (loss) (20,369) (1,565) 3,200
COMPREHENSIVE INCOME $ 26,800 $ 45,615 $ 30,745
v3.23.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Retained Earnings
Impact of adoption ASU 2016-13
Retained Earnings
Treasury Stock
Accumulated Other Comprehensive Income(Loss)
Impact of adoption ASU 2016-13
Total
Beginning Balance at Jun. 30, 2019 $ 93 $ 94,541   $ 143,677 $ (1,166) $ 1,247   $ 238,392
Net Income       27,545       27,545
Change in unrealized gain on available for sale securities, net           3,194   3,194
Defined benefit pension plan net gain (loss)           6   6
Stock option expense   (74)           (74)
Dividends paid on common stock       5,513       5,513
Stock grant expense   356           356
Exercise of stock options   64           64
Treasury stock purchased         5,771     5,771
Ending Balance at Jun. 30, 2020 93 95,035 $ (7,151) 165,709 (6,937) 4,447 $ (7,151) 258,347
Net Income       47,180       47,180
Change in unrealized gain on available for sale securities, net           (1,571)   (1,571)
Defined benefit pension plan net gain (loss)           6   6
Stock option expense   (142)           (142)
Dividends paid on common stock       5,598       5,598
Stock grant expense   408           408
Common Stock Issued 1             1
Treasury stock purchased         8,341     8,341
Ending Balance at Jun. 30, 2021 94 95,585   200,140 (15,278) 2,882   283,423
Net Income       47,169       47,169
Change in unrealized gain on available for sale securities, net           (20,358)   (20,358)
Defined benefit pension plan net gain (loss)           (11)   (11)
Stock option expense   (165)           (165)
Dividends paid on common stock       7,194       7,194
Stock grant expense   532           532
Common Stock Issued 4 22,880           22,884
Treasury stock purchased         5,838     5,838
Ending Balance at Jun. 30, 2022 $ 98 $ 119,162   $ 240,115 $ (21,116) $ (17,487)   $ 320,772
v3.23.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY      
Dividends paid on common stock $ 0.80 $ 0.62 $ 0.60
v3.23.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Cash Flows From Operating Activities:      
NET INCOME $ 47,169,000 $ 47,180,000 $ 27,545,000
Items not requiring (providing) cash:      
Depreciation 4,480,000 4,029,000 3,783,000
Loss on disposal of fixed assets 3,000 80,000 482,000
Stock option and stock grant expense 697,000 550,000 430,000
Loss on sale/write-down of REO 460,000 55,000 802,000
Amortization of intangible assets 1,441,000 1,395,000 1,771,000
Accretion of purchase accounting adjustments (1,565,000) (1,502,000) (1,403,000)
Increase in cash surrender value of bank owned life insurance (BOLI) (1,168,000) (1,800,000) (1,022,000)
Provision for credit losses 1,487,000 (1,024,000) 6,002,000
Gains realized on sale of AFS securities   (90,000)  
Net amortization of premiums and discounts on securities 1,198,000 1,633,000 1,295,000
Bargain purchase gain     (123,000)
Originations of loans held for sale (42,808,000) (151,171,000) (72,165,000)
Proceeds from sales of loans held for sale 44,004,000 151,813,000 70,929,000
Gain on sales of loans held for sale (1,598,000) (3,980,000) (1,630,000)
Changes in:      
Accrued interest receivable (391,000) 2,037,000 (1,758,000)
Prepaid expenses and other assets 9,681,000 1,790,000 4,566,000
Accounts payable and other liabilities 5,016,000 (47,000) 1,224,000
Deferred income taxes (617,000) 1,681,000 26,000
Accrued interest payable (147,000) (867,000) (453,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 67,342,000 51,762,000 40,301,000
Cash flows from investing activities:      
Net increase in loans (281,544,000) (62,864,000) (246,930,000)
Net change in interest-bearing deposits (1,488,000) (7,000) (2,000)
Proceeds from maturities of available for sale securities 40,474,000 57,723,000 51,649,000
Proceeds from sales of available for sale securities   16,284,000  
Net (purchases) redemptions of Federal Home Loan Bank stock 691,000 517,000 (1,072,000)
Net purchases of Federal Reserve Bank of St. Louis stock (759,000) (668,000) (13,000)
Purchases of available-for-sale securities (96,144,000) (108,057,000) (55,486,000)
Purchases of long-term investment (383,000) (40,000)  
Purchases of premises and equipment (4,617,000) (2,856,000) (4,304,000)
Purchases of BOLI     (4,000,000)
Net cash paid (received) for acquisition 48,767,000   (9,080,000)
Investments in state & federal tax credits (11,276,000) (5,325,000) (5,103,000)
Proceeds from sale of fixed assets 928,000 580,000 349,000
Proceeds from sale of foreclosed assets 1,423,000 1,444,000 1,632,000
Proceeds from BOLI claim   1,351,000  
NET CASH USED IN INVESTING ACTIVITIES (303,928,000) (101,918,000) (272,360,000)
Cash flows from financing activities:      
Net increase in demand deposits and savings accounts 273,356,000 257,876,000 249,285,000
Net decrease in certificates of deposits (31,221,000) (111,885,000) (4,788,000)
Net decrease in securities sold under agreements to repurchase     (4,376,000)
Proceeds from Federal Home Loan Bank advances   110,100,000 640,900,000
Repayments of Federal Home Loan Bank advances (29,300,000) (122,649,000) (615,897,000)
Repayments of long term debt     (3,000,000)
Exercise of stock options     64,000
Purchase of treasury stock (5,838,000) (8,341,000) (5,771,000)
Dividends paid on common stock (7,194,000) (5,598,000) (5,513,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES 199,803,000 119,503,000 250,904,000
(Decrease) increase in cash and cash equivalents (36,783,000) 69,347,000 18,845,000
Cash and cash equivalents at beginning of period 123,592,000 54,245,000 35,400,000
Cash and cash equivalents at end of period 86,809,000 123,592,000 54,245,000
Noncash investing and financing activities:      
Conversion of loans to foreclosed real estate 127,000 748,000 1,057,000
Conversion of loans to repossessed assets 26,000 461,000 210,000
Right of use assets obtained in exchange for lease obligations: Operating Leases 95,000 804,000 2,004,000
Cash paid during the period for:      
Interest (net of interest credited) 2,057,000 2,654,000 3,813,000
Income taxes 361,000 $ 9,240,000 2,437,000
Fortune Financial Corporation      
Noncash investing and financing activities:      
Less: common stock issued 267,913,000    
Cash received 22,885,000    
Cash paid 12,663,000    
Liabilities assumed 232,365,000    
First National Bank, Cairo      
Noncash investing and financing activities:      
Fair value of assets acquired 1,707,000    
Cash paid 27,151,000    
Liabilities assumed $ 28,859,000    
Central Federal Bancshares      
Noncash investing and financing activities:      
Fair value of assets acquired     70,570,000
Cash paid     21,942,000
Liabilities assumed     $ 48,504,000
v3.23.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)
$ in Thousands
May 22, 2020
USD ($)
Central Federal Bancshares  
Consideration for purchase of capital stock $ 21,942
v3.23.1
Organization and Summary of Significant Accounting Policies
 12 Months Ended
Jun. 30, 2022
Organization and Summary of Significant Accounting Policies  
Organization and Summary of Significant Accounting Policies

​

NOTE 1: Organization and Summary of Significant Accounting Policies

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by SB Real Estate Investments, LLC, and has other preferred shareholders in order to meet the requirements to be a REIT. At June 30, 2022, assets of the REIT were approximately $1.3 billion, and consisted primarily of real estate loan participations acquired from the Bank.

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. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020. Effective July 1, 2020, the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, and estimated fair values of purchased loans.

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $47.3 million and $83.2 million at June 30, 2022 and 2021, respectively. The deposits are held in various commercial banks with a total of $5.8 million and $1.8 million exceeding the FDIC deposit insurance limits at June 30, 2022 and 2021, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

Interest-bearing Time Deposits. Interest bearing deposits in banks mature within seven years and are carried at cost.

Available for Sale Securities. Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as available for sale.

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

The Company does not invest in collateralized mortgage obligations that are considered high risk.

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income (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 ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers such 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 June 30, 2022, and June 30, 2021.

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.

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 provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term historical averages.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on statistical analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or

being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020.

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis. Costs for development and improvement of the property are capitalized.

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 are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

Depreciation is computed by use of straight-line method over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2022, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the market value of the Company’s common stock, concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations. The Company believes there is no impairment of goodwill at June 30, 2022.

Intangible Assets. The Company’s intangible assets at June 30, 2022 included gross core deposit intangibles of $17.0 million with $11.5 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage and SBA servicing rights of $2.7 million. At June 30, 2021, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $10.1 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.9 million. The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.6 million in fiscal 2023, $1.6 million in fiscal 2024, $1.1 million in fiscal 2025, $581,000 in fiscal 2026, $253,000 in fiscal 2027, and $417,000 thereafter. As of June 30, 2022, and June 30, 2021, there was no impairment indicated.

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

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 the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31.

Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

Outside Directors’ Retirement. The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.

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. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income, and changes in the funded status of defined benefit pension plans.

Transfers Between Fair Value Hierarchy Levels. Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

The following paragraphs summarize the impact of new accounting pronouncements:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially.

The following table illustrates the impact of adoption of ASU 2016-13:

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

Total allowance for credit losses on off-balance sheet credit exposures

​

$

2,227

​

$

1,959

​

$

268

​

The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated operations, financial position or disclosures.

​

In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency.

​

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”. The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Pursuant to the Interagency Statement on LIBOR Transition issued in November 2020, the Company will not enter into any new LIBOR-based credit agreements after December 31, 2021. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

​

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2022, the FASB issued 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.” ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, for entities that have adopted the amendments in Update 2016-13, and is not expected to have a material impact on the Company’s consolidated financial statements.
v3.23.1
Available for Sale Securities
 12 Months Ended
Jun. 30, 2022
Available for Sale Securities  
Available for Sale Securities

​

​

NOTE 2: Available for Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available for sale consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

 

​

​

 

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

​

$

47,383

​

$

77

​

$

(2,981)

​

$

—

​

$

44,479

Corporate obligations

​

​

20,818

​

​

32

​

​

(963)

​

​

—

​

​

19,887

Other securities

​

 

486

​

 

—

​

 

(43)

​

 

—

​

 

443

Total debt and equity securities

​

​

68,687

​

​

109

​

​

(3,987)

​

​

—

​

​

64,809

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

76,345

​

​

—

​

​

(7,177)

​

​

—

​

​

69,168

Commercial MBS issued by GSEs

​

​

51,435

​

​

—

​

​

(5,705)

​

​

—

​

​

45,730

CMOs issued by GSEs

​

​

61,293

​

​

—

​

​

(5,606)

​

​

—

​

​

55,687

Total MBS and CMOs

​

 

189,073

​

 

—

​

 

(18,488)

​

 

—

​

​

170,585

Total AFS securities

​

$

257,760

​

$

109

​

$

(22,475)

​

$

—

​

$

235,394

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

​

​

 

Gross

 

Gross

​

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,257

​

$

1,479

​

$

(40)

​

$

—

​

 

47,696

Corporate obligations

​

​

20,356

​

​

290

​

​

(335)

​

​

—

​

​

20,311

Other securities

​

​

647

​

 

25

​

 

—

​

 

—

​

​

672

Total debt and equity securities

​

​

67,260

​

​

1,794

​

​

(375)

​

​

—

​

​

68,679

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

64,400

​

​

932

​

​

(379)

​

​

—

​

​

64,953

Commercial MBS issued by GSEs

​

​

35,425

​

​

1,394

​

​

(338)

​

​

—

​

​

36,481

CMOs issued by GSEs

​

​

36,201

​

​

755

​

​

(49)

​

​

—

​

​

36,907

Total MBS and CMOs

​

 

136,026

​

 

3,081

​

 

(766)

​

 

—

​

 

138,341

Total AFS securities

​

$

203,286

​

$

4,875

​

$

(1,141)

​

$

—

​

$

207,020

​

The amortized cost and fair value of available-for-sale securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

 

Amortized

 

Estimated

(dollars in thousands)

    

Cost

    

Fair Value

Within one year

​

$

868

​

$

869

After one year but less than five years

​

 

10,485

​

 

10,258

After five years but less than ten years

​

 

32,161

​

 

30,340

After ten years

​

 

25,173

​

 

23,342

Total investment securities

​

 

68,687

​

 

64,809

MBS and CMOs

​

 

189,073

​

 

170,585

Total AFS securities

​

$

257,760

​

$

235,394

​

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $198.3 million and $155.6 million at June 30, 2022 and 2021, respectively. The securities pledged consist of marketable securities, including $126.3 million and $95.4 million of Mortgage-Backed Securities, $27.3 million and $18.8 million of Collateralized Mortgage Obligations, $42.3 million and $41.4 million of State and Political Subdivisions Obligations, and $2.4 million and $0 of Other Securities at June 30, 2022 and 2021, respectively.

There were no gains or losses recognized from sales of available-for-sale securities in fiscal 2022. Gains of $138,000 and losses of $48,000 were recognized from sales of securities from sales of available-for-sale securities in fiscal 2021.

The Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders’ equity at June 30, 2022.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2022, was $219.3 million, which is approximately 93.2% of the Company’s available for sale investment portfolio, as compared to $67.2 million or approximately 32.5% of the Company’s available for sale investment portfolio at June 30, 2021. Management believes the declines in fair value for these securities to be temporary.

The following tables below 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 ACL has not been recorded at June 30, 2022 and 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

For the year ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

31,985

​

$

2,639

​

$

1,600

​

$

342

​

$

33,585

​

$

2,981

Corporate obligations

​

​

10,944

​

​

420

​

​

6,911

​

​

543

​

​

17,855

​

​

963

Other securities

​

​

418

​

​

43

​

​

—

​

​

—

​

​

418

​

​

43

MBS and CMOs

​

 

137,590

​

 

12,482

​

 

29,834

​

 

6,006

​

 

167,424

​

 

18,488

Total AFS securities

​

$

180,937

​

$

15,584

​

$

38,345

​

$

6,891

​

$

219,282

​

$

22,475

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

For the year ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

3,177

​

$

40

​

$

—

​

$

—

​

$

3,177

​

$

40

Corporate obligations

​

​

9,331

​

​

79

​

​

720

​

​

256

​

​

10,051

​

​

335

MBS and CMOs

​

 

53,893

​

 

764

​

 

70

​

 

2

​

 

53,963

​

 

766

Total AFS securities

​

$

66,401

​

$

883

​

$

790

​

$

258

​

$

67,191

​

$

1,141

​

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include 65 individual securities which have been in an unrealized loss position for less than 12 months and three individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Corporate Obligations. The unrealized losses on the Company’s investments in corporate obligations include eight individual securities which have been in an unrealized loss position for less than 12 months and seven individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

At June 30, 2022, corporate obligations included two pooled trust preferred securities with an estimated fair value of $794,000 and unrealized losses of $184,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the issuers of the underlying trust preferred securities.

A cash flow analysis performed as of June 30, 2022, for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Other securities. The unrealized losses on the Company’s investments in other securities includes two individual securities which has been in an unrealized loss position for less than 12 months and no individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. As of June 30, 2022, the unrealized losses on the Company’s investments in MBS and CMOs include 106 individual securities which have been in an unrealized loss position for less than 12 months, and 16 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is likely that the Company will not be

required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

The Company does not believe that any individual unrealized loss as of June 30, 2022, 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. There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the periods ended June 30, 2022 and 2021.

​
v3.23.1
Loans and Allowance for Credit Losses
 12 Months Ended
Jun. 30, 2022
Loans and Allowance for Credit Losses  
Loans and Allowance for Credit Losses

NOTE 3: Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:

​

​

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

    

June 30, 2021

Real Estate Loans:

​

​

​

​

​

​

Residential

​

$

904,160

​

$

721,216

Construction

​

 

258,072

​

 

208,824

Commercial

​

 

1,146,673

​

 

889,793

Consumer loans

​

 

92,996

​

 

77,674

Commercial loans

​

 

441,598

​

 

414,124

​

​

 

2,843,499

​

 

2,311,631

Loans in process

​

 

(123,656)

​

 

(74,540)

Deferred loan fees, net

​

 

(453)

​

 

(3,625)

Allowance for credit losses

​

 

(33,192)

​

 

(33,222)

Total loans

​

$

2,686,198

​

$

2,200,244

​

The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At June 30, 2022, the Bank had purchased participations in 31 loans totaling $70.0 million, as compared to 23 loans totaling $83.0 million at June 30, 2021.

Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. 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 are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the 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. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including farmland, single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Approximately $459.9 million of the Company’s $1.1 billion in commercial real estate loans are secured by properties located outside our primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally. Risks to lending on farmland include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland values.

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to 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. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multi-family or commercial construction loans typically mature in 12 to 36 months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

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 allow the Company opportunity to assess risk. At June 30, 2022, construction loans outstanding included 57 loans, totaling $13.8 million, for which a modification had been agreed to. At June 30, 2021, construction loans outstanding included 48 loans, totaling $28.5 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above, pursuant to the Company’s normal underwriting and monitoring procedures. As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs); nor were they made pursuant to exemptions provided under the CARES Act. Under the CARES Act, financial institutions had the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of

COVID-19. Loans modified under the CARES Act did not include any construction loans with drawn balances at June 30, 2022.

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to 66 months, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on 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. The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans. The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. Commercial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally. Agricultural production or equipment lending includes unique risk factors such as commodity prices, yields, input costs, and weather, as well as farm equipment values.

Allowance for Credit Losses. The provision for credit losses or loan losses for the fiscal years ended June 30, 2022, 2021, and 2020, was a charge of $1.5 million, a recovery of $1.0 million, and a charge of $6.0 million, respectively. During the fiscal year ended June 30, 2022, the allowance for credit losses (ACL) required for purchased credit deteriorated (PCD) loans acquired in the Fortune acquisition was $120,000, and was funded through purchase accounting adjustments, while the ACL required for non-PCD loans acquired in the Fortune acquisition was $1.9 million, and was funded through a charge to provision for credit losses (PCL). Additionally, the allowance for off-balance sheet credit exposures was increased by $120,000 due to the Fortune acquisition and funded through a charge to PCL. Exclusive of the charges required as a result of the Fortune acquisition, the Company would have recorded a negative PCL of approximately $533,000 in the current year. The recovery was based on the estimated required ACL, reflecting management’s estimate of the current expected credit losses in the Company’s loan portfolio at June 30, 2022, and as of that date the Company’s ACL was $33.2 million. Negative provisioning, exclusive of the impact of the Fortune acquisition, in the year ended June 30, 2022, was attributed primarily to an improved outlook regarding the economic environment resulting as the economy recovers from the effects of the COVID-19 pandemic, and the Company notes less uncertainty regarding the potential adverse impact on its borrowers, generally low and consistent levels of net charge offs, and a reduction in delinquent or adversely classified credits, and nonperforming loans. While the Company assesses that the economic outlook has continued to improve during the current year as compared to the year ended June 30, 2021, there remains significant uncertainty as economic activity recovers from the COVID-19 pandemic and the Federal Reserve withdraws accommodative monetary policy that was put into effect to respond to the pandemic and its economic impact. Specifically, management considered the following:

​

●  economic conditions and projections as provided by Moody’s Analytics, including baseline and downside scenarios were utilized in the Company’s estimate at June 30, 2022. 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;

​

● 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 increasing risk factor;

​

● levels and trends for loan delinquencies nationally and in the region. This measure as reported remains relatively stable, and the level of uncertainty about loan delinquencies is considered to be diminishing. This is considered to be a moderate and declining risk factor;

​

● exposure to the hotel industry, in particular, metropolitan area hotels which were negatively impacted by activity restrictions and a lack of business or convention-related travel. This is considered to be an elevated and stable risk factor.

​

PCD Loans. In connection with the acquisition of Fortune on February 25, 2022, the Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.

​

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 (“PCD”), 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 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 table below at acquisition carrying value:

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

PCD Loans:

​

​

​

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 and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment as of June 30, 2022 and 2021, and activity in the ACL and ALLL for the fiscal years ended June 30, 2022, 2021, and 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2022

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

Initial ACL on PCD loans

​

​

23

​

​

4

​

​

52

​

​

—

​

​

41

​

​

120

Provision (benefit) charged to expense

​

​

(2,238)

​

​

46

​

​

2,251

​

​

(205)

​

​

80

​

​

(66)

Losses charged off

​

​

(72)

​

​

—

​

​

—

​

​

(65)

​

​

(16)

​

​

(153)

Recoveries

​

​

3

​

​

—

​

​

—

​

​

64

​

​

2

​

​

69

Balance, end of period

​

$

8,908

​

$

2,220

​

$

16,838

​

$

710

​

$

4,516

​

$

33,192

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2021

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

Impact of CECL adoption

​

​

3,521

​

​

(121)

​

​

3,856

​

​

1,065

​

​

1,012

​

​

9,333

Provision charged to expense

​

​

2,973

​

​

281

​

​

(1,364)

​

​

(1,232)

​

​

(1,260)

​

​

(602)

Losses charged off

​

​

(180)

​

​

—

​

​

(90)

​

​

(146)

​

​

(318)

​

​

(734)

Recoveries

​

​

3

​

​

—

​

​

1

​

​

47

​

​

35

​

​

86

Balance, end of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2020

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

3,706

​

$

1,365

​

$

9,399

​

$

1,046

​

$

4,387

​

$

19,903

Provision charged to expense

​

​

1,529

​

​

645

​

​

2,730

​

​

300

​

​

798

​

​

6,002

Losses charged off

​

​

(379)

​

​

—

​

​

(12)

​

​

(189)

​

​

(273)

​

​

(853)

Recoveries

​

​

19

​

​

—

​

​

15

​

​

25

​

​

28

​

​

87

Balance, end of period

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

​

The following tables present the balance in the allowance for off-balance credit exposure based on portfolio segment as of June 30, 2022 and 2021, and activity in allowance for the fiscal yeasr ended June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2022

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805

Provision (benefit) charged to expense

​

​

21

​

​

1,676

​

​

233

​

​

(157)

​

​

(220)

​

​

1,553

Balance, end of period

​

$

58

​

$

2,178

​

$

421

​

$

61

​

$

640

​

$

3,358

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2021

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period period

​

$

19

​

$

769

​

$

172

​

$

153

​

$

846

​

$

1,959

Impact of CECL adoption

​

​

35

​

​

(167)

​

​

95

​

​

197

​

​

108

​

​

268

Provision (benefit) charged to expense

​

​

(17)

​

​

(100)

​

​

(79)

​

​

(132)

​

​

(94)

​

​

(422)

Balance, end of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805

​

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. In addition, lending relationships of $3 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $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 – Loans classified as watch exhibit weaknesses that require more than usual monitoring. Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days. This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding. These loans exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

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 tables presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of June 30, 2022. This tables includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

June 30,

    

2022

    

2021

    

2020

    

2019

    

2018

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

380,502

​

$

295,260

​

$

118,464

​

$

19,383

​

$

22,143

​

$

58,545

​

$

6,074

​

$

900,371

Watch

​

 

44

​

 

242

​

 

1,083

​

 

56

​

 

—

​

 

30

​

 

—

​

 

1,455

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

266

​

 

918

​

 

87

​

 

440

​

 

18

​

 

605

​

 

—

​

 

2,334

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

380,812

​

$

296,420

​

$

119,634

​

$

19,879

​

$

22,161

​

$

59,180

​

$

6,074

​

$

904,160

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

100,114

​

$

34,082

​

$

—

​

$

—

​

$

—

​

$

—

​

$

220

​

$

134,416

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

100,114

​

$

34,082

​

$

—

​

$

—

​

$

—

​

$

—

​

$

220

​

$

134,416

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

487,486

​

$

284,736

​

$

105,893

​

$

71,380

​

$

51,804

​

$

78,115

​

$

23,669

​

$

1,103,083

Watch

​

 

4,763

​

 

769

​

 

1,818

​

 

—

​

 

668

​

 

2,000

​

 

548

​

 

10,566

Special Mention

​

 

9,297

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

9,297

Substandard

​

 

22,086

​

 

481

​

 

140

​

 

13

​

 

22

​

 

93

​

 

65

​

 

22,900

Doubtful

​

 

827

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

827

Total Commercial Real Estate

​

$

524,459

​

$

285,986

​

$

107,851

​

$

71,393

​

$

52,494

​

$

80,208

​

$

24,282

​

$

1,146,673

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

28,519

​

$

10,989

​

$

3,662

​

$

1,524

​

$

916

​

$

676

​

$

46,521

​

$

92,807

Watch

​

 

21

​

 

71

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

92

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

23

​

 

6

​

 

4

​

 

—

​

 

10

​

 

31

​

 

23

​

 

97

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

28,563

​

$

11,066

​

$

3,666

​

$

1,524

​

$

926

​

$

707

​

$

46,544

​

$

92,996

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

111,370

​

$

93,906

​

$

20,795

​

$

10,496

​

$

3,253

​

$

7,612

​

$

190,235

​

$

437,667

Watch

​

 

1,319

​

 

194

​

 

38

​

 

6

​

 

—

​

 

186

​

 

1,206

​

 

2,949

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

295

​

 

11

​

 

—

​

 

186

​

 

—

​

 

167

​

 

323

​

 

982

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

112,984

​

$

94,111

​

$

20,833

​

$

10,688

​

$

3,253

​

$

7,965

​

$

191,764

​

$

441,598

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,107,991

​

$

718,973

​

$

248,814

​

$

102,783

​

$

78,116

​

$

144,948

​

$

266,719

​

$

2,668,344

Watch

​

 

6,147

​

 

1,276

​

 

2,939

​

 

62

​

 

668

​

 

2,216

​

 

1,754

​

 

15,062

Special Mention

​

 

9,297

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

9,297

Substandard

​

 

22,670

​

 

1,416

​

 

231

​

 

639

​

 

50

​

 

896

​

 

411

​

 

26,313

Doubtful

​

 

827

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

827

Total

​

$

1,146,932

​

$

721,665

​

$

251,984

​

$

103,484

​

$

78,834

​

$

148,060

​

$

268,884

​

$

2,719,843

​

At June 30, 2022, PCD loans comprised $23.1 million of credits rated “Pass”; $4.7 million of credits rated “Watch”; none rated “Special Mention”; $1.1 million of credits rated “Substandard”; and none rated “Doubtful”.

