SOUTHERN MISSOURI BANCORP, INC., 10-Q filed on 2/9/2022
Quarterly Report
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Document and Entity Information - shares
 6 Months Ended
Dec. 31, 2021
Feb. 07, 2022
Cover [Abstract]    
SEC Form 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Period End date Dec. 31, 2021  
Registrant CIK 0000916907  
Entity File Number 0-23406  
Registrant Name SOUTHERN MISSOURI BANCORP, INC.  
Entity Incorporation, State or Country Code MO  
Tax Identification Number (TIN) 43-1665523  
Entity Address, Address Line One 2991 Oak Grove Road  
Entity Address, City or Town Poplar Bluff  
Entity Address, State or Province MO  
Entity Address, Postal Zip Code 63901  
City Area Code 573  
Local Phone Number 778-1800  
Title of 12(b) Security Common  
Trading Symbol SMBC  
Trading Exchange NASDAQ  
Current reporting status Yes  
Interactive Data Current Yes  
Filer Category Accelerated Filer  
Small Business false  
Emerging Growth Company false  
Shell Company false  
Number of common stock shares outstanding   8,895,616
Fiscal Year End --06-30  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Assets    
Cash and cash equivalents $ 184,502 $ 123,592
Interest-bearing time deposits 981 979
Available for sale securities 206,583 207,020
Stock in FHLB of Des Moines 5,121 5,873
Stock in Federal Reserve Bank of St. Louis 5,031 5,031
Loans receivable, net of ACL of $32,529 and $33,222 at December 31, 2021 and June 30, 2021, respectively 2,358,585 2,200,244
Accrued interest receivable 10,714 10,079
Premises and equipment, net 65,074 64,077
Bank owned life insurance - cash surrender value 44,382 43,817
Goodwill 14,532 14,089
Other intangible assets, net 6,625 7,129
Prepaid expenses and other assets 16,933 18,600
Total assets 2,919,063 2,700,530
Liabilities and Stockholders' Equity    
Deposits 2,552,252 2,330,803
Advances from FHLB 36,512 57,529
Accounts payable and other liabilities 12,714 12,753
Accrued interest payable 680 779
Subordinated debt 15,294 15,243
Total liabilities 2,617,452 2,417,107
Commitments and contingencies
Common stock, $.01 par value; 25,000,000 shares authorized; 9,361,629 shares issued at December 31, 2021 and June 30, 2021 94 94
Additional paid-in capital 95,675 95,585
Retained earnings 221,312 200,140
Treasury stock of 483,038 and 456,431 shares at December 31, 2021 and June 30, 2021, respectively, at cost (16,452) (15,278)
Accumulated other comprehensive income 982 2,882
Total stockholders' equity 301,611 283,423
Total liabilities and stockholders' equity $ 2,919,063 $ 2,700,530
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS    
Loans and Leases Receivable, Allowance $ 32,529 $ 33,222
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Common Stock, Shares Authorized 25,000,000 25,000,000
Common Stock, Shares, Issued 9,361,629 9,361,629
Treasury Stock 483,038 456,431
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
INTEREST INCOME:        
Loans $ 26,861 $ 26,826 $ 54,555 $ 52,732
Investment securities 556 519 1,085 1,009
Mortgage-backed securities 609 478 1,186 1,012
Other interest-earning assets 70 48 130 89
Total interest income 28,096 27,871 56,956 54,842
INTEREST EXPENSE:        
Deposits 2,739 3,863 5,555 8,253
Advances from FHLB 169 347 445 727
Subordinated debt 130 134 260 271
Total interest expense 3,038 4,344 6,260 9,251
NET INTEREST INCOME 25,058 23,527 50,696 45,591
PROVISION (BENEFIT) FOR CREDIT LOSSES   1,000 (305) 2,000
NET INTEREST INCOME AFTER PROVISION (BENEFIT) FOR CREDIT LOSSES 25,058 22,527 51,001 43,591
NONINTEREST INCOME:        
Deposit account charges and related fees 1,623 1,360 3,184 2,699
Bank card interchange income 976 836 1,927 1,666
Loan late charges 172 138 279 280
Loan servicing fees 180 368 334 678
Other loan fees 500 305 951 632
Net realized gains on sale of loans 362 1,390 731 2,596
Earnings on bank owned life insurance 282 974 563 1,254
Other income 1,190 349 1,832 856
Total noninterest income 5,285 5,720 9,801 10,661
NONINTEREST EXPENSE:        
Compensation and benefits 8,323 7,545 16,522 15,265
Occupancy and equipment, net 2,198 1,866 4,311 3,837
Data processing expense 1,297 1,175 2,566 2,237
Telecommunications expense 318 308 639 622
Deposit insurance premiums 180 218 358 419
Legal and professional fees 356 236 590 434
Advertising 276 219 606 449
Postage and office supplies 186 195 381 388
Intangible amortization 338 338 677 718
Foreclosed property expenses/losses 302 38 334 88
Other operating expense 1,296 908 2,312 1,862
Total noninterest expense 15,070 13,046 29,296 26,319
INCOME BEFORE INCOME TAXES 15,273 15,201 31,506 27,933
INCOME TAXES 3,288 3,153 6,775 5,900
NET INCOME $ 11,985 $ 12,048 $ 24,731 $ 22,033
Basic earnings per share $ 1.35 $ 1.33 $ 2.78 $ 2.42
Diluted earnings per share 1.35 1.32 2.78 2.42
Dividends paid $ 0.20 $ 0.15 $ 0.40 $ 0.30
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME        
Net Income $ 11,985 $ 12,048 $ 24,731 $ 22,033
Other comprehensive income (loss):        
Unrealized losses on securities available-for-sale (2,448) (493) (2,435) (315)
Tax benefit 538 108 535 69
Total other comprehensive income (loss) (1,910) (385) (1,900) (246)
Comprehensive income $ 10,075 $ 11,663 $ 22,831 $ 21,787
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CONDENSED 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
Impact of adoption ASU 2016-13
Total
Beginning Balance at Jun. 30, 2020 $ 93 $ 95,035 $ (7,151) $ 165,709 $ (6,937) $ 4,447 $ (7,151) $ 258,347
Net Income       22,033       22,033
Change in unrealized loss on available for sale securities           (246)   (246)
Dividends paid on common stock       (2,730)       (2,730)
Stock option expense   47           47
Stock grant expense   27           27
Treasury stock purchased         (2,638)     (2,638)
Ending Balance at Dec. 31, 2020 93 95,109   177,861 (9,575) 4,201   267,689
Beginning Balance at Sep. 30, 2020 93 95,058   167,175 (6,937) 4,586   259,975
Net Income       12,048       12,048
Change in unrealized loss on available for sale securities           (385)   (385)
Dividends paid on common stock       (1,362)       (1,362)
Stock option expense   24           24
Stock grant expense   27           27
Treasury stock purchased         (2,638)     (2,638)
Ending Balance at Dec. 31, 2020 93 95,109   177,861 (9,575) 4,201   267,689
Beginning Balance at Jun. 30, 2021 94 95,585   200,140 (15,278) 2,882   283,423
Net Income       24,731       24,731
Change in unrealized loss on available for sale securities           (1,900)   (1,900)
Dividends paid on common stock       (3,559)       (3,559)
Stock option expense   73           73
Stock grant expense   17           17
Treasury stock purchased         (1,174)     (1,174)
Ending Balance at Dec. 31, 2021 94 95,675   221,312 (16,452) 982   301,611
Beginning Balance at Sep. 30, 2021 94 95,622   211,104 (16,452) 2,892   293,260
Net Income       11,985       11,985
Change in unrealized loss on available for sale securities           (1,910)   (1,910)
Dividends paid on common stock       (1,777)       (1,777)
Stock option expense   36           36
Stock grant expense   17           17
Ending Balance at Dec. 31, 2021 $ 94 $ 95,675   $ 221,312 $ (16,452) $ 982   $ 301,611
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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY        
Dividends paid on common stock $ 0.20 $ 0.15 $ 0.40 $ 0.30
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Cash Flows From Operating Activities:    
Net Income $ 24,731 $ 22,033
Items not requiring (providing) cash:    
Depreciation 2,158 2,018
Loss on disposal of fixed assets 3 27
Stock option and stock grant expense 90 74
Loss on sale/write-down of REO 283 23
Amortization of intangible assets 677 718
Accretion of purchase accounting adjustments (637) (709)
Increase in cash surrender value of bank owned life insurance (BOLI) (563) (1,254)
Provision (benefit)for credit losses (305) 2,000
Net amortization of premiums and discounts on securities 596 914
Originations of loans held for sale (28,271) (98,827)
Proceeds from sales of loans held for sale 29,008 98,233
Gain on sales of loans held for sale (731) (2,596)
Changes in:    
Accrued interest receivable (633) (261)
Prepaid expenses and other assets (1,087) 2,265
Accounts payable and other liabilities 3,831 (4,244)
Deferred income taxes 513 28
Accrued interest payable (99) (540)
Net cash provided by operating activities 29,564 19,902
Cash flows from investing activities:    
Net increase (decrease) in loans (156,655) 13,239
Net change in interest-bearing deposits   (4)
Proceeds from maturities of available for sale securities 24,795 29,826
Net redemptions of Federal Home Loan Bank stock 752 403
Net purchases of Federal Reserve Bank of St. Louis stock   (654)
Purchases of available-for-sale securities (27,390) (35,674)
Purchases of long-term investment (133)  
Purchases of premises and equipment (3,689) (1,020)
Net cash received from acquisition 27,151  
Investments in state & federal tax credits (1,827) (1,051)
Proceeds from sale of fixed assets 928 72
Proceeds from sale of foreclosed assets 249 766
Proceeds from BOLI claim   1,351
Net cash (used in) provided by investing activities (135,819) 7,254
Cash flows from financing activities:    
Net increase in demand deposits and savings accounts 206,309 132,558
Net decrease in certificates of deposits (13,385) (52,297)
Proceeds from Federal Home Loan Bank advances   110,100
Repayments of Federal Home Loan Bank advances (21,025) (116,874)
Purchase of treasury stock (1,175) (2,638)
Dividends paid on common stock (3,559) (2,730)
Net cash provided by financing activities 167,165 68,119
Increase in cash and cash equivalents 60,910 95,275
Cash and cash equivalents at beginning of period 123,592 54,245
Cash and cash equivalents at end of period 184,502 149,520
Noncash investing and financing activities:    
Conversion of loans to foreclosed real estate   607
Conversion of loans to repossessed assets 14 363
Right of use assets obtained in exchange for lease obligations: Operating Leases 70 40
Fair value of assets acquired 1,707  
Cash received 26,932  
Liabilities assumed 28,639  
Cash paid during the period for:    
Interest (net of interest credited) 1,100 1,510
Income taxes $ 157 $ 6,776
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Basis of Presentation
 6 Months Ended
Dec. 31, 2021
Basis of Presentation  
Basis of Presentation

Note 1:  Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of June 30, 2021, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and six-month periods ended December 31, 2021, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2021 Form 10-K, which was filed with the SEC.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
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Organization and Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 2021
Organization and Summary of Significant Accounting Policies  
Organization and Summary of Significant Accounting Policies

Note 2:  Organization and Summary of Significant Accounting Policies

Organization. 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 December 31, 2021, assets of the REIT were approximately $1.2 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.

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 $148.8 million and $83.2 million at December 31 and June 30, 2021, respectively. The deposits are held in various commercial banks with a total of $1.8 million and $1.8 million exceeding the FDIC’s deposit insurance limits at December 31, and June 30, 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. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at December 31, 2021, or June 30, 2021.

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

Federal Reserve Bank and Federal Home Loan Bank Stock. 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. At December 31, 2021, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at June 30, 2021 or December 31, 2021. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

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

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

and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

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

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

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

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

Foreclosed Real Estate. 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 and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

Bank Owned Life Insurance. 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, 2021, 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 was no impairment of goodwill at December 31, 2021.

Intangible Assets. The Company’s intangible assets at December 31, 2021 included gross core deposit intangibles of $15.4 million with $10.7 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. 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 $689,000 in the remainder of fiscal 2022, $1.4 million in fiscal 2023 and fiscal 2024, $831,000 in fiscal 2025, and $412,000 thereafter. As of June 30, 2021, there was no impairment indicated, and the Company believes there was no impairment of other intangible assets at December 31, 2021.

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 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, 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.

Reclassifications. Certain immaterial revisions have been made to the 2021 consolidated financial statements to reclassify the provision for off-balance sheet credit exposure out of noninterest expense and combine with provision for credit losses on the income statement. The revisions did not have a significant impact on the financial statement line items impacted and have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on net income or retained earnings.

New Accounting Pronouncements:

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

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

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

​

$

2,227

​

$

1,959

​

$

268

​

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

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

​

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

​

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”.  The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. 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.
v3.22.0.1
Securities
 6 Months Ended
Dec. 31, 2021
Securities  
Securities

Note 3:  Securities

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

​

​

 

Gross

 

Gross

 

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,042

​

$

1,335

​

$

(88)

​

$

—

​

$

47,289

Corporate obligations

​

​

19,817

​

​

278

​

​

(325)

​

​

—

​

​

19,770

Other securities

​

 

566

​

 

1

​

 

—

​

 

—

​

 

567

Total debt and equity securities

​

​

66,425

​

​

1,614

​

​

(413)

​

​

—

​

​

67,626

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

58,941

​

​

576

​

​

(653)

​

​

—

​

​

58,864

Commercial MBS issued by GSEs

​

​

38,256

​

​

852

​

​

(556)

​

​

—

​

​

38,552

CMOs issued by GSEs

​

​

41,663

​

​

352

​

​

(474)

​

​

—

​

​

41,541

Total MBS and CMOs

​

 

138,860

​

 

1,780

​

 

(1,683)

​

 

—

​

​

138,957

Total AFS securities

​

$

205,285

​

$

3,394

​

$

(2,096)

​

$

—

​

$

206,583

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

​

​

 

Gross

 

Gross

​

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,257

​

$

1,479

​

$

(40)

​

$

—

​

 

47,696

Corporate obligations

​

​

20,356

​

​

290

​

​

(335)

​

​

—

​

​

20,311

Other securities

​

​

647

​

 

25

​

 

—

​

 

—

​

​

672

Total debt and equity securities

​

​

67,260

​

​

1,794

​

​

(375)

​

​

—

​

​

68,679

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

64,400

​

​

932

​

​

(379)

​

​

—

​

​

64,953

Commercial MBS issued by GSEs

​

​

35,425

​

​

1,394

​

​

(338)

​

​

—

​

​

36,481

CMOs issued by GSEs

​

​

36,201

​

​

755

​

​

(49)

​

​

—

​

​

36,907

Total MBS and CMOs

​

 

136,026

​

 

3,081

​

 

(766)

​

 

—

​

 

138,341

Total AFS securities

​

$

203,286

​

$

4,875

​

$

(1,141)

​

$

—

​

$

207,020

​

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

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

Amortized

 

Estimated

(dollars in thousands)

    

Cost

    

Fair Value

Within one year

​

$

1,549

​

$

1,553

After one year but less than five years

​

 

6,204

​

 

6,317

After five years but less than ten years

​

 

29,557

​

 

30,064

After ten years

​

 

29,115

​

 

29,692

Total investment securities

​

 

66,425

​

 

67,626

MBS and CMOs

​

 

138,860

​

 

138,957

Total AFS securities

​

$

205,285

​

$

206,583

​

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $181.3 million at December 31, 2021 and $155.6 million at June 30, 2021. The securities pledged consist of marketable securities, including $104.1 million and $95.4 million of Mortgage-backed Securities, $31.5 million and $18.8 million of Collateralized Mortgage Obligations, and $45.7 million and $41.4 million of State and Political Subdivisions Obligations at December 31, 2021 and June 30, 2021, respectively.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at December 31 and June 30, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

​

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

6,412

​

$

88

​

$

—

​

$

—

​

$

6,412

​

$

88

Corporate obligations

​

​

4,364

​

​

39

​

​

6,167

​

​

286

​

​

10,531

​

​

325

MBS and CMOs

​

 

72,113

​

 

1,301

​

 

10,819

​

 

382

​

 

82,932

​

 

1,683

Total AFS securities

​

$

82,889

​

$

1,428

​

$

16,986

​

$

668

​

$

99,875

​

$

2,096

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

​

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

3,177

​

$

40

​

$

—

​

$

—

​

$

3,177

​

$

40

Corporate obligations

​

​

9,331

​

​

79

​

​

720

​

​

256

​

​

10,051

​

​

335

MBS and CMOs

​

 

53,893

​

 

764

​

 

70

​

 

2

​

 

53,963

​

 

766

Total AFS securities

​

$

66,401

​

$

883

​

$

790

​

$

258

​

$

67,191

​

$

1,141

​

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include 13 individual securities which have been in an unrealized loss position for less 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 three individual securities which have been in an unrealized loss position for less than 12 months and six 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 December 31, 2021, corporate obligations included two pooled trust preferred securities with an estimated fair value of $766,000 and unrealized losses of $211,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the issuers of the underlying trust preferred securities.

A cash flow analysis performed as of December 31, 2021, for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Because the Company does not intend to sell these securities and it is likely that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. As of December 31, 2021, the unrealized losses on the Company’s investments in MBS and CMOs include 29 individual securities which have been in an unrealized loss position for less than 12 months, and five 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.

The Company does not believe that any individual unrealized loss as of December 31, 2021, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

Credit losses recognized on investments.  There were no credit losses recognized in income and other losses or recorded in other comprehensive income (loss) for the three- and six-month periods ended December 31, 2021 and 2020.
v3.22.0.1
Loans and Allowance for Credit Losses
 6 Months Ended
Dec. 31, 2021
Loans and Allowance for Credit Losses  
Loans and Allowance for Credit Losses

Note 4:  Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:

​

​

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

Real Estate Loans:

​

​

​

​

​

​

Residential

​

$

809,196

​

$

721,216

Construction

​

 

247,968

​

 

208,824

Commercial

​

 

963,299

​

 

889,793

Consumer loans

​

 

81,049

​

 

77,674

Commercial loans

​

 

390,262

​

 

414,124

​

​

 

2,491,774

​

 

2,311,631

Loans in process

​

 

(100,351)

​

 

(74,540)

Deferred loan fees, net

​

 

(309)

​

 

(3,625)

Allowance for credit losses

​

 

(32,529)

​

 

(33,222)

Total loans

​

$

2,358,585

​

$

2,200,244

​

The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At December 31, 2021 the Company had purchased participations in 21 loans totaling $96.9 million, as compared to 23 loans totaling $83.0 million at June 30, 2021.

Residential Mortgage Lending. 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 lending area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the adjustable interest rate loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand, rental rates, and vacancies, as well as collateral values and borrower leverage.

Commercial Real Estate Lending. 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. 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 to maturity of up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

Construction Lending. 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 24 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 nine months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further allow the Company opportunity to assess risk. At December 31, 2021, construction loans outstanding included 50 loans, totaling $31.9 million, for which a

modification had been agreed to. At June 30, 2021, construction loans outstanding included 48 loans, totaling $28.5 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above, pursuant to the Company’s normal underwriting and monitoring procedures. As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as troubled debt restructurings (TDRs); nor were they made pursuant to exemptions provided under the CARES Act. Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans modified under the CARES Act did not include any construction loans with drawn balances at December 31, 2021.

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

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks related to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

Commercial Business Lending. 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.

ACL. The provision for credit losses for the three- and six-month period ended December 31, 2021, was $0 and a credit of $305,000, respectively, compared to charges of $1.0 million and $2.0 million, respectively, in the same periods of the prior fiscal 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 December 31, 2021, and as of that date the Company’s ACL was $32.5 million. Reduced provisioning in the six-month period ended December 31, 2021, 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 quarter as compared to the year ended June 30, 2021, there remains uncertainty regarding the possible continuing impact of the COVID-19 pandemic or when transmission of the virus will abate to the point that restrictions are no longer being imposed or considered, and consumer behavior can be said to have returned to normal. As such, there remains a potential for the pandemic to negatively impact global and regional economies, or for recent efforts by the U.S. government and the Federal Reserve to respond to the pandemic and its economic impact to fall short of expectations. 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 December 31, 2021. Economic factors considered in the projections included national and state levels of unemployment, and national and state rates of inflation-adjusted growth in the gross domestic product. Economic conditions are considered to be a moderate and declining risk factor;

​

● the pace of growth of the Company’s loan portfolio, exclusive of acquisitions or government guaranteed loans, relative to overall economic growth. This measure remains elevated, but continued to moderate in the most recent quarter, and is considered to be a moderate and increasing risk factor;

​

● levels and trends for loan delinquencies nationally and in the region. This measure as reported remains relatively stable, but management considered the potential that the measure remains under-reported due to the availability of modifications under the CARES Act. The level of uncertainty about loan delinquencies is considered to be diminishing. This is considered to be an elevated and stable risk factor;

​

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

​

Management considered the impact of the COVID-19 pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels, when making qualitative factor adjustments. To date, various relief efforts, notably including the availability of forgivable Paycheck Protection Program (PPP) loans to borrowers and deferrals or modifications available as encouraged by banking regulatory authorities and the CARES Act, have resulted in limited impact on the Company’s credit quality indicators, as is true of the industry generally. It is possible that the ongoing adverse effects of the pandemic may not be offset by future relief efforts, which could cause the outlook for economic conditions and levels and trends of past-due loans to significantly worsen, and require additions to the ACL.

​

The following tables present the balance in the ACL based on portfolio segment as of December 31, 2021 and 2020, and activity in the ACL for the three- and six-month periods ended December 31, 2021 and 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2021

​

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

Provision (benefit) charged to expense

​

 

(404)

​

 

(44)

​

 

192

​

 

(112)

​

 

(311)

​

 

(679)

Losses charged off

​

 

(32)

​

 

—

​

 

—

​

 

(25)

​

 

(11)

​

 

(68)

Recoveries

​

 

1

​

 

—

​

 

—

​

 

51

​

 

2

​

 

54

Balance, end of period

​

$

10,757

​

$

2,126

​

$

14,727

​

$

830

​

$

4,089

​

$

32,529

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2021

 

​

​

Residential

​

Construction

​

Commercial

​

​

​

​

​

​

​

​

 

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

 

$

10,634

 

$

2,045

 

$

14,883

 

$

873

 

$

4,108

 

$

32,543

Provision charged to expense

​

​

123

​

​

81

​

​

(156)

​

​

(40)

​

​

(8)

​

​

—

Losses charged off

​

​

—

​

​

—

​

​

—

​

​

(13)

​

​

(11)

​

​

(24)

Recoveries

​

​

—

​

​

—

​

​

—

​

​

10

​

​

—

​

​

10

Balance, end of period

 

$

10,757

 

$

2,126

 

$

14,727

 

$

830

 

$

4,089

 

$

32,529

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2020

​

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to adoption of CECL

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

Impact of CECL adoption

​

​

3,521

​

​

(121)

​

​

3,856

​

​

1,065

​

​

1,012

​

​

9,333

Provision charged to expense

​

 

2,112

​

 

498

​

 

(750)

​

 

(823)

​

 

348

​

 

1,385

Losses charged off

​

 

(110)

​

 

—

​

 

—

​

 

(72)

​

 

(234)

​

 

(416)

Recoveries

​

 

—

​

 

—

​

 

1

​

 

10

​

 

19

​

 

30

Balance, end of period

​

$

10,398

​

$

2,387

​

$

15,239

​

$

1,362

​

$

6,085

​

$

35,471

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2020

​

​

​

Residential

​

Construction

​

Commercial

​

​

​

​

​

​

​

​

 

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

 

$

8,629

 

$

1,892

 

$

16,050

 

$

2,305

 

$

6,208

 

$

35,084

Provision charged to expense

​

​

1,859

​

​

495

​

​

(811)

​

​

(882)

​

​

(49)

​

​

612

Losses charged off

​

​

(90)

​

​

—

​

​

—

​

​

(67)

​

​

(89)

​

​

(246)

Recoveries

​

​

—

​

​

—

​

​

—

​

​

6

​

​

15

​

​

21

Balance, end of period

 

$

10,398

 

$

2,387

 

$

15,239

 

$

1,362

 

$

6,085

 

$

35,471

​

​

​

The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of December 31, 2021 and 2020, and activity in the allowance for the three- and six-month periods ended December 31, 2021 and 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2021

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805

Provision (benefit) charged to expense

​

​

(3)

​

​

1,171

​

​

(18)

​

​

(160)

​

​

(616)

​

​

374

Balance, end of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2021

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

Provision (benefit) charged to expense

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2020

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to CECL adoption

​

$

19

​

$

769

​

$

172

​

$

153

​

$

846

​

$

1,959

Impact of CECL adoption

​

​

35

​

​

(167)

​

​

95

​

​

197

​

​

108

​

​

268

Provision (benefit) charged to expense

​

​

(5)

​

​

340

​

​

18

​

​

(100)

​

​

362

​

​

615

Balance, end of period

​

$

49

​

$

942

​

$

285

​

$

250

​

$

1,316

​

$

2,842

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2020

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to CECL adoption

​

$

59

​

$

768

​

$

299

​

$

354

​

$

973

​

$

2,453

Provision (benefit) charged to expense

​

​

(10)

​

​

174

​

​

(14)

​

​

(105)

​

​

343

​

​

388

Balance, end of period

​

$

49

​

$

942

​

$

285

​

$

250

​

$

1,316

​

$

2,842

​

​

Credit Quality Indicators. 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. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

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 table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and fiscal year of origination as of December 31, 2021. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

    

2022

    

2021

    

2020

    

2019

    

2018

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

208,789

​

$

311,065

​

$

155,440

​

$

27,199

​

$

25,075

​

$

72,099

​

$

6,572

​

$

806,239

Watch

​

 

84

​

 

323

​

 

—

​

 

384

​

 

—

​

 

10

​

 

—

​

 

801

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

483

​

 

1,038

​

 

151

​

 

192

​

 

52

​

 

240

​

 

—

​

 

2,156

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

209,356

​

$

312,426

​

$

155,591

​

$

27,775

​

$

25,127

​

$

72,349

​

$

6,572

​

$

809,196

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

65,140

​

$

50,291

​

$

31,935

​

$

—

​

$

—

​

$

—

​

$

65

​

$

147,431

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

186

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

186

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

65,140

​

$

50,477

​

$

31,935

​

$

—

​

$

—

​

$

—

​

$

65

​

$

147,617

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

257,283

​

$

285,607

​

$

97,132

​

$

93,309

​

$

57,468

​

$

106,491

​

$

22,931

​

$

920,221

Watch

​

 

288

​

 

3,968

​

 

2,340

​

 

22

​

 

694

​

 

245

​

 

1,261

​

 

8,818

Special Mention

​

 

23,425

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

3,982

​

 

4,399

​

 

1,124

​

 

13

​

 

25

​

 

96

​

 

69

​

 

9,708

Doubtful

​

 

—

​

 

—

​

 

—

​

 

827

​

 

—

​

 

—

​

 

—

​

 

827

Total Commercial Real Estate

​

$

284,978

​

$

293,974

​

$

100,596

​

$

94,171

​

$

58,187

​

$

106,832

​

$

24,561

​

$

963,299

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

16,295

​

$

16,061

​

$

5,706

​

$

2,091

​

$

657

​

$

841

​

$

39,166

​

$

80,817

Watch

​

 

—

​

 

76

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

124

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

64

​

 

—

​

 

1

​

 

—

​

 

31

​

 

12

​

 

108

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

16,295

​

$

16,201

​

$

5,706

​

$

2,092

​

$

657

​

$

872

​

$

39,226

​

$

81,049

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

59,615

​

$

130,942

​

$

26,276

​

$

14,196

​

$

4,119

​

$

11,757

​

$

138,619

​

$

385,524

Watch

​

 

697

​

 

1,072

​

 

58

​

 

40

​

 

—

​

 

197

​

 

326

​

 

2,390

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

22

​

 

524

​

 

38

​

 

258

​

 

—

​

 

172

​

 

1,334

​

 

2,348

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

60,334

​

$

132,538

​

$

26,372

​

$

14,494

​

$

4,119

​

$

12,126

​

$

140,279

​

$

390,262

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

607,122

​

$

793,966

​

$

316,489

​

$

136,795

​

$

87,319

​

$

191,188

​

$

207,353

​

$

2,340,232

Watch

​

 

1,069

​

 

5,439

​

 

2,398

​

 

446

​

 

694

​

 

452

​

 

1,635

​

 

12,133

Special Mention

​

 

23,425

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

4,487

​

 

6,211

​

 

1,313

​

 

464

​

 

77

​

 

539

​

 

1,415

​

 

14,506

Doubtful

​

 

—

​

 

—

​

 

—

​

 

827

​

 

—

​

 

—

​

 

—

​

 

827

Total

​

$

636,103

​

$

805,616

​

$

320,200

​

$

138,532

​

$

88,090

​

$

192,179

​

$

210,703

​

$

2,391,423

​

At December 31, 2021, PCD loans comprised $12.0 million of credits rated “Pass”; none rated “Watch”; none rated “Special Mention”; $3.0 million of credits rated “Substandard”; and none rated “Doubtful”.

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

    

2021

    

2020

    

2019

    

2018

    

2017

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

361,876

​

$

175,772

​

$

43,576

​

$

32,929

​

$

23,267

​

$

71,592

​

$

5,557

​

$

714,569

Watch

​

 

328

​

 

70

​

 

410

​

 

—

​

 

89

​

 

809

​

 

—

​

 

1,706

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

4,288

​

 

89

​

 

—

​

 

92

​

 

—

​

 

472

​

 

—

​

 

4,941

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

366,492

​

$

175,931

​

$

43,986

​

$

33,021

​

$

23,356

​

$

72,873

​

$

5,557

​

$

721,216

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

88,371

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,237

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

47

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

47

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

88,418

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,284

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

351,732

​

$

147,670

​

$

104,746

​

$

75,967

​

$

70,927

​

$

61,194

​

$

23,699

​

$

835,935

Watch

​

 

4,456

​

 

2,365

​

 

9,502

​

 

1,377

​

 

726

​

 

10

​

 

810

​

 

19,246

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

8,191

​

 

1,137

​

 

505

​

 

31

​

 

5

​

 

99

​

 

69

​

 

10,037

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total Commercial Real Estate

​

$

364,379

​

$

159,978

​

$

115,603

​

$

79,168

​

$

84,484

​

$

61,303

​

$

24,878

​

$

889,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

23,858

​

$

8,626

​

$

3,597

​

$

1,126

​

$

534

​

$

650

​

$

39,071

​

$

77,462

Watch

​

 

80

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

128

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

30

​

 

30

​

 

—

​

 

24

​

 

84

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

23,938

​

$

8,626

​

$

3,597

​

$

1,156

​

$

564

​

$

650

​

$

39,143

​

$

77,674

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

189,280

​

$

42,549

​

$

17,960

​

$

5,591

​

$

7,265

​

$

9,120

​

$

136,603

​

$

408,368

Watch

​

 

1,551

​

 

262

​

 

1,323

​

 

22

​

 

—

​

 

—

​

 

463

​

 

3,621

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

594

​

 

81

​

 

305

​

 

—

​

 

176

​

 

—

​

 

979

​

 

2,135

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

191,425

​

$

42,892

​

$

19,588

​

$

5,613

​

$

7,441

​

$

9,120

​

$

138,045

​

$

414,124

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,015,117

​

$

420,483

​

$

169,879

​

$

115,613

​

$

101,993

​

$

142,556

​

$

204,930

​

$

2,170,571

Watch

​

 

6,415

​

 

2,697

​

 

11,235

​

 

1,399

​

 

815

​

 

819

​

 

1,321

​

 

24,701

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

13,120

​

 

1,307

​

 

810

​

 

153

​

 

211

​

 

571

​

 

1,072

​

 

17,244

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total

​

$

1,034,652

​

$

433,293

​

$

182,774

​

$

118,958

​

$

115,845

​

$

143,946

​

$

207,623

​

$

2,237,091

​

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

Past-due Loans. The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of December 31, 2021 and June 30, 2021. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

Real Estate Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential

​

$

601

​

$

520

​

$

638

​

$

1,759

​

$

807,437

​

$

809,196

​

$

—

Construction

​

 

—

​

 

—

​

 

—

​

 

—

​

 

147,617

​

 

147,617

​

 

—

Commercial

​

 

397

​

 

471

​

 

—

​

 

868

​

 

962,431

​

 

963,299

​

 

—

Consumer loans

​

 

326

​

 

120

​

 

69

​

 

515

​

 

80,534

​

 

81,049

​

 

—

Commercial loans

​

 

171

​

 

6

​

 

27

​

 

204

​

 

390,058

​

 

390,262

​

 

—

Total loans

​

$

1,495

​

$

1,117

​

$

734

​

$

3,346

​

$

2,388,077

​

$

2,391,423

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

Real Estate Loans:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Residential

​

$

312

​

$

364

​

$

613

​

$

1,289

​

$

719,927

​

$

721,216

​

$

—

Construction

​

 

—

​

 

—

​

 

30

​

 

30

​

 

134,254

​

 

134,284

​

 

—

Commercial

​

 

363

​

 

—

​

 

374

​

 

737

​

 

889,056

​

 

889,793

​

 

—

Consumer loans

​

 

195

​

 

66

​

 

84

​

 

345

​

 

77,329

​

 

77,674

​

 

—

Commercial loans

​

 

368

​

 

939

​

 

110

​

 

1,417

​

 

412,707

​

 

414,124

​

 

—

Total loans

​

$

1,238

​

$

1,369

​

$

1,211

​

$

3,818

​

$

2,233,273

​

$

2,237,091

​

$

—

​

Under the CARES Act, financial institutions have the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Loans with such modifications in effect at December 31, 2021, included $23.7 million in loans reported as current in the above table, while none were reported as past due. Loans with such modifications in effect at June 30, 2021, included $23.9 million in loans reported as current in the above table, while none were reported as past due.