​

The following tables presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of June 30, 2021. This tables includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

June 30,

    

2021

    

2020

    

2019

    

2018

    

2017

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

361,876

​

$

175,772

​

$

43,576

​

$

32,929

​

$

23,267

​

$

71,592

​

$

5,557

​

$

714,569

Watch

​

 

328

​

 

70

​

 

410

​

 

—

​

 

89

​

 

809

​

 

—

​

 

1,706

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

4,288

​

 

89

​

 

—

​

 

92

​

 

—

​

 

472

​

 

—

​

 

4,941

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

366,492

​

$

175,931

​

$

43,986

​

$

33,021

​

$

23,356

​

$

72,873

​

$

5,557

​

$

721,216

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

88,371

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,237

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

47

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

47

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

88,418

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,284

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

351,732

​

$

147,670

​

$

104,746

​

$

75,967

​

$

70,927

​

$

61,194

​

$

23,699

​

$

835,935

Watch

​

 

4,456

​

 

2,365

​

 

9,502

​

 

1,377

​

 

726

​

 

10

​

 

810

​

 

19,246

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

8,191

​

 

1,137

​

 

505

​

 

31

​

 

5

​

 

99

​

 

69

​

 

10,037

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total Commercial Real Estate

​

$

364,379

​

$

159,978

​

$

115,603

​

$

79,168

​

$

84,484

​

$

61,303

​

$

24,878

​

$

889,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

23,858

​

$

8,626

​

$

3,597

​

$

1,126

​

$

534

​

$

650

​

$

39,071

​

$

77,462

Watch

​

 

80

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

128

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

30

​

 

30

​

 

—

​

 

24

​

 

84

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

23,938

​

$

8,626

​

$

3,597

​

$

1,156

​

$

564

​

$

650

​

$

39,143

​

$

77,674

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

189,280

​

$

42,549

​

$

17,960

​

$

5,591

​

$

7,265

​

$

9,120

​

$

136,603

​

$

408,368

Watch

​

 

1,551

​

 

262

​

 

1,323

​

 

22

​

 

—

​

 

—

​

 

463

​

 

3,621

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

594

​

 

81

​

 

305

​

 

—

​

 

176

​

 

—

​

 

979

​

 

2,135

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

191,425

​

$

42,892

​

$

19,588

​

$

5,613

​

$

7,441

​

$

9,120

​

$

138,045

​

$

414,124

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,015,117

​

$

420,483

​

$

169,879

​

$

115,613

​

$

101,993

​

$

142,556

​

$

204,930

​

$

2,170,571

Watch

​

 

6,415

​

 

2,697

​

 

11,235

​

 

1,399

​

 

815

​

 

819

​

 

1,321

​

 

24,701

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

13,120

​

 

1,307

​

 

810

​

 

153

​

 

211

​

 

571

​

 

1,072

​

 

17,244

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total

​

$

1,034,652

​

$

433,293

​

$

182,774

​

$

118,958

​

$

115,845

​

$

143,946

​

$

207,623

​

$

2,237,091

​

At June 30, 2021, PCD loans comprised $3.2 million of credits rated “Pass”; $9.0 million of credits rated “Watch”; none rated “Special Mention”; $2.7 million of credits rated “Substandard”; and none rated “Doubtful”.

​

Past Due Loans. The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of June 30, 2022 and 2021. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential

​

$

1,402

​

$

—

​

$

1,064

​

$

2,466

​

$

901,694

​

$

904,160

​

$

—

Construction

​

 

—

​

 

—

​

 

—

​

 

—

​

 

134,416

​

 

134,416

​

 

—

Commercial

​

 

416

​

 

615

​

 

288

​

 

1,319

​

 

1,145,354

​

 

1,146,673

​

 

—

Consumer loans

​

 

340

​

 

45

​

 

57

​

 

442

​

 

92,554

​

 

92,996

​

 

—

Commercial loans

​

 

274

​

 

72

​

 

13

​

 

359

​

 

441,239

​

 

441,598

​

 

—

Total loans

​

$

2,432

​

$

732

​

$

1,422

​

$

4,586

​

$

2,715,257

​

$

2,719,843

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Loans:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Residential

​

$

312

​

$

364

​

$

613

​

$

1,289

​

$

719,927

​

$

721,216

​

$

—

Construction

​

 

—

​

 

—

​

 

30

​

 

30

​

 

134,254

​

 

134,284

​

 

—

Commercial

​

 

363

​

 

—

​

 

374

​

 

737

​

 

889,056

​

 

889,793

​

 

—

Consumer loans

​

 

195

​

 

66

​

 

84

​

 

345

​

 

77,329

​

 

77,674

​

 

—

Commercial loans

​

 

368

​

 

939

​

 

110

​

 

1,417

​

 

412,707

​

 

414,124

​

 

—

Total loans

​

$

1,238

​

$

1,369

​

$

1,211

​

$

3,818

​

$

2,233,273

​

$

2,237,091

​

$

—

​

​

Under the CARES Act, financial institutions had the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at June 30, 2021, included $23.9 million in loans reported as current in the above table, while none were reported as past due.

At June 30, 2022 and 2021 there were no PCD loans that were greater than 90 days past due.

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

​

Collateral-dependent Loans. The following table presents the Company’s collateral dependent loans and related ACL at June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost basis of

​

​

​

(dollars in thousands)

​

loans determined to be

​

Related allowance

June 30, 2022

​

collateral dependent

​

for credit losses

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

 

$

864

​

$

193

Total loans

​

$

864

​

$

193

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost basis of

​

​

​

(dollars in thousands)

​

loans determined to be

​

Related allowance

June 30, 2021

​

collateral dependent

​

for credit losses

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

 

$

895

​

$

223

Total loans

​

$

895

​

$

223

​

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at June 30, 2022 and 2021. The table excludes performing TDRs.

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Residential real estate

​

$

1,647

​

$

3,235

Construction real estate

​

 

—

​

 

30

Commercial real estate

​

 

2,259

​

 

1,914

Consumer loans

​

 

73

​

 

100

Commercial loans

​

 

139

​

 

589

Total loans

​

$

4,118

​

$

5,868

​

At June 30, 2022, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the periods ended June 30, 2022 and 2021, was immaterial.

Troubled Debt Restructurings. TDRs are evaluated to determine whether they share similar risk characteristics with collectively evaluated loan pools, or must be individually evaluated. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. In general, the Company’s loans that have been subject to classification as TDRs are the result of guidance under ASU No. 2011-02, which indicates that the Company may not consider the borrower’s effective borrowing rate on the old debt immediately before the restructuring in determining whether a concession has been granted. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

During fiscal 2022, there were six loans modified as TDRs totaling $24.5 million. During fiscal 2021, there were three loans modified as TDRs totaling $894,000.

Performing loans classified as TDRs at June 30, 2022 and June 30, 2021 segregated by class, are shown in the table below. Nonperforming TDRs are shown in nonaccrual loans.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

June 30, 2021

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

11

​

$

3,625

 

1

​

$

895

Construction real estate

 

—

​

 

—

 

—

​

 

—

Commercial real estate

 

8

​

 

25,132

 

4

​

 

949

Consumer loans

 

—

​

 

—

 

—

​

 

—

Commercial loans

 

8

​

 

1,849

 

7

​

 

1,397

Total

 

27

​

$

30,606

 

12

​

$

3,241

​

Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of June 30, 2022 and June 30, 2021, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $580,000 and $622,000, respectively. In addition, as of June 30, 2022 and June 30, 2021, the Company had residential mortgage loans and home equity loans with a carrying value of $486,000 and $533,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2022 and 2021, respectively:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Beginning Balance

 

$

10,624

​

$

8,603

Additions

 

 

6,393

​

 

8,474

Repayments

 

 

(6,403)

​

 

(6,453)

Ending Balance

 

$

10,614

​

$

10,624

​
v3.23.1
Premises and Equipment
 12 Months Ended
Jun. 30, 2022
Premises and Equipment  
Premises and Equipment

NOTE 4: Premises and Equipment

Following is a summary of premises and equipment:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

​

2022

    

2021

Land

​

$

13,532

​

$

12,452

Buildings and improvements

​

 

64,730

​

 

56,422

Construction in progress

​

 

142

​

 

1,158

Furniture, fixtures, equipment and software

​

 

20,838

​

 

18,985

Automobiles

​

 

120

​

 

120

Operating leases ROU asset

​

 

3,849

​

 

2,770

​

​

 

103,211

​

 

91,907

Less accumulated depreciation

​

 

31,864

​

 

27,830

​

​

$

71,347

​

$

64,077

​

Leases. The Company elected certain relief options under ASU 2016-02, Leases (Topic 842), including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less). The Company has five leased properties and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.

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 years ended June 30, 2022 and 2021, income recognized from these lessor agreements was $279,000 and $307,000, respectively. Income from lessor agreements was included in net occupancy and equipment expense. The operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.

​

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 third 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 discount rate utilized was 5%. The expected lease terms range from 18 months to 20 years.

​

​

​

​

​

​

​

​

​

​

At or For the

​

At or For the

​

​

Twelve Months Ended

​

Twelve Months Ended

​

​

June 30, 2022

​

June 30, 2021

Consolidated Balance Sheet

​

​

​

​

​

​

Operating leases right of use asset

​

$

3,849

​

$

2,770

Operating leases liability

​

$

3,849

​

$

2,770

​

​

​

​

​

​

​

Consolidated Statement of Income

​

​

​

​

​

​

Operating lease costs classified as occupancy and equipment expense

​

$

451

​

$

340

(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

​

$

382

​

$

282

ROU assets obtained in exchange for operating lease obligations:

​

$

—

​

$

804

​

For the years ended June 30, 2022 and 2021, lease expense was $451,000 and $340,000, respectively. At June 30, 2022, future expected lease payments for leases with terms exceeding one year were as follows:

​

​

​

​

​

(dollars in thousands)

    

  

​

2023

​

$

442

2024

​

 

443

2025

​

 

439

2026

​

 

434

2027

​

 

418

Thereafter

​

 

4,074

Future lease payments expected

​

$

6,250

​
v3.23.1
Deposits
 12 Months Ended
Jun. 30, 2022
Deposits  
Deposits

NOTE 5: Deposits

Deposits are summarized as follows:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Non-interest bearing accounts

​

$

426,929

​

$

358,418

NOW accounts

​

 

1,171,620

​

 

925,280

Money market deposit accounts

​

 

303,612

​

 

253,614

Savings accounts

​

 

274,283

​

 

230,905

TOTAL NON-MATURITY DEPOSITS

​

​

2,176,444

​

​

1,768,217

Certificates

​

​

​

​

​

​

0.00-0.99%

​

​

408,479

​

​

332,958

1.00-1.99%

​

​

171,997

​

​

155,078

2.00-2.99%

​

​

51,692

​

​

63,777

3.00-3.99%

​

​

6,298

​

​

10,606

4.00-4.99%

​

​

165

​

​

167

TOTAL CERTIFICATES

​

​

638,631

​

​

562,586

TOTAL DEPOSITS

​

$

2,815,075

​

$

2,330,803

​

The aggregate amount of deposits with a minimum denomination of $250,000 was $848.9 million and $668.8 million at June 30, 2022 and 2021, respectively.

Certificate maturities are summarized as follows:

​

​

​

​

​

(dollars in thousands)

    

​

​

July 1, 2022 to June 30, 2023

​

$

377,842

July 1, 2023 to June 30, 2024

​

​

91,429

July 1, 2024 to June 30, 2025

​

​

71,706

July 1, 2025 to June 30, 2026

​

​

54,057

July 1, 2026 to June 30, 2027

​

​

42,844

Thereafter

​

​

753

TOTAL

​

$

638,631

​

Brokered certificates totaled $10.8 million and $5.0 million at June 30, 2022 and 2021, respectively. Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2022 and 2021 totaled approximately $6.0 million and $4.3 million, respectively.
v3.23.1
Advances from Federal Home Loan Bank
 12 Months Ended
Jun. 30, 2022
Advances from Federal Home Loan Bank  
Advances from Federal Home Loan Bank

NOTE 6:  Advances from Federal Home Loan Bank

Advances from Federal Home Loan Bank are summarized as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest

​

June 30, 

 

Maturity

​

Rate

​

2022

​

2021

 

​

​

​

​

(dollars in thousands)

​

09/07/21

​

2.81

%  

​

—

​

​

9,000

​

09/09/21

​

2.28

%  

​

—

​

​

1,994

​

10/01/21

​

2.53

%  

​

—

​

​

5,000

​

11/16/21

​

2.43

%  

​

—

​

​

5,000

​

03/07/22

​

0.95

%  

​

—

​

​

3,000

​

03/31/22

​

1.91

%  

​

—

​

​

248

​

08/15/22

​

1.89

%  

​

3,000

​

​

3,000

​

11/16/22

​

0.51

%  

​

1,994

​

​

—

​

03/6/23

​

0.99

%  

​

3,000

​

​

3,000

​

07/24/23

​

0.59

%  

​

987

​

​

—

​

11/15/23

​

0.57

%  

​

980

​

​

—

​

03/6/24

​

0.95

%  

​

3,000

​

​

3,000

​

03/28/24

​

2.56

%  

​

8,000

​

​

8,000

​

07/24/24

​

0.66

%  

​

1,940

​

​

—

​

08/13/24

​

1.88

%  

​

3,000

​

​

3,000

​

02/21/25

​

1.28

%  

​

—

​

​

5,000

​

02/21/25

​

1.53

%  

​

5,000

​

​

5,000

​

03/6/25

​

1.01

%  

​

3,000

​

​

3,000

​

07/15/25

​

0.77

%  

​

1,913

​

​

—

​

07/22/26

​

1.10

%  

​

1,909

​

​

—

​

12/14/26

​

2.65

%  

​

234

​

​

287

​

​

​

TOTAL

​

$

37,957

​

$

57,529

​

Weighted-average rate

​

​

​

​

1.47

%

​

1.97

%

​

Of the advances outstanding at June 30, 2022, one advance totaling $5.0 million is callable by the FHLB prior to maturity. In addition to the above advance, the Bank had additional available credit amounting to $500.6 million and $383.0 million with the FHLB at June 30, 2022 and 2021, respectively.

Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate and one- to four-family mortgage loans pledged. To secure outstanding advances and the Bank’s line of credit, loans totaling $889.7 million and $769.8 million were pledged to the FHLB at June 32, 2022 and 2021, respectively. The principal maturities of FHLB advances at June 30, 2022, are below:

​

​

​

​

​

​

​

June 30, 2022

FHLB Advance Maturities

    

(dollars in thousands)

July 1, 2022 to June 30, 2023

​

$

7,994

July 1, 2023 to June 30, 2024

​

​

12,967

July 1, 2024 to June 30, 2025

​

​

12,940

July 1, 2025 to June 30, 2026

​

​

1,913

July 1, 2026 to June 30, 2027

​

​

2,143

TOTAL

​

$

37,957

​
v3.23.1
Subordinated Debt
 12 Months Ended
Jun. 30, 2022
Subordinated Debt.  
Subordinated Debt

NOTE 7: Subordinated Debt

In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years, and bear interest at a floating rate based on LIBOR. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At June 30, 2022, the Debentures carried an interest rate of 4.78%. The balance of the Debentures outstanding was $7.2 million at June 30, 2022 and June 30, 2021. The Company used its net proceeds for working capital and investment in its subsidiaries.

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2022, the current rate was 4.28%. The carrying value of the debt securities was approximately $2.7 million at June 30, 2022 and 2021.

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2022, the current rate was 3.63%. The carrying value of the debt securities was approximately $5.4 million and $5.3 million at June 30, 2022 and 2021, respectively.

The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $461,000 at June 30, 2022.

In connection with its February 2022 acquisition of Fortune Financial Corporation (Fortune), 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 $7.7 million at June 30, 2022.

​
v3.23.1
Employee Benefits
 12 Months Ended
Jun. 30, 2022
Employee Benefits  
Employee Benefits

NOTE 8: Employee Benefits

401(k) Retirement Plan. The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank makes “safe harbor” matching contributions of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee. Additional profit-sharing contributions of 5% of eligible salary have been accrued for the plan year ended June 30, 2022, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2022. Total 401(k) expense for fiscal 2022, 2021, and 2020, was $1.9 million, $1.7 million, and $1.5 million, respectively. At June 30, 2022, 401(k) plan participants held approximately 398,000 shares of the Company’s stock in the plan. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.

2008 Equity Incentive Plan. The Company adopted an Equity Incentive Plan (the EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. The committee held the power to set vesting requirements for each award under the EIP. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the EIP. From fiscal 2012 through fiscal

2017, the Company awarded 122,803 shares, and no awards were made under the plan since fiscal 2017. All EIP awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to of 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2022, 2021, and 2020, there were 2,250, 2,700, and 2,825 EIP shares (split-adjusted) vested each year, respectively. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the five years during which the shares vest. The EIP expense for fiscal 2022, 2021, and 2020 was $46,000, $84,000, and $88,000, respectively. At June 30, 2022, no awards remained outstanding, and there was no unvested compensation expense related to the EIP.

​

2003 Stock Option Plan. The Company adopted a stock option plan in October 2003 (the 2003 Plan). Under the plan, the Company granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 187,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 10,000 remain outstanding. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the 2003 Plan.

As of June 30, 2022, there was no remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan. The aggregate intrinsic value of stock options outstanding, all of which were exercisable, at June 30, 2022, was $277,000. During fiscal 2020, options to purchase 10,000 shares were exercised; no options to purchase shares were exercised in fiscal 2022 or 2021. The intrinsic value of options vested in fiscal 2020 was $14,000, and no options vested in fiscal 2022 or 2021.

2017 Omnibus Incentive Plan. The Company adopted an equity-based incentive plan in October 2017 (the 2017 Plan). Under the 2017 plan, the Company reserved for issuance 500,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2017 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2017 Plan. Under the 2017 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.

Under the 2017 Plan, options to purchase 94,000 shares have been issued to employees, of which none have been exercised or forfeited, and 94,000 remain outstanding. As of June 30, 2022, there was $561,000 in remaining unrecognized compensation expense related to unvested stock options under the 2017 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2017 Plan at June 30, 2022, was $752,000, and no options were exercisable at June 30, 2022, at a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2022 and 2021 was $150,000, and $87,000, respectively. No in-the-money options were vested in fiscal 2020.

Full value awards totaling 22,350, 18,925, and 15,525 shares, respectively, were issued to employees and directors in fiscal 2022, 2021, and 2020. All full value awards were in the form of either:

●restricted stock vesting at the rate of 20% of such shares per year,
●performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period, or
●restricted stock vesting after a three-year service requirement.

​

During fiscal 2022, 2021, and 2020, full value awards of 12,860, 9,770, and 7,080 shares were vested, respectively. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the  vesting period. Compensation expense for full value awards under the 2017 Plan for fiscal 2022, 2021, and 2020 was $548,000, $351,000, and $293,000, respectively. At June 30, 2022, unvested compensation expense related to full value awards under the 2017 Plan was approximately $1.9 million.

Changes in options outstanding under the 2003 Plan and the 2017 Plan were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

​

2021

​

2020

​

​

Weighted

​

​

​

Weighted

​

​

​

Weighted

​

​

​

​

Average

​

​

​

Average

​

​

​

Average

​

​

​

​

Price

​

Number

​

Price

​

Number

​

Price

​

Number

Outstanding at beginning of year

​

$

33.77

​

89,500

​

$

33.22

​

60,500

​

$

26.35

​

51,000

Granted

​

​

53.82

​

14,500

​

​

34.91

​

29,000

​

​

37.40

​

19,500

Exercised

​

​

—

​

—

​

​

—

​

—

​

​

6.38

​

(10,000)

Forfeited

 

​

—

​

—

 

​

—

​

—

 

​

—

​

—

Outstanding at year-end

​

$

36.56

​

104,000

​

$

33.77

​

89,500

​

$

33.22

​

60,500

Options exercisable at year-end

​

$

31.92

​

44,900

​

$

29.79

​

29,000

​

$

26.31

​

18,900

​

The following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal years 2022, 2021, and 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

​

2021

​

2020

​

Assumptions:

​

​

​

​

​

​

​

​

​

​

Expected dividend yield

​

​

1.49

%

​

1.83

%

​

1.60

%

Expected volatility

 

​

28.02

%

​

27.72

%

​

22.55

%

Risk-free interest rate

​

​

1.82

%

​

1.14

%

​

1.55

%

Weighted-average expected life (years)

​

​

10.00

​

​

10.00

​

​

10.00

​

Weighted-average fair value of options granted during the year

​

$

16.38

​

$

9.19

​

$

8.81

​

​

The table below summarizes information about stock options outstanding under the 2003 Plan and 2017 Plan at June 30, 2022:

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

Options Outstanding

​

Options Exercisable

Average

​

​

​

Weighted

​

​

​

Weighted

Remaining

​

​

​

Average

​

​

​

Average

Contractual

​

Number

​

Exercise

​

Number

​

Exercise

Life

​

Outstanding

​

Price

​

Exercisable

​

Price

26 mo.

​

10,000

​

$

17.55

​

10,000

​

$

17.55

67 mo.