At December 31 and June 30, 2021 there were no PCD loans that were greater than 90 days past due.

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

Collateral-dependent Loans. The following table presents the Company’s collateral dependent loans and related ACL at December 31, and June 30, 2021:

​

​

​

​

​

​

​

​

    

December 31, 2021

​

​

Amortized cost basis of

​

​

​

​

​

loans determined to be

​

Related allowance

​

​

collateral dependent

​

for credit losses

(dollars in thousands)

 

​

  

 

​

  

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

​

$

880

​

$

208

Total loans

​

$

880

​

$

208

​

​

​

​

​

​

​

​

​

    

June 30, 2021

​

​

Amortized cost basis of

​

​

​

​

​

loans determined to be

​

Related allowance

​

​

collateral dependent

​

for credit losses

(dollars in thousands)

 

​

  

 

​

  

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

​

$

895

​

$

223

Total loans

​

$

895

​

$

223

​

​

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at December 31, and June 30, 2021. The table excludes performing TDRs.

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

​

(dollars in thousands)

​

December 31, 2021

​

June 30, 2021

    

Residential real estate

​

$

1,011

​

$

3,235

​

Construction real estate

​

 

—

​

 

30

​

Commercial real estate

​

 

1,631

​

 

1,914

​

Consumer loans

​

 

76

​

 

100

​

Commercial loans

​

 

245

​

 

589

​

Total loans

​

$

2,963

​

$

5,868

​

​

At December 31, 2021, there were no nonaccrual loans individually evaluated for which no ACL was recorded. Interest income recognized on nonaccrual loans in the three- and six- month periods ended December 31, 2021 and 2020, was immaterial.

Troubled Debt Restructurings. 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 the three-month periods ended December 31, 2021 and 2020, there were no loan modifications that were classified as TDRs. During the six-month periods ended December 31, 2021 and 2020, certain loans modified were classified as TDRs. They are shown, segregated by class, in the table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the six-month periods ended

​

​

December 31, 2021

​

December 31, 2020

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

1

 

$

151

 

1

 

$

96

Construction real estate

 

—

​

​

—

 

—

​

​

—

Commercial real estate

 

—

​

​

—

 

2

​

​

1,798

Consumer loans

 

—

​

​

—

 

—

​

​

—

Commercial loans

 

—

​

​

—

 

1

​

​

33

Total

 

1

 

$

151

 

4

 

$

1,927

​

Performing loans classified as TDRs and outstanding at December 31, and June 30, 2021, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

June 30, 2021

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

11

​

$

3,696

 

1

​

$

895

Construction real estate

 

—

​

 

—

 

—

​

 

—

Commercial real estate

 

5

​

 

984

 

4

​

 

949

Consumer loans

 

—

​

 

—

 

—

​

 

—

Commercial loans

 

7

​

 

1,707

 

7

​

 

1,397

Total

 

23

​

$

6,387

 

12

​

$

3,241

​

Residential Real Estate Foreclosures. 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 December 31 and June 30, 2021, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $514,000 and $622,000, respectively. In addition, as of December 31 and June 30, 2021, the Company had residential mortgage loans and home equity loans with a carrying value of $272,000 and $533,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.
v3.22.0.1
Premises and Equipment
 6 Months Ended
Dec. 31, 2021
Premises and Equipment  
Premises and Equipment

Note 5:  Premises and Equipment

Following is a summary of premises and equipment:

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

​

Land

​

$

12,458

​

$

12,452

​

Buildings and improvements

​

 

59,583

​

 

56,422

​

Construction in progress

​

 

49

​

 

1,158

​

Furniture, fixtures, equipment and software

​

 

19,709

​

 

18,985

​

Automobiles

​

 

120

​

 

120

​

Operating leases ROU asset

​

 

2,700

​

 

2,770

​

​

​

 

94,619

​

 

91,907

​

Less accumulated depreciation

​

 

29,545

​

 

27,830

​

​

​

$

65,074

​

$

64,077

​

​

Leases. 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.

All of the Company’s leases are classified as operating leases. These operating leases are now included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.

ASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The discount rate utilized was 5%. The expected lease terms range from 18 months to 20 years.

​

​

​

​

​

​

​

​

​

    

December 31, 2021

    

June 30, 2021

Consolidated Balance Sheet

 

​

  

 

​

  

Operating leases ROU asset

​

$

2,700

​

$

2,770

Operating leases liability

​

$

2,700

​

$

2,770

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

Six Months Ended

​

​

​

    

December 31, 

​

December 31, 

​

​

​

​

2021

​

2020

​

2021

​

2020

​

​

Consolidated Statement of Income

 

​

  

 

​

  

​

​

​

​

​

​

​

​

Operating lease costs classified as occupancy and equipment expense

​

$

98

​

$

63

​

$

199

​

$

135

​

​

(includes short-term lease costs)

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Supplemental disclosures of cash flow information

​

 

  

​

 

  

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities:

​

 

  

​

 

  

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

85

​

$

58

​

$

169

​

$

126

​

​

ROU assets obtained in exchange for operating lease obligations:

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

At December 31, 2021, future expected lease payments for leases with terms exceeding one year were as follows:

​

​

​

​

​

(dollars in thousands)

    

  

​

2022

​

$

169

2023

​

 

338

2024

​

 

338

2025

​

 

330

2026

​

 

320

Thereafter

​

 

2,927

Future lease payments expected

​

$

4,422

​

The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the three- and six-month periods ended December 31, 2021, income recognized from these lessor agreements was $70,000 and $145,000, respectively. For the three- and six-month periods ended December 31, 2020, income recognized from these lessor agreements was $81,000 and $156,000, respectively. Income from lessor agreements was included in net occupancy and equipment expense.
v3.22.0.1
Deposits
 6 Months Ended
Dec. 31, 2021
Deposits  
Deposits

Note 6:  Deposits

Deposits are summarized as follows:

​

​

​

​

​

​

​

​

​

​

    

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

    

Non-interest bearing accounts

​

$

404,410

​

$

358,418

​

NOW accounts

​

 

1,083,853

​

 

925,280

​

Money market deposit accounts

​

 

263,007

​

 

253,614

​

Savings accounts

​

 

246,477

​

 

230,905

​

Certificates

​

​

554,505

​

​

562,586

​

Total Deposit Accounts

​

$

2,552,252

​

$

2,330,803

​

​
v3.22.0.1
Earnings Per Share
 6 Months Ended
Dec. 31, 2021
Earnings Per Share  
Earnings Per Share

Note 7:  Earnings Per Share

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended

 

Six months ended

​

​

​

December 31, 

 

December 31, 

​

(dollars in thousands except per share data)

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

  

 

​

  

​

​

​

​

​

​

​

Net income

​

$

11,985

​

$

12,048

​

$

24,731

​

$

22,033

​

Less: distributed earnings allocated to participating securities

​

 

(8)

​

 

(4)

​

 

(14)

​

 

(8)

​

Less: undistributed earnings allocated to participating securities

​

 

(46)

​

 

(30)

​

 

(85)

​

 

(56)

​

Net income available to common shareholders

​

$ 

11,931

​

$ 

12,014

​

$ 

24,632

​

$ 

21,969

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding, including participating securities

​

 

8,887,303

​

 

9,089,735

​

 

8,893,149

​

 

9,108,301

​

Less: weighted-average participating securities outstanding (restricted shares)

​

 

(39,920)

​

 

(25,410)

​

 

(35,883)

​

 

(26,335)

​

Denominator for basic earnings per share -

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-average shares outstanding

​

 

8,847,383

​

 

9,064,325

​

 

8,857,266

​

 

9,081,966

​

Effect of dilutive securities stock options or awards

​

 

21,780

​

 

2,909

​

 

15,977

​

 

2,220

​

Denominator for diluted earnings per share

​

​

8,869,163

​

​

9,067,234

​

​

8,873,243

​

​

9,084,186

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share available to common stockholders

​

$

1.35

​

$

1.33

​

$

2.78

​

$

2.42

​

Diluted earnings per share available to common stockholders

​

$

1.35

​

$

1.32

​

$

2.78

​

$

2.42

​

​

Certain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 0 were excluded from the computation of diluted earnings per share for the three- and six-month periods ended December 31, 2021, while outstanding options and shares of restricted stock totaling 50,500 were excluded from the computation of diluted earnings per share for the three- and six-month periods ended December 31, 2020.
v3.22.0.1
Income Taxes
 6 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes.

Note 8: Income Taxes

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

The Company’s income tax provision is comprised of the following components:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

For the three-month periods ended

    

For the six-month periods ended

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

December 31, 2021

​

December 31, 2020

Income taxes

 

​

  

 

​

  

​

​

  

 

​

  

Current

​

$

2,785

​

$

3,139

​

$

6,262

​

$

5,903

Deferred

​

 

503

​

 

14

​

 

513

​

 

(3)

Total income tax provision

​

$

3,288

​

$

3,153

​

$

6,775

​

$

5,900

​

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

​

​

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

Deferred tax assets:

 

​

  

 

​

  

Provision for losses on loans

​

$

7,586

​

$

7,626

Accrued compensation and benefits

​

 

621

​

 

826

NOL carry forwards acquired

​

 

122

​

 

147

Unrealized loss on other real estate

​

 

227

​

 

180

Other

​

 

—

​

 

182

Total deferred tax assets

​

 

8,556

​

 

8,961

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

242

​

 

210

Depreciation

​

 

1,590

​

 

1,842

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

256

​

 

283

Unrealized gain on available for sale securities

​

 

286

​

 

821

Other

​

 

1,623

​

 

1,193

Total deferred tax liabilities

​

 

4,117

​

 

4,469

Net deferred tax asset

​

$

4,439

​

$

4,492

​

As of December 31, 2021, the Company had approximately $706,000 and $0 in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc., and the April 2020 acquisition of Central Federal Savings and Loan. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027.

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

For the three-month periods ended

    

For the six-month periods ended

​

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

December 31, 2021

​

December 31, 2020

​

Tax at statutory rate

​

$

3,207

​

$

3,192

​

$

6,616

​

$

5,866

​

Increase (reduction) in taxes resulting from:

​

 

​

​

 

​

​

 

​

​

 

​

​

Nontaxable municipal income

​

 

(87)

​

 

(108)

​

 

(193)

​

 

(211)

​

State tax, net of Federal benefit

​

 

216

​

 

261

​

 

468

​

 

502

​

Cash surrender value of Bank-owned life insurance

​

 

(59)

​

 

(205)

​

 

(118)

​

 

(263)

​

Tax credit benefits

​

 

(10)

​

 

(5)

​

 

(21)

​

 

(9)

​

Other, net

​

 

21

​

 

18

​

 

23

​

 

15

​

Actual provision

​

$

3,288

​

$

3,153

​

$

6,775

​

$

5,900

​

​

For the three- and six- month periods ended December 31, 2021 and 2020, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).

Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.
v3.22.0.1
401(k) Retirement Plan
 6 Months Ended
Dec. 31, 2021
401(k) Retirement Plan  
401(k) Retirement Plan

Note 9:  401(k) Retirement Plan

The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank made “safe harbor” matching contributions to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2021. For fiscal 2022, the Company has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and six- month periods ended December 31, 2021, retirement plan expenses recognized for the Plan totaled approximately $428,000 and $918,000, respectively, as compared to $413,000 and $869,000, respectively, for the same periods of the prior fiscal year. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.
v3.22.0.1
Subordinated Debt
 6 Months Ended
Dec. 31, 2021
Subordinated Debt.  
Subordinated Debt

Note 10:  Subordinated Debt

In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years, and bear interest at a floating rate based on LIBOR. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At December 31, 2021, the Debentures carried an interest rate of 2.97%. The balance of the Debentures outstanding was $7.2 million at December 31, and June 30, 2021. The Company used the net proceeds from the sale of the Debentures for working capital and investment in its subsidiaries.

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At December 31, 2021, the current rate was 2.65%. The carrying value of the debt securities was approximately $2.7 million at December 31, and June 30, 2021.

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. At December 31, 2021, the current rate was 2.00%. The carrying value of the debt securities was approximately $5.4 million and $5.3 million at December 31, and June 30, 2021, respectively.

The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $460,000 at December 31, 2021.
v3.22.0.1
Fair Value Measurements
 6 Months Ended
Dec. 31, 2021
Fair Value Measurements  
Fair Value Measurements

Note 11:  Fair Value Measurements

ASC Topic 820, Fair Value Measurements, 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 that are significant to the fair value of the assets or liabilities

Recurring Measurements. The following table presents the fair value measurements 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 December 31, and June 30, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 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

​

$

47,289

​

$

—

​

$

47,289

​

$

—

Corporate obligations

​

​

19,770

​

​

—

​

​

19,770

​

​

—

Other securities

​

 

567

​

 

—

​

 

567

​

 

—

MBS and CMOs

​

 

138,957

​

 

—

​

 

138,957

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for 

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Obligations of state and political subdivisions

​

$

47,696

​

$

—

​

$

47,696

​

$

—

Corporate obligations

​

​

20,311

​

​

—

​

​

20,311

​

​

—

Other securities

​

 

672

​

 

—

​

 

672

​

 

—

MBS and CMOs

​

 

138,341

​

 

—

​

 

138,341

​

 

—

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Available-for-sale Securities. 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, the 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 December 31, and June 30, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 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

​

$

1,050

​

$

—

​

$

—

​

$

1,050

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

280

​

$

—

​

$

—

​

$

280

​

The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended December 31, 2021 and 2020:

​

​

​

​

​

​

​

​

​

​

    

For the three months ended

​

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

Foreclosed and repossessed assets held for sale

​

$

(285)

​

$

(24)

​

Total losses on assets measured on a non-recurring basis

​

$

(285)

​

$

(24)

​

​

The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

Foreclosed and Repossessed Assets Held for Sale. 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.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

December 31, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

1,050

 

Third party appraisal

 

Marketability discount

 

8.0% - 24.5

%  

23.7

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

June 30, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

280

 

Third party appraisal

 

Marketability discount

 

7.2% - 80.6

%  

37.1

%

​

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at December 31, and June 30, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

184,502

​

$

184,502

​

$

—

​

$

—

Interest-bearing time deposits

​

 

981

​

 

—

​

 

981

​

 

—

Stock in FHLB

​

 

5,121

​

 

—

​

 

5,121

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,358,585

​

 

—

​

 

—

​

 

2,370,268

Accrued interest receivable

​

 

10,714

​

 

—

​

 

10,714

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

2,552,252

​

 

1,997,747

​

 

—

​

 

556,052

Advances from FHLB

​

 

36,512

​

 

—

​

 

37,043

​

 

—

Accrued interest payable

​

 

680

​

 

—

​

 

680

​

 

—

Subordinated debt

​

 

15,294

​

 

—

​

 

—

​

 

16,581

Unrecognized financial instruments (net of contract amount)

​

 

​

​

 

​

​

 

​

​

 

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

123,592

​

$

123,592

​

$

—

​

$

—

Interest-bearing time deposits

​

 

979

​

 

—

​

 

979

​

 

—

Stock in FHLB

​

 

5,873

​

 

—

​

 

5,873

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,200,244

​

 

—

​

 

—

​

 

2,218,762

Accrued interest receivable

​

 

10,079

​

 

—

​

 

10,079

​

 

—

Financial liabilities

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

2,330,803

​

 

1,768,217

​

 

—

​

 

565,123

Advances from FHLB

​

 

57,529

​

 

—

​

 

58,587

​

 

—

Accrued interest payable

​

​

779

​

 

—

​

 

779

​

 

—

Subordinated debt

​

​

15,243

​

 

—

​

 

—

​

 

15,468

Unrecognized financial instruments (net of contract amount)

​

 

​

​

​

​

​

​

​

​

​

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​
v3.22.0.1
Business Combinations
 6 Months Ended
Dec. 31, 2021
Business Combinations  
Business Combinations

Note 12: Business Combinations

​

On September 28, 2021 the Company announced the signing of an agreement and plan of merger whereby Fortune Financial Corporation (”Fortune”), and its wholly owned subsidiary, FortuneBank (“FB”), will be acquired by the Company in a stock and cash transaction valued at approximately $29.9 million. At December 31 2021, Fortune held consolidated assets of $261.2 million, loans, net of allowance, of $199.4 million, and deposits of $219.6 million. The transaction is expected to close late in the first quarter of calendar 2022, subject to satisfaction of customary closing conditions, including regulatory and Fortune shareholder approvals. The acquired financial institution is expected to be merged with and into Southern Bank shortly after or simultaneously with the acquisition of Fortune. For the three- and six-month periods ended December 31, 2021, the Company incurred $205,000 and $230,000, respectively, of third-party acquisition-related costs, included in noninterest expense in the Company’s consolidated statements of income.

​

On December 15, 2021, the Company completed its acquisition of the Cairo, Illinois, branch (“Cairo”) of First National Bank, Oldham, South Dakota. The deal resulted in Southern Bank relocating its facility from its prior location to the First National Bank location in Cairo. The Company views the acquisition and updates to the new facility as an expression of its continuing commitment to the Cairo community. For the three- and six-month periods ended December 31, 2021, the Company incurred $24,000 of third-party acquisition-related costs, included in noninterest expense in the Company’s consolidated statements of income.

​

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

​

​

​

​

​

​

​

First National Bank - Cairo Branch

​

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash

​

$

(26,932)

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

220

Loans

​

 

408

Premises and equipment

​

 

468

Identifiable intangible assets

​

 

168

Miscellaneous other assets

​

 

1

​

​

 

​

Deposits

​

 

(28,540)

Miscellaneous other liabilities

​

​

(99)

Total identifiable net liabilities

​

​

(27,374)

Goodwill

​

$

442

​

Of the total purchase price, $168,000 has been allocated to core deposit intangible, and will be amortized over seven years on a straight line basis. Additionally, $442,000 has been allocated to goodwill, and none of the purchase price is deductible. Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Southern Bank existing facility with the acquired Cairo branch.

​

​
v3.22.0.1
Organization and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Dec. 31, 2021
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 December 31, 2021, assets of the REIT were approximately $1.2 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.
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 $148.8 million and $83.2 million at December 31 and June 30, 2021, respectively. The deposits are held in various commercial banks with a total of $1.8 million and $1.8 million exceeding the FDIC’s deposit insurance limits at December 31, and June 30, 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. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

At adoption of ASU 2016-13, no impairment on AFS securities was attributable to credit. The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit related factors underlying unrealized losses on AFS securities at December 31, 2021, or June 30, 2021.

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

Federal Reserve Bank and Federal Home Loan Bank Stock. 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. At December 31, 2021, some loans were modified under the terms of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which provides that loans modified after March 1, 2020, due to the COVID-19 pandemic, and which were otherwise current at December 31, 2019, need not be accounted for as troubled debt restructurings (TDRs). While these loans may not have met the contractual due dates of payments under their previous terms, so long as they were compliant with the terms of the modification made under the CARES Act, they would not have been reported as delinquent at June 30, 2021 or December 31, 2021. See further disclosure in Note 4: Loans and Allowance for Credit Losses. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

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

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

and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

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

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

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

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

Foreclosed Real Estate. 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 and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.
Bank Owned Life Insurance

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, 2021, 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 was no impairment of goodwill at December 31, 2021.
Intangible Assets

Intangible Assets. The Company’s intangible assets at December 31, 2021 included gross core deposit intangibles of $15.4 million with $10.7 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. 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 $689,000 in the remainder of fiscal 2022, $1.4 million in fiscal 2023 and fiscal 2024, $831,000 in fiscal 2025, and $412,000 thereafter. As of June 30, 2021, there was no impairment indicated, and the Company believes there was no impairment of other intangible assets at December 31, 2021.
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 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, 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.
Reclassifications

Reclassifications. Certain immaterial revisions have been made to the 2021 consolidated financial statements to reclassify the provision for off-balance sheet credit exposure out of noninterest expense and combine with provision for credit losses on the income statement. The revisions did not have a significant impact on the financial statement line items impacted and have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on net income or retained earnings.
New Accounting Pronouncements

New Accounting Pronouncements:

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

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

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

​

$

2,227

​

$

1,959

​

$

268

​

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

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

​

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

​

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,”.  The amendments in this update provide optional guidance for a limited period to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. 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.
v3.22.0.1
Organization and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Dec. 31, 2021
Organization and Summary of Significant Accounting Policies  
Schedule of Adoption of ASU 2016-13

​

​

​

​

​

​

​

​

​

​

​

​

​

July 1, 2020

​

 

As reported

 

As reported

 

Impact of

​

 

under

 

prior to

 

adoption

(dollars in thousands)

    

ASU 2016-13

    

ASU 2016-13

    

ASU 2016-13

​

​

​

​

​

​

​

​

​

​

Loans receivable

​

$

2,142,363

​

$

2,141,929

​

$

434

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

Real Estate Loans:

​

​

​

​

​

​

​

​

​

Residential

​

 

8,396

​

 

4,875

​

 

3,521

Construction

​

 

1,889

​

 

2,010

​

 

(121)

Commercial

​

 

15,988

​

 

12,132

​

 

3,856

Consumer loans

​

 

2,247

​

 

1,182

​

 

1,065

Commercial loans

​

 

5,952

​

 

4,940

​

 

1,012

Total allowance for credit losses on loans

​

$

34,472

​

$

25,139

​

$

9,333

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

​

$

2,227

​

$

1,959

​

$

268
v3.22.0.1
Securities (Tables)
 6 Months Ended
Dec. 31, 2021
Securities  
Schedule of Available for Sale Securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

​

​

 

Gross

 

Gross

 

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,042

​

$

1,335

​

$

(88)

​

$

—

​

$

47,289

Corporate obligations

​

​

19,817

​

​

278

​

​

(325)

​

​

—

​

​

19,770

Other securities

​

 

566

​

 

1

​

 

—

​

 

—

​

 

567

Total debt and equity securities

​

​

66,425

​

​

1,614

​

​

(413)

​

​

—

​

​

67,626

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

58,941

​

​

576

​

​

(653)

​

​

—

​

​

58,864

Commercial MBS issued by GSEs

​

​

38,256

​

​

852

​

​

(556)

​

​

—

​

​

38,552

CMOs issued by GSEs

​

​

41,663

​

​

352

​

​

(474)

​

​

—

​

​

41,541

Total MBS and CMOs

​

 

138,860

​

 

1,780

​

 

(1,683)

​

 

—

​

​

138,957

Total AFS securities

​

$

205,285

​

$

3,394

​

$

(2,096)

​

$

—

​

$

206,583

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

​

​

 

Gross

 

Gross

​

Allowance

​

Estimated

​

 

Amortized

 

Unrealized

 

Unrealized

 

for

 

Fair

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt and equity securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

46,257

​

$

1,479

​

$

(40)

​

$

—

​

 

47,696

Corporate obligations

​

​

20,356

​

​

290

​

​

(335)

​

​

—

​

​

20,311

Other securities

​

​

647

​

 

25

​

 

—

​

 

—

​

​

672

Total debt and equity securities

​

​

67,260

​

​

1,794

​

​

(375)

​

​

—

​

​

68,679

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential MBS issued by governmental sponsored enterprises (GSEs)

​

​

64,400

​

​

932

​

​

(379)

​

​

—

​

​

64,953

Commercial MBS issued by GSEs

​

​

35,425

​

​

1,394

​

​

(338)

​

​

—

​

​

36,481

CMOs issued by GSEs

​

​

36,201

​

​

755

​

​

(49)

​

​

—

​

​

36,907

Total MBS and CMOs

​

 

136,026

​

 

3,081

​

 

(766)

​

 

—

​

 

138,341

Total AFS securities

​

$

203,286

​

$

4,875

​

$

(1,141)

​

$

—

​

$

207,020
Schedule of amortized cost and fair value of available-for-sale securities, by contractual maturity

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

Amortized

 

Estimated

(dollars in thousands)

    

Cost

    

Fair Value

Within one year

​

$

1,549

​

$

1,553

After one year but less than five years

​

 

6,204

​

 

6,317

After five years but less than ten years

​

 

29,557

​

 

30,064

After ten years

​

 

29,115

​

 

29,692

Total investment securities

​

 

66,425

​

 

67,626

MBS and CMOs

​

 

138,860

​

 

138,957

Total AFS securities

​

$

205,285

​

$

206,583
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value {1}

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

​

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

6,412

​

$

88

​

$

—

​

$

—

​

$

6,412

​

$

88

Corporate obligations

​

​

4,364

​

​

39

​

​

6,167

​

​

286

​

​

10,531

​

​

325

MBS and CMOs

​

 

72,113

​

 

1,301

​

 

10,819

​

 

382

​

 

82,932

​

 

1,683

Total AFS securities

​

$

82,889

​

$

1,428

​

$

16,986

​

$

668

​

$

99,875

​

$

2,096

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

 

Less than 12 months

 

12 months or more

 

Total

​

 

​

​

​

Unrealized

 

​

​

​

Unrealized

 

​

​

​

Unrealized

​

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

3,177

​

$

40

​

$

—

​

$

—

​

$

3,177

​

$

40

Corporate obligations

​

​

9,331

​

​

79

​

​

720

​

​

256

​

​

10,051

​

​

335

MBS and CMOs

​

 

53,893

​

 

764

​

 

70

​

 

2

​

 

53,963

​

 

766

Total AFS securities

​

$

66,401

​

$

883

​

$

790

​

$

258

​

$

67,191

​

$

1,141
v3.22.0.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Dec. 31, 2021
Loans and Allowance for Credit Losses  
Schedule of classes of loans

​

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

Real Estate Loans:

​

​

​

​

​

​

Residential

​

$

809,196

​

$

721,216

Construction

​

 

247,968

​

 

208,824

Commercial

​

 

963,299

​

 

889,793

Consumer loans

​

 

81,049

​

 

77,674

Commercial loans

​

 

390,262

​

 

414,124

​

​

 

2,491,774

​

 

2,311,631

Loans in process

​

 

(100,351)

​

 

(74,540)

Deferred loan fees, net

​

 

(309)

​

 

(3,625)

Allowance for credit losses

​

 

(32,529)

​

 

(33,222)

Total loans

​

$

2,358,585

​

$

2,200,244
Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2021

​

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

11,192

​

$

2,170

​

$

14,535

​

$

916

​

$

4,409

​

$

33,222

Provision (benefit) charged to expense

​

 

(404)

​

 

(44)

​

 

192

​

 

(112)

​

 

(311)

​

 

(679)

Losses charged off

​

 

(32)

​

 

—

​

 

—

​

 

(25)

​

 

(11)

​

 

(68)

Recoveries

​

 

1

​

 

—

​

 

—

​

 

51

​

 

2

​

 

54

Balance, end of period

​

$

10,757

​

$

2,126

​

$

14,727

​

$

830

​

$

4,089

​

$

32,529

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2021

 

​

​

Residential

​

Construction

​

Commercial

​

​

​

​

​

​

​

​

 

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

 

$

10,634

 

$

2,045

 

$

14,883

 

$

873

 

$

4,108

 

$

32,543

Provision charged to expense

​

​

123

​

​

81

​

​

(156)

​

​

(40)

​

​

(8)

​

​

—

Losses charged off

​

​

—

​

​

—

​

​

—

​

​

(13)

​

​

(11)

​

​

(24)

Recoveries

​

​

—

​

​

—

​

​

—

​

​

10

​

​

—

​

​

10

Balance, end of period

 

$

10,757

 

$

2,126

 

$

14,727

 

$

830

 

$

4,089

 

$

32,529

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2020

​

 

Residential

​

Construction

 

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to adoption of CECL

​

$

4,875

​

$

2,010

​

$

12,132

​

$

1,182

​

$

4,940

​

$

25,139

Impact of CECL adoption

​

​

3,521

​

​

(121)

​

​

3,856

​

​

1,065

​

​

1,012

​

​

9,333

Provision charged to expense

​

 

2,112

​

 

498

​

 

(750)

​

 

(823)

​

 

348

​

 

1,385

Losses charged off

​

 

(110)

​

 

—

​

 

—

​

 

(72)

​

 

(234)

​

 

(416)

Recoveries

​

 

—

​

 

—

​

 

1

​

 

10

​

 

19

​

 

30

Balance, end of period

​

$

10,398

​

$

2,387

​

$

15,239

​

$

1,362

​

$

6,085

​

$

35,471

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2020

​

​

​

Residential

​

Construction

​

Commercial

​

​

​

​

​

​

​

​

 

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

 

$

8,629

 

$

1,892

 

$

16,050

 

$

2,305

 

$

6,208

 

$

35,084

Provision charged to expense

​

​

1,859

​

​

495

​

​

(811)

​

​

(882)

​

​

(49)

​

​

612

Losses charged off

​

​

(90)

​

​

—

​

​

—

​

​

(67)

​

​

(89)

​

​

(246)

Recoveries

​

​

—

​

​

—

​

​

—

​

​

6

​

​

15

​

​

21

Balance, end of period

 

$

10,398

 

$

2,387

 

$

15,239

 

$

1,362

 

$

6,085

 

$

35,471

​

​
Schedule of Allowance for off-balance credit exposure

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2021

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

37

​

$

502

​

$

188

​

$

218

​

$

860

​

$

1,805

Provision (benefit) charged to expense

​

​

(3)

​

​

1,171

​

​

(18)

​

​

(160)

​

​

(616)

​

​

374

Balance, end of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2021

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

Provision (benefit) charged to expense

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

​

$

34

​

$

1,673

​

$

170

​

$

58

​

$

244

​

$

2,179

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the six months ended December 31, 2020