​

13,500

​

​

37.31

​

10,800

​

​

37.31

78 mo.

​

17,500

​

​

34.35

​

10,500

​

​

34.35

92 mo.

​

19,500

​

​

37.40

​

7,800

​

​

37.40

103 mo.

​

29,000

​

​

34.91

​

5,800

​

​

34.91

115 mo.

​

14,500

​

​

53.82

​

—

​

​

53.82

​
v3.23.1
Income Taxes
 12 Months Ended
Jun. 30, 2022
Income Taxes  
Income Taxes.

​

​

NOTE 9: Income Taxes

The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state tax examinations by tax authorities for tax years ending June 30, 2017 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented.

The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows:

​

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

    

June 30, 2021

Deferred tax assets:

 

​

  

 

​

  

Provision for losses on loans

​

$

7,761

​

$

7,626

Accrued compensation and benefits

​

 

828

​

 

826

NOL carry forwards acquired

​

 

57

​

 

147

Unrealized loss on other real estate

​

 

72

​

 

180

Unrealized loss on available for sale securities

​

​

4,921

​

​

—

Other

​

 

—

​

 

182

Total deferred tax assets

​

 

13,639

​

 

8,961

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

224

​

 

210

Depreciation

​

 

1,974

​

 

1,842

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

415

​

 

283

Unrealized gain on available for sale securities

​

 

—

​

 

821

Other

​

 

181

​

 

1,193

Total deferred tax liabilities

​

 

2,914

​

 

4,469

Net deferred tax asset

​

$

10,725

​

$

4,492

​

As of June 30, 2022, the Company had approximately $261,000 and $0 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., and the April 2020 acquisition of Central Federal Savings and Loan. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027.

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended June 30

(dollars in thousands)

​

2022

​

2021

​

2020

Tax at statutory rate

​

$

12,580

​

$

12,538

​

$

7,231

Increase (reduction) in taxes resulting from:

​

 

​

​

 

​

​

 

​

Nontaxable municipal income

​

 

(349)

​

 

(453)

​

 

(444)

State tax, net of Federal benefit

​

 

812

​

 

1,018

​

 

299

Cash surrender value of Bank-owned life insurance

​

 

(245)

​

 

(378)

​

 

(214)

Tax credit benefits

​

 

(45)

​

 

(11)

​

 

(48)

Other, net

​

 

(18)

​

 

(189)

​

 

63

Actual provision

​

$

12,735

​

$

12,525

​

$

6,887

​

For the years ended June 30, 2022, 2021, and 2020, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR). Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.
v3.23.1
Accumulated Other Comprehensive Income (AOCI)
 12 Months Ended
Jun. 30, 2022
Accumulated Other Comprehensive Income (AOCI)  
Accumulated Other Comprehensive Income (AOCI)

NOTE 10: Accumulated Other Comprehensive Income (AOCI)

The components of AOCI, included in stockholders’ equity, are as follows:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Net unrealized gain (loss) on securities available-for-sale

​

$

(22,366)

​

$

3,734

Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income

​

​

(1)

​

​

(1)

Unrealized gain from defined benefit pension plan

​

​

(37)

​

​

(26)

​

​

​

(22,404)

​

​

3,707

Tax effect

​

​

4,917

​

​

(825)

Net of tax amount

​

$

(17,487)

​

$

2,882

​

​

Amounts reclassified from AOCI and the affected line items in the consolidated statements of income during the years ended June 30, 2022 and 2021, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts Reclassified From AOCI

​

​

​

(dollars in thousands)

​

​

​

​

​

Affected Line Item in the Condensed

​

    

2022

    

2021

    

Consolidated Statements of Income

Unrealized gain on securities available-for-sale

​

$

—

​

$

90

​

​

Net realized gains on sale of AFS securities

Amortization of defined benefit pension items:

​

​

(11)

​

​

6

​

​

Compensation and benefits (included in computation of net periodic pension costs)

Total reclassified amount before tax

​

​

(11)

​

​

96

​

​

​

Tax benefit

​

​

(2)

​

​

20

​

​

Provision for income tax

Total reclassification out of AOCI

​

$

(9)

​

$

76

​

​

Net Income

​
v3.23.1
Stockholders' Equity and Regulatory Capital
 12 Months Ended
Jun. 30, 2022
Stockholders' Equity and Regulatory Capital  
Stockholders' Equity and Regulatory Capital

NOTE 11: Stockholders’ Equity and Regulatory Capital

The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Company and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company and Bank’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Additionally, to make distributions or discretionary bonus

payments, the Company and Bank must maintain a capital conservation buffer of 2.5% of risk-weighted assets. Management believes, as of June 30, 2022 and 2021, that the Company and the Bank met all capital adequacy requirements to which they are subject.

Effective January 1, 2020, depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a tier 1 leverage ratio of greater than 9 percent, are considered qualifying community banking organizations and are eligible to opt into an alternative, simplified regulatory capital framework, which utilizes a newly-defined “Community Bank Leverage Ratio” (CBLR). The CBLR framework is an optional framework that is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9 percent are considered to have satisfied the risk-based and leverage capital requirements in the agencies’ generally applicable capital rule. In April 2020, the federal bank regulatory agencies announced the issuance of two interim final rules to provide temporary relief to community banking organizations. Under the rules, CBLR requirement was a minimum of 8.5% for calendar year 2021, and 9% thereafter. The Company and the Bank have not made an election to utilize the CBLR framework, but will continue to monitor the available option, and could do so in the future.

In August 2020, the Federal banking agencies adopted a final rule updating a December 2018 rule regarding the impact on regulatory capital of adoption of the CECL standard. The rule now allows institutions that adopt the CECL standard in 2020 a five-year transition period to recognize the estimated impact of adoption on regulatory capital. The Company and the Bank elected to exercise the option to recognize the impact of adoption over the five-year period.

As of June 30, 2022, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The tables below summarize the Company and Bank’s actual and required regulatory capital:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

To Be Well Capitalized Under

 

​

​

​

​

​

​

​

​

​

​

​

​

Prompt Corrective Action

 

​

​

Actual

​

For Capital Adequacy Purposes

​

Provisions

 

As of June 30, 2022

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

(dollars in thousands)

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Total Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

370,013

​

13.42

%

$

220,558

​

8.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

352,169

​

12.90

%

​

218,397

​

8.00

%

​

272,996

​

10.00

%

Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

335,316

​

12.16

%

​

165,418

​

6.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

11.91

%

​

163,797

​

6.00

%

​

218,397

​

8.00

%

Tier I Capital (to Average Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

335,316

​

10.41

%

​

128,822

​

4.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

10.22

%

​

127,333

​

4.00

%

​

159,167

​

5.00

%

Common Equity Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

319,971

​

11.61

%

​

124,064

​

4.50

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

11.91

%

​

122,848

​

4.50

%

​

177,447

​

6.50

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

To Be Well Capitalized Under

 

​

​

​

​

​

​

​

​

​

​

​

​

Prompt Corrective Action

 

​

​

Actual

​

For Capital Adequacy Purposes

​

Provisions

 

As of June 30, 2021

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

(dollars in thousands)

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Total Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

315,490

​

14.18

%

$

177,938

​

8.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

308,482

​

13.96

%

​

176,816

​

8.00

%

​

221,019

​

10.00

%

Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

287,701

​

12.93

%

​

133,453

​

6.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

12.79

%

​

132,612

​

6.00

%

​

176,816

​

8.00

%

Tier I Capital (to Average Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

287,701

​

10.61

%

​

108,505

​

4.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

10.43

%

​

108,369

​

4.00

%

​

135,461

​

5.00

%

Common Equity Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

272,458

​

12.25

%

​

100,090

​

4.50

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

12.79

%

​

99,459

​

4.50

%

​

143,663

​

6.50

%

​

The Bank’s ability to pay dividends on its common stock to the Company is restricted to maintain adequate capital as shown in the above tables. Additionally, prior regulatory approval is required for the declaration of any dividends generally in excess of the sum of net income for that calendar year and retained net income for the preceding two calendar years. At June 30, 2022, approximately $38.0 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval.
v3.23.1
Commitments and Credit Risk
 12 Months Ended
Jun. 30, 2022
Commitments and Credit Risk  
Commitments and Credit Risk

NOTE 12: Commitments and Contengencies

Standby Letters of Credit. In the normal course of business, the Company issues various financial standby, performance standby, and commercial letters of credit for its customers. As consideration for the letters of credit, the institution charges letter of credit fees based on the face amount of the letters and the creditworthiness of the counterparties. These letters of credit are stand­alone agreements, and are unrelated to any obligation the depositor has to the Company.

Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers.

The Company had total outstanding standby letters of credit amounting to $3.7 million at June 30, 2022, and $4.0 million at June 30, 2021, with terms ranging from 12 to 24 months. At June 30, 2022, the Company’s deferred revenue under standby letters of credit agreements was nominal.

Off-balance-sheet and Credit Risk. The Company’s Consolidated Financial Statements do not reflect various financial instruments to extend credit to meet the financing needs of its customers.

These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a

case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments.

The Company had $707.7 million in commitments to extend credit at June 30, 2022, and $491.6 million at June 30, 2021.

At June 30, 2022, total commitments to originate fixed-rate loans with terms in excess of one year were $240.0 million at rates ranging from 2.19% to 6.75%, with a weighted-average rate of 4.66%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Company’s policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period.

The Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri, Arkansas, and Illinois. Although the Company has a diversified portfolio, loans aggregating $1.0 billion at June 30, 2022, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area.

​

Legal proceedings. In the opinion of management, the Company and its Bank subsidiary are not parties to any pending claims or lawsuits that are expected to have a material effect on the Company’s financial condition or operations. Periodically, there have been various claims and lawsuits involving the Company or the Bank, mainly as defendants, such as claims to enforce liens, condemnation proceedings on properties in which the Company or the Bank holds security interests, claims involving the making and servicing of real property loans and other activities incident to the Company’s or the Bank’s business. Aside from such pending claims and lawsuits, which are incident to the conduct of the Company’s or the Bank’s ordinary business, the Company and the Bank are not parties to any material pending legal proceedings that are expected to have a material effect on the financial condition or operations of the Company.

​
v3.23.1
Earnings Per Share
 12 Months Ended
Jun. 30, 2022
Earnings Per Share  
Earnings Per Share

​

​

NOTE 13: Earnings Per Share

The following table sets forth the computations of basic and diluted earnings per common share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands except per share data)

​

2022

​

2021

​

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

47,169

​

$

47,180

​

$

27,545

Less: distributed earnings allocated to participating securities

​

 

(30)

​

 

(18)

​

 

—

Less: undistributed earnings allocated to participating securities

​

 

(165)

​

 

(135)

​

 

—

Net income available to common shareholders

​

$ 

46,974

​

$ 

47,027

​

$ 

27,545

​

​

​

​

​

​

​

​

​

​

Denominator for basic earnings per share -

​

​

​

​

​

​

​

​

​

Weighted-average shares outstanding

​

 

8,994,022

​

 

9,007,814

​

 

9,189,876

Effect of dilutive securities stock options or awards

​

 

17,122

​

 

2,923

​

 

9,293

Denominator for diluted earnings per share

​

​

9,011,144

​

​

9,010,737

​

​

9,199,169

​

​

​

​

​

​

​

​

​

​

Basic earnings per share available to common stockholders

​

$

5.22

​

$

5.22

​

$

3.00

Diluted earnings per share available to common stockholders

​

$

5.21

​

$

5.22

​

$

2.99

​

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 22,750, 99,825, and 50,500 were excluded from the computation of diluted earnings per share for the fiscal years ended June 30, 2022, 2021, and 2020, respectively.
v3.23.1
Acquisitions
 12 Months Ended
Jun. 30, 2022
Acquisitions  
Acquisitions

NOTE 14: Acquisitions

On February 25, 2022, the Company completed its acquisition of Fortune Financial Corporation (“Fortune”), and its wholly owned subsidiary, FortuneBank (“FB”), in a stock and cash transaction valued at approximately $35.5 million. The acquired financial institution was merged with and into Southern Bank simultaneously with the acquisition of Fortune. For the fiscal year ended June 30, 2022, the Company incurred $1.4 million of third party acquisition-related costs, included in noninterest expense in the Company’s consolidated statements of income.

​

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Fortune acquisition is detailed in the following table.

​

​

​

​

​

Fortune Financial Corporation

​

​

​

Fair Value of Consideration Transferred

​

​

(dollars in thousands)

​

​

Cash

​

$

12,664

Common stock, at fair value

​

​

22,884

Total consideration

​

$

35,548

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

34,280

Interest bearing time deposits

​

 

2,300

Loans

​

 

202,053

Premises and equipment

​

 

7,690

BOLI

​

 

3,720

Identifiable intangible assets

​

 

1,602

Miscellaneous other assets

​

 

3,512

​

​

 

​

Deposits

​

 

(213,670)

FHLB Advances

​

 

(9,681)

Subordinated debt

​

 

(7,800)

Miscellaneous other liabilities

​

​

(1,214)

Total identifiable net assets

​

​

22,792

Goodwill

​

$

12,756

​

Of the total purchase price, $1.6 million has been allocated to core deposit intangible, and will be amortized over seven years on a straight line basis. Additionally, $12.8 million has been allocated to goodwill, and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and Fortune. 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 acquisition will change.

​

The Company acquired the $204.1 million loan portfolio at an estimated fair value discount of $2.1 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Loans acquired that were not subject to guidance relating to purchase credit deteriorated (PCD) loans include loans with a fair value and gross contractual amounts receivable of $187.0 million and $211.0 million at the date of acquisition. Management identified 31 PCD loans, with a book balance of $15.1 million, associated with the Fortune acquisition (ASC 310-30).

​

On December 15, 2021, the Company completed its acquisition of the Cairo, Illinois, branch (“Cairo”) of First National Bank, Oldham, South Dakota. The deal resulted in Southern Bank relocating its facility from its prior location to the First National Bank location in Cairo. The Company views the acquisition and updates to the new facility as an expression of its continuing commitment to the Cairo community. For the fiscal year ended June 30, 2022, the Company incurred $50,000 of third-party acquisition-related costs, included in noninterest expense in the Company’s consolidated statements of income.

​

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Cairo acquisition is detailed in the following table.

​

​

​

​

​

First National Bank - Cairo Branch

​

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash received

​

$

(26,932)

Common stock, at fair value

​

​

—

Total consideration

​

$

(26,932)

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

220

Loans

​

 

408

Premises and equipment

​

 

468

Identifiable intangible assets

​

 

168

Miscellaneous other assets

​

 

1

​

​

 

​

Deposits

​

 

(28,540)

Miscellaneous other liabilities

​

​

(99)

Total identifiable net liabilities

​

​

(27,374)

Goodwill

​

$

442

​

​

On May 22, 2020 the Company completed its acquisition of Central Federal Bancshares, Inc. (“Central”), and its wholly owned subsidiary, Central Federal Savings and Loan Association (“Central Federal”), in an all-cash transaction valued at approximately $21.9 million. Net cash paid for the acquisition totaled approximately $9.1 million. The conversion of data systems took place on June 7, 2020. The Company incurred $1.2 million of third-party acquisition-related costs with $1.2 million being included in noninterest expense in the Company’s consolidated statement of income for the year ended June 30, 2020.

​

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Central acquisition is detailed in the following table.

​

​

​

​

​

Central Federal Bancshares

    

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash

​

$

21,942

​

​

​

​

​

​

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

​

​

  

​

​

​

​

Cash and cash equivalents

​

$

12,862

Investment securities

​

​

4,355

Loans

​

​

51,449

Premises and equipment

​

​

723

Identifiable intangible assets

​

​

540

Miscellaneous other assets

​

​

639

​

​

​

​

Deposits

​

​

(46,720)

Miscellaneous other liabilities

​

​

(1,783)

Total identifiable net assets

​

​

22,065

Bargain Purchase Gain

​

$

(123)

​

Of the total purchase price of $21.9 million, $540,000 has been allocated to core deposit intangible. None of the purchase price was allocated to goodwill, as the acquisition resulted in a bargain purchase gain of $123,000. The core deposit intangible will be amortized over six years on a straight line basis.

The Company acquired the $52.1 million loan portfolio at an estimated fair value discount of $662,000. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30. Management identified no purchased credit-impaired loans associated with the Central acquisition (ASC 310-30).
v3.23.1
Fair Value Measurements
 12 Months Ended
Jun. 30, 2022
Fair Value Measurements  
Fair Value Measurements

NOTE 15: Fair Value Measurements

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 – Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities

Recurring Measurements. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2022, 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

​

$

44,479

​

$

—

​

$

44,479

​

$

—

Corporate obligations

​

​

19,887

​

​

—

​

​

19,887

​

​

—

Other securities

​

 

443

​

 

—

​

 

443

​

 

—

MBS and CMOs

​

 

170,585

​

 

—

​

 

170,585

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for 

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Obligations of state and political subdivisions

​

$

47,696

​

$

—

​

$

47,696

​

$

—

Corporate obligations

​

​

20,311

​

​

—

​

​

20,311

​

​

—

Other securities

​

 

672

​

 

—

​

 

672

​

 

—

MBS and CMOs

​

 

138,341

​

 

—

​

 

138,341

​

 

—

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the year ended June 30, 2022.

Available-for-sale Securities. When quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics. For these securities, our Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

​

Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2022, 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

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

280

​

$

—

​

$

—

​

$

280

​

The following table presents losses recognized on assets measured on a non-recurring basis for the years ended June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

2022

​

2021

Foreclosed and repossessed assets held for sale

​

$

(503)

​

$

(44)

Total losses on assets measured on a non-recurring basis

​

$

(503)

​

$

(44)

​

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 pursuant to the valuation hierarch. 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. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

Unobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at June 30, 2021. There were no Level 3 fair value measurements at Junr 30, 2022.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

June 30, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

280

 

Third party appraisal

 

Marketability discount

 

7.2% - 80.6

%  

37.1

%

​

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

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

​

$

86,792

​

$

86,792

​

$

—

​

$

—

Interest-bearing time deposits

​

 

4,768

​

 

—

​

 

4,768

​

 

—

Stock in FHLB

​

 

5,893

​

 

—

​

 

5,893

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,790

​

 

—

​

 

5,790

​

 

—

Loans receivable, net

​

 

2,686,198

​

 

—

​

 

—

​

 

2,655,882

Accrued interest receivable

​

 

11,052

​

 

—

​

 

11,052

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

2,815,075

​

 

2,176,444

​

 

—

​

 

637,163

Advances from FHLB

​

 

37,957

​

 

—

​

 

35,916

​

 

—

Accrued interest payable

​

 

801

​

 

—

​

 

801

​

 

—

Subordinated debt

​

 

23,055

​

 

—

​

 

—

​

 

22,070

Unrecognized financial instruments (net of contract amount)

​

 

​

​

 

​

​

 

​

​

 

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

123,592

​

$

123,592

​

$

—

​

$

—

Interest-bearing time deposits

​

 

979

​

 

—

​

 

979

​

 

—

Stock in FHLB

​

 

5,873

​

 

—

​

 

5,873

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,200,244

​

 

—

​

 

—

​

 

2,218,762

Accrued interest receivable

​

 

10,079

​

 

—

​

 

10,079

​

 

—

Financial liabilities

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

2,330,803

​

 

1,768,217

​

 

—

​

 

565,123

Advances from FHLB

​

 

57,529

​

 

—

​

 

58,587

​

 

—

Accrued interest payable

​

​

779

​

 

—

​

 

779

​

 

—

Subordinated debt

​

​

15,243

​

 

—

​

 

—

​

 

15,468

Unrecognized financial instruments (net of contract amount)

​

 

​

​

​

​

​

​

​

​

​

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​
v3.23.1
Significant Estimates
 12 Months Ended
Jun. 30, 2022
Significant Estimates.  
Significant Estimates

NOTE 16: Significant Estimates

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1.

​
v3.23.1
Condensed Parent Company Only Financial Statements
 12 Months Ended
Jun. 30, 2022
Condensed Parent Company Only Financial Statements  
Condensed Parent Company Only Financial Statements

NOTE 17: Condensed Parent Company Only Financial Statements

The following condensed balance sheets, statements of income and comprehensive income and cash flows for Southern Missouri Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

​

2022

    

2021

Condensed Balance Sheets

​

​

Assets

​

​

  

 

​

  

Cash and cash equivalents

​

$

8,964

​

$

1,193

Other assets

​

​

28,691

​

​

14,380

Investment in common stock of Bank

​

​

306,549

​

​

283,500

TOTAL ASSETS

​

$

344,204

​

$

299,073

​

​

​

​

​

​

​

Liabilities and Stockholders' Equity

​

​

  

​

​

  

Accrued expenses and other liabilities

​

$

377

​

$

407

Subordinated debt

​

​

23,055

​

​

15,243

TOTAL LIABILITIES

​

​

23,432

​

​

15,650

Stockholders' equity

​

​

320,772

​

​

283,423

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

​

$

344,204

​

$

299,073

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended June 30, 

(dollars in thousands)

​

2022

​

2021

    

2020

Condensed Statements of Income

​

​

Interest income

​

$

14

​

$

13

​

$

27

Interest expense

​

 

686

​

​

534

​

​

899

Net interest expense

​

 

(672)

​

​

(521)

​

​

(872)

Dividends from Bank

​

​

31,000

​

​

12,000

​

​

34,000

Bargain purchase gain

​

​

—

​

​

—

​

​

123

Operating expenses

​

​

1,124

​

​

599

​

​

1,529

Income before income taxes and equity in undistributed income of the Bank

​

​

29,204

​

​

10,880

​

​

31,722

Income tax benefit

​

​

321

​

​

235

​

​

292

Income before equity in undistributed income of the Bank

​

​

29,525

​

​

11,115

​

​

32,014

Equity in undistributed income of the Bank

​

​

17,644

​

​

36,065

​

​

(4,469)

NET INCOME

​

$

47,169

​

$

47,180

​

$

27,545

COMPREHENSIVE INCOME

​

$

26,800

​

$

45,615

​

$

30,745

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended June 30, 

(dollars in thousands)

    

2022

    

2021

    

2020

Condensed Statements of Cash Flow

​

​

​

​

​

​

​

​

​

Cash Flows from operating activities:

​

​

Net income

​

$

47,169

​

$

47,180

​

$

27,545

Changes in:

​

 

​

​

​

​

​

​

​

Equity in undistributed income of the Bank

​

 

(17,644)

​

​

(36,065)

​

​

4,469

Other adjustments, net

​

​

(698)

​

​

(559)

​

​

(904)

NET CASH PROVIDED BY OPERATING ACTIVITES

​

​

28,827

​

​

10,556

​

​

31,110

​

​

​

​

​

​

​

​

​

​

Investments in Bank subsidiaries

​

​

(8,024)

​

​

—

​

​

(20,463)

NET CASH USED IN INVESTING ACTIVITIES

​

​

(8,024)

​

​

—

​

​

(20,463)

​

​

​

​

​

​

​

​

​

​

Cash flows from financing activities:

​

​

​

​

​

​

​

​

​

Dividends on common stock

​

​

(7,194)

​

​

(5,598)

​

​

(5,513)

Exercise of stock options

​

​

—

​

​

—

​

​

64

Payments to acquire treasury stock

​

​

(5,838)

​

​

(8,341)

​

​

(5,771)

Repayments of long term debt

​

​

—

​

​

—

​

​

(3,000)

NET CASH USED IN FINANCING ACTIVITIES

​

​

(13,032)

​

​

(13,939)

​

​

(14,220)

​

​

​

​

​

​

​

​

​

​

Net increase (decrease) in cash and cash equivalents

​

​

7,771

​

​

(3,383)

​

​

(3,573)

Cash and cash equivalents at beginning of year

​

​

1,193

​

​

4,576

​

​

8,149

CASH AND CASH EQUIVALENTS AT END OF YEAR

​

$

8,964

​

$

1,193

​

$

4,576

​
v3.23.1
Quarterly Financial Data (Unaudited)
 12 Months Ended
Jun. 30, 2022
Quarterly Financial Data (Unaudited)  
Quarterly Financial Data (Unaudited)

NOTE 18: Quarterly Financial Data (Unaudited)

​

Quarterly operating data is summarized as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

28,860

​

$

28,096

​

$

28,339

​

$

31,572

Interest expense

​

 

3,223

​

 

3,038

​

 

3,225

​

 

3,814

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

25,637

​

 

25,058

​

 

25,114

​

 

27,758

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for credit losses

​

 

(305)

​

 

—

​

 

1,552

​

 

240

Noninterest income

​

​

4,515

​

​

5,285

​

​

4,904

​

​

6,499

Noninterest expense

​

​

14,221

​

​

15,070

​

​

16,757

​

​

17,331

Income before income taxes

​

 

16,236

​

 

15,273

​

 

11,709

​

 

16,686

Income tax expense

​

 

3,487

​

 

3,288

​

 

2,358

​

 

3,602

NET INCOME

​

$

12,749

​

$

11,985

​

$

9,351

​

$

13,084

Basic earnings per share

​

$

1.43

​

$

1.35

​

$

1.03

​

$

1.41

Diluted earnings per share

​

$

1.43

​

$

1.34

​

$

1.03

​

$

1.41

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

26,972

​

$

27,871

​

$

27,100

​

$

27,532

Interest expense

​

 

4,908

​

 

4,344

​

 

3,951

​

 

3,586

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

22,064

​

 

23,527

​

 

23,149

​

 

23,946

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for loan losses

​

 

1,000

​

 

1,000

​

 

(409)

​

 

(2,615)

Noninterest income

​

​

4,941

​

​

5,720

​

​

4,524

​

​

4,857

Noninterest expense

​

​

13,272

​

​

13,046

​

​

13,528

​

​

14,201

Income before income taxes

​

 

12,733

​

 

15,201

​

 

14,554

​

 

17,217

Income tax expense

​

 

2,747

​

 

3,153

​

 

3,096

​

 

3,529

NET INCOME

​

$

9,986

​

$

12,048

​

$

11,458

​

$

13,688

Basic earnings per share

​

$

1.09

​

$

1.33

​

$

1.27

​

$

1.53

Diluted earnings per share

​

$

1.09

​

$

1.32

​

$

1.27

​

$

1.53

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2020

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

26,922

​

$

26,646

​

$

26,220

​

$

27,264

Interest expense

​

 

7,362

​

 

7,269

​

 

6,802

​

 

5,483

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

19,560

​

 

19,377

​

 

19,418

​

 

21,781

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for loan losses

​

 

896

​

 

388

​

 

2,850

​

 

1,868

Noninterest income

​

​

3,489

​

​

3,674

​

​

3,229

​

​

4,358

Noninterest expense

​

​

12,349

​

​

13,025

​

​

13,569

​

​

15,509

Income before income taxes

​

 

9,804

​

 

9,638

​

 

6,228

​

 

8,762

Income tax expense

​

 

1,976

​

 

1,921

​

 

1,129

​

 

1,861

NET INCOME

​

$

7,828

​

$

7,717

​

$

5,099

​

$

6,901

Basic earnings per share

​

$

0.85

​

$

0.84

​

$

0.55

​

$

0.76

Diluted earnings per share

​

$

0.85

​

$

0.84

​

$

0.55

​

$

0.76

​
v3.23.1
Organization and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jun. 30, 2022
Organization and Summary of Significant Accounting Policies  
Organization

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by SB Real Estate Investments, LLC, and has other preferred shareholders in order to meet the requirements to be a REIT. At June 30, 2022, assets of the REIT were approximately $1.3 billion, and consisted primarily of real estate loan participations acquired from the Bank.

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. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.
Principles of Consolidation

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

On July 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, which created material changes to the existing critical accounting policy that existed at June 30, 2020. Effective July 1, 2020, the significant accounting policy which was considered to be the most critical in preparing the Company’s consolidated financial statements is the determination of the allowance for credit losses (“ACL”) on loans.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, and estimated fair values of purchased loans.
Cash and Cash Equivalents

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $47.3 million and $83.2 million at June 30, 2022 and 2021, respectively. The deposits are held in various commercial banks with a total of $5.8 million and $1.8 million exceeding the FDIC deposit insurance limits at June 30, 2022 and 2021, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.
Interest-bearing Time Deposits

Interest-bearing Time Deposits. Interest bearing deposits in banks mature within seven years and are carried at cost.
Available for Sale Securities

Available for Sale Securities. Available for sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as available for sale.

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

The Company does not invest in collateralized mortgage obligations that are considered high risk.

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income (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 ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers such 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 June 30, 2022, and June 30, 2021.

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Federal Reserve Bank and Federal Home Loan Bank Stock

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.
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 provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and a four-quarter, straight-line reversion period to return to long-term historical averages.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 24 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilized the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on statistical analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or

being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

Subsequent to the July 1, 2020, adoption of ASU 2016-13, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

Upon adoption of ASU 2016-13, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $434,000 to the ACL. The remaining noncredit discount, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of July 1, 2020.

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.
Off-Balance Sheet Credit Exposures

Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable. In prior periods the charge for credit loss expense for off-balance sheet credit exposures was included in other non-interest expense in the Company’s consolidated statements of income, whereas under updated regulatory accounting guidelines, that figure is combined with the provision for credit losses beginning July 1, 2020.
Foreclosed Real Estate

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis. Costs for development and improvement of the property are capitalized.

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. Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

Depreciation is computed by use of straight-line method over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.
Bank Owned Life Insurance

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.
Goodwill

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2022, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the market value of the Company’s common stock, concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations. The Company believes there is no impairment of goodwill at June 30, 2022.
Intangible Assets

Intangible Assets. The Company’s intangible assets at June 30, 2022 included gross core deposit intangibles of $17.0 million with $11.5 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage and SBA servicing rights of $2.7 million. At June 30, 2021, the Company’s intangible assets included gross core deposit intangibles of $15.3 million with $10.1 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and mortgage servicing rights of $1.9 million. The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.6 million in fiscal 2023, $1.6 million in fiscal 2024, $1.1 million in fiscal 2025, $581,000 in fiscal 2026, $253,000 in fiscal 2027, and $417,000 thereafter. As of June 30, 2022, and June 30, 2021, there was no impairment indicated.
Income Taxes

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

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 the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns with a tax year ended December 31.
Incentive Plan

Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.
Outside Directors' Retirement

Outside Directors’ Retirement. The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board, whether before or after the reorganization date.

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. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.
Earnings Per Share

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.
Comprehensive Income

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income, and changes in the funded status of defined benefit pension plans.
Transfers Between Fair Value Hierarchy Levels

Transfers Between Fair Value Hierarchy Levels. Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.
New Accounting Pronouncements

The following paragraphs summarize the impact of new accounting pronouncements:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which the Company adopted July 1, 2020. The Update amended guidance on reporting credit losses for financial assets held at amortized cost basis and available for sale debt securities. For financial assets held at amortized cost basis, Topic 326 eliminated the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Adoption was applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. Adoption resulted in an increase to the ACL of $8.9 million, related to the transition from the incurred loss model to the CECL ACL model, and an increase of $434,000 related to the transition from PCI to PCD methodology, relative to the ALLL as of June 30, 2020. The Company also recorded an adjustment to the reserve for unfunded commitments recorded in other liabilities of $268,000. The impact at adoption was reflected as an adjustment to beginning retained earnings, net of income taxes, in the amount of $7.2 million. In accordance with the new standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The adoption of ASU 2016-13 in fiscal 2021 could also impact the Company’s future earnings, perhaps materially.

The following table illustrates the impact of adoption of ASU 2016-13:

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

Total allowance for credit losses on off-balance sheet credit exposures

​

$

2,227

​

$

1,959

​

$

268

​

The above table includes the impact of ASU 2016-13 adoption for PCD assets previously classified as PCI. The change in the ACL includes $434,000 attributable to residential and commercial real estate loans, and the amortized cost basis of loans receivable was increased for those loans by that total amount.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated operations, financial position or disclosures.

​

In March 2020, the CARES Act was signed into law, creating a forbearance program for federally backed mortgage loans, protects borrowers from negative credit reporting due to loan accommodations related to the National Emergency, and provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDR) for a limited period of time to account for the effects of COVID-19. The Company has elected to not apply ASC Subtopic 310-40 for loans eligible under the CARES Act, based on the modification’s (1) relation to COVID-19, (2) execution for a loan that was not more than 30-days past due as of December 31, 2019, and (3) execution between March 1, 2020, and the earlier of the date that falls 60 days following the termination of the declared National Emergency, or December 31, 2020. The 2021 Consolidated Appropriations Act, signed into law in December 2020, extended the window during which loans may be modified without classification as TDRs under ASC Subtopic 310-40, to the earlier of January 1, 2022, or 60 days following the termination of the declared National Emergency.

​

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”. The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Pursuant to the Interagency Statement on LIBOR Transition issued in November 2020, the Company will not enter into any new LIBOR-based credit agreements after December 31, 2021. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

​

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. ASU 2021-01 is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2022, the FASB issued 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.” ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, for entities that have adopted the amendments in Update 2016-13, and is not expected to have a material impact on the Company’s consolidated financial statements.
Significant Estimates

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1.
v3.23.1
Organization and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2022
Organization and Summary of Significant Accounting Policies  
Schedule of Adoption of ASU 2016-13

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

Total allowance for credit losses on off-balance sheet credit exposures

​

$

2,227

​

$

1,959

​

$

268

​
v3.23.1
Available for Sale Securities (Tables)
 12 Months Ended
Jun. 30, 2022
Available for Sale Securities  
Schedule of Available for Sale Securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

 

​

​

 

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

​

$

47,383

​

$

77

​

$

(2,981)

​

$

—

​

$

44,479

Corporate obligations

​

​

20,818

​

​

32

​

​

(963)

​

​

—

​

​

19,887

Other securities

​

 

486

​

 

—

​

 

(43)

​

 

—

​

 

443

Total debt and equity securities

​

​

68,687

​

​

109

​

​

(3,987)

​

​

—

​

​

64,809

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

76,345

​

​

—

​

​

(7,177)

​

​

—

​

​

69,168

Commercial MBS issued by GSEs

​

​

51,435

​

​

—

​

​

(5,705)

​

​

—

​

​

45,730

CMOs issued by GSEs

​

​

61,293

​

​

—

​

​

(5,606)

​

​

—

​

​

55,687

Total MBS and CMOs

​

 

189,073

​

 

—

​

 

(18,488)

​

 

—

​

​

170,585

Total AFS securities

​

$

257,760

​

$

109

​

$

(22,475)

​

$

—

​

$

235,394

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

​

​

 

Gross

 

Gross

​

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,257

​

$

1,479

​

$

(40)

​

$

—

​

 

47,696

Corporate obligations

​

​

20,356

​

​

290

​

​

(335)

​

​

—

​

​

20,311

Other securities

​

​

647

​

 

25

​

 

—

​

 

—

​

​

672

Total debt and equity securities

​

​

67,260

​

​

1,794

​

​

(375)

​

​

—

​

​

68,679

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

64,400

​

​

932

​

​

(379)

​

​

—

​

​

64,953

Commercial MBS issued by GSEs

​

​

35,425

​

​

1,394

​

​

(338)

​

​

—

​

​

36,481

CMOs issued by GSEs

​

​

36,201

​

​

755

​

​

(49)

​

​

—

​

​

36,907

Total MBS and CMOs

​

 

136,026

​

 

3,081

​

 

(766)

​

 

—

​

 

138,341

Total AFS securities

​

$

203,286

​

$

4,875

​

$

(1,141)

​

$

—

​

$

207,020

​
Schedule of amortized cost and fair value of available-for-sale securities, by contractual maturity

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

 

Amortized

 

Estimated

(dollars in thousands)

    

Cost

    

Fair Value

Within one year

​

$

868

​

$

869

After one year but less than five years

​

 

10,485

​

 

10,258

After five years but less than ten years

​

 

32,161

​

 

30,340

After ten years

​

 

25,173

​

 

23,342

Total investment securities

​

 

68,687

​

 

64,809

MBS and CMOs

​

 

189,073

​

 

170,585

Total AFS securities

​

$

257,760

​

$

235,394

​
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

For the year ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

31,985

​

$

2,639

​

$

1,600

​

$

342

​

$

33,585

​

$

2,981

Corporate obligations

​

​

10,944

​

​

420

​

​

6,911

​

​

543

​

​

17,855

​

​

963

Other securities

​

​

418

​

​

43

​

​

—

​

​

—

​

​

418

​

​

43

MBS and CMOs

​

 

137,590

​

 

12,482

​

 

29,834

​

 

6,006

​

 

167,424

​

 

18,488

Total AFS securities

​

$

180,937

​

$

15,584

​

$

38,345

​

$

6,891

​

$

219,282

​

$

22,475

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

For the year ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

3,177

​

$

40

​

$

—

​

$

—

​

$

3,177

​

$

40

Corporate obligations

​

​

9,331

​

​

79

​

​

720

​

​

256

​

​

10,051

​

​

335

MBS and CMOs

​

 

53,893

​

 

764

​

 

70

​

 

2

​

 

53,963

​

 

766

Total AFS securities

​

$

66,401

​

$

883

​

$

790

​

$

258

​

$

67,191

​

$

1,141

​
v3.23.1
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Jun. 30, 2022
Loans and Allowance for Credit Losses  
Schedule of classes of loans

​

​

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

    

June 30, 2021

Real Estate Loans:

​

​

​

​

​

​

Residential

​

$

904,160

​

$

721,216

Construction

​

 

258,072

​

 

208,824

Commercial

​

 

1,146,673

​

 

889,793

Consumer loans

​

 

92,996

​

 

77,674

Commercial loans

​

 

441,598

​

 

414,124

​

​

 

2,843,499

​

 

2,311,631

Loans in process

​

 

(123,656)

​

 

(74,540)

Deferred loan fees, net

​

 

(453)

​

 

(3,625)

Allowance for credit losses

​

 

(33,192)

​

 

(33,222)

Total loans

​

$

2,686,198

​

$

2,200,244

​
Loans that the Company acquired from Fortune, PCD loans

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

PCD Loans:

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2022

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

Initial ACL on PCD loans

​

​

23

​

​

4

​

​

52

​

​

—

​

​

41

​

​

120

Provision (benefit) charged to expense

​

​

(2,238)

​

​

46

​

​

2,251

​

​

(205)

​

​

80

​

​

(66)

Losses charged off

​

​

(72)

​

​

—

​

​

—

​

​

(65)

​

​

(16)

​

​

(153)

Recoveries

​

​

3

​

​

—

​

​

—

​

​

64

​

​

2

​

​

69

Balance, end of period

​

$

8,908

​

$

2,220

​

$

16,838

​

$

710

​

$

4,516

​

$

33,192

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2021

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

Impact of CECL adoption

​

​

3,521

​

​

(121)

​

​

3,856

​

​

1,065

​

​

1,012

​

​

9,333

Provision charged to expense

​

​

2,973

​

​

281

​

​

(1,364)

​

​

(1,232)

​

​

(1,260)

​

​

(602)

Losses charged off

​

​

(180)

​

​

—

​

​

(90)

​

​

(146)

​

​

(318)

​

​

(734)

Recoveries

​

​

3

​

​

—

​

​

1

​

​

47

​

​

35

​

​

86

Balance, end of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2020

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

3,706

​

$

1,365

​

$

9,399

​

$

1,046

​

$

4,387

​

$

19,903

Provision charged to expense

​

​

1,529

​

​

645

​

​

2,730

​

​

300

​

​

798

​

​

6,002

Losses charged off

​

​

(379)

​

​

—

​

​

(12)

​

​

(189)

​

​

(273)

​

​

(853)

Recoveries

​

​

19

​

​

—

​

​

15

​

​

25

​

​

28

​

​

87

Balance, end of period

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

​
Schedule of Allowance for off-balance credit exposure

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2022

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805

Provision (benefit) charged to expense

​

​

21

​

​

1,676

​

​

233

​

​

(157)

​

​

(220)

​

​

1,553

Balance, end of period

​

$

58

​

$

2,178

​

$

421

​

$

61

​

$

640

​

$

3,358

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

June 30, 2021

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period period

​

$

19

​

$

769

​

$

172

​

$

153

​

$

846

​

$

1,959

Impact of CECL adoption

​

​

35

​

​

(167)

​

​

95

​

​

197

​

​

108

​

​

268

Provision (benefit) charged to expense

​

​

(17)

​

​

(100)

​

​

(79)

​

​

(132)

​

​

(94)

​

​

(422)

Balance, end of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805
Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

June 30,

    

2022

    

2021

    

2020

    

2019

    

2018

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

380,502

​

$

295,260

​

$

118,464

​

$

19,383

​

$

22,143

​

$

58,545

​

$

6,074

​

$

900,371

Watch

​

 

44

​

 

242

​

 

1,083

​

 

56

​

 

—

​

 

30

​

 

—

​

 

1,455

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

266

​

 

918

​

 

87

​

 

440

​

 

18

​

 

605

​

 

—

​

 

2,334

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

380,812

​

$

296,420

​

$

119,634

​

$

19,879

​

$

22,161

​

$

59,180

​

$

6,074

​

$

904,160

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

100,114

​

$

34,082

​

$

—

​

$

—

​

$

—

​

$

—

​

$

220

​

$

134,416

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

100,114

​

$

34,082

​

$

—

​

$

—

​

$

—

​

$

—

​

$

220

​

$

134,416

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

487,486

​

$

284,736

​

$

105,893

​

$

71,380

​

$

51,804

​

$

78,115

​

$

23,669

​

$

1,103,083

Watch

​

 

4,763

​

 

769

​

 

1,818

​

 

—

​

 

668

​

 

2,000

​

 

548

​

 

10,566

Special Mention

​

 

9,297

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

9,297

Substandard

​

 

22,086

​

 

481

​

 

140

​

 

13

​

 

22

​

 

93

​

 

65

​

 

22,900

Doubtful

​

 

827

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

827

Total Commercial Real Estate

​

$

524,459

​

$

285,986

​

$

107,851

​

$

71,393

​

$

52,494

​

$

80,208

​

$

24,282

​

$

1,146,673

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

28,519

​

$

10,989

​

$

3,662

​

$

1,524

​

$

916

​

$

676

​

$

46,521

​

$

92,807

Watch

​

 

21

​

 

71

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

92

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

23

​

 

6

​

 

4

​

 

—

​

 

10

​

 

31

​

 

23

​

 

97

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

28,563

​

$

11,066

​

$

3,666

​

$

1,524

​

$

926

​

$

707

​

$

46,544

​

$

92,996

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

111,370

​

$

93,906

​

$

20,795

​

$

10,496

​

$

3,253

​

$

7,612

​

$

190,235

​

$

437,667

Watch

​

 

1,319

​

 

194

​

 

38

​

 

6

​

 

—

​

 

186

​

 

1,206

​

 

2,949

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

295

​

 

11

​

 

—

​

 

186

​

 

—

​

 

167

​

 

323

​

 

982

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

112,984

​

$

94,111

​

$

20,833

​

$

10,688

​

$

3,253

​

$

7,965

​

$

191,764

​

$

441,598

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,107,991

​

$

718,973

​

$

248,814

​

$

102,783

​

$

78,116

​

$

144,948

​

$

266,719

​

$

2,668,344

Watch

​

 

6,147

​

 

1,276

​

 

2,939

​

 

62

​

 

668

​

 

2,216

​

 

1,754

​

 

15,062

Special Mention

​

 

9,297

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

9,297

Substandard

​

 

22,670

​

 

1,416

​

 

231

​

 

639

​

 

50

​

 

896

​

 

411

​

 

26,313

Doubtful

​

 

827

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

827

Total

​

$

1,146,932

​

$

721,665

​

$

251,984

​

$

103,484

​

$

78,834

​

$

148,060

​

$

268,884

​

$

2,719,843

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

June 30,

    

2021

    

2020

    

2019

    

2018

    

2017

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

361,876

​

$

175,772

​

$

43,576

​

$

32,929

​

$

23,267

​

$

71,592

​

$

5,557

​

$

714,569

Watch

​

 

328

​

 

70

​

 

410

​

 

—

​

 

89

​

 

809

​

 

—

​

 

1,706

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

4,288

​

 

89

​

 

—

​

 

92

​

 

—

​

 

472

​

 

—

​

 

4,941

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

366,492

​

$

175,931

​

$

43,986

​

$

33,021

​

$

23,356

​

$

72,873

​

$

5,557

​

$

721,216

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

88,371

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,237

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

47

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

47

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

88,418

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,284

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

351,732

​

$

147,670

​

$

104,746

​

$

75,967

​

$

70,927

​

$

61,194

​

$

23,699

​

$

835,935

Watch

​

 

4,456

​

 

2,365

​

 

9,502

​

 

1,377

​

 

726

​

 

10

​

 

810

​

 

19,246

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

8,191

​

 

1,137

​

 

505

​

 

31

​

 

5

​

 

99

​

 

69

​

 

10,037

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total Commercial Real Estate

​

$

364,379

​

$

159,978

​

$

115,603

​

$

79,168

​

$

84,484

​

$

61,303

​

$

24,878

​

$

889,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

23,858

​

$

8,626

​

$

3,597

​

$

1,126

​

$

534

​

$

650

​

$

39,071

​

$

77,462

Watch

​

 

80

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

128

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

30

​

 

30

​

 

—

​

 

24

​

 

84

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

23,938

​

$

8,626

​

$

3,597

​

$

1,156

​

$

564

​

$

650

​

$

39,143

​

$

77,674

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

189,280

​

$

42,549

​

$

17,960

​

$

5,591

​

$

7,265

​

$

9,120

​

$

136,603

​

$

408,368

Watch

​

 

1,551

​

 

262

​

 

1,323

​

 

22

​

 

—

​

 

—

​

 

463

​

 

3,621

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

594

​

 

81

​

 

305

​

 

—

​

 

176

​

 

—

​

 

979

​

 

2,135

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

191,425

​

$

42,892

​

$

19,588

​

$

5,613

​

$

7,441

​

$

9,120

​

$

138,045

​

$

414,124

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,015,117

​

$

420,483

​

$

169,879

​

$

115,613

​

$

101,993

​

$

142,556

​

$

204,930

​

$

2,170,571

Watch

​

 

6,415

​

 

2,697

​

 

11,235

​

 

1,399

​

 

815

​

 

819

​

 

1,321

​

 

24,701

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

13,120

​

 

1,307

​

 

810

​

 

153

​

 

211

​

 

571

​

 

1,072

​

 

17,244

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total

​

$

1,034,652

​

$

433,293

​

$

182,774

​

$

118,958

​

$

115,845

​

$

143,946

​

$

207,623

​

$

2,237,091

​
Schedule of company's loan portfolio aging analysis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential

​

$

1,402

​

$

—

​

$

1,064

​

$

2,466

​

$

901,694

​

$

904,160

​

$

—

Construction

​

 

—

​

 

—

​

 

—

​

 

—

​

 

134,416

​

 

134,416

​

 

—

Commercial

​

 

416

​

 

615

​

 

288

​

 

1,319

​

 

1,145,354

​

 

1,146,673

​

 

—

Consumer loans

​

 

340

​

 

45

​

 

57

​

 

442

​

 

92,554

​

 

92,996

​

 

—

Commercial loans

​

 

274

​

 

72

​

 

13

​

 

359

​

 

441,239

​

 

441,598

​

 

—

Total loans

​

$

2,432

​

$

732

​

$

1,422

​

$

4,586

​

$

2,715,257

​

$

2,719,843

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Loans:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Residential