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to CECL adoption

​

$

19

​

$

769

​

$

172

​

$

153

​

$

846

​

$

1,959

Impact of CECL adoption

​

​

35

​

​

(167)

​

​

95

​

​

197

​

​

108

​

​

268

Provision (benefit) charged to expense

​

​

(5)

​

​

340

​

​

18

​

​

(100)

​

​

362

​

​

615

Balance, end of period

​

$

49

​

$

942

​

$

285

​

$

250

​

$

1,316

​

$

2,842

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At period end and for the three months ended December 31, 2020

​

 

Residential

​

​

Construction

 

​

Commercial

​

​

​

 

​

​

​

​

​

(dollars in thousands)

    

Real Estate

    

Real Estate

    

Real Estate

    

Consumer

    

Commercial

    

Total

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period prior to CECL adoption

​

$

59

​

$

768

​

$

299

​

$

354

​

$

973

​

$

2,453

Provision (benefit) charged to expense

​

​

(10)

​

​

174

​

​

(14)

​

​

(105)

​

​

343

​

​

388

Balance, end of period

​

$

49

​

$

942

​

$

285

​

$

250

​

$

1,316

​

$

2,842

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

    

2022

    

2021

    

2020

    

2019

    

2018

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

208,789

​

$

311,065

​

$

155,440

​

$

27,199

​

$

25,075

​

$

72,099

​

$

6,572

​

$

806,239

Watch

​

 

84

​

 

323

​

 

—

​

 

384

​

 

—

​

 

10

​

 

—

​

 

801

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

483

​

 

1,038

​

 

151

​

 

192

​

 

52

​

 

240

​

 

—

​

 

2,156

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

209,356

​

$

312,426

​

$

155,591

​

$

27,775

​

$

25,127

​

$

72,349

​

$

6,572

​

$

809,196

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

65,140

​

$

50,291

​

$

31,935

​

$

—

​

$

—

​

$

—

​

$

65

​

$

147,431

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

186

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

186

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

65,140

​

$

50,477

​

$

31,935

​

$

—

​

$

—

​

$

—

​

$

65

​

$

147,617

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

257,283

​

$

285,607

​

$

97,132

​

$

93,309

​

$

57,468

​

$

106,491

​

$

22,931

​

$

920,221

Watch

​

 

288

​

 

3,968

​

 

2,340

​

 

22

​

 

694

​

 

245

​

 

1,261

​

 

8,818

Special Mention

​

 

23,425

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

3,982

​

 

4,399

​

 

1,124

​

 

13

​

 

25

​

 

96

​

 

69

​

 

9,708

Doubtful

​

 

—

​

 

—

​

 

—

​

 

827

​

 

—

​

 

—

​

 

—

​

 

827

Total Commercial Real Estate

​

$

284,978

​

$

293,974

​

$

100,596

​

$

94,171

​

$

58,187

​

$

106,832

​

$

24,561

​

$

963,299

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

16,295

​

$

16,061

​

$

5,706

​

$

2,091

​

$

657

​

$

841

​

$

39,166

​

$

80,817

Watch

​

 

—

​

 

76

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

124

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

64

​

 

—

​

 

1

​

 

—

​

 

31

​

 

12

​

 

108

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

16,295

​

$

16,201

​

$

5,706

​

$

2,092

​

$

657

​

$

872

​

$

39,226

​

$

81,049

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

59,615

​

$

130,942

​

$

26,276

​

$

14,196

​

$

4,119

​

$

11,757

​

$

138,619

​

$

385,524

Watch

​

 

697

​

 

1,072

​

 

58

​

 

40

​

 

—

​

 

197

​

 

326

​

 

2,390

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

22

​

 

524

​

 

38

​

 

258

​

 

—

​

 

172

​

 

1,334

​

 

2,348

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

60,334

​

$

132,538

​

$

26,372

​

$

14,494

​

$

4,119

​

$

12,126

​

$

140,279

​

$

390,262

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

607,122

​

$

793,966

​

$

316,489

​

$

136,795

​

$

87,319

​

$

191,188

​

$

207,353

​

$

2,340,232

Watch

​

 

1,069

​

 

5,439

​

 

2,398

​

 

446

​

 

694

​

 

452

​

 

1,635

​

 

12,133

Special Mention

​

 

23,425

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

4,487

​

 

6,211

​

 

1,313

​

 

464

​

 

77

​

 

539

​

 

1,415

​

 

14,506

Doubtful

​

 

—

​

 

—

​

 

—

​

 

827

​

 

—

​

 

—

​

 

—

​

 

827

Total

​

$

636,103

​

$

805,616

​

$

320,200

​

$

138,532

​

$

88,090

​

$

192,179

​

$

210,703

​

$

2,391,423

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

    

2021

    

2020

    

2019

    

2018

    

2017

    

Prior

    

loans

    

Total

Residential Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

361,876

​

$

175,772

​

$

43,576

​

$

32,929

​

$

23,267

​

$

71,592

​

$

5,557

​

$

714,569

Watch

​

 

328

​

 

70

​

 

410

​

 

—

​

 

89

​

 

809

​

 

—

​

 

1,706

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

4,288

​

 

89

​

 

—

​

 

92

​

 

—

​

 

472

​

 

—

​

 

4,941

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Residential Real Estate

​

$

366,492

​

$

175,931

​

$

43,986

​

$

33,021

​

$

23,356

​

$

72,873

​

$

5,557

​

$

721,216

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

88,371

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,237

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

47

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

47

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction Real Estate

​

$

88,418

​

$

45,866

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

134,284

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

351,732

​

$

147,670

​

$

104,746

​

$

75,967

​

$

70,927

​

$

61,194

​

$

23,699

​

$

835,935

Watch

​

 

4,456

​

 

2,365

​

 

9,502

​

 

1,377

​

 

726

​

 

10

​

 

810

​

 

19,246

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

8,191

​

 

1,137

​

 

505

​

 

31

​

 

5

​

 

99

​

 

69

​

 

10,037

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total Commercial Real Estate

​

$

364,379

​

$

159,978

​

$

115,603

​

$

79,168

​

$

84,484

​

$

61,303

​

$

24,878

​

$

889,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

23,858

​

$

8,626

​

$

3,597

​

$

1,126

​

$

534

​

$

650

​

$

39,071

​

$

77,462

Watch

​

 

80

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

48

​

 

128

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

30

​

 

30

​

 

—

​

 

24

​

 

84

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

23,938

​

$

8,626

​

$

3,597

​

$

1,156

​

$

564

​

$

650

​

$

39,143

​

$

77,674

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

189,280

​

$

42,549

​

$

17,960

​

$

5,591

​

$

7,265

​

$

9,120

​

$

136,603

​

$

408,368

Watch

​

 

1,551

​

 

262

​

 

1,323

​

 

22

​

 

—

​

 

—

​

 

463

​

 

3,621

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

594

​

 

81

​

 

305

​

 

—

​

 

176

​

 

—

​

 

979

​

 

2,135

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial

​

$

191,425

​

$

42,892

​

$

19,588

​

$

5,613

​

$

7,441

​

$

9,120

​

$

138,045

​

$

414,124

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

1,015,117

​

$

420,483

​

$

169,879

​

$

115,613

​

$

101,993

​

$

142,556

​

$

204,930

​

$

2,170,571

Watch

​

 

6,415

​

 

2,697

​

 

11,235

​

 

1,399

​

 

815

​

 

819

​

 

1,321

​

 

24,701

Special Mention

​

 

—

​

 

8,806

​

 

—

​

 

1,793

​

 

12,826

​

 

—

​

 

300

​

 

23,725

Substandard

​

 

13,120

​

 

1,307

​

 

810

​

 

153

​

 

211

​

 

571

​

 

1,072

​

 

17,244

Doubtful

​

 

—

​

 

—

​

 

850

​

 

—

​

 

—

​

 

—

​

 

—

​

 

850

Total

​

$

1,034,652

​

$

433,293

​

$

182,774

​

$

118,958

​

$

115,845

​

$

143,946

​

$

207,623

​

$

2,237,091
Schedule of company's loan portfolio aging analysis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

Real Estate Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential

​

$

601

​

$

520

​

$

638

​

$

1,759

​

$

807,437

​

$

809,196

​

$

—

Construction

​

 

—

​

 

—

​

 

—

​

 

—

​

 

147,617

​

 

147,617

​

 

—

Commercial

​

 

397

​

 

471

​

 

—

​

 

868

​

 

962,431

​

 

963,299

​

 

—

Consumer loans

​

 

326

​

 

120

​

 

69

​

 

515

​

 

80,534

​

 

81,049

​

 

—

Commercial loans

​

 

171

​

 

6

​

 

27

​

 

204

​

 

390,058

​

 

390,262

​

 

—

Total loans

​

$

1,495

​

$

1,117

​

$

734

​

$

3,346

​

$

2,388,077

​

$

2,391,423

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

​

​

Greater Than 90

​

​

30-59 Days

​

60-89 Days

​

90 Days

​

Total

​

​

​

​

Total Loans

​

Days Past Due

(dollars in thousands)

    

Past Due

    

Past Due

    

Past Due

    

Past Due

    

Current

    

Receivable

    

and Accruing

Real Estate Loans:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Residential

​

$

312

​

$

364

​

$

613

​

$

1,289

​

$

719,927

​

$

721,216

​

$

—

Construction

​

 

—

​

 

—

​

 

30

​

 

30

​

 

134,254

​

 

134,284

​

 

—

Commercial

​

 

363

​

 

—

​

 

374

​

 

737

​

 

889,056

​

 

889,793

​

 

—

Consumer loans

​

 

195

​

 

66

​

 

84

​

 

345

​

 

77,329

​

 

77,674

​

 

—

Commercial loans

​

 

368

​

 

939

​

 

110

​

 

1,417

​

 

412,707

​

 

414,124

​

 

—

Total loans

​

$

1,238

​

$

1,369

​

$

1,211

​

$

3,818

​

$

2,233,273

​

$

2,237,091

​

$

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

​

​

​

​

​

​

​

​

    

December 31, 2021

​

​

Amortized cost basis of

​

​

​

​

​

loans determined to be

​

Related allowance

​

​

collateral dependent

​

for credit losses

(dollars in thousands)

 

​

  

 

​

  

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

​

$

880

​

$

208

Total loans

​

$

880

​

$

208

​

​

​

​

​

​

​

​

​

    

June 30, 2021

​

​

Amortized cost basis of

​

​

​

​

​

loans determined to be

​

Related allowance

​

​

collateral dependent

​

for credit losses

(dollars in thousands)

 

​

  

 

​

  

Residential real estate loans

 

​

  

 

​

  

1- to 4-family residential loans

​

$

895

​

$

223

Total loans

​

$

895

​

$

223

​
Schedule of Company's nonaccrual loans

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

​

(dollars in thousands)

​

December 31, 2021

​

June 30, 2021

    

Residential real estate

​

$

1,011

​

$

3,235

​

Construction real estate

​

 

—

​

 

30

​

Commercial real estate

​

 

1,631

​

 

1,914

​

Consumer loans

​

 

76

​

 

100

​

Commercial loans

​

 

245

​

 

589

​

Total loans

​

$

2,963

​

$

5,868

​
Certain loans modified classified as TDRs

​

​

​

​

​

​

​

​

​

​

​

​

​

For the six-month periods ended

​

​

December 31, 2021

​

December 31, 2020

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

1

 

$

151

 

1

 

$

96

Construction real estate

 

—

​

​

—

 

—

​

​

—

Commercial real estate

 

—

​

​

—

 

2

​

​

1,798

Consumer loans

 

—

​

​

—

 

—

​

​

—

Commercial loans

 

—

​

​

—

 

1

​

​

33

Total

 

1

 

$

151

 

4

 

$

1,927
Performing loans classified as TDRs and outstanding , segregated by class

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

June 30, 2021

​

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

modifications

    

Investment

    

modifications

    

Investment

Residential real estate

 

11

​

$

3,696

 

1

​

$

895

Construction real estate

 

—

​

 

—

 

—

​

 

—

Commercial real estate

 

5

​

 

984

 

4

​

 

949

Consumer loans

 

—

​

 

—

 

—

​

 

—

Commercial loans

 

7

​

 

1,707

 

7

​

 

1,397

Total

 

23

​

$

6,387

 

12

​

$

3,241
v3.22.0.1
Premises and Equipment (Tables)
 6 Months Ended
Dec. 31, 2021
Premises and Equipment  
Schedule of summary of premises and equipment

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

​

Land

​

$

12,458

​

$

12,452

​

Buildings and improvements

​

 

59,583

​

 

56,422

​

Construction in progress

​

 

49

​

 

1,158

​

Furniture, fixtures, equipment and software

​

 

19,709

​

 

18,985

​

Automobiles

​

 

120

​

 

120

​

Operating leases ROU asset

​

 

2,700

​

 

2,770

​

​

​

 

94,619

​

 

91,907

​

Less accumulated depreciation

​

 

29,545

​

 

27,830

​

​

​

$

65,074

​

$

64,077

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

​

​

​

​

​

​

​

​

​

    

December 31, 2021

    

June 30, 2021

Consolidated Balance Sheet

 

​

  

 

​

  

Operating leases ROU asset

​

$

2,700

​

$

2,770

Operating leases liability

​

$

2,700

​

$

2,770

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

Six Months Ended

​

​

​

    

December 31, 

​

December 31, 

​

​

​

​

2021

​

2020

​

2021

​

2020

​

​

Consolidated Statement of Income

 

​

  

 

​

  

​

​

​

​

​

​

​

​

Operating lease costs classified as occupancy and equipment expense

​

$

98

​

$

63

​

$

199

​

$

135

​

​

(includes short-term lease costs)

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Supplemental disclosures of cash flow information

​

 

  

​

 

  

​

​

​

​

​

​

​

​

Cash paid for amounts included in the measurement of lease liabilities:

​

 

  

​

 

  

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

85

​

$

58

​

$

169

​

$

126

​

​

ROU assets obtained in exchange for operating lease obligations:

​

$

—

​

$

—

​

$

—

​

$

—

​

​
Schedule of Future Minimum Rental Payments for Operating Leases

​

​

​

​

​

(dollars in thousands)

    

  

​

2022

​

$

169

2023

​

 

338

2024

​

 

338

2025

​

 

330

2026

​

 

320

Thereafter

​

 

2,927

Future lease payments expected

​

$

4,422
v3.22.0.1
Deposits (Tables)
 6 Months Ended
Dec. 31, 2021
Deposits  
Schedule of deposits

​

​

​

​

​

​

​

​

​

​

    

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

    

Non-interest bearing accounts

​

$

404,410

​

$

358,418

​

NOW accounts

​

 

1,083,853

​

 

925,280

​

Money market deposit accounts

​

 

263,007

​

 

253,614

​

Savings accounts

​

 

246,477

​

 

230,905

​

Certificates

​

​

554,505

​

​

562,586

​

Total Deposit Accounts

​

$

2,552,252

​

$

2,330,803

​
v3.22.0.1
Earnings Per Share (Tables)
 6 Months Ended
Dec. 31, 2021
Earnings Per Share  
Schedule of Earnings Per Share, Basic and Diluted

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended

 

Six months ended

​

​

​

December 31, 

 

December 31, 

​

(dollars in thousands except per share data)

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

  

 

​

  

​

​

​

​

​

​

​

Net income

​

$

11,985

​

$

12,048

​

$

24,731

​

$

22,033

​

Less: distributed earnings allocated to participating securities

​

 

(8)

​

 

(4)

​

 

(14)

​

 

(8)

​

Less: undistributed earnings allocated to participating securities

​

 

(46)

​

 

(30)

​

 

(85)

​

 

(56)

​

Net income available to common shareholders

​

$ 

11,931

​

$ 

12,014

​

$ 

24,632

​

$ 

21,969

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-average common shares outstanding, including participating securities

​

 

8,887,303

​

 

9,089,735

​

 

8,893,149

​

 

9,108,301

​

Less: weighted-average participating securities outstanding (restricted shares)

​

 

(39,920)

​

 

(25,410)

​

 

(35,883)

​

 

(26,335)

​

Denominator for basic earnings per share -

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-average shares outstanding

​

 

8,847,383

​

 

9,064,325

​

 

8,857,266

​

 

9,081,966

​

Effect of dilutive securities stock options or awards

​

 

21,780

​

 

2,909

​

 

15,977

​

 

2,220

​

Denominator for diluted earnings per share

​

​

8,869,163

​

​

9,067,234

​

​

8,873,243

​

​

9,084,186

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share available to common stockholders

​

$

1.35

​

$

1.33

​

$

2.78

​

$

2.42

​

Diluted earnings per share available to common stockholders

​

$

1.35

​

$

1.32

​

$

2.78

​

$

2.42

​
v3.22.0.1
Income Taxes (Tables)
 6 Months Ended
Dec. 31, 2021
Income Taxes  
Schedule of Income Tax Provision

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

For the three-month periods ended

    

For the six-month periods ended

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

December 31, 2021

​

December 31, 2020

Income taxes

 

​

  

 

​

  

​

​

  

 

​

  

Current

​

$

2,785

​

$

3,139

​

$

6,262

​

$

5,903

Deferred

​

 

503

​

 

14

​

 

513

​

 

(3)

Total income tax provision

​

$

3,288

​

$

3,153

​

$

6,775

​

$

5,900
Schedule of components of net deferred tax assets

​

​

​

​

​

​

​

​

(dollars in thousands)

    

December 31, 2021

    

June 30, 2021

Deferred tax assets:

 

​

  

 

​

  

Provision for losses on loans

​

$

7,586

​

$

7,626

Accrued compensation and benefits

​

 

621

​

 

826

NOL carry forwards acquired

​

 

122

​

 

147

Unrealized loss on other real estate

​

 

227

​

 

180

Other

​

 

—

​

 

182

Total deferred tax assets

​

 

8,556

​

 

8,961

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

242

​

 

210

Depreciation

​

 

1,590

​

 

1,842

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

256

​

 

283

Unrealized gain on available for sale securities

​

 

286

​

 

821

Other

​

 

1,623

​

 

1,193

Total deferred tax liabilities

​

 

4,117

​

 

4,469

Net deferred tax asset

​

$

4,439

​

$

4,492
Schedule of reconciliation of income tax expense at the statutory rate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

For the three-month periods ended

    

For the six-month periods ended

​

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

December 31, 2021

​

December 31, 2020

​

Tax at statutory rate

​

$

3,207

​

$

3,192

​

$

6,616

​

$

5,866

​

Increase (reduction) in taxes resulting from:

​

 

​

​

 

​

​

 

​

​

 

​

​

Nontaxable municipal income

​

 

(87)

​

 

(108)

​

 

(193)

​

 

(211)

​

State tax, net of Federal benefit

​

 

216

​

 

261

​

 

468

​

 

502

​

Cash surrender value of Bank-owned life insurance

​

 

(59)

​

 

(205)

​

 

(118)

​

 

(263)

​

Tax credit benefits

​

 

(10)

​

 

(5)

​

 

(21)

​

 

(9)

​

Other, net

​

 

21

​

 

18

​

 

23

​

 

15

​

Actual provision

​

$

3,288

​

$

3,153

​

$

6,775

​

$

5,900

​
v3.22.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Dec. 31, 2021
Fair Value Measurements  
Fair Value, Assets Measured on Recurring Basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 2021, 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

​

$

47,289

​

$

—

​

$

47,289

​

$

—

Corporate obligations

​

​

19,770

​

​

—

​

​

19,770

​

​

—

Other securities

​

 

567

​

 

—

​

 

567

​

 

—

MBS and CMOs

​

 

138,957

​

 

—

​

 

138,957

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for 

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Obligations of state and political subdivisions

​

$

47,696

​

$

—

​

$

47,696

​

$

—

Corporate obligations

​

​

20,311

​

​

—

​

​

20,311

​

​

—

Other securities

​

 

672

​

 

—

​

 

672

​

 

—

MBS and CMOs

​

 

138,341

​

 

—

​

 

138,341

​

 

—
Fair Value Measurements, Nonrecurring

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

1,050

​

$

—

​

$

—

​

$

1,050

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2021, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

280

​

$

—

​

$

—

​

$

280
Losses Recognized on Assets Measured on a Nonrecurring Basis

​

​

​

​

​

​

​

​

​

​

    

For the three months ended

​

(dollars in thousands)

​

December 31, 2021

​

December 31, 2020

​

Foreclosed and repossessed assets held for sale

​

$

(285)

​

$

(24)

​

Total losses on assets measured on a non-recurring basis

​

$

(285)

​

$

(24)

​
Fair Value Option, Disclosures

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

December 31, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

1,050

 

Third party appraisal

 

Marketability discount

 

8.0% - 24.5

%  

23.7

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

June 30, 2021

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

280

 

Third party appraisal

 

Marketability discount

 

7.2% - 80.6

%  

37.1

%
Schedule of Financial Instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

184,502

​

$

184,502

​

$

—

​

$

—

Interest-bearing time deposits

​

 

981

​

 

—

​

 

981

​

 

—

Stock in FHLB

​

 

5,121

​

 

—

​

 

5,121

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,358,585

​

 

—

​

 

—

​

 

2,370,268

Accrued interest receivable

​

 

10,714

​

 

—

​

 

10,714

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

2,552,252

​

 

1,997,747

​

 

—

​

 

556,052

Advances from FHLB

​

 

36,512

​

 

—

​

 

37,043

​

 

—

Accrued interest payable

​

 

680

​

 

—

​

 

680

​

 

—

Subordinated debt

​

 

15,294

​

 

—

​

 

—

​

 

16,581

Unrecognized financial instruments (net of contract amount)

​

 

​

​

 

​

​

 

​

​

 

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2021

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

123,592

​

$

123,592

​

$

—

​

$

—

Interest-bearing time deposits

​

 

979

​

 

—

​

 

979

​

 

—

Stock in FHLB

​

 

5,873

​

 

—

​

 

5,873

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

5,031

​

 

—

​

 

5,031

​

 

—

Loans receivable, net

​

 

2,200,244

​

 

—

​

 

—

​

 

2,218,762

Accrued interest receivable

​

 

10,079

​

 

—

​

 

10,079

​

 

—

Financial liabilities

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

2,330,803

​

 

1,768,217

​

 

—

​

 

565,123

Advances from FHLB

​

 

57,529

​

 

—

​

 

58,587

​

 

—

Accrued interest payable

​

​

779

​

 

—

​

 

779

​

 

—

Subordinated debt

​

​

15,243

​

 

—

​

 

—

​

 

15,468

Unrecognized financial instruments (net of contract amount)

​

 

​

​

​

​

​

​

​

​

​

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—
v3.22.0.1
Business Combinations (Tables)
 6 Months Ended
Dec. 31, 2021
First National Bank, Cairo  
Schedule of Purchase price

​

​

​

​

​

First National Bank - Cairo Branch

​

​

​

Fair Value of Consideration Transferred

​

​

​

(dollars in thousands)

​

​

​

Cash

​

$

(26,932)

​

    

​

​

Recognized amounts of identifiable assets acquired and liabilities assumed

 

​

​

​

​

 

​

Cash and cash equivalents

​

$

220

Loans

​

 

408

Premises and equipment

​

 

468

Identifiable intangible assets

​

 

168

Miscellaneous other assets

​

 

1

​

​

 

​

Deposits

​

 

(28,540)

Miscellaneous other liabilities

​

​

(99)

Total identifiable net liabilities

​

​

(27,374)