​

$

312

​

$

364

​

$

613

​

$

1,289

​

$

719,927

​

$

721,216

​

$

—

Construction

​

 

—

​

 

—

​

 

30

​

 

30

​

 

134,254

​

 

134,284

​

 

—

Commercial

​

 

363

​

 

—

​

 

374

​

 

737

​

 

889,056

​

 

889,793

​

 

—

Consumer loans

​

 

195

​

 

66

​

 

84

​

 

345

​

 

77,329

​

 

77,674

​

 

—

Commercial loans

​

 

368

​

 

939

​

 

110

​

 

1,417

​

 

412,707

​

 

414,124

​

 

—

Total loans

​

$

1,238

​

$

1,369

​

$

1,211

​

$

3,818

​

$

2,233,273

​

$

2,237,091

​

$

—

​

​
Schedule of company's collateral dependent loans and related ACL

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost basis of

​

​

​

(dollars in thousands)

​

loans determined to be

​

Related allowance

June 30, 2022

​

collateral dependent

​

for credit losses

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

 

$

864

​

$

193

Total loans

​

$

864

​

$

193

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost basis of

​

​

​

(dollars in thousands)

​

loans determined to be

​

Related allowance

June 30, 2021

​

collateral dependent

​

for credit losses

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

 

$

895

​

$

223

Total loans

​

$

895

​

$

223

​
Schedule of interest income recognized on impaired loans

​
Schedule of Company's nonaccrual loans

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Residential real estate

​

$

1,647

​

$

3,235

Construction real estate

​

 

—

​

 

30

Commercial real estate

​

 

2,259

​

 

1,914

Consumer loans

​

 

73

​

 

100

Commercial loans

​

 

139

​

 

589

Total loans

​

$

4,118

​

$

5,868

​
Performing loans classified as TDRs and outstanding , segregated by class

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

June 30, 2021

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

11

​

$

3,625

 

1

​

$

895

Construction real estate

 

—

​

 

—

 

—

​

 

—

Commercial real estate

 

8

​

 

25,132

 

4

​

 

949

Consumer loans

 

—

​

 

—

 

—

​

 

—

Commercial loans

 

8

​

 

1,849

 

7

​

 

1,397

Total

 

27

​

$

30,606

 

12

​

$

3,241

​
Schedule of loans to executive officers, directors, significant shareholders and their affiliates held by the Company

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Beginning Balance

 

$

10,624

​

$

8,603

Additions

 

 

6,393

​

 

8,474

Repayments

 

 

(6,403)

​

 

(6,453)

Ending Balance

 

$

10,614

​

$

10,624
v3.23.1
Premises and Equipment (Tables)
 12 Months Ended
Jun. 30, 2022
Premises and Equipment  
Schedule of summary of premises and equipment

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

​

2022

    

2021

Land

​

$

13,532

​

$

12,452

Buildings and improvements

​

 

64,730

​

 

56,422

Construction in progress

​

 

142

​

 

1,158

Furniture, fixtures, equipment and software

​

 

20,838

​

 

18,985

Automobiles

​

 

120

​

 

120

Operating leases ROU asset

​

 

3,849

​

 

2,770

​

​

 

103,211

​

 

91,907

Less accumulated depreciation

​

 

31,864

​

 

27,830

​

​

$

71,347

​

$

64,077

​
Schedule of calculated amount of right of use assets and lease liabilities

​

​

​

​

​

​

​

​

​

​

At or For the

​

At or For the

​

​

Twelve Months Ended

​

Twelve Months Ended

​

​

June 30, 2022

​

June 30, 2021

Consolidated Balance Sheet

​

​

​

​

​

​

Operating leases right of use asset

​

$

3,849

​

$

2,770

Operating leases liability

​

$

3,849

​

$

2,770

​

​

​

​

​

​

​

Consolidated Statement of Income

​

​

​

​

​

​

Operating lease costs classified as occupancy and equipment expense

​

$

451

​

$

340

(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

​

$

382

​

$

282

ROU assets obtained in exchange for operating lease obligations:

​

$

—

​

$

804

​
Schedule of Future Minimum Rental Payments for Operating Leases

​

​

​

​

​

(dollars in thousands)

    

  

​

2023

​

$

442

2024

​

 

443

2025

​

 

439

2026

​

 

434

2027

​

 

418

Thereafter

​

 

4,074

Future lease payments expected

​

$

6,250
v3.23.1
Deposits (Tables)
 12 Months Ended
Jun. 30, 2022
Deposits  
Schedule of deposits

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Non-interest bearing accounts

​

$

426,929

​

$

358,418

NOW accounts

​

 

1,171,620

​

 

925,280

Money market deposit accounts

​

 

303,612

​

 

253,614

Savings accounts

​

 

274,283

​

 

230,905

TOTAL NON-MATURITY DEPOSITS

​

​

2,176,444

​

​

1,768,217

Certificates

​

​

​

​

​

​

0.00-0.99%

​

​

408,479

​

​

332,958

1.00-1.99%

​

​

171,997

​

​

155,078

2.00-2.99%

​

​

51,692

​

​

63,777

3.00-3.99%

​

​

6,298

​

​

10,606

4.00-4.99%

​

​

165

​

​

167

TOTAL CERTIFICATES

​

​

638,631

​

​

562,586

TOTAL DEPOSITS

​

$

2,815,075

​

$

2,330,803

​
Schedule of Certificate maturities

​

​

​

​

​

(dollars in thousands)

    

​

​

July 1, 2022 to June 30, 2023

​

$

377,842

July 1, 2023 to June 30, 2024

​

​

91,429

July 1, 2024 to June 30, 2025

​

​

71,706

July 1, 2025 to June 30, 2026

​

​

54,057

July 1, 2026 to June 30, 2027

​

​

42,844

Thereafter

​

​

753

TOTAL

​

$

638,631

​
v3.23.1
Advances from Federal Home Loan Bank (Tables)
 12 Months Ended
Jun. 30, 2022
Advances from Federal Home Loan Bank  
Schedule of Advances from Federal Home Loan Bank

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest

​

June 30, 

 

Maturity

​

Rate

​

2022

​

2021

 

​

​

​

​

(dollars in thousands)

​

09/07/21

​

2.81

%  

​

—

​

​

9,000

​

09/09/21

​

2.28

%  

​

—

​

​

1,994

​

10/01/21

​

2.53

%  

​

—

​

​

5,000

​

11/16/21

​

2.43

%  

​

—

​

​

5,000

​

03/07/22

​

0.95

%  

​

—

​

​

3,000

​

03/31/22

​

1.91

%  

​

—

​

​

248

​

08/15/22

​

1.89

%  

​

3,000

​

​

3,000

​

11/16/22

​

0.51

%  

​

1,994

​

​

—

​

03/6/23

​

0.99

%  

​

3,000

​

​

3,000

​

07/24/23

​

0.59

%  

​

987

​

​

—

​

11/15/23

​

0.57

%  

​

980

​

​

—

​

03/6/24

​

0.95

%  

​

3,000

​

​

3,000

​

03/28/24

​

2.56

%  

​

8,000

​

​

8,000

​

07/24/24

​

0.66

%  

​

1,940

​

​

—

​

08/13/24

​

1.88

%  

​

3,000

​

​

3,000

​

02/21/25

​

1.28

%  

​

—

​

​

5,000

​

02/21/25

​

1.53

%  

​

5,000

​

​

5,000

​

03/6/25

​

1.01

%  

​

3,000

​

​

3,000

​

07/15/25

​

0.77

%  

​

1,913

​

​

—

​

07/22/26

​

1.10

%  

​

1,909

​

​

—

​

12/14/26

​

2.65

%  

​

234

​

​

287

​

​

​

TOTAL

​

$

37,957

​

$

57,529

​

Weighted-average rate

​

​

​

​

1.47

%

​

1.97

%

​
Schedule of Principal Maturities of Federal Home Loan Bank

​

​

​

​

​

​

​

June 30, 2022

FHLB Advance Maturities

    

(dollars in thousands)

July 1, 2022 to June 30, 2023

​

$

7,994

July 1, 2023 to June 30, 2024

​

​

12,967

July 1, 2024 to June 30, 2025

​

​

12,940

July 1, 2025 to June 30, 2026

​

​

1,913

July 1, 2026 to June 30, 2027

​

​

2,143

TOTAL

​

$

37,957
v3.23.1
Employee Benefits (Tables)
 12 Months Ended
Jun. 30, 2022
Employee Benefits  
Schedule of changes in options outstanding under the 2003 Plan and the 2017 Plan

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

​

2021

​

2020

​

​

Weighted

​

​

​

Weighted

​

​

​

Weighted

​

​

​

​

Average

​

​

​

Average

​

​

​

Average

​

​

​

​

Price

​

Number

​

Price

​

Number

​

Price

​

Number

Outstanding at beginning of year

​

$

33.77

​

89,500

​

$

33.22

​

60,500

​

$

26.35

​

51,000

Granted

​

​

53.82

​

14,500

​

​

34.91

​

29,000

​

​

37.40

​

19,500

Exercised

​

​

—

​

—

​

​

—

​

—

​

​

6.38

​

(10,000)

Forfeited

 

​

—

​

—

 

​

—

​

—

 

​

—

​

—

Outstanding at year-end

​

$

36.56

​

104,000

​

$

33.77

​

89,500

​

$

33.22

​

60,500

Options exercisable at year-end

​

$

31.92

​

44,900

​

$

29.79

​

29,000

​

$

26.31

​

18,900

​
Schedule of values of options granted

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

​

2021

​

2020

​

Assumptions:

​

​

​

​

​

​

​

​

​

​

Expected dividend yield

​

​

1.49

%

​

1.83

%

​

1.60

%

Expected volatility

 

​

28.02

%

​

27.72

%

​

22.55

%

Risk-free interest rate

​

​

1.82

%

​

1.14

%

​

1.55

%

Weighted-average expected life (years)

​

​

10.00

​

​

10.00

​

​

10.00

​

Weighted-average fair value of options granted during the year

​

$

16.38

​

$

9.19

​

$

8.81

​

​
Schedule of stock options under the 2003 Plan and 2017 Plan

​

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

Options Outstanding

​

Options Exercisable

Average

​

​

​

Weighted

​

​

​

Weighted

Remaining

​

​

​

Average

​

​

​

Average

Contractual

​

Number

​

Exercise

​

Number

​

Exercise

Life

​

Outstanding

​

Price

​

Exercisable

​

Price

26 mo.

​

10,000

​

$

17.55

​

10,000

​

$

17.55

67 mo.

​

13,500

​

​

37.31

​

10,800

​

​

37.31

78 mo.

​

17,500

​

​

34.35

​

10,500

​

​

34.35

92 mo.

​

19,500

​

​

37.40

​

7,800

​

​

37.40

103 mo.

​

29,000

​

​

34.91

​

5,800

​

​

34.91

115 mo.

​

14,500

​

​

53.82

​

—

​

​

53.82
v3.23.1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2022
Income Taxes  
Schedule of components of net deferred tax assets

The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows:

​

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2022

    

June 30, 2021

Deferred tax assets:

 

​

  

 

​

  

Provision for losses on loans

​

$

7,761

​

$

7,626

Accrued compensation and benefits

​

 

828

​

 

826

NOL carry forwards acquired

​

 

57

​

 

147

Unrealized loss on other real estate

​

 

72

​

 

180

Unrealized loss on available for sale securities

​

​

4,921

​

​

—

Other

​

 

—

​

 

182

Total deferred tax assets

​

 

13,639

​

 

8,961

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

224

​

 

210

Depreciation

​

 

1,974

​

 

1,842

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

415

​

 

283

Unrealized gain on available for sale securities

​

 

—

​

 

821

Other

​

 

181

​

 

1,193

Total deferred tax liabilities

​

 

2,914

​

 

4,469

Net deferred tax asset

​

$

10,725

​

$

4,492

​
Schedule of reconciliation of income tax expense at the statutory rate

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended June 30

(dollars in thousands)

​

2022

​

2021

​

2020

Tax at statutory rate

​

$

12,580

​

$

12,538

​

$

7,231

Increase (reduction) in taxes resulting from:

​

 

​

​

 

​

​

 

​

Nontaxable municipal income

​

 

(349)

​

 

(453)

​

 

(444)

State tax, net of Federal benefit

​

 

812

​

 

1,018

​

 

299

Cash surrender value of Bank-owned life insurance

​

 

(245)

​

 

(378)

​

 

(214)

Tax credit benefits

​

 

(45)

​

 

(11)

​

 

(48)

Other, net

​

 

(18)

​

 

(189)

​

 

63

Actual provision

​

$

12,735

​

$

12,525

​

$

6,887

​
v3.23.1
Accumulated Other Comprehensive Income (AOCI) (Tables)
 12 Months Ended
Jun. 30, 2022
Accumulated Other Comprehensive Income (AOCI)  
Schedule of components of AOCI

The components of AOCI, included in stockholders’ equity, are as follows:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2022

    

2021

Net unrealized gain (loss) on securities available-for-sale

​

$

(22,366)

​

$

3,734

Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income

​

​

(1)

​

​

(1)

Unrealized gain from defined benefit pension plan

​

​

(37)

​

​

(26)

​

​

​

(22,404)

​

​

3,707

Tax effect

​

​

4,917

​

​

(825)

Net of tax amount

​

$

(17,487)

​

$

2,882

​
Schedule of reclassified from AOCI

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts Reclassified From AOCI

​

​

​

(dollars in thousands)

​

​

​

​

​

Affected Line Item in the Condensed

​

    

2022

    

2021

    

Consolidated Statements of Income

Unrealized gain on securities available-for-sale

​

$

—

​

$

90

​

​

Net realized gains on sale of AFS securities

Amortization of defined benefit pension items:

​

​

(11)

​

​

6

​

​

Compensation and benefits (included in computation of net periodic pension costs)

Total reclassified amount before tax

​

​

(11)

​

​

96

​

​

​

Tax benefit

​

​

(2)

​

​

20

​

​

Provision for income tax

Total reclassification out of AOCI

​

$

(9)

​

$

76

​

​

Net Income
v3.23.1
Stockholders' Equity and Regulatory Capital (Tables)
 12 Months Ended
Jun. 30, 2022
Stockholders' Equity and Regulatory Capital  
Schedule of company and Bank's actual and required regulatory capital

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

To Be Well Capitalized Under

 

​

​

​

​

​

​

​

​

​

​

​

​

Prompt Corrective Action

 

​

​

Actual

​

For Capital Adequacy Purposes

​

Provisions

 

As of June 30, 2022

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

(dollars in thousands)

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Total Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

370,013

​

13.42

%

$

220,558

​

8.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

352,169

​

12.90

%

​

218,397

​

8.00

%

​

272,996

​

10.00

%

Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

335,316

​

12.16

%

​

165,418

​

6.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

11.91

%

​

163,797

​

6.00

%

​

218,397

​

8.00

%

Tier I Capital (to Average Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

335,316

​

10.41

%

​

128,822

​

4.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

10.22

%

​

127,333

​

4.00

%

​

159,167

​

5.00

%

Common Equity Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

319,971

​

11.61

%

​

124,064

​

4.50

%

​

n/a

​

n/a

​

Southern Bank

​

​

325,183

​

11.91

%

​

122,848

​

4.50

%

​

177,447

​

6.50

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

To Be Well Capitalized Under

 

​

​

​

​

​

​

​

​

​

​

​

​

Prompt Corrective Action

 

​

​

Actual

​

For Capital Adequacy Purposes

​

Provisions

 

As of June 30, 2021

    

Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

(dollars in thousands)

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Total Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

$

315,490

​

14.18

%

$

177,938

​

8.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

308,482

​

13.96

%

​

176,816

​

8.00

%

​

221,019

​

10.00

%

Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

287,701

​

12.93

%

​

133,453

​

6.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

12.79

%

​

132,612

​

6.00

%

​

176,816

​

8.00

%

Tier I Capital (to Average Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

287,701

​

10.61

%

​

108,505

​

4.00

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

10.43

%

​

108,369

​

4.00

%

​

135,461

​

5.00

%

Common Equity Tier I Capital (to Risk-Weighted Assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consolidated

​

​

272,458

​

12.25

%

​

100,090

​

4.50

%

​

n/a

​

n/a

​

Southern Bank

​

​

282,638

​

12.79

%

​

99,459

​

4.50

%

​

143,663

​

6.50

%

​
v3.23.1
Earnings Per Share (Tables)
 12 Months Ended
Jun. 30, 2022
Earnings Per Share  
Schedule of Earnings Per Share, Basic and Diluted

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands except per share data)

​

2022

​

2021

​

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

47,169

​

$

47,180

​

$

27,545

Less: distributed earnings allocated to participating securities

​

 

(30)

​

 

(18)

​

 

—

Less: undistributed earnings allocated to participating securities

​

 

(165)

​

 

(135)

​

 

—

Net income available to common shareholders

​

$ 

46,974

​

$ 

47,027

​

$ 

27,545

​

​

​

​

​

​

​

​

​

​

Denominator for basic earnings per share -

​

​

​

​

​

​

​

​

​

Weighted-average shares outstanding

​

 

8,994,022

​

 

9,007,814

​

 

9,189,876

Effect of dilutive securities stock options or awards

​

 

17,122

​

 

2,923

​

 

9,293

Denominator for diluted earnings per share

​

​

9,011,144

​

​

9,010,737

​

​

9,199,169

​

​

​

​

​

​

​

​

​

​

Basic earnings per share available to common stockholders

​

$

5.22

​

$

5.22

​

$

3.00

Diluted earnings per share available to common stockholders

​

$

5.21

​

$

5.22

​

$

2.99

​
v3.23.1
Acquisitions (Tables)
 12 Months Ended
Jun. 30, 2022
Fortune Financial Corporation  
Schedule of Purchase price

​

​

​

​

​

Fortune Financial Corporation

​

​

​

Fair Value of Consideration Transferred

​

​

(dollars in thousands)

​

​

Cash

​

$

12,664

Common stock, at fair value

​

​

22,884

Total consideration

​

$

35,548

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

34,280

Interest bearing time deposits

​

 

2,300

Loans

​

 

202,053

Premises and equipment

​

 

7,690

BOLI

​

 

3,720

Identifiable intangible assets

​

 

1,602

Miscellaneous other assets

​

 

3,512

​

​

 

​

Deposits

​

 

(213,670)

FHLB Advances

​

 

(9,681)

Subordinated debt

​

 

(7,800)

Miscellaneous other liabilities

​

​

(1,214)

Total identifiable net assets

​

​

22,792

Goodwill

​

$

12,756

​
First National Bank, Cairo  
Schedule of Purchase price

​

​

​

​

​

First National Bank - Cairo Branch

​

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash received

​

$

(26,932)

Common stock, at fair value

​

​

—

Total consideration

​

$

(26,932)

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

220

Loans

​

 

408

Premises and equipment

​

 

468

Identifiable intangible assets

​

 

168

Miscellaneous other assets

​

 

1

​

​

 

​

Deposits

​

 

(28,540)

Miscellaneous other liabilities

​

​

(99)

Total identifiable net liabilities

​

​

(27,374)

Goodwill

​

$

442

​
Central Federal Bancshares  
Schedule of Purchase price

​

​

​

​

​

Central Federal Bancshares

    

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash

​

$

21,942

​

​

​

​

​

​

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

​

​

  

​

​

​

​

Cash and cash equivalents

​

$

12,862

Investment securities

​

​

4,355

Loans

​

​

51,449

Premises and equipment

​

​

723

Identifiable intangible assets

​

​

540

Miscellaneous other assets

​

​

639

​

​

​

​

Deposits

​

​

(46,720)

Miscellaneous other liabilities

​

​

(1,783)

Total identifiable net assets

​

​

22,065

Bargain Purchase Gain

​

$

(123)

​
v3.23.1
Fair Value Measurements (Tables)
 12 Months Ended
Jun. 30, 2022
Fair Value Measurements  
Fair Value, Assets Measured on Recurring Basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2022, 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

​

$

44,479

​

$

—

​

$

44,479

​

$

—

Corporate obligations

​

​

19,887

​

​

—

​

​

19,887

​

​

—

Other securities

​

 

443

​

 

—

​

 

443

​

 

—

MBS and CMOs

​

 

170,585

​

 

—

​

 

170,585

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for 

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Obligations of state and political subdivisions

​

$

47,696

​

$

—

​

$

47,696

​

$

—

Corporate obligations

​

​

20,311

​

​

—

​

​

20,311

​

​

—

Other securities

​

 

672

​

 

—

​

 

672

​

 

—

MBS and CMOs

​

 

138,341

​

 

—

​

 

138,341

​

 

—

​
Fair Value Measurements, Nonrecurring

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2022, 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

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

280

​

$

—

​

$

—

​

$

280

​
Losses Recognized on Assets Measured on a Nonrecurring Basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

2022

​

2021

Foreclosed and repossessed assets held for sale

​

$

(503)

​

$

(44)

Total losses on assets measured on a non-recurring basis

​

$

(503)

​

$

(44)

​
Fair Value Option, Disclosures

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

June 30, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

280

 

Third party appraisal

 

Marketability discount

 

7.2% - 80.6

%  

37.1

%
Schedule of Financial Instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

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

​

$

86,792

​

$

86,792

​

$

—

​

$

—

Interest-bearing time deposits

​

 

4,768

​

 

—

​

 

4,768

​

 

—

Stock in FHLB

​

 

5,893

​

 

—

​

 

5,893

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,790

​

 

—

​

 

5,790

​

 

—

Loans receivable, net

​

 

2,686,198

​

 

—

​

 

—

​

 

2,655,882

Accrued interest receivable

​

 

11,052

​

 

—

​

 

11,052

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

2,815,075

​

 

2,176,444

​

 

—

​

 

637,163

Advances from FHLB

​

 

37,957

​

 

—

​

 

35,916

​

 

—

Accrued interest payable

​

 

801

​

 

—

​

 

801

​

 

—

Subordinated debt

​

 

23,055

​

 

—

​

 

—

​

 

22,070

Unrecognized financial instruments (net of contract amount)

​

 

​

​

 

​

​

 

​

​

 

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

123,592

​

$

123,592

​

$

—

​

$

—

Interest-bearing time deposits

​

 

979

​

 

—

​

 

979

​

 

—

Stock in FHLB

​

 

5,873

​

 

—

​

 

5,873

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,200,244

​

 

—

​

 

—

​

 

2,218,762

Accrued interest receivable

​

 

10,079

​

 

—

​

 

10,079

​

 

—

Financial liabilities

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

2,330,803

​

 

1,768,217

​

 

—

​

 

565,123

Advances from FHLB

​

 

57,529

​

 

—

​

 

58,587

​

 

—

Accrued interest payable

​

​

779

​

 

—

​

 

779

​

 

—

Subordinated debt

​

​

15,243

​

 

—

​

 

—

​

 

15,468

Unrecognized financial instruments (net of contract amount)

​

 

​

​

​

​

​

​

​

​

​

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—
v3.23.1
Condensed Parent Company Only Financial Statements (Tables)
 12 Months Ended
Jun. 30, 2022
Condensed Parent Company Only Financial Statements  
Parent Company Condensed Balance Sheets

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

​

2022

    

2021

Condensed Balance Sheets

​

​

Assets

​

​

  

 

​

  

Cash and cash equivalents

​

$

8,964

​

$

1,193

Other assets

​

​

28,691

​

​

14,380

Investment in common stock of Bank

​

​

306,549

​

​

283,500

TOTAL ASSETS

​

$

344,204

​

$

299,073

​

​

​

​

​

​

​

Liabilities and Stockholders' Equity

​

​

  

​

​

  