Goodwill

​

$

442
v3.22.0.1
Organization and Summary of Significant Accounting Policies - Organization (Details)
$ in Billions
Dec. 31, 2021
USD ($)
Organization and Summary of Significant Accounting Policies  
Assets of the REIT $ 1.2
v3.22.0.1
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Cash and Cash Equivalents [Line Items]    
Term of interest bearing deposits 7 years  
Interest-bearing deposits in other depository institutions    
Cash and Cash Equivalents [Line Items]    
Cash $ 148.8 $ 83.2
Deposits are held in various commercial banks    
Cash and Cash Equivalents [Line Items]    
Cash $ 1.8 $ 1.8
v3.22.0.1
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  
v3.22.0.1
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details)
 6 Months Ended
Dec. 31, 2021
Software  
Property, Plant and Equipment [Line Items]  
Estimated lives (in years) P3Y
Minimum | Premises  
Property, Plant and Equipment [Line Items]  
Estimated lives (in years) P7Y
Minimum | Equipment  
Property, Plant and Equipment [Line Items]  
Estimated lives (in years) P3Y
Maximum | Premises  
Property, Plant and Equipment [Line Items]  
Estimated lives (in years) P40Y
Maximum | Equipment  
Property, Plant and Equipment [Line Items]  
Estimated lives (in years) P7Y
v3.22.0.1
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]    
Impairment loss on goodwill $ 0 $ 0
Intangible assets, net   1,900,000
Core deposit intangible assets, amortization method using the straight line method  
2024 $ 1,400,000  
Core Deposits    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 15,400,000 15,300,000
Intangibles assets, accumulated amortization 10,700,000 10,100,000
Remainder of fiscal 2022 689,000  
2023 1,400,000  
2025 831,000  
Thereafter 412,000  
Impairment of intangible assets   0
Other identifiable intangibles    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross 3,800,000 3,800,000
Intangibles assets, accumulated amortization 3,800,000 $ 3,800,000
Impairment of intangible assets 0  
Mortgage servicing rights    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net $ 1,900,000  
Minimum | Core Deposits    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, amortization period 5 years  
Maximum | Core Deposits    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, amortization period 7 years  
v3.22.0.1
Organization and Summary of Significant Accounting Policies - Outside Directors' Retirement (Details)
 6 Months Ended
Dec. 31, 2021
age
Organization and Summary of Significant Accounting Policies  
Requisite period 60
Vesting period 5 years
v3.22.0.1
Organization and Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($)
 12 Months Ended
Jul. 01, 2020
Jun. 30, 2020
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Allowance for Credit Loss on loans   $ 25,139,000 $ 32,529,000 $ 32,543,000 $ 33,222,000 $ 35,471,000 $ 35,084,000
Total allowance for credit losses on off-balance sheet credit exposures   1,959,000 2,179,000 2,179,000 1,805,000 2,842,000 2,453,000
Accounting Standards Update 2016-13              
Loans receivable   2,141,929,000          
Allowance for Credit Loss on loans   25,139,000          
Total allowance for credit losses on off-balance sheet credit exposures   1,959,000          
As reported under ASU 2016-13              
Adjustment to the reserve for unfunded commitments $ 268,000            
Retained earnings 7,200,000            
As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Loans receivable 2,142,363,000            
Allowance for Credit Loss on loans 34,472,000            
Total allowance for credit losses on off-balance sheet credit exposures 2,227,000            
Impact of adoption ASU 2016-13              
Increase to ACL   8,900,000          
PCD, increase in ALLL   434,000          
Total allowance for credit losses on off-balance sheet credit exposures           268,000  
Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Loans receivable 434,000            
Allowance for Credit Loss on loans 9,333,000            
Total allowance for credit losses on off-balance sheet credit exposures 268,000            
Impact of adoption ASU 2016-13 | Purchased credit deteriorated ("PCD") loans              
Increase to ACL 434,000            
Residential and commercial real estate loans | Purchased credit deteriorated ("PCD") loans              
Loans receivable 434,000            
Residential Real Estate              
Allowance for Credit Loss on loans   4,875,000 10,757,000 10,634,000 11,192,000 10,398,000 8,629,000
Total allowance for credit losses on off-balance sheet credit exposures   19,000 34,000 34,000 37,000 49,000 59,000
Residential Real Estate | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans   4,875,000          
Residential Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 8,396,000            
Residential Real Estate | Impact of adoption ASU 2016-13              
Total allowance for credit losses on off-balance sheet credit exposures           35,000  
Residential Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 3,521,000            
Construction Real Estate              
Allowance for Credit Loss on loans   2,010,000 2,126,000 2,045,000 2,170,000 2,387,000 1,892,000
Total allowance for credit losses on off-balance sheet credit exposures   769,000 1,673,000 1,673,000 502,000 942,000 768,000
Construction Real Estate | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans   2,010,000          
Construction Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 1,889,000            
Construction Real Estate | Impact of adoption ASU 2016-13              
Total allowance for credit losses on off-balance sheet credit exposures           (167,000)  
Construction Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans (121,000)            
Commercial Real Estate              
Allowance for Credit Loss on loans   12,132,000 14,727,000 14,883,000 14,535,000 15,239,000 16,050,000
Total allowance for credit losses on off-balance sheet credit exposures   172,000 170,000 170,000 188,000 285,000 299,000
Commercial Real Estate | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans   12,132,000          
Commercial Real Estate | As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 15,988,000            
Commercial Real Estate | Impact of adoption ASU 2016-13              
Total allowance for credit losses on off-balance sheet credit exposures           95,000  
Commercial Real Estate | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 3,856,000            
Consumer loans              
Allowance for Credit Loss on loans   1,182,000 830,000 873,000 916,000 1,362,000 2,305,000
Total allowance for credit losses on off-balance sheet credit exposures   153,000 58,000 58,000 218,000 250,000 354,000
Consumer loans | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans   1,182,000          
Consumer loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 2,247,000            
Consumer loans | Impact of adoption ASU 2016-13              
Total allowance for credit losses on off-balance sheet credit exposures           197,000  
Consumer loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 1,065,000            
Commercial loans              
Allowance for Credit Loss on loans   4,940,000 4,089,000 4,108,000 4,409,000 6,085,000 6,208,000
Total allowance for credit losses on off-balance sheet credit exposures   846,000 $ 244,000 $ 244,000 $ 860,000 1,316,000 $ 973,000
Commercial loans | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans   $ 4,940,000          
Commercial loans | As reported under ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans 5,952,000            
Commercial loans | Impact of adoption ASU 2016-13              
Total allowance for credit losses on off-balance sheet credit exposures           $ 108,000  
Commercial loans | Impact of adoption ASU 2016-13 | Accounting Standards Update 2016-13              
Allowance for Credit Loss on loans $ 1,012,000            
v3.22.0.1
Securities - Amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost $ 205,285 $ 203,286
Gross Unrealized Gains 3,394 4,875
Gross Unrealized Losses (2,096) (1,141)
Allowance for Credit Losses 0 0
Estimated Fair Value 206,583 207,020
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 46,042 46,257
Gross Unrealized Gains 1,335 1,479
Gross Unrealized Losses (88) (40)
Allowance for Credit Losses 0 0
Estimated Fair Value 47,289 47,696
Corporate Obligations    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 19,817 20,356
Gross Unrealized Gains 278 290
Gross Unrealized Losses (325) (335)
Allowance for Credit Losses 0 0
Estimated Fair Value 19,770 20,311
Other Debt Obligations    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 566 647
Gross Unrealized Gains 1 25
Allowance for Credit Losses 0 0
Estimated Fair Value 567 672
Debt and Equity Securities    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 66,425 67,260
Gross Unrealized Gains 1,614 1,794
Gross Unrealized Losses (413) (375)
Allowance for Credit Losses 0 0
Estimated Fair Value 67,626 68,679
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 58,941 64,400
Gross Unrealized Gains 576 932
Gross Unrealized Losses (653) (379)
Allowance for Credit Losses 0 0
Estimated Fair Value 58,864 64,953
Commercial MBS issued by GSEs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 38,256 35,425
Gross Unrealized Gains 852 1,394
Gross Unrealized Losses (556) (338)
Allowance for Credit Losses 0 0
Estimated Fair Value 38,552 36,481
CMOs issued by GSEs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 41,663 36,201
Gross Unrealized Gains 352 755
Gross Unrealized Losses (474) (49)
Allowance for Credit Losses 0 0
Estimated Fair Value 41,541 36,907
Total MBS and CMOs    
Debt Securities, Available-for-sale [Line Items]    
Total AFS securities, Amortzied Cost 138,860 136,026
Gross Unrealized Gains 1,780 3,081
Gross Unrealized Losses (1,683) (766)
Allowance for Credit Losses 0 0
Estimated Fair Value $ 138,957 $ 138,341
v3.22.0.1
Securities - Amortized Cost and Fair Value of Available-for-sale Securities, by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Amortized Cost    
Within one year $ 1,549  
After one year but less than five years 6,204  
After five years but less than ten years 29,557  
After ten years 29,115  
Total investment securities 66,425  
Total AFS securities, Amortzied Cost 205,285 $ 203,286
Estimated Fair Value    
Within one year 1,553  
After one year but less than five years 6,317  
After five years but less than ten years 30,064  
After ten years 29,692  
Total investment securities 67,626  
Available for sale securities 206,583 207,020
Debt and Equity Securities    
Amortized Cost    
Total AFS securities, Amortzied Cost 66,425 67,260
Estimated Fair Value    
Available for sale securities 67,626 68,679
Total MBS and CMOs    
Amortized Cost    
Total AFS securities, Amortzied Cost 138,860 136,026
Estimated Fair Value    
Available for sale securities $ 138,957 $ 138,341
v3.22.0.1
Securities - Investments Pledged as Collateral to Secure Public Deposits and Securities Sold Under Agreements to Repurchase (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Jun. 30, 2021
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase $ 181.3 $ 155.6
Mortgage-Backed Securities    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase 104.1  
Mortgage-Backed Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase   95.4
Collateralized Mortgage Obligations    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase 31.5 18.8
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Carrying value of investment and MBS pledged as collateral to secure public deposits and securities sold under agreements to repurchase $ 45.7 $ 41.4
v3.22.0.1
Securities - Gross Unrealized Losses and Fair Value, Continuous Unrealized Loss Position (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
security
Jun. 30, 2021
USD ($)
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 82,889 $ 66,401
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 1,428 883
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value 16,986 790
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses 668 258
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 99,875 67,191
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses 2,096 1,141
US States and Political Subdivisions Debt Securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 6,412 3,177
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 88 40
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 6,412 3,177
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses $ 88 40
Number of individual securities in an unrealized loss position for less than 12 months | security 13  
Corporate Obligations    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 4,364 9,331
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 39 79
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value 6,167 720
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses 286 256
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 10,531 10,051
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses $ 325 335
Number of individual securities in an unrealized loss position for less than 12 months | security 3  
Number of individual securities in an unrealized loss position for more than 12 months | security 6  
Total MBS and CMOs    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 72,113 53,893
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses 1,301 764
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Fair Value 10,819 70
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or more, Unrealized Losses 382 2
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 82,932 53,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses $ 1,683 $ 766
Mortgage-Backed Securities    
Debt Securities, Available-for-sale [Line Items]    
Number of individual securities in an unrealized loss position for less than 12 months | security 29  
Number of individual securities in an unrealized loss position for more than 12 months | security 5  
v3.22.0.1
Securities - Other Securities Policy: Pooled Trust Preferred Securities (Details)
 3 Months Ended 6 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Securities        
Number of Pooled Trust Preferred Securities 2   2  
Fair Value of Pooled Trust Preferred Securities Held $ 766,000   $ 766,000  
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More 211,000   211,000  
Credit losses recognized on investments $ 0 $ 0 $ 0 $ 0
v3.22.0.1
Loans and Allowance for Credit Losses - Classes of loans (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans $ 2,491,774 $ 2,311,631        
Loans in Process (100,351) (74,540)        
Deferred loan fees, net (309) (3,625)        
Allowance for credit losses (32,529) (33,222) $ (32,543) $ (35,471) $ (35,084) $ (25,139)
Total loans $ 2,358,585 $ 2,200,244        
Number of purchased participation loans 21 23        
Purchased participation loans $ 96,900 $ 83,000        
Residential Real Estate            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans 809,196 721,216        
Allowance for credit losses (10,757) (11,192) (10,634) (10,398) (8,629) (4,875)
Construction Real Estate            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans 247,968 208,824        
Allowance for credit losses (2,126) (2,170) (2,045) (2,387) (1,892) (2,010)
Commercial Real Estate            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans 963,299 889,793        
Allowance for credit losses (14,727) (14,535) (14,883) (15,239) (16,050) (12,132)
Consumer loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans 81,049 77,674        
Allowance for credit losses (830) (916) (873) (1,362) (2,305) (1,182)
Commercial loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Real Estate Loans 390,262 414,124        
Allowance for credit losses $ (4,089) $ (4,409) $ (4,108) $ (6,085) $ (6,208) $ (4,940)
v3.22.0.1
Loans and Allowance for Credit Losses - Classes of loans information (Details)
 3 Months Ended 6 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2021
USD ($)
Provision for credit losses, credit (charges) $ 0 $ 1,000,000.0 $ (305,000) $ 2,000,000.0  
ACL $ 32,529,000   $ 32,529,000   $ 33,222,000
Residential Real Estate.          
Fixed-rate and adjustable-rate mortgage (ARM) loans amortization period (in years)     30 years    
Amortization period of multi-family residential loans if balloon maturities     10 years    
Residential Real Estate. | Single Family          
Maximum percentage of appraised value or purchase price that loans cannot exceed     90.00%    
Residential Real Estate. | Multifamily          
Maximum percentage of appraised value or purchase price that loans cannot exceed     85.00%    
Amortization period of loans     25 years    
Commercial          
Amortization period of loans     25 years    
Term of fixed interest applicability on loans     10 years    
Term of variable interest applicability on loans     7 years    
Agricultural real estate terms if 80% loan-to-value ratio     25 years    
Agricultural real estate terms if 75% loan-to-value ratio     30 years    
Residential Real Estate          
Amortization period of loans     30 years    
Residential Real Estate | Minimum          
Maturities of single-family residential construction loans     6 months    
Residential Real Estate | Maximum          
Maturities of single-family residential construction loans     12 months    
Commercial Real Estate          
Amortization period of loans     25 years    
Construction Real Estate          
Average term of construction loans     9 months    
Construction Real Estate | Minimum          
Maturities of multifamily or commercial construction loans     12 months    
Construction Real Estate | Maximum          
Maturities of multifamily or commercial construction loans     24 months    
Consumer loans          
Amortization period of loans     5 years    
Consumer loans | Home Equity Loan          
Maximum percentage of appraised value or purchase price that loans cannot exceed     100.00%    
Amortization period of loans     10 years    
Consumer loans | Automobile loans          
Maximum percentage of appraised value or purchase price that loans cannot exceed     100.00%    
Amortization period of loans     60 months    
Commercial loans          
Amortization period of loans     5 years    
Amortization period of multi-family residential loans if balloon maturities     1 year    
Modifications for the purpose of extending the maturity date | Construction Real Estate          
Incremental period that the loan maturity can be extended to     3 months    
Number of construction loans outstanding, for which a modification had been agreed to 50   50   48
Construction loans outstanding, for which a modification had been agreed to $ 31,900,000   $ 31,900,000   $ 28,500,000
v3.22.0.1
Loans and Allowance for Credit Losses - Balance in the ACL and the recorded investment in loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Allowance for credit losses:        
Balance, beginning of period $ 32,543 $ 35,084 $ 33,222 $ 25,139
Impact of CECL adoption       9,333
Provision (benefit) charged to expense   612 (679) 1,385
Losses charged off (24) (246) (68) (416)
Recoveries 10 21 54 30
Balance, end of period 32,529 35,471 32,529 35,471
Residential Real Estate        
Allowance for credit losses:        
Balance, beginning of period 10,634 8,629 11,192 4,875
Impact of CECL adoption       3,521
Provision (benefit) charged to expense 123 1,859 (404) 2,112
Losses charged off   (90) (32) (110)
Recoveries     1  
Balance, end of period 10,757 10,398 10,757 10,398
Construction Real Estate        
Allowance for credit losses:        
Balance, beginning of period 2,045 1,892 2,170 2,010
Impact of CECL adoption       (121)
Provision (benefit) charged to expense 81 495 (44) 498
Balance, end of period 2,126 2,387 2,126 2,387
Commercial Real Estate        
Allowance for credit losses:        
Balance, beginning of period 14,883 16,050 14,535 12,132
Impact of CECL adoption       3,856
Provision (benefit) charged to expense (156) (811) 192 (750)
Recoveries       1
Balance, end of period 14,727 15,239 14,727 15,239
Consumer loans        
Allowance for credit losses:        
Balance, beginning of period 873 2,305 916 1,182
Impact of CECL adoption       1,065
Provision (benefit) charged to expense (40) (882) (112) (823)
Losses charged off (13) (67) (25) (72)
Recoveries 10 6 51 10
Balance, end of period 830 1,362 830 1,362
Commercial loans        
Allowance for credit losses:        
Balance, beginning of period 4,108 6,208 4,409 4,940
Impact of CECL adoption       1,012
Provision (benefit) charged to expense (8) (49) (311) 348
Losses charged off (11) (89) (11) (234)
Recoveries   15 2 19
Balance, end of period $ 4,089 $ 6,085 $ 4,089 $ 6,085
v3.22.0.1
Loans and Allowance for Credit Losses - Allowance for off-balance credit exposure (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period $ 2,453 $ 1,805 $ 1,959
Provision (benefit) charged to expense 388 374 615
Balance, end of period 2,842 2,179 2,842
Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period 268   268
Residential Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 59 37 19
Provision (benefit) charged to expense (10) (3) (5)
Balance, end of period 49 34 49
Residential Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period 35   35
Construction Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 768 502 769
Provision (benefit) charged to expense 174 1,171 340
Balance, end of period 942 1,673 942
Construction Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period (167)   (167)
Commercial Real Estate      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 299 188 172
Provision (benefit) charged to expense (14) (18) 18
Balance, end of period 285 170 285
Commercial Real Estate | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period 95   95
Consumer loans      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 354 218 153
Provision (benefit) charged to expense (105) (160) (100)
Balance, end of period 250 58 250
Consumer loans | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period 197   197
Commercial loans      
Allowance for off-balance sheet credit exposure:      
Balance, beginning of period 973 860 846
Provision (benefit) charged to expense 343 (616) 362
Balance, end of period 1,316 $ 244 1,316
Commercial loans | Impact of adoption ASU 2016-13      
Allowance for off-balance sheet credit exposure:      
Balance, end of period $ 108   $ 108
v3.22.0.1
Loans and Allowance for Credit Losses - Credit risk profile based on rating category and year of origination (Details) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
Amount of loan relationships subject to annual credit analysis $ 3,000  
Loan relationships that are subject to independent annual review 1,000  
Current fiscal year 636,103 $ 1,034,652
Year One 805,616 433,293
Year Two 320,200 182,774
Year Three 138,532 118,958
Year Four 88,090 115,845
Prior 192,179 143,946
Revolving loans 210,703 207,623
Total 2,391,423 2,237,091
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 607,122 1,015,117
Year One 793,966 420,483
Year Two 316,489 169,879
Year Three 136,795 115,613
Year Four 87,319 101,993
Prior 191,188 142,556
Revolving loans 207,353 204,930
Total 2,340,232 2,170,571
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 1,069 6,415
Year One 5,439 2,697
Year Two 2,398 11,235
Year Three 446 1,399
Year Four 694 815
Prior 452 819
Revolving loans 1,635 1,321
Total 12,133 24,701
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 23,425  
Year One   8,806
Year Three   1,793
Year Four   12,826
Revolving loans 300 300
Total 23,725 23,725
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 4,487 13,120
Year One 6,211 1,307
Year Two 1,313 810
Year Three 464 153
Year Four 77 211