Accrued expenses and other liabilities

​

$

377

​

$

407

Subordinated debt

​

​

23,055

​

​

15,243

TOTAL LIABILITIES

​

​

23,432

​

​

15,650

Stockholders' equity

​

​

320,772

​

​

283,423

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

​

$

344,204

​

$

299,073

​
Parent Company Condensed Statements of Income

​
Parent Company Condensed Statements of Cash Flows

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended June 30, 

(dollars in thousands)

    

2022

    

2021

    

2020

Condensed Statements of Cash Flow

​

​

​

​

​

​

​

​

​

Cash Flows from operating activities:

​

​

Net income

​

$

47,169

​

$

47,180

​

$

27,545

Changes in:

​

 

​

​

​

​

​

​

​

Equity in undistributed income of the Bank

​

 

(17,644)

​

​

(36,065)

​

​

4,469

Other adjustments, net

​

​

(698)

​

​

(559)

​

​

(904)

NET CASH PROVIDED BY OPERATING ACTIVITES

​

​

28,827

​

​

10,556

​

​

31,110

​

​

​

​

​

​

​

​

​

​

Investments in Bank subsidiaries

​

​

(8,024)

​

​

—

​

​

(20,463)

NET CASH USED IN INVESTING ACTIVITIES

​

​

(8,024)

​

​

—

​

​

(20,463)

​

​

​

​

​

​

​

​

​

​

Cash flows from financing activities:

​

​

​

​

​

​

​

​

​

Dividends on common stock

​

​

(7,194)

​

​

(5,598)

​

​

(5,513)

Exercise of stock options

​

​

—

​

​

—

​

​

64

Payments to acquire treasury stock

​

​

(5,838)

​

​

(8,341)

​

​

(5,771)

Repayments of long term debt

​

​

—

​

​

—

​

​

(3,000)

NET CASH USED IN FINANCING ACTIVITIES

​

​

(13,032)

​

​

(13,939)

​

​

(14,220)

​

​

​

​

​

​

​

​

​

​

Net increase (decrease) in cash and cash equivalents

​

​

7,771

​

​

(3,383)

​

​

(3,573)

Cash and cash equivalents at beginning of year

​

​

1,193

​

​

4,576

​

​

8,149

CASH AND CASH EQUIVALENTS AT END OF YEAR

​

$

8,964

​

$

1,193

​

$

4,576
v3.23.1
Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Jun. 30, 2022
Quarterly Financial Data (Unaudited)  
Schedule of Quarterly Financial Information

Quarterly operating data is summarized as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

28,860

​

$

28,096

​

$

28,339

​

$

31,572

Interest expense

​

 

3,223

​

 

3,038

​

 

3,225

​

 

3,814

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

25,637

​

 

25,058

​

 

25,114

​

 

27,758

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for credit losses

​

 

(305)

​

 

—

​

 

1,552

​

 

240

Noninterest income

​

​

4,515

​

​

5,285

​

​

4,904

​

​

6,499

Noninterest expense

​

​

14,221

​

​

15,070

​

​

16,757

​

​

17,331

Income before income taxes

​

 

16,236

​

 

15,273

​

 

11,709

​

 

16,686

Income tax expense

​

 

3,487

​

 

3,288

​

 

2,358

​

 

3,602

NET INCOME

​

$

12,749

​

$

11,985

​

$

9,351

​

$

13,084

Basic earnings per share

​

$

1.43

​

$

1.35

​

$

1.03

​

$

1.41

Diluted earnings per share

​

$

1.43

​

$

1.34

​

$

1.03

​

$

1.41

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

26,972

​

$

27,871

​

$

27,100

​

$

27,532

Interest expense

​

 

4,908

​

 

4,344

​

 

3,951

​

 

3,586

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

22,064

​

 

23,527

​

 

23,149

​

 

23,946

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for loan losses

​

 

1,000

​

 

1,000

​

 

(409)

​

 

(2,615)

Noninterest income

​

​

4,941

​

​

5,720

​

​

4,524

​

​

4,857

Noninterest expense

​

​

13,272

​

​

13,046

​

​

13,528

​

​

14,201

Income before income taxes

​

 

12,733

​

 

15,201

​

 

14,554

​

 

17,217

Income tax expense

​

 

2,747

​

 

3,153

​

 

3,096

​

 

3,529

NET INCOME

​

$

9,986

​

$

12,048

​

$

11,458

​

$

13,688

Basic earnings per share

​

$

1.09

​

$

1.33

​

$

1.27

​

$

1.53

Diluted earnings per share

​

$

1.09

​

$

1.32

​

$

1.27

​

$

1.53

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2020

​

    

First

    

Second

    

Third

    

Fourth

(dollars in thousands)

​

Quarter

​

Quarter

​

Quarter

​

Quarter

Interest income

​

$

26,922

​

$

26,646

​

$

26,220

​

$

27,264

Interest expense

​

 

7,362

​

 

7,269

​

 

6,802

​

 

5,483

​

​

 

​

​

​

​

​

​

​

​

​

​

Net interest income

​

 

19,560

​

 

19,377

​

 

19,418

​

 

21,781

​

​

 

​

​

​

​

​

​

​

​

​

​

Provision for loan losses

​

 

896

​

 

388

​

 

2,850

​

 

1,868

Noninterest income

​

​

3,489

​

​

3,674

​

​

3,229

​

​

4,358

Noninterest expense

​

​

12,349

​

​

13,025

​

​

13,569

​

​

15,509

Income before income taxes

​

 

9,804

​

 

9,638

​

 

6,228

​

 

8,762

Income tax expense

​

 

1,976

​

 

1,921

​

 

1,129

​

 

1,861

NET INCOME

​

$

7,828

​

$

7,717

​

$

5,099

​

$

6,901

Basic earnings per share

​

$

0.85

​

$

0.84

​

$

0.55

​

$

0.76

Diluted earnings per share

​

$

0.85

​

$

0.84

​

$

0.55

​

$

0.76
v3.23.1
Organization and Summary of Significant Accounting Policies - Organization (Details)
$ in Billions
Jun. 30, 2022
USD ($)
Organization and Summary of Significant Accounting Policies  
Assets of the REIT $ 1.3
v3.23.1
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash and Cash Equivalents [Line Items]    
Term of interest bearing deposits 7 years  
Interest-bearing deposits in other depository institutions    
Cash and Cash Equivalents [Line Items]    
Cash $ 47.3 $ 83.2
Deposits are held in various commercial banks    
Cash and Cash Equivalents [Line Items]    
Cash $ 5.8 $ 1.8
v3.23.1
Organization and Summary of Significant Accounting Policies - Loans (Details) - Impact of adoption ASU 2016-13 - USD ($)
 12 Months Ended
Jul. 01, 2020
Jun. 30, 2020
Increase to ACL   $ 8,900,000
Purchased credit deteriorated ("PCD") loans    
Increase to ACL $ 434,000  
v3.23.1
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details)
 12 Months Ended
Jun. 30, 2022
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
v3.23.1
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]    
Impairment loss on goodwill $ 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 17,000,000.0 15,300,000
Intangibles assets, accumulated amortization 11,500,000 10,100,000
2023 1,600,000  
2024 1,600,000  
2025 1,100,000  
2026 581,000  
2027 253,000  
Thereafter 417,000  
Other identifiable intangibles    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 3,800,000 3,800,000
Intangibles assets, accumulated amortization 3,800,000 3,800,000
Mortgage and SBA servicing rights    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net $ 2,700,000 $ 1,900,000
Minimum    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, amortization period 5 years  
Maximum    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, amortization period 7 years  
v3.23.1
Organization and Summary of Significant Accounting Policies - Outside Directors' Retirement (Details)
 12 Months Ended
Jun. 30, 2022
age
Organization and Summary of Significant Accounting Policies  
Requisite period 60
Vesting period 5 years
v3.23.1
Organization and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($)
 12 Months Ended
Jul. 01, 2020
Jun. 30, 2022
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2019
PCD, increase in ALLL   $ 120,000      
Total allowance for credit losses on loans   33,192,000 $ 25,139,000 $ 33,222,000 $ 19,903,000
Total allowance for credit losses on off-balance sheet credit exposures   3,358,000 1,959,000 1,805,000  
Accounting Standards Update 2016-13          
Loans receivable     2,141,929,000    
Total allowance for credit losses on loans     25,139,000    
Total allowance for credit losses on off-balance sheet credit exposures     1,959,000    
As reported under ASU 2016-13          
Adjustment to the reserve for unfunded commitments $ 268,000        
Retained earnings 7,200,000        
As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Loans receivable 2,142,363,000        
Total allowance for credit losses on loans 34,472,000        
Total allowance for credit losses on off-balance sheet credit exposures 2,227,000        
Impact of adoption ASU 2016-13          
Increase to ACL     8,900,000    
PCD, increase in ALLL     434,000    
Total allowance for credit losses on loans       120,000  
Total allowance for credit losses on off-balance sheet credit exposures       268,000  
Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Loans receivable 434,000        
Total allowance for credit losses on loans 9,333,000        
Total allowance for credit losses on off-balance sheet credit exposures 268,000        
Impact of adoption ASU 2016-13 | Purchased credit deteriorated ("PCD") loans          
Increase to ACL 434,000        
Residential and commercial real estate loans | Purchased credit deteriorated ("PCD") loans          
Loans receivable 434,000        
Residential Real Estate          
Total allowance for credit losses on loans   8,908,000 4,875,000 11,192,000 3,706,000
Total allowance for credit losses on off-balance sheet credit exposures   58,000 19,000 37,000  
Residential Real Estate | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans     4,875,000    
Residential Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 8,396,000        
Residential Real Estate | Impact of adoption ASU 2016-13          
Total allowance for credit losses on loans       23,000  
Total allowance for credit losses on off-balance sheet credit exposures       35,000  
Residential Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 3,521,000        
Construction Real Estate          
Total allowance for credit losses on loans   2,220,000 2,010,000 2,170,000 1,365,000
Total allowance for credit losses on off-balance sheet credit exposures   2,178,000 769,000 502,000  
Construction Real Estate | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans     2,010,000    
Construction Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 1,889,000        
Construction Real Estate | Impact of adoption ASU 2016-13          
Total allowance for credit losses on loans       4,000  
Total allowance for credit losses on off-balance sheet credit exposures       (167,000)  
Construction Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans (121,000)        
Commercial Real Estate          
Total allowance for credit losses on loans   16,838,000 12,132,000 14,535,000 9,399,000
Total allowance for credit losses on off-balance sheet credit exposures   421,000 172,000 188,000  
Commercial Real Estate | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans     12,132,000    
Commercial Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 15,988,000        
Commercial Real Estate | Impact of adoption ASU 2016-13          
Total allowance for credit losses on loans       52,000  
Total allowance for credit losses on off-balance sheet credit exposures       95,000  
Commercial Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 3,856,000        
Consumer loans          
Total allowance for credit losses on loans   710,000 1,182,000 916,000 1,046,000
Total allowance for credit losses on off-balance sheet credit exposures   61,000 153,000 218,000  
Consumer loans | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans     1,182,000    
Consumer loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 2,247,000        
Consumer loans | Impact of adoption ASU 2016-13          
Total allowance for credit losses on off-balance sheet credit exposures       197,000  
Consumer loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 1,065,000        
Commercial loans          
Total allowance for credit losses on loans   4,516,000 4,940,000 4,409,000 $ 4,387,000
Total allowance for credit losses on off-balance sheet credit exposures   $ 640,000 846,000 860,000  
Commercial loans | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans     $ 4,940,000    
Commercial loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans 5,952,000        
Commercial loans | Impact of adoption ASU 2016-13          
Total allowance for credit losses on loans       41,000  
Total allowance for credit losses on off-balance sheet credit exposures       $ 108,000  
Commercial loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13          
Total allowance for credit losses on loans $ 1,012,000        
v3.23.1
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
Jun. 30, 2022
Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost $ 257,760 $ 203,286
Gross Unrealized Gains 109 4,875
Gross Unrealized Losses (22,475) (1,141)
Allowance for Credit Losses 0 0
Estimated Fair Value 235,394 207,020
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 47,383 46,257
Gross Unrealized Gains 77 1,479
Gross Unrealized Losses (2,981) (40)
Allowance for Credit Losses 0 0
Estimated Fair Value 44,479 47,696
Corporate Obligations    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 20,818 20,356
Gross Unrealized Gains 32 290
Gross Unrealized Losses (963) (335)
Allowance for Credit Losses 0 0
Estimated Fair Value 19,887 20,311
Other Debt Obligations    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 486 647
Gross Unrealized Gains   25
Gross Unrealized Losses (43)  
Allowance for Credit Losses 0 0
Estimated Fair Value 443 672
Debt and Equity Securities    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 68,687 67,260
Gross Unrealized Gains 109 1,794
Gross Unrealized Losses (3,987) (375)
Allowance for Credit Losses 0 0
Estimated Fair Value 64,809 68,679
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 76,345 64,400
Gross Unrealized Gains   932
Gross Unrealized Losses (7,177) (379)
Allowance for Credit Losses 0 0
Estimated Fair Value 69,168 64,953
Commercial MBS issued by GSEs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 51,435 35,425
Gross Unrealized Gains   1,394
Gross Unrealized Losses (5,705) (338)
Allowance for Credit Losses 0 0
Estimated Fair Value 45,730 36,481
CMOs issued by GSEs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 61,293 36,201
Gross Unrealized Gains   755
Gross Unrealized Losses (5,606) (49)
Allowance for Credit Losses 0 0
Estimated Fair Value 55,687 36,907
Total MBS and CMOs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortized Cost 189,073 136,026
Gross Unrealized Gains   3,081
Gross Unrealized Losses (18,488) (766)
Allowance for Credit Losses 0 0
Estimated Fair Value $ 170,585 $ 138,341
v3.23.1
Available for Sale Securities - Amortized Cost and Fair Value of Available-for-sale Securities, by Contractual Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Amortized Cost    
Within one year $ 868  
After one year but less than five years 10,485  
After five years but less than ten years 32,161  
After ten years 25,173  
Total investment securities 68,687  
Total AFS securities, Amortized Cost 257,760 $ 203,286
Estimated Fair Value    
Within one year 869  
After one year but less than five years 10,258  
After five years but less than ten years 30,340  
After ten years 23,342  
Total investment securities 64,809  
Available for sale securities (Note 2) 235,394 207,020
Debt and Equity Securities    
Amortized Cost    
Total AFS securities, Amortized Cost 68,687 67,260
Estimated Fair Value    
Available for sale securities (Note 2) 64,809 68,679
Total MBS and CMOs    
Amortized Cost    
Total AFS securities, Amortized Cost 189,073 136,026
Estimated Fair Value    
Available for sale securities (Note 2) $ 170,585 $ 138,341
v3.23.1
Available for Sale Securities - Investments Pledged as Collateral to Secure Public Deposits and Securities Sold Under Agreements to Repurchase (Details) - USD ($)
Jun. 30, 2022
Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase $ 198,300,000 $ 155,600,000
Mortgage-Backed Securities    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase 126,300,000 95,400,000
Collateralized Mortgage Obligations    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase 27,300,000 18,800,000
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase 42,300,000 41,400,000
Other Debt Obligations    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase $ 2,400,000 $ 0
v3.23.1
Available for Sale Securities - Gains and Losses recognized from sales of AFS securities (Details) - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Available for Sale Securities    
Gains recognized from sales of available-for-sale securities $ 0 $ 138,000
Losses recognized from sales of available-for-sale securities $ 0 $ 48,000
v3.23.1
Available for Sale Securities - Fair Value of Debt Securities Reported Less Than Their Historical Cost (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Jun. 30, 2021
Available for Sale Securities    
Fair value of certain investments reported less than their historical cost $ 219.3 $ 67.2
Certain investments in debt securities reported at less than historical cost, percentage of Company's AFS portfolio 93.20% 32.50%
v3.23.1
Available for Sale Securities - Gross Unrealized Losses and Fair Value, Continuous Unrealized Loss Position (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
security
Jun. 30, 2021
USD ($)
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value $ 180,937 $ 66,401
Less than 12 Months, Unrealized Losses 15,584 883
12 Months or more, Fair Value 38,345 790
12 Months or more, Unrealized Losses 6,891 258
Fair Value, Total 219,282 67,191
Unrealized Losses , Total 22,475 1,141
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value 31,985 3,177
Less than 12 Months, Unrealized Losses 2,639 40
12 Months or more, Fair Value 1,600  
12 Months or more, Unrealized Losses 342  
Fair Value, Total 33,585 3,177
Unrealized Losses , Total $ 2,981 40
Number of individual securities in an unrealized loss position for less than 12 months | security 65  
Number of individual securities in an unrealized loss position for more than 12 months | security 3  
Corporate Obligations    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value $ 10,944 9,331
Less than 12 Months, Unrealized Losses 420 79
12 Months or more, Fair Value 6,911 720
12 Months or more, Unrealized Losses 543 256
Fair Value, Total 17,855 10,051
Unrealized Losses , Total $ 963 335
Number of individual securities in an unrealized loss position for less than 12 months | security 8  
Number of individual securities in an unrealized loss position for more than 12 months | security 7  
Other Debt Obligations    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value $ 418  
Less than 12 Months, Unrealized Losses 43  
Fair Value, Total 418  
Unrealized Losses , Total $ 43  
Number of individual securities in an unrealized loss position for less than 12 months | security 2  
Number of individual securities in an unrealized loss position for more than 12 months | security 0  
Total MBS and CMOs    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value $ 137,590 53,893
Less than 12 Months, Unrealized Losses 12,482 764
12 Months or more, Fair Value 29,834 70
12 Months or more, Unrealized Losses 6,006 2
Fair Value, Total 167,424 53,963
Unrealized Losses , Total $ 18,488 $ 766
Number of individual securities in an unrealized loss position for less than 12 months | security 106  
Number of individual securities in an unrealized loss position for more than 12 months | security 16  
v3.23.1
Available for Sale Securities - Other Securities Policy: Pooled Trust Preferred Securities (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Available for Sale Securities    
Number of Pooled Trust Preferred Securities 2  
Fair Value of Pooled Trust Preferred Securities Held $ 794,000  
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More 184,000  
Credit losses recognized on investments $ 0 $ 0
v3.23.1
Loans and Allowance for Credit Losses - Classes of loans (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans $ 2,843,499 $ 2,311,631    
Loans in Process (123,656) (74,540)    
Deferred loan fees, net (453) (3,625)    
Allowance for credit losses (33,192) (33,222) $ (25,139) $ (19,903)
Total loans $ 2,686,198 $ 2,200,244    
Number of purchased participation loans 31 23    
Purchased participation loans $ 70,000 $ 83,000    
Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans 904,160 721,216    
Allowance for credit losses (8,908) (11,192) (4,875) (3,706)
Construction Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans 258,072 208,824    
Allowance for credit losses (2,220) (2,170) (2,010) (1,365)
Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans 1,146,673 889,793    
Allowance for credit losses (16,838) (14,535) (12,132) (9,399)
Consumer loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans 92,996 77,674    
Allowance for credit losses (710) (916) (1,182) (1,046)
Commercial loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Real Estate Loans 441,598 414,124    
Allowance for credit losses $ (4,516) $ (4,409) $ (4,940) $ (4,387)
v3.23.1
Loans and Allowance for Credit Losses - Classes of loans information (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2021
USD ($)
loan
Jun. 30, 2020
USD ($)
Provision for credit losses, credit (charges) $ 1,500,000 $ 1,000,000.0 $ 6,000,000.0
PCD, increase in ALLL 120,000    
PCD loans receivable, net of ACL 14,935,000    
ACL required for non-PCD loans acquired 1,900,000    
Credit exposure 120,000    
Negative PCL 533,000    
ACL 33,200,000    
Secured by properties located outside lending area      
Loans Receivable $ 459,900,000    
Residential Real Estate.      
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years) 30 years    
Residential Real Estate. | Single Family      
Maximum percentage of appraised value or purchase price that loans cannot exceed 90.00%    
Residential Real Estate. | Multifamily      
Maximum percentage of appraised value or purchase price that loans cannot exceed 85.00%    
Amortization period of loans 25 years    
Amortization period of multi-family residential loans if balloon maturities 10 years    
Commercial      
Amortization period of loans 25 years    
Term of fixed interest applicability on loans 10 years    
Term of variable interest applicability on loans 7 years    
Agricultural real estate terms if 80% loan-to-value ratio 25 years    
Agricultural real estate terms if 75% loan-to-value ratio 30 years    
Loans Receivable $ 1,100,000,000    
Residential Real Estate      
Amortization period of loans 30 years    
Residential Real Estate | Minimum      
Maturities of single-family residential construction loans 6 months    
Residential Real Estate | Maximum      
Maturities of single-family residential construction loans 12 months    
Commercial Real Estate      
Amortization period of loans 25 years    
Construction Real Estate      
Average term of construction loans 12 months    
Construction Real Estate | Minimum      
Maturities of multifamily or commercial construction loans 12 months    
Construction Real Estate | Maximum      
Maturities of multifamily or commercial construction loans 36 months    
Consumer loans      
Amortization period of loans 66 months    
Consumer loans | Home Equity Loan      
Maximum percentage of appraised value or purchase price that loans cannot exceed 100.00%    
Amortization period of loans 10 years    
Consumer loans | Automobile loans      
Maximum percentage of appraised value or purchase price that loans cannot exceed 100.00%    
Amortization period of loans 66 months    
Commercial loans      
Amortization period of loans 5 years    
Amortization period of multi-family residential loans if balloon maturities 1 year    
Modifications for the purpose of extending the maturity date | Construction Real Estate      
Incremental period that the loan maturity can be extended to 3 months    
Number of construction loans outstanding, for which a modification had been agreed to | loan 57 48  
Construction loans outstanding, for which a modification had been agreed to $ 13,800,000 $ 28,500,000  
v3.23.1
Loans and Allowance for Credit Losses - PCD Loans Acquired from Fortune (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
Loans and Allowance for Credit Losses  
Purchase price of PCD loans at acquisition $ 15,055,000
Allowance for credit losses at acquisition (120,000)
Fair value of PCD loans at acquisition $ 14,935,000
v3.23.1
Loans and Allowance for Credit Losses - Balance in the ACL and the recorded investment in loans (Details) - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Allowance for credit losses [Abstract]      
Balance, beginning of period $ 33,222,000 $ 25,139,000 $ 19,903,000
Impact of CECL adoption   9,333,000  
Provision (benefit) charged to expense (66,000) (602,000) 6,002,000
Losses charged off (153,000) (734,000) (853,000)
Recoveries 69,000 86,000 87,000
Negative PCL (533,000)    
Residential Real Estate      
Allowance for credit losses [Abstract]      
Balance, beginning of period 11,192,000 4,875,000 3,706,000
Impact of CECL adoption   3,521,000  
Provision (benefit) charged to expense (2,238,000) 2,973,000 1,529,000
Losses charged off (72,000) (180,000) (379,000)
Recoveries 3,000 3,000 19,000
Construction Real Estate      
Allowance for credit losses [Abstract]      
Balance, beginning of period 2,170,000 2,010,000 1,365,000
Impact of CECL adoption   (121,000)  
Provision (benefit) charged to expense 46,000 281,000 645,000
Commercial Real Estate      
Allowance for credit losses [Abstract]      
Balance, beginning of period 14,535,000 12,132,000 9,399,000
Impact of CECL adoption   3,856,000  
Provision (benefit) charged to expense 2,251,000 (1,364,000) 2,730,000
Losses charged off   (90,000) (12,000)
Recoveries   1,000 15,000
Consumer loans      
Allowance for credit losses [Abstract]      
Balance, beginning of period 916,000 1,182,000 1,046,000
Impact of CECL adoption   1,065,000  
Provision (benefit) charged to expense (205,000) (1,232,000) 300,000
Losses charged off (65,000) (146,000) (189,000)
Recoveries 64,000 47,000 25,000
Commercial loans      
Allowance for credit losses [Abstract]      
Balance, beginning of period 4,409,000 4,940,000 4,387,000
Impact of CECL adoption   1,012,000  
Provision (benefit) charged to expense 80,000 (1,260,000) 798,000
Losses charged off (16,000) (318,000) (273,000)
Recoveries $ 2,000 $ 35,000 $ 28,000
v3.23.1
Loans and Allowance for Credit Losses - Allowance for off-balance credit exposure (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period $ 1,805 $ 1,959  
Provision (benefit) charged to expense 1,553 (422) $ 648
Balance, end of period 3,358 1,805 1,959
Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 268    
Balance, end of period   268  
Residential Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 37 19  
Provision (benefit) charged to expense 21 (17)  
Balance, end of period 58 37 19
Residential Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 35    
Balance, end of period   35  
Construction Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 502 769  
Provision (benefit) charged to expense 1,676 (100)  
Balance, end of period 2,178 502 769
Construction Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period (167)    
Balance, end of period   (167)  
Commercial Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 188 172  
Provision (benefit) charged to expense 233 (79)  
Balance, end of period 421 188 172
Commercial Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 95    
Balance, end of period   95  
Consumer loans      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 218 153  
Provision (benefit) charged to expense (157) (132)  
Balance, end of period 61 218 153
Consumer loans | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 197    
Balance, end of period   197  
Commercial loans      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 860 846  
Provision (benefit) charged to expense (220) (94)  
Balance, end of period 640 860 $ 846
Commercial loans | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period $ 108    
Balance, end of period   $ 108  
v3.23.1
Loans and Allowance for Credit Losses - Credit risk profile based on rating category and year of origination (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
Amount of loan relationships subject to annual credit analysis $ 3,000  
Loan relationships that are subject to independent annual review 1,000  
2022/2021 1,146,932 $ 1,034,652
2021/2020 721,665 433,293
2020/2019 251,984 182,774
2019/2018 103,484 118,958
2018/2017 78,834 115,845
Prior 148,060 143,946
Revolving loans 268,884 207,623
Total 2,719,843 2,237,091
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 1,107,991 1,015,117
2021/2020 718,973 420,483
2020/2019 248,814 169,879
2019/2018 102,783 115,613
2018/2017 78,116 101,993
Prior 144,948 142,556
Revolving loans 266,719 204,930
Total 2,668,344 2,170,571
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 6,147 6,415
2021/2020 1,276 2,697
2020/2019 2,939 11,235
2019/2018 62 1,399
2018/2017 668 815
Prior 2,216 819
Revolving loans 1,754 1,321
Total 15,062 24,701
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 9,297  
2021/2020   8,806
2019/2018   1,793
2018/2017   12,826
Revolving loans   300
Total 9,297 23,725
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 22,670 13,120
2021/2020 1,416 1,307
2020/2019 231 810
2019/2018 639 153
2018/2017 50 211
Prior 896 571
Revolving loans 411 1,072
Total 26,313 17,244
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 827  
2020/2019   850
Total 827 850
Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 380,812 366,492
2021/2020 296,420 175,931
2020/2019 119,634 43,986
2019/2018 19,879 33,021
2018/2017 22,161 23,356
Prior 59,180 72,873
Revolving loans 6,074 5,557
Total 904,160 721,216
Residential Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 380,502 361,876
2021/2020 295,260 175,772
2020/2019 118,464 43,576
2019/2018 19,383 32,929
2018/2017 22,143 23,267
Prior 58,545 71,592
Revolving loans 6,074 5,557
Total 900,371 714,569
Residential Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 44 328
2021/2020 242 70
2020/2019 1,083 410
2019/2018 56  
2018/2017   89
Prior 30 809
Total 1,455 1,706
Residential Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 266 4,288
2021/2020 918 89
2020/2019 87  
2019/2018 440 92
2018/2017 18  
Prior 605 472
Total 2,334 4,941
Construction Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 100,114 88,418
2021/2020 34,082 45,866
Revolving loans 220  
Total 134,416 134,284
Construction Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 100,114 88,371
2021/2020 34,082 45,866
Revolving loans 220  
Total 134,416 134,237
Construction Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021   47
Total   47
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 524,459 364,379
2021/2020 285,986 159,978
2020/2019 107,851 115,603
2019/2018 71,393 79,168
2018/2017 52,494 84,484
Prior 80,208 61,303
Revolving loans 24,282 24,878
Total 1,146,673 889,793
Commercial Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 487,486 351,732
2021/2020 284,736 147,670
2020/2019 105,893 104,746
2019/2018 71,380 75,967
2018/2017 51,804 70,927
Prior 78,115 61,194
Revolving loans 23,669 23,699
Total 1,103,083 835,935
Commercial Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 4,763 4,456
2021/2020 769 2,365
2020/2019 1,818 9,502
2019/2018   1,377
2018/2017 668 726
Prior 2,000 10
Revolving loans 548 810
Total 10,566 19,246
Commercial Real Estate | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 9,297  
2021/2020   8,806
2019/2018   1,793
2018/2017   12,826
Revolving loans   300
Total 9,297 23,725
Commercial Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 22,086 8,191
2021/2020 481 1,137
2020/2019 140 505
2019/2018 13 31
2018/2017 22 5
Prior 93 99
Revolving loans 65 69
Total 22,900 10,037
Commercial Real Estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 827  
2020/2019   850
Total 827 850
Consumer loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 28,563 23,938
2021/2020 11,066 8,626
2020/2019 3,666 3,597
2019/2018 1,524 1,156
2018/2017 926 564
Prior 707 650
Revolving loans 46,544 39,143
Total 92,996 77,674
Consumer loans | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 28,519 23,858
2021/2020 10,989 8,626
2020/2019 3,662 3,597
2019/2018 1,524 1,126
2018/2017 916 534
Prior 676 650
Revolving loans 46,521 39,071
Total 92,807 77,462
Consumer loans | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 21 80
2021/2020 71  
Revolving loans   48
Total 92 128
Consumer loans | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 23  
2021/2020 6  
2020/2019 4  
2019/2018   30
2018/2017 10 30
Prior 31  
Revolving loans 23 24
Total 97 84
Commercial loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 112,984 191,425
2021/2020 94,111 42,892
2020/2019 20,833 19,588
2019/2018 10,688 5,613
2018/2017 3,253 7,441
Prior 7,965 9,120
Revolving loans 191,764 138,045
Total 441,598 414,124
Commercial loans | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 111,370 189,280
2021/2020 93,906 42,549
2020/2019 20,795 17,960
2019/2018 10,496 5,591
2018/2017 3,253 7,265
Prior 7,612 9,120
Revolving loans 190,235 136,603
Total 437,667 408,368
Commercial loans | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 1,319 1,551
2021/2020 194 262
2020/2019 38 1,323
2019/2018 6 22
Prior 186  
Revolving loans 1,206 463
Total 2,949 3,621
Commercial loans | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 295 594
2021/2020 11 81
2020/2019   305
2019/2018 186  
2018/2017   176
Prior 167  
Revolving loans 323 979
Total $ 982 $ 2,135
v3.23.1
Loans and Allowance for Credit Losses - Credit risk profile based on rating and payment activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL $ 14,935  
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 23,100 $ 3,200
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 4,700 9,000
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 0  
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 1,100 $ 2,700
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL $ 0  
v3.23.1
Loans and Allowance for Credit Losses - Loan portfolio aging analysis (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 2,719,843 $ 2,237,091
Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,715,257 2,233,273
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 4,586 3,818
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,432 1,238
60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 732 1,369
Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,422 1,211
PCD loans that were greater than 90 days past due 0 0
Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 904,160 721,216
Residential Real Estate | Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 901,694 719,927
Residential Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,466 1,289
Residential Real Estate | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,402 312
Residential Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   364
Residential Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,064 613
Construction Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 134,416 134,284
Construction Real Estate | Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 134,416 134,254
Construction Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   30
Construction Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   30
Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,146,673 889,793
Commercial Real Estate | Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,145,354 889,056
Commercial Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,319 737
Commercial Real Estate | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 416 363
Commercial Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 615  
Commercial Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 288 374
Consumer loans    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 92,996 77,674
Consumer loans | Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 92,554 77,329
Consumer loans | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 442 345
Consumer loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 340 195
Consumer loans | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 45 66
Consumer loans | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 57 84
Commercial loans    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 441,598 414,124
Commercial loans | Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 441,239 412,707
Commercial loans | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 359 1,417
Commercial loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 274 368
Commercial loans | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 72 939
Commercial loans | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 13 $ 110
v3.23.1
Loans and Allowance for Credit Losses - CARES Act (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 2,719,843 $ 2,237,091
Current Loans, not past due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,715,257 2,233,273
Current Loans, not past due | CARES Act    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   23,900
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 4,586 3,818
Total Past Due | CARES Act    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   $ 0
v3.23.1
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2019
Related allowance for credit losses $ 33,192 $ 33,222 $ 25,139 $ 19,903
Collateral-dependent Loans | 1- to 4-family residential loans        
Amortized cost 864 895    
Related allowance for credit losses 193 223    
Residential Real Estate        
Related allowance for credit losses 8,908 11,192 $ 4,875 $ 3,706
Residential Real Estate | Collateral-dependent Loans        
Amortized cost 864 895    
Related allowance for credit losses $ 193 $ 223    
v3.23.1
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans $ 4,118 $ 5,868
Residential Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 1,647 3,235
Construction Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans   30
Commercial Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 2,259 1,914
Consumer loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 73 100
Commercial loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans $ 139 $ 589
v3.23.1
Loans and Allowance for Credit Losses - TDRs Segregated by Class (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2021
USD ($)
loan
Number of modifications 6 3
Recorded Investment $ 30,606,000 $ 3,241,000
Recorded Investment, TDRs $ 24,500,000 $ 894,000
Residential Real Estate    
Number of modifications 11,000 1,000
Recorded Investment $ 3,625,000 $ 895,000
Commercial Real Estate    
Number of modifications 8,000 4,000
Recorded Investment $ 25,132,000 $ 949,000
Commercial loans    
Number of modifications 8,000 7,000
Recorded Investment $ 1,849,000 $ 1,397,000
v3.23.1
Loans and Allowance for Credit Losses - Real Estate Foreclosures (Details) - USD ($)
Jun. 30, 2022
Jun. 30, 2021
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Repossessed assets $ 580,000 $ 622,000
Residential Real Estate. | Home Equity Loan    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Foreclosure proceedings in process $ 486,000 $ 533,000
v3.23.1
Loans and Allowance for Credit Losses - Summary of loans to executive officers, directors, significant shareholders (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Loans and Allowance for Credit Losses    
Beginning Balance $ 10,624 $ 8,603
Additions 6,393 8,474
Repayments (6,403) (6,453)
Ending Balance $ 10,614 $ 10,624
v3.23.1
Premises and Equipment - Summary of premises and equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Premises and Equipment    
Land $ 13,532 $ 12,452
Buildings and improvements 64,730 56,422
Construction in progress 142 1,158
Furniture, fixtures, equipment and software 20,838 18,985
Automobiles 120 120
Operating leases ROU asset 3,849 2,770
Property, Plant and Equipment, Gross 103,211 91,907
Less accumulated depreciation 31,864 27,830
Premises and equipment, net $ 71,347 $ 64,077
v3.23.1
Premises and Equipment - Additional Information (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
property
Jun. 30, 2021
USD ($)
Number of leased properties | property 5  
Operating Lease, Weighted Average Discount Rate, Percent 5.00%  
Operating lease expense $ 451,000 $ 340,000
Income recognized from lessor agreements $ 279,000 $ 307,000
Minimum    
Lessee Expected Lease Terms P18M  
Maximum    
Lessee Expected Lease Terms 20  
v3.23.1
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Right of use assets obtained in exchange for lease obligations: Operating Leases $ 95 $ 804 $ 2,004
Consolidated Balance Sheet      
Operating leases ROU asset 3,849 2,770  
Operating leases liability 3,849 2,770  
Consolidated Statement Of Income      
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs) 451 340  
Supplemental Disclosures Of Cash Flow Information | Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from operating leases $ 382 282  
Right of use assets obtained in exchange for lease obligations: Operating Leases   $ 804  
v3.23.1
Premises and Equipment - Future expected lease payments for leases (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Premises and Equipment  
2023 $ 442
2024 443
2025 439
2026 434
2026 418
Thereafter 4,074
Future lease payments expected $ 6,250
v3.23.1
Deposits (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Non-interest bearing accounts $ 426,929 $ 358,418
NOW accounts 1,171,620 925,280
Money market deposit accounts 303,612 253,614