Prior 539 571
Revolving loans 1,415 1,072
Total 14,506 17,244
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Year Two   850
Year Three 827  
Total 827 850
Residential Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 209,356 366,492
Year One 312,426 175,931
Year Two 155,591 43,986
Year Three 27,775 33,021
Year Four 25,127 23,356
Prior 72,349 72,873
Revolving loans 6,572 5,557
Total 809,196 721,216
Residential Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 208,789 361,876
Year One 311,065 175,772
Year Two 155,440 43,576
Year Three 27,199 32,929
Year Four 25,075 23,267
Prior 72,099 71,592
Revolving loans 6,572 5,557
Total 806,239 714,569
Residential Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 84 328
Year One 323 70
Year Two   410
Year Three 384  
Year Four   89
Prior 10 809
Total 801 1,706
Residential Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 483 4,288
Year One 1,038 89
Year Two 151  
Year Three 192 92
Year Four 52  
Prior 240 472
Total 2,156 4,941
Construction Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 65,140 88,418
Year One 50,477 45,866
Year Two 31,935  
Revolving loans 65  
Total 147,617 134,284
Construction Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 65,140 88,371
Year One 50,291 45,866
Year Two 31,935  
Revolving loans 65  
Total 147,431 134,237
Construction Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year   47
Year One 186  
Total 186 47
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 284,978 364,379
Year One 293,974 159,978
Year Two 100,596 115,603
Year Three 94,171 79,168
Year Four 58,187 84,484
Prior 106,832 61,303
Revolving loans 24,561 24,878
Total 963,299 889,793
Commercial Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 257,283 351,732
Year One 285,607 147,670
Year Two 97,132 104,746
Year Three 93,309 75,967
Year Four 57,468 70,927
Prior 106,491 61,194
Revolving loans 22,931 23,699
Total 920,221 835,935
Commercial Real Estate | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 288 4,456
Year One 3,968 2,365
Year Two 2,340 9,502
Year Three 22 1,377
Year Four 694 726
Prior 245 10
Revolving loans 1,261 810
Total 8,818 19,246
Commercial Real Estate | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 23,425  
Year One   8,806
Year Three   1,793
Year Four   12,826
Revolving loans 300 300
Total 23,725 23,725
Commercial Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 3,982 8,191
Year One 4,399 1,137
Year Two 1,124 505
Year Three 13 31
Year Four 25 5
Prior 96 99
Revolving loans 69 69
Total 9,708 10,037
Commercial Real Estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Year Two   850
Year Three 827  
Total 827 850
Consumer loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 16,295 23,938
Year One 16,201 8,626
Year Two 5,706 3,597
Year Three 2,092 1,156
Year Four 657 564
Prior 872 650
Revolving loans 39,226 39,143
Total 81,049 77,674
Consumer loans | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 16,295 23,858
Year One 16,061 8,626
Year Two 5,706 3,597
Year Three 2,091 1,126
Year Four 657 534
Prior 841 650
Revolving loans 39,166 39,071
Total 80,817 77,462
Consumer loans | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year   80
Year One 76  
Revolving loans 48 48
Total 124 128
Consumer loans | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Year One 64  
Year Three 1 30
Year Four   30
Prior 31  
Revolving loans 12 24
Total 108 84
Commercial loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 60,334 191,425
Year One 132,538 42,892
Year Two 26,372 19,588
Year Three 14,494 5,613
Year Four 4,119 7,441
Prior 12,126 9,120
Revolving loans 140,279 138,045
Total 390,262 414,124
Commercial loans | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 59,615 189,280
Year One 130,942 42,549
Year Two 26,276 17,960
Year Three 14,196 5,591
Year Four 4,119 7,265
Prior 11,757 9,120
Revolving loans 138,619 136,603
Total 385,524 408,368
Commercial loans | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 697 1,551
Year One 1,072 262
Year Two 58 1,323
Year Three 40 22
Prior 197  
Revolving loans 326 463
Total 2,390 3,621
Commercial loans | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Current fiscal year 22 594
Year One 524 81
Year Two 38 305
Year Three 258  
Year Four   176
Prior 172  
Revolving loans 1,334 979
Total $ 2,348 $ 2,135
v3.22.0.1
Loans and Allowance for Credit Losses - Credit risk profile based on rating and payment activity (Details) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL $ 12,000,000.0 $ 3,200,000
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 0 9,000,000.0
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 0 0
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL 3,000,000.0 2,700,000
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
PCD loans receivable, net of ACL $ 0 $ 0
v3.22.0.1
Loans and Allowance for Credit Losses - Loan portfolio aging analysis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 2,391,423 $ 2,237,091
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,495 1,238
60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,117 1,369
Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 734 1,211
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 3,346 3,818
Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,388,077 2,233,273
Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 809,196 721,216
Residential Real Estate | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 601 312
Residential Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 520 364
Residential Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 638 613
Residential Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,759 1,289
Residential Real Estate | Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 807,437 719,927
Construction Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 147,617 134,284
Construction Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   30
Construction Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   30
Construction Real Estate | Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 147,617 134,254
Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 963,299 889,793
Commercial Real Estate | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 397 363
Commercial Real Estate | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 471  
Commercial Real Estate | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable   374
Commercial Real Estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 868 737
Commercial Real Estate | Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 962,431 889,056
Consumer loans    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 81,049 77,674
Consumer loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 326 195
Consumer loans | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 120 66
Consumer loans | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 69 84
Consumer loans | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 515 345
Consumer loans | Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 80,534 77,329
Commercial loans    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 390,262 414,124
Commercial loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 171 368
Commercial loans | 60 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 6 939
Commercial loans | Greater than 90 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 27 110
Commercial loans | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 204 1,417
Commercial loans | Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 390,058 $ 412,707
v3.22.0.1
Loans and Allowance for Credit Losses - CARES Act (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 2,391,423 $ 2,237,091
Current    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,388,077 2,233,273
Current | CARES Act    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 23,700 23,900
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 3,346 3,818
Total Past Due | CARES Act    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 0 $ 0
v3.22.0.1
Loans and Allowance for Credit Losses - Collateral dependent loans and related ACL (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Related allowance for credit losses $ 32,529 $ 32,543 $ 33,222 $ 35,471 $ 35,084 $ 25,139
Collateral-dependent Loans | 1- to 4-family residential loans            
Amortized cost 880   895      
Related allowance for credit losses 208   223      
Residential Real Estate            
Related allowance for credit losses 10,757 $ 10,634 11,192 $ 10,398 $ 8,629 $ 4,875
Residential Real Estate | Collateral-dependent Loans            
Amortized cost 880   895      
Related allowance for credit losses $ 208   $ 223      
v3.22.0.1
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans $ 2,963 $ 5,868
Residential Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 1,011 3,235
Construction Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans   30
Commercial Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 1,631 1,914
Consumer loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans 76 100
Commercial loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual loans $ 245 $ 589
v3.22.0.1
Loans and Allowance for Credit Losses - Performing Loans Classified as Troubled Debt Restructuring Loans (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
loan
Dec. 31, 2020
USD ($)
loan
Jun. 30, 2021
USD ($)
loan
Number of modifications | loan 1 4  
Recorded Investment | $ $ 151 $ 1,927  
Performing Loans      
Number of modifications | loan 23   12
Recorded Investment | $ $ 6,387   $ 3,241
Residential Real Estate      
Number of modifications | loan 1 1  
Recorded Investment | $ $ 151 $ 96  
Residential Real Estate | Performing Loans      
Number of modifications | loan 11   1
Recorded Investment | $ $ 3,696   $ 895
Commercial Real Estate      
Number of modifications | loan   2  
Recorded Investment | $   $ 1,798  
Commercial Real Estate | Performing Loans      
Number of modifications | loan 5   4
Recorded Investment | $ $ 984   $ 949
Commercial loans      
Number of modifications | loan   1  
Recorded Investment | $   $ 33  
Commercial loans | Performing Loans      
Number of modifications | loan 7   7
Recorded Investment | $ $ 1,707   $ 1,397
v3.22.0.1
Loans and Allowance for Credit Losses - Real Estate Foreclosures (Details) - USD ($)
Dec. 31, 2021
Jun. 30, 2021
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Repossessed assets $ 514,000 $ 622,000
Residential Real Estate. | Home Equity Loan    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Foreclosure proceedings in process $ 272,000 $ 533,000
v3.22.0.1
Premises and Equipment - Summary of premises and equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Premises and Equipment    
Land $ 12,458 $ 12,452
Buildings and improvements 59,583 56,422
Construction in progress 49 1,158
Furniture, fixtures, equipment and software 19,709 18,985
Automobiles 120 120
Operating leases ROU asset 2,700 2,770
Property, Plant and Equipment, Gross 94,619 91,907
Less accumulated depreciation 29,545 27,830
Premises and equipment, net $ 65,074 $ 64,077
v3.22.0.1
Premises and Equipment - Additional Information (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
USD ($)
property
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
property
Dec. 31, 2020
USD ($)
Number of leased properties | property 5   5  
Operating Lease, Weighted Average Discount Rate, Percent 5.00%   5.00%  
Income recognized from lessor agreements | $ $ 70 $ 81 $ 145 $ 156
Minimum        
Lessee Expected Lease Terms     18 months  
Maximum        
Lessee Expected Lease Terms     20 years  
v3.22.0.1
Premises and Equipment - Calculated amount of right of use assets and lease liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Jun. 30, 2021
Operating leases ROU asset $ 2,700   $ 2,700   $ 2,770
Right of use assets obtained in exchange for lease obligations: Operating Leases     70 $ 40  
Consolidated Balance Sheet [Member]          
Operating leases ROU asset 2,700   2,700   2,770
Operating leases liability 2,700   2,700   $ 2,770
Consolidated Statement Of Income [Member]          
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs) 98 $ 63 199 135  
Supplemental Disclosures Of Cash Flow Information [Member] | Cash paid for amounts included in the measurement of lease liabilities          
Operating cash flows from operating leases $ 85 $ 58 $ 169 $ 126  
v3.22.0.1
Premises and Equipment - Future expected lease payments for leases (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Premises and Equipment  
2022 $ 169
2023 338
2024 338
2025 330
2026 320
Thereafter 2,927
Future lease payments expected $ 4,422
v3.22.0.1
Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Deposits    
Non-interest bearing accounts $ 404,410 $ 358,418
NOW accounts 1,083,853 925,280
Money market deposit accounts 263,007 253,614
Savings accounts 246,477 230,905
Certificates 554,505 562,586
Total Deposit Accounts $ 2,552,252 $ 2,330,803
v3.22.0.1
Earnings Per Share - Schedule of computation of basic and diluted earnings per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share        
Net Income $ 11,985 $ 12,048 $ 24,731 $ 22,033
Less: distributed earnings allocated to participating securities (8) (4) (14) (8)
Less: undistributed earnings allocated to participating securities 46 30 85 56
Net income available to common shareholders $ 11,931 $ 12,014 $ 24,632 $ 21,969
Weighted-average common shares outstanding, including participating securities 8,887,303 9,089,735 8,893,149 9,108,301
Less: weighted-average participating securities outstanding (restricted shares) (39,920) (25,410) (35,883) (26,335)
Weighted-average shares outstanding 8,847,383 9,064,325 8,857,266 9,081,966
Effect of dilutive securities stock options or awards 21,780 2,909 15,977 2,220
Denominator for diluted earnings per share 8,869,163 9,067,234 8,873,243 9,084,186
Basic earnings per share available to common stockholders $ 1.35 $ 1.33 $ 2.78 $ 2.42
Basic earnings per share available to common stockholders $ 1.35 $ 1.32 $ 2.78 $ 2.42
v3.22.0.1
Earnings Per Share - Additional information (Details) - shares
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Option        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from the computation of diluted earnings per share 0   0  
Restricted Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from the computation of diluted earnings per share   50,500   50,500
v3.22.0.1
Income Taxes - Income tax provision (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Income Taxes        
Current $ 2,785 $ 3,139 $ 6,262 $ 5,903
Deferred 503 14 513 (3)
Total income tax provision $ 3,288 $ 3,153 $ 6,775 $ 5,900
v3.22.0.1
Income Taxes - Schedule of net deferred tax assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Income Taxes    
Provision for losses on loans $ 7,586 $ 7,626
Accrued compensation and benefits 621 826
NOL carry forwards acquired 122 147
Unrealized loss on other real estate 227 180
Other 0 182
Total deferred tax assets 8,556 8,961
Purchase accounting adjustments 242 210
Depreciation 1,590 1,842
FHLB stock dividends 120 120
Prepaid expenses 256 283
Unrealized gain on available for sale securities 286 821
Other 1,623 1,193
Total deferred tax liabilities 4,117 4,469
Net deferred tax assets $ 4,439 $ 4,492
v3.22.0.1
Income Taxes - Reconciliation of income tax expense at statutory rate (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]        
Tax at statutory rate $ 3,207 $ 3,192 $ 6,616 $ 5,866
Nontaxable municipal income (87) (108) (193) (211)
State tax, net of Federal benefit 216 261 468 502
Cash surrender value of Bank-owned life insurance (59) (205) (118) (263)
Tax credit benefits (10) (5) (21) (9)
Other, net 21 18 23 15
Actual provision $ 3,288 $ 3,153 $ 6,775 $ 5,900
v3.22.0.1
Income Taxes - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Income Taxes        
Interest or penalties on income taxes     $ 0  
Federal Net Operating Loss Carryforwards     706,000  
State Net Operating Loss Carryforwards     $ 0  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00% 21.00% 21.00% 21.00%
v3.22.0.1
401(k) Retirement Plan (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Defined Contribution Plan Disclosure [Line Items]        
Retirement plan expenses $ 428,000 $ 413,000 $ 918,000 $ 869,000
Vesting period     5 years  
Maximum        
Defined Contribution Plan Disclosure [Line Items]        
Matching contributions of eligible compensation     4.00%  
v3.22.0.1
Subordinated Debt (Details) - USD ($)
 1 Months Ended 6 Months Ended 12 Months Ended
Aug. 31, 2014
Oct. 31, 2013
Dec. 31, 2021
Jun. 30, 2021
Subordinated debt     $ 15,294,000 $ 15,243,000
Prepaid Expenses and Other Current Assets        
Investment, face amount     505,000  
Investment, carrying value     460,000  
Trust Preferred Securities        
Subordinated debt     $ 7,200,000 7,200,000
Number of years after securities became redeemable     5 years  
Interest rate (as a percent)     2.97%  
Ozarks Legacy Community Financial, Inc.        
Interest rate (as a percent)     2.65%  
Floating rate   $ 3,100,000    
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement        
Floating rate     $ 2,700,000 $ 2,700,000
Peoples Service Company, Inc.        
Interest rate (as a percent)     2.00%  
Floating rate $ 6,500,000      
Peoples Service Company, Inc. | Reported Value Measurement        
Floating rate     $ 5,400,000  
v3.22.0.1
Fair Value Measurements - Fair value of Assets Measured on a Recurring Basis and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jun. 30, 2021
Nonrecurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreclosed and repossessed assets held for sale $ 1,050 $ 280
Fair Value, Inputs, Level 3 | Nonrecurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreclosed and repossessed assets held for sale 1,050 280
US States and Political Subdivisions Debt Securities | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 47,289 47,696
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 1 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 47,289 47,696
US States and Political Subdivisions Debt Securities | Fair Value, Inputs, Level 3 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Corporate Obligations | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 19,770 20,311
Corporate Obligations | Fair Value, Inputs, Level 1 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Corporate Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 19,770 20,311
Corporate Obligations | Fair Value, Inputs, Level 3 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Other Debt Obligations | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 567 672
Other Debt Obligations | Fair Value, Inputs, Level 1 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Other Debt Obligations | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 567 672
Other Debt Obligations | Fair Value, Inputs, Level 3 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Total MBS and CMOs | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 138,957 138,341
Total MBS and CMOs | Fair Value, Inputs, Level 1 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 0 0
Total MBS and CMOs | Fair Value, Inputs, Level 2 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 138,957 138,341
Total MBS and CMOs | Fair Value, Inputs, Level 3 | Recurring Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities $ 0 $ 0
v3.22.0.1
Fair Value Measurements - Losses Recognized on Assets Measured on a Nonrecurring Basis (Details) - Nonrecurring Measurements - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total losses on assets measured on a non-recurring basis $ (285) $ (24)
Foreclosed and repossessed assets held for sale    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total losses on assets measured on a non-recurring basis $ (285) $ (24)
v3.22.0.1
Fair Value Measurements - Unobservable (Level 3) inputs (Details) - Nonrecurring Measurements - Fair Value, Inputs, Level 3 - Foreclosed and repossessed assets - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Nonrecurring Unobservable Inputs $ 1,050 $ 280
Third party appraisal    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Nonrecurring Valuation Technique Third party appraisal Third party appraisal
Third party appraisal | Marketability discount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Nonrecurring Unobservable Inputs Marketability discount Marketability discount
Fair Value Measurements Nonrecurring Weighted Average Discount Applied 23.7 37.1
Third party appraisal | Marketability discount | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Nonrecurring Range of discounts Applied 8.00% 7.20%
Third party appraisal | Marketability discount | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value Measurements Nonrecurring Range of discounts Applied 24.50% 80.60%
v3.22.0.1
Fair Value Measurements - Schedule of financial instruments (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2021
Jun. 30, 2021
Financial assets    
Cash and cash equivalents $ 184,502 $ 123,592
Interest-bearing time deposits 981 979
Stock in FHLB 5,121 5,873
Stock in Federal Reserve Bank of St. Louis 5,031 5,031
Loans receivable, net 2,358,585 2,200,244
Accrued interest receivable 10,714 10,079
Financial liabilities    
Deposits 2,552,252 2,330,803
Advances from FHLB 36,512 57,529
Accrued interest payable 680 779
Subordinated debt 15,294 15,243
Unrecognized financial instruments (net of contract amount)    
Commitments to originate loans 0  
Letters of credit 0  
Lines of credit 0  
Fair Value, Inputs, Level 1    
Financial assets    
Cash and cash equivalents 184,502 123,592
Financial liabilities    
Deposits 1,997,747 1,768,217
Fair Value, Inputs, Level 2    
Financial assets    
Interest-bearing time deposits 981 979
Stock in FHLB 5,121 5,873
Stock in Federal Reserve Bank of St. Louis 5,031 5,031
Accrued interest receivable 10,714 10,079
Financial liabilities    
Advances from FHLB 37,043 58,587
Accrued interest payable 680 779
Fair Value, Inputs, Level 3    
Financial assets    
Loans receivable, net 2,370,268 2,218,762
Financial liabilities    
Deposits 556,052 565,123
Subordinated debt $ 16,581 $ 15,468
v3.22.0.1
Business Combinations - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 15, 2021
Sep. 28, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Jun. 30, 2021
Goodwill     $ 14,532,000   $ 14,532,000   $ 14,089,000
Assets     2,919,063,000   2,919,063,000   2,700,530,000
Loans, net of allowance     2,358,585,000   2,358,585,000   2,200,244,000
Deposits     2,552,252,000   2,552,252,000   2,330,803,000
Fortune Financial Corporation              
Core deposit intangible assets amortized period 7 years            
Assets             261,200,000
Loans, net of allowance             199,400,000
Deposits             $ 219,600,000
Fortune Financial Corporation              
Transaction value   $ 29,900,000          
Fortune Financial Corporation | Noninterest expense              
Acquisition related costs       $ 205,000   $ 230,000  
First National Bank, Cairo              
Cash consideration $ 26,932,000            
Purchase price allocated to core deposit intangible 168,000            
Goodwill $ 442,000            
First National Bank, Cairo | Noninterest expense              
Acquisition related costs     $ 24,000   $ 24,000    
v3.22.0.1
Business Combinations - Purchase price for the Cairo acquisition (Details) - USD ($)
Dec. 15, 2021
Dec. 31, 2021
Jun. 30, 2021
Goodwill   $ 14,532,000 $ 14,089,000
First National Bank, Cairo      
Cash $ (26,932,000)    
Cash and cash equivalents 220,000    
Loans 408,000    
Premises and equipment 468,000    
Identifiable intangible assets 168,000    
Miscellaneous other assets 1,000    
Deposits (28,540,000)    
Miscellaneous other liabilities (99,000)    
Total identifiable net liabilities (27,374,000)    
Goodwill $ 442,000