Savings accounts 274,283 230,905
Total Certificates 638,631 562,586
Total Non-Maturity Deposits 2,176,444 1,768,217
Total Deposit Accounts 2,815,075 2,330,803
0.00-.99%    
Total Certificates 408,479 332,958
1.00-1.99%    
Total Certificates 171,997 155,078
2.00-2.99%    
Total Certificates 51,692 63,777
3.00-3.99%    
Total Certificates 6,298 10,606
4.00-4.99%    
Total Certificates $ 165 $ 167
v3.23.1
Deposits - Summary of Certificate Maturities (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Deposits  
July 1, 2022 to June 30, 2023 $ 377,842
July 1, 2023 to June 30, 2024 91,429
July 1, 2024 to June 30, 2025 71,706
July 1, 2025 to June 30, 2026 54,057
July 1, 2026 to June 30, 2027 42,844
Thereafter 753
TOTAL $ 638,631
v3.23.1
Deposits - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Deposits    
Aggregate Amount of Deposits With a Minimum Denomination of $250,000 $ 848.9 $ 668.8
Interest-bearing Domestic Deposit, Brokered 10.8 5.0
Deposits Held for Affiliates $ 6.0 $ 4.3
v3.23.1
Advances from Federal Home Loan Bank (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Federal Home Loan Bank Advances. $ 37,957 $ 57,529
Weighted-average rate 1.47% 1.97%
09/07/21 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.81%  
Federal Home Loan Bank Advances.   $ 9,000
09/09/21 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.28%  
Federal Home Loan Bank Advances.   1,994
10/01/21 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.53%  
Federal Home Loan Bank Advances.   5,000
11/16/21 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.43%  
Federal Home Loan Bank Advances.   5,000
03/07/22 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.95%  
Federal Home Loan Bank Advances.   3,000
03/31/22 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.91%  
Federal Home Loan Bank Advances.   248
08/15/22 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.89%  
Federal Home Loan Bank Advances. $ 3,000 3,000
11/16/22 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.51%  
Federal Home Loan Bank Advances. $ 1,994  
03/06/23 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.99%  
Federal Home Loan Bank Advances. $ 3,000 3,000
07/24/23 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.59%  
Federal Home Loan Bank Advances. $ 987  
11/15/23 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.57%  
Federal Home Loan Bank Advances. $ 980  
03/06/24 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.95%  
Federal Home Loan Bank Advances. $ 3,000 3,000
03/28/24 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.56%  
Federal Home Loan Bank Advances. $ 8,000 8,000
07/24/24    
Federal Home Loan Bank, Advances, Interest Rate 0.66%  
Federal Home Loan Bank Advances. $ 1,940  
08/13/24 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.88%  
Federal Home Loan Bank Advances. $ 3,000 3,000
02/21/25 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.28%  
Federal Home Loan Bank Advances.   5,000
02/21/25. | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.53%  
Federal Home Loan Bank Advances. $ 5,000 5,000
03/06/25 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.01%  
Federal Home Loan Bank Advances. $ 3,000 3,000
07/15/25 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 0.77%  
Federal Home Loan Bank Advances. $ 1,913  
07/22/26 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 1.10%  
Federal Home Loan Bank Advances. $ 1,909  
12/14/26 | Federal Home Loan Bank Advances Maturity Date    
Federal Home Loan Bank, Advances, Interest Rate 2.65%  
Federal Home Loan Bank Advances. $ 234 $ 287
v3.23.1
Advances from Federal Home Loan Bank - FHLB Advances Maturities (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Advances from Federal Home Loan Bank    
July 1, 2022 to June 30, 2023 $ 7,994  
July 1, 2023 to June 30, 2024 12,967  
July 1, 2024 to June 30, 2025 12,940  
July 1, 2025 to June 30, 2026 1,913  
July 1, 2026 to June 30, 2027 2,143  
TOTAL $ 37,957 $ 57,529
v3.23.1
Advances from Federal Home Loan Bank - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Jun. 30, 2021
Advances from Federal Home Loan Bank    
FHLB prior to maturity amount $ 5.0  
Long-term Line of Credit 500.6 $ 383.0
Line of Credit Outstanding $ 889.7 $ 769.8
v3.23.1
Subordinated Debt (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2021
Aug. 31, 2014
Oct. 31, 2013
Jun. 30, 2022
Jun. 30, 2021
Feb. 28, 2022
Subordinated debt       $ 23,055,000 $ 15,243,000  
Prepaid Expenses and Other Current Assets            
Investment, face amount       505,000    
Investment, carrying value       461,000    
Trust Preferred Securities            
Subordinated debt       $ 7,200,000 7,200,000  
Number of years after securities became redeemable       5 years    
Interest rate (as a percent)       4.78%    
Ozarks Legacy Community Financial, Inc.            
Interest rate (as a percent)       4.28%    
Floating rate     $ 3,100,000      
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement            
Floating rate       $ 2,700,000 2,700,000  
Peoples Service Company, Inc.            
Interest rate (as a percent)       3.63%    
Floating rate   $ 6,500,000        
Peoples Service Company, Inc. | Reported Value Measurement            
Floating rate       $ 5,400,000 $ 5,300,000  
Fortune Financial Corporation | Subordinated Notes Issued in May 2021 [Member]            
Subordinated debt       $ 7,700,000    
Interest rate (as a percent) 4.50%          
Instrument face amount           $ 7,500,000
Fortune Financial Corporation | Subordinated Notes Issued in May 2021 [Member] | Secured Overnight Financing Rate [Member]            
Variable rate (as a percent) 3.77%          
v3.23.1
Employee Benefits - 401(k) Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Employee Benefits      
Matching contributions of eligible compensation 4.00%    
Additional profit-sharing contributions of eligible salary 5.00%    
401(k) Retirement Plan Expense $ 1.9 $ 1.7 $ 1.5
401(k) Retirement Plan Shares Held 398,000    
Vesting period 5 years    
v3.23.1
Employee Benefits - 2008 Equity Incentive Plan (Details) - USD ($)
 12 Months Ended
Jun. 30, 2017
Jun. 30, 2012
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Equity Incentive Plan Description     The Company adopted an Equity Incentive Plan (the EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors.    
Equity Incentive Plan Shares reserved     132,000    
Restricted Stock          
Equity Incentive Plan Shares Awarded 0 122,803      
Equity Incentive Plan vesting percentage     20.00%    
Equity Incentive Plan Shares Vested     2,250 2,700 2,825
Equity Incentive Plan Expense     $ 46,000 $ 84,000 $ 88,000
Equity Incentive Plan Remained Outstanding     0    
Equity Incentive Plan Unvested Compensation Expense     $ 0    
Performance-based restricted stock          
Equity Incentive Plan vesting percentage     20.00%    
v3.23.1
Employee Benefits - 2003 Stock Option Plan (Details) - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Exercised 0 0 10,000
2003 Stock Option Plan      
Stock Option Plan Description The Company adopted a stock option plan in October 2003 (the 2003 Plan). Under the plan, the Company granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 187,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 10,000 remain outstanding. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the 2003 Plan.    
Granted 242,000    
Exercised 187,000    
Forfeited 45,000    
Outstanding 10,000    
Stock Option Plan Unrecognized Compensation Expense Related to Nonvested Stock Options $ 0    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 277,000    
Stock Option Plan Intrinsic Value of Options Vested     $ 14,000
Options vested 0 0  
v3.23.1
Employee Benefits - 2017 Omnibus Incentive Plan (Details)
 12 Months Ended
Jun. 30, 2022
USD ($)
shares
Jun. 30, 2021
USD ($)
shares
Jun. 30, 2020
USD ($)
shares
Common stock reserve for issuance 132,000    
Exercised 0 0 10,000
Restricted Stock      
Equity Incentive Plan vesting percentage 20.00%    
Performance-based restricted stock      
Equity Incentive Plan vesting percentage 20.00%    
Omnibus Incentive Plan 2017 [Member]      
2017 Omnibus Incentive Plan Description The Company adopted an equity-based incentive plan in October 2017 (the 2017 Plan). Under the 2017 plan, the Company reserved for issuance 500,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2017 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2017 Plan. Under the 2017 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.    
Common stock reserve for issuance 500,000    
Full value awards basis 2.5    
Granted 94,000    
Exercised 0    
Forfeited 0    
Outstanding 94,000    
Unrecognized compensation cost | $ $ 561,000    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 752,000    
Stock Option Plan Intrinsic Value of Options Vested | $ $ 150,000 $ 87,000 $ 0
Options Exercisable, Number 0    
Full value awards issued 22,350 18,925 15,525
Full value awards vested 12,860 9,770 7,080
Share based compensation expense | $ $ 548,000 $ 351,000 $ 293,000
Unvested compensation cost for full value awards | $ $ 1,900,000    
Omnibus Incentive Plan 2017 [Member] | Restricted Stock      
Equity Incentive Plan vesting percentage 20.00%    
Achievement of specified profitability targets period 3 years    
Omnibus Incentive Plan 2017 [Member] | Performance-based restricted stock      
Equity Incentive Plan vesting percentage 20.00%    
Achievement of specified profitability targets period 3 years    
v3.23.1
Employee Benefits - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Outstanding at beginning of year      
Weighted Average Price $ 33.77 $ 33.22 $ 26.35
Number 89,500 60,500 51,000
Granted      
Weighted Average Price $ 53.82 $ 34.91 $ 37.40
Number 14,500 29,000 19,500
Exercised      
Weighted Average Price     $ 6.38
Number     10,000
Outstanding at year-end      
Weighted Average Price $ 36.56 $ 33.77 $ 33.22
Number 104,000 89,500 60,500
Options exercisable at year-end      
Weighted Average Price $ 31.92 $ 29.79 $ 26.31
Number 44,900 29,000 18,900
v3.23.1
Employee Benefits - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Employee Benefits      
Expected dividend yield 1.49% 1.83% 1.60%
Expected volatility 28.02% 27.72% 22.55%
Risk-free interest rate 1.82% 1.14% 1.55%
Weighted-average expected life (years) 10 years 10 years 10 years
Weighted-average fair value of options granted during the year $ 16.38 $ 9.19 $ 8.81
v3.23.1
Employee Benefits - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)
 12 Months Ended
Jun. 30, 2022
$ / shares
shares
26 mo.  
Weighted Average Remaining Contractual Life 26 months
Options Outstanding, Number | shares 10,000
Options Outstanding, Weighted Average Exercise Price $ 17.55
Options Exercisable, Number | shares 10,000
Options Exercisable, Weighted Average Exercise Price $ 17.55
67 mo.  
Weighted Average Remaining Contractual Life 67 months
Options Outstanding, Number | shares 13,500
Options Outstanding, Weighted Average Exercise Price $ 37.31
Options Exercisable, Number | shares 10,800
Options Exercisable, Weighted Average Exercise Price $ 37.31
78 mo.  
Weighted Average Remaining Contractual Life 78 months
Options Outstanding, Number | shares 17,500
Options Outstanding, Weighted Average Exercise Price $ 34.35
Options Exercisable, Number | shares 10,500
Options Exercisable, Weighted Average Exercise Price $ 34.35
92 mo.  
Weighted Average Remaining Contractual Life 92 months
Options Outstanding, Number | shares 19,500
Options Outstanding, Weighted Average Exercise Price $ 37.40
Options Exercisable, Number | shares 7,800
Options Exercisable, Weighted Average Exercise Price $ 37.40
103 mo.  
Weighted Average Remaining Contractual Life 103 months
Options Outstanding, Number | shares 29,000
Options Outstanding, Weighted Average Exercise Price $ 34.91
Options Exercisable, Number | shares 5,800
Options Exercisable, Weighted Average Exercise Price $ 34.91
115 mo.  
Weighted Average Remaining Contractual Life 115 months
Options Outstanding, Number | shares 14,500
Options Outstanding, Weighted Average Exercise Price $ 53.82
Options Exercisable, Weighted Average Exercise Price $ 53.82
v3.23.1
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Deferred tax assets:    
Provision for losses on loans $ 7,761 $ 7,626
Accrued compensation and benefits 828 826
NOL carry forwards acquired 57 147
Unrealized loss on other real estate 72 180
Unrealized loss on available for sale securities 4,921  
Other   182
Total deferred tax assets 13,639 8,961
Deferred tax liabilities:    
Purchase accounting adjustments 224 210
Depreciation 1,974 1,842
FHLB stock dividends 120 120
Prepaid expenses 415 283
Unrealized gain on available for sale securities   821
Other 181 1,193
Total deferred tax liabilities 2,914 4,469
Net deferred tax asset $ 10,725 $ 4,492
v3.23.1
Income Taxes - Reconciliation of income tax expense at statutory rate (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]                              
Tax at statutory rate                         $ 12,580 $ 12,538 $ 7,231
Nontaxable municipal income                         349 453 444
State tax, net of Federal benefit                         812 1,018 299
Cash surrender value of Bank-owned life insurance                         245 378 214
Tax credit benefits                         (45) (11) (48)
Other, net                         (18) (189) 63
Income Tax Expense (Benefit), Total $ 3,602 $ 2,358 $ 3,288 $ 3,487 $ 3,529 $ 3,096 $ 3,153 $ 2,747 $ 1,861 $ 1,129 $ 1,921 $ 1,976 $ 12,735 $ 12,525 $ 6,887
v3.23.1
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Income Taxes    
Interest or penalties on income taxes $ 0  
Federal Net Operating Loss Carryforwards 261,000  
State Net Operating Loss Carryforwards $ 0  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00% 21.00%
v3.23.1
Accumulated Other Comprehensive Income (AOCI) - Components of AOCI (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]        
AOCI, included in stockholders' equity $ (22,404) $ 3,707    
Tax effect 4,917 (825)    
Net of tax amount 320,772 283,423 $ 258,347 $ 238,392
Net unrealized gain on securities available-for-sale        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
AOCI, included in stockholders' equity (22,366) 3,734    
Net unrealized gain on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
AOCI, included in stockholders' equity (1) (1)    
Unrealized gain from defined benefit pension plan        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
AOCI, included in stockholders' equity (37) (26)    
Accumulated Other Comprehensive Income(Loss)        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Net of tax amount $ (17,487) $ 2,882 $ 4,447 $ 1,247
v3.23.1
Accumulated Other Comprehensive Income (AOCI) - Reclassification out of AOCI (Details) - Reclassification out of Accumulated Other Comprehensive Income. - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Amortization of defined benefit pension items: $ (11) $ 6
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Compensation and benefits Compensation and benefits
Total reclassified amount before tax $ (11) $ 96
Available-for-sale Securities, Gross Unrealized Gain    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Unrealized gain on securities available-for-sale   90
Provision for income tax    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Tax benefit (2) 20
Net Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Total reclassification out of AOCI $ (9) $ 76
v3.23.1
Stockholders' Equity and Regulatory Capital (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Southern Bank | Total Capital (to Risk-Weighted Assets)    
Capital $ 352,169 $ 308,482
Capital to Risk Weighted Assets 0.1290 0.1396
Capital Required for Capital Adequacy $ 218,397 $ 176,816
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0800 0.0800
Capital Required to be Well Capitalized $ 272,996 $ 221,019
Capital Required to be Well Capitalized to Risk Weighted Assets 0.1000 0.1000
Southern Bank | Tier I Capital (to Risk-Weighted Assets)    
Capital $ 325,183 $ 282,638
Capital to Risk Weighted Assets 0.1191 0.1279
Capital Required for Capital Adequacy $ 163,797 $ 132,612
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0600 0.0600
Capital Required to be Well Capitalized $ 218,397 $ 176,816
Capital Required to be Well Capitalized to Risk Weighted Assets 0.0800 0.0800
Southern Bank | Tier I Capital (to Average Assets)    
Capital $ 325,183 $ 282,638
Capital to Risk Weighted Assets 0.1022 0.1043
Capital Required for Capital Adequacy $ 127,333 $ 108,369
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0400 0.0400
Capital Required to be Well Capitalized $ 159,167 $ 135,461
Capital Required to be Well Capitalized to Risk Weighted Assets 0.0500 0.0500
Southern Bank | Common Equity Tier I Capital (to Risk-Weighted Assets)    
Capital $ 325,183 $ 282,638
Capital to Risk Weighted Assets 0.1191 0.1279
Capital Required for Capital Adequacy $ 122,848 $ 99,459
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0450 0.0450
Capital Required to be Well Capitalized $ 177,447 $ 143,663
Capital Required to be Well Capitalized to Risk Weighted Assets 0.0650 0.00650
Consolidated | Total Capital (to Risk-Weighted Assets)    
Capital $ 370,013 $ 315,490
Capital to Risk Weighted Assets 0.1342 0.1418
Capital Required for Capital Adequacy $ 220,558 $ 177,938
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0800 0.0800
Consolidated | Tier I Capital (to Risk-Weighted Assets)    
Capital $ 335,316 $ 287,701
Capital to Risk Weighted Assets 0.1216 0.1293
Capital Required for Capital Adequacy $ 165,418 $ 133,453
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0600 0.0600
Consolidated | Tier I Capital (to Average Assets)    
Capital $ 335,316 $ 287,701
Capital to Risk Weighted Assets 0.1041 0.1061
Capital Required for Capital Adequacy $ 128,822 $ 108,505
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0400 0.0400
Consolidated | Common Equity Tier I Capital (to Risk-Weighted Assets)    
Capital $ 319,971 $ 272,458
Capital to Risk Weighted Assets 0.1161 0.1225
Capital Required for Capital Adequacy $ 124,064 $ 100,090
Capital Required for Capital Adequacy to Risk Weighted Assets 0.0450 0.0450
v3.23.1
Stockholders' Equity and Regulatory Capital - Additional Information (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Apr. 30, 2021
Apr. 30, 2020
Jan. 01, 2020
USD ($)
Capital conservation buffer ratio 0.0025        
Amount of distributions as dividend of equity $ 38,000        
Assets $ 3,214,782 $ 2,700,530      
Minimum          
Assets         $ 10,000,000
Tier I Capital (to Risk-Weighted Assets) | Maximum          
Minimum leverage ratio         0.09
Community Bank Leverage Ratio | Maximum          
Ratio of risk-based capital 9        
2021 Year | Community Bank Leverage Ratio | Minimum          
Minimum leverage ratio     0.085    
2021 Year After | Community Bank Leverage Ratio | Minimum          
Minimum leverage ratio       0.09  
v3.23.1
Commitments and Credit Risk - Standby Letters of Credit: Letters of Credit (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Jun. 30, 2021
Commitments and Credit Risk    
Letters of credit outstanding amount $ 3.7 $ 4.0
v3.23.1
Commitments and Credit Risk - Off-balance-sheet and Credit Risk (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Unused Commitments to Extend Credit $ 707.7 $ 491.6
Commitments to originate fixed rate loans $ 240.0  
Weighted-average rate 4.66%  
Commitments extended period 30 days  
Diversified portfolio, loans $ 1,000.0  
Minimum    
Term 12 months  
Commitments to originate fixed rate loans rates 2.19%  
Maximum    
Term 24 months  
Commitments to originate fixed rate loans rates 6.75%  
v3.23.1
Earnings Per Share - Schedule of computation of basic and diluted earnings per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Earnings Per Share                              
Net Income                         $ 47,169 $ 47,180 $ 27,545
Less: distributed earnings allocated to participating securities                         (30) (18)  
Less: undistributed earnings allocated to participating securities                         165 135  
Net income available to common shareholders                         $ 46,974 $ 47,027 $ 27,545
Weighted-average shares outstanding                         8,994,022 9,007,814 9,189,876
Effect of dilutive securities stock options or awards                         17,122 2,923 9,293
Denominator for diluted earnings per share                         9,011,144 9,010,737 9,199,169
Basic earnings per share available to common stockholders $ 1.41 $ 1.03 $ 1.35 $ 1.43 $ 1.53 $ 1.27 $ 1.33 $ 1.09 $ 0.76 $ 0.55 $ 0.84 $ 0.85 $ 5.22 $ 5.22 $ 3.00
Diluted earnings per share available to common stockholders $ 1.41 $ 1.03 $ 1.34 $ 1.43 $ 1.53 $ 1.27 $ 1.32 $ 1.09 $ 0.76 $ 0.55 $ 0.84 $ 0.85 $ 5.21 $ 5.22 $ 2.99
v3.23.1
Earnings Per Share - Additional information (Details) - shares
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Option      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from the computation of diluted earnings per share 22,750 99,825 50,500
Restricted Stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from the computation of diluted earnings per share 22,750 99,825 50,500
v3.23.1
Acquisitions - Additional Information (Details)
 3 Months Ended 12 Months Ended
Feb. 25, 2022
USD ($)
Feb. 15, 2021
USD ($)
May 22, 2020
USD ($)
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Feb. 26, 2022
USD ($)
Goodwill       $ 27,288,000       $ 14,089,000               $ 27,288,000 $ 14,089,000    
Bargain purchase gain                                   $ (123,000)  
Noninterest expense       17,331,000 $ 16,757,000 $ 15,070,000 $ 14,221,000 $ 14,201,000 $ 13,528,000 $ 13,046,000 $ 13,272,000 $ 15,509,000 $ 13,569,000 $ 13,025,000 $ 12,349,000 63,379,000 $ 54,047,000 $ 54,452,000  
Purchased credit-impaired loans                               14,935,000      
Loan portfolio       204,100,000                       204,100,000      
Fair value discount                               2,100,000      
Fair value       187,000,000.0                       187,000,000.0      
Gross       $ 211,000,000.0                       $ 211,000,000.0      
Number of PCD loans identified | loan                               31      
PCD loans                               $ 15,055,000      
Fortune Financial Corporation                                      
Cash consideration $ 12,664,000                                    
Purchase price allocated to core deposit intangible $ 1,600,000                                    
Core deposit intangible assets amortized period 7 years                                    
Goodwill $ 12,756,000                                   $ 12,800,000
Transaction value $ 35,548,000                                    
Fortune Financial Corporation | Noninterest expense                                      
Acquisition related costs                               1,400,000      
First National Bank, Cairo                                      
Cash consideration   $ 26,932,000                                  
Goodwill   442,000                                  
Transaction value   $ 26,932,000                                  
First National Bank, Cairo | Noninterest expense                                      
Acquisition related costs                               $ 50,000      
Central Federal Bancshares                                      
Cash consideration     $ 21,942,000                                
Purchase price allocated to core deposit intangible     $ 540,000                                
Core deposit intangible assets amortized period     6 years                                
Goodwill     $ 0                                
Bargain purchase gain     (123,000)                                
Transaction value     21,942,000                                
Net cash paid for the acquisition     9,100,000                                
Acquisition related costs     1,200,000                                
Noninterest expense     1,200,000                                
Purchased credit-impaired loans     0                                
Loan portfolio     52,100,000                                
Fair value discount     $ 662,000                                
v3.23.1
Acquisitions - Purchase price for the fortune financial acquisition (Details) - USD ($)
$ in Thousands
Feb. 25, 2022
Jun. 30, 2022
Feb. 26, 2022
Jun. 30, 2021
Recognized amounts of identifiable assets acquired and liabilities assumed        
Goodwill   $ 27,288   $ 14,089
Fortune Financial Corporation        
Fair Value of Consideration Transferred        
Cash $ 12,664      
Common stock, at fair value 22,884      
Total consideration 35,548      
Recognized amounts of identifiable assets acquired and liabilities assumed        
Cash and cash equivalents 34,280      
Interest bearing time deposits 2,300      
Loans 202,053      
Premises and equipment 7,690      
BOLI 3,720      
Identifiable intangible assets 1,602      
Miscellaneous other assets 3,512      
Deposits (213,670)      
FHLB Advances (9,681)      
Subordinated debt (7,800)      
Miscellaneous other liabilities (1,214)      
Total identifiable net liabilities 22,792      
Goodwill $ 12,756   $ 12,800  
v3.23.1
Acquisitions - Purchase price for the cairo acquisition (Details) - USD ($)
$ in Thousands
Feb. 15, 2021
Jun. 30, 2022
Jun. 30, 2021
Recognized amounts of identifiable assets acquired and liabilities assumed      
Goodwill   $ 27,288 $ 14,089
First National Bank, Cairo      
Fair Value of Consideration Transferred      
Cash received $ (26,932)    
Total consideration (26,932)    
Recognized amounts of identifiable assets acquired and liabilities assumed      
Cash and cash equivalents 220    
Loans 408    
Premises and equipment 468    
Identifiable intangible assets 168    
Miscellaneous other assets 1    
Deposits (28,540)    
Miscellaneous other liabilities (99)    
Total identifiable net liabilities (27,374)    
Goodwill $ 442    
v3.23.1
Acquisitions - Purchase price for the central federal bancshares financial acquisition (Details) - USD ($)
 12 Months Ended
May 22, 2020
Jun. 30, 2020
Recognized amounts of identifiable assets acquired and liabilities assumed    
Bargain purchase gain   $ (123,000)
Central Federal Bancshares    
Fair Value of Consideration Transferred    
Cash $ 21,942,000  
Recognized amounts of identifiable assets acquired and liabilities assumed    
Cash and cash equivalents 12,862,000  
Investment securities 4,355,000  
Loans 51,449,000  
Premises and equipment 723,000  
Identifiable intangible assets 540,000  
Miscellaneous other assets 639,000  
Deposits (46,720,000)  
Miscellaneous other liabilities (1,783,000)  
Total identifiable net liabilities 22,065,000  
Bargain purchase gain $ (123,000)  
v3.23.1
Fair Value Measurements - Fair value of Assets Measured on a Recurring Basis and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Nonrecurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreclosed and repossessed assets held for sale   $ 280
Fair Value, Inputs, Level 3 | Nonrecurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreclosed and repossessed assets held for sale   280
US States and Political Subdivisions Debt Securities | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities $ 44,479 47,696
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 44,479 47,696
Corporate Obligations | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 19,887 20,311
Corporate Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 19,887 20,311
Other Debt Obligations | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 443 672
Other Debt Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 443 672
Total MBS and CMOs | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 170,585 138,341
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 $ 170,585 $ 138,341
v3.23.1
Fair Value Measurements - Losses Recognized on Assets Measured on a Nonrecurring Basis (Details) - Nonrecurring Measurements - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total losses on assets measured on a non-recurring basis $ (503) $ (44)
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 $ (503) $ (44)
v3.23.1
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Nonrecurring Measurements - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets
$ in Thousands
 12 Months Ended
Jun. 30, 2021
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Nonrecurring Unobservable Inputs $ 280
Third party appraisal  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Nonrecurring Valuation Technique Third party appraisal
Third party appraisal | Marketability discount  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Nonrecurring Unobservable Inputs Marketability discount
Fair Value Measurements Nonrecurring Weighted Average Discount Applied 37.1
Third party appraisal | Marketability discount | Minimum  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Nonrecurring Range of discounts Applied 7.20%
Third party appraisal | Marketability discount | Maximum  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Nonrecurring Range of discounts Applied 80.60%
v3.23.1
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Financial assets    
Cash and cash equivalents $ 86,792 $ 123,592
Interest-bearing time deposits 4,768 979
Stock in FHLB 5,893 5,873
Stock in Federal Reserve Bank of St. Louis 5,790 5,031
Loans receivable, net 2,686,198 2,200,244
Accrued interest receivable 11,052 10,079
Financial liabilities    
Deposits 2,815,075 2,330,803
Advances from FHLB 37,957 57,529
Accrued interest payable 801 779
Subordinated debt 23,055 15,243
Fair Value, Inputs, Level 1    
Financial assets    
Cash and cash equivalents 86,792 123,592
Financial liabilities    
Deposits 2,176,444 1,768,217
Fair Value, Inputs, Level 2    
Financial assets    
Interest-bearing time deposits 4,768 979
Stock in FHLB 5,893 5,873
Stock in Federal Reserve Bank of St. Louis 5,790 5,031
Accrued interest receivable 11,052 10,079
Financial liabilities    
Advances from FHLB 35,916 58,587
Accrued interest payable 801 779
Fair Value, Inputs, Level 3    
Financial assets    
Loans receivable, net 2,655,882 2,218,762
Financial liabilities    
Deposits 637,163 565,123
Subordinated debt $ 22,070 $ 15,468
v3.23.1
Condensed Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2019
Cash and cash equivalents $ 86,792 $ 123,592    
TOTAL ASSETS 3,214,782 2,700,530    
Subordinated debt 23,055 15,243    
TOTAL LIABILITIES 2,894,010 2,417,107    
Stockholders' equity 320,772 283,423    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 3,214,782 2,700,530    
Parent Company        
Cash and cash equivalents 8,964 1,193 $ 4,576 $ 8,149
Other Assets 28,691 14,380    
Investment in common stock of Bank 306,549 283,500    
TOTAL ASSETS 344,204 299,073    
Accrued expenses and other liabilities 377 407    
Subordinated debt 23,055 15,243    
TOTAL LIABILITIES 23,432 15,650    
Stockholders' equity 320,772 283,423    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 344,204 $ 299,073    
v3.23.1
Condensed Parent Company Only Financial Statements - Statements of Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Interest income $ 31,572 $ 28,339 $ 28,096 $ 28,860 $ 27,532 $ 27,100 $ 27,871 $ 26,972 $ 27,264 $ 26,220 $ 26,646 $ 26,922 $ 116,867 $ 109,475 $ 107,052
Interest expense 3,814 3,225 3,038 3,223 3,586 3,951 4,344 4,908 5,483 6,802 7,269 7,362 13,300 16,789 26,916
NET INTEREST INCOME 27,758 25,114 25,058 25,637 23,946 23,149 23,527 22,064 21,781 19,418 19,377 19,560 103,567 92,686 80,136
Bargain purchase gain                             123
Income tax benefit (3,602) (2,358) (3,288) (3,487) (3,529) (3,096) (3,153) (2,747) (1,861) (1,129) (1,921) (1,976) (12,735) (12,525) (6,887)
NET INCOME $ 13,084 $ 9,351 $ 11,985 $ 12,749 $ 13,688 $ 11,458 $ 12,048 $ 9,986 $ 6,901 $ 5,099 $ 7,717 $ 7,828 47,169 47,180 27,545
Parent Company                              
Interest income                         14 13 27
Interest expense                         686 534 899
NET INTEREST INCOME                         (672) (521) (872)
Dividends from Bank                         31,000 12,000 34,000
Bargain purchase gain                             123
Operating expenses                         1,124 599 1,529
Income before income taxes and equity in undistributed income of the Bank                         29,204 10,880 31,722
Income tax benefit                         321 235 292
Income before equity in undistributed income of the Bank                         29,525 11,115 32,014
Equity in undistributed income of the Bank                         17,644 36,065 (4,469)
NET INCOME                         47,169 47,180 27,545
COMPREHENSIVE INCOME                         $ 26,800 $ 45,615 $ 30,745
v3.23.1
Condensed Parent Company Only Financial Statements - Cash Flows (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
NET INCOME $ 13,084 $ 9,351 $ 11,985 $ 12,749 $ 13,688 $ 11,458 $ 12,048 $ 9,986 $ 6,901 $ 5,099 $ 7,717 $ 7,828 $ 47,169 $ 47,180 $ 27,545
NET CASH PROVIDED BY OPERATING ACTIVITIES                         67,342 51,762 40,301
NET CASH USED IN INVESTING ACTIVITIES                         (303,928) (101,918) (272,360)
Dividends on common stock                         7,194 5,598 5,513
Exercise of stock options                             64
NET CASH PROVIDED BY FINANCING ACTIVITIES                         199,803 119,503 250,904
(Decrease) increase in cash and cash equivalents                         (36,783) 69,347 18,845
Cash and cash equivalents at beginning of period       123,592                 123,592    
Cash and cash equivalents at end of period 86,792       123,592               86,792 123,592  
Parent Company                              
NET INCOME                         47,169 47,180 27,545
Equity in undistributed income of the Bank                         (17,644) (36,065) 4,469
Other adjustments, net                         (698) (559) (904)
NET CASH PROVIDED BY OPERATING ACTIVITIES                         28,827 10,556 31,110
Investments in Bank subsidiaries                         (8,024)   (20,463)
NET CASH USED IN INVESTING ACTIVITIES                         (8,024)   (20,463)
Dividends on common stock                         (7,194) (5,598) (5,513)
Exercise of stock options                             64
Payments to acquire treasury stock                         (5,838) (8,341) (5,771)
Repayments of long term debt                             (3,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES                         (13,032) (13,939) (14,220)
(Decrease) increase in cash and cash equivalents                         7,771 (3,383) (3,573)
Cash and cash equivalents at beginning of period       $ 1,193       $ 4,576       $ 8,149 1,193 4,576 8,149
Cash and cash equivalents at end of period $ 8,964       $ 1,193       $ 4,576       $ 8,964 $ 1,193 $ 4,576
v3.23.1
Quarterly Financial Data (Unaudited) - Summary of Quarterly Operating Data (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Quarterly Financial Data (Unaudited)                              
Interest income $ 31,572 $ 28,339 $ 28,096 $ 28,860 $ 27,532 $ 27,100 $ 27,871 $ 26,972 $ 27,264 $ 26,220 $ 26,646 $ 26,922 $ 116,867 $ 109,475 $ 107,052
Interest expense 3,814 3,225 3,038 3,223 3,586 3,951 4,344 4,908 5,483 6,802 7,269 7,362 13,300 16,789 26,916
NET INTEREST INCOME 27,758 25,114 25,058 25,637 23,946 23,149 23,527 22,064 21,781 19,418 19,377 19,560 103,567 92,686 80,136
Provision for credit losses 240 1,552   (305) (2,615) (409) 1,000 1,000 1,868 2,850 388 896 1,487 (1,024) 6,002
Noninterest income 6,499 4,904 5,285 4,515 4,857 4,524 5,720 4,941 4,358 3,229 3,674 3,489 21,203 20,042 14,750
Noninterest expense 17,331 16,757 15,070 14,221 14,201 13,528 13,046 13,272 15,509 13,569 13,025 12,349 63,379 54,047 54,452
Income before income taxes         17,217 14,554 15,201 12,733              
INCOME BEFORE INCOME TAXES 16,686 11,709 15,273 16,236         8,762 6,228 9,638 9,804 59,904 59,705 34,432
Income tax expense 3,602 2,358 3,288 3,487 3,529 3,096 3,153 2,747 1,861 1,129 1,921 1,976 12,735 12,525 6,887
NET INCOME $ 13,084 $ 9,351 $ 11,985 $ 12,749 $ 13,688 $ 11,458 $ 12,048 $ 9,986 $ 6,901 $ 5,099 $ 7,717 $ 7,828 $ 47,169 $ 47,180 $ 27,545
Basic earnings per share $ 1.41 $ 1.03 $ 1.35 $ 1.43 $ 1.53 $ 1.27 $ 1.33 $ 1.09 $ 0.76 $ 0.55 $ 0.84 $ 0.85 $ 5.22 $ 5.22 $ 3.00
Diluted earnings per share $ 1.41 $ 1.03 $ 1.34 $ 1.43 $ 1.53 $ 1.27 $ 1.32 $ 1.09 $ 0.76 $ 0.55 $ 0.84 $ 0.85 $ 5.21 $ 5.22 $ 2.99