v3.22.4
Loans and Allowance for Credit Losses on Loans
 6 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Loans and Allowance for Credit Losses on Loans Loans and Allowance for Credit Losses on Loans
Loans consist of the following at the dates indicated(1):
December 31, 2022
June 30, 2022
Commercial real estate loans
Construction and land development$328,253 $291,202 
Commercial real estate - owner occupied340,824 335,658 
Commercial real estate - non-owner occupied690,241 662,159 
Multifamily69,156 81,086 
Total commercial real estate loans1,428,474 1,370,105 
Commercial loans
Commercial and industrial194,465 192,652 
Equipment finance426,507 394,541 
Municipal leases135,922 129,766 
PPP loans214 661 
Total commercial loans757,108 717,620 
Residential real estate loans
Construction and land development100,002 81,847 
One-to-four family400,595 354,203 
HELOCs194,296 160,137 
Total residential real estate loans694,893 596,187 
Consumer loans105,148 85,383 
Total loans, net of deferred loan fees and costs2,985,623 2,769,295 
ACL on loans(38,859)(34,690)
Loans, net$2,946,764 $2,734,605 
(1) At December 31, 2022 and June 30, 2022 accrued interest receivable of $10,434 and $7,969 was accounted for separately from the amortized cost basis.

All qualifying one-to-four family first mortgage loans, HELOCs, commercial real estate loans, indirect auto, municipal leases and FHLB of Atlanta stock are pledged as collateral by a blanket pledge to secure any outstanding FHLB and FRB advances.
Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:
Pass—A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.
Special Mention—A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.
Substandard—A substandard asset is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.
Doubtful—An asset classified doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions, and values.
Loss—Assets classified loss are considered uncollectible and of such little value that their continuing to be carried as an asset is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate, and consumer loans by origination year as of December 31, 2022:
Term Loans By Origination Fiscal Year
December 31, 202220232022202120202019PriorRevolvingTotal
Construction and land development
Risk rating
Pass$18,267 $26,694 $5,195 $609 $1,582 $7,090 $267,895 $327,332 
Special mention— — — — — — — — 
Substandard— 871 — — — 50 — 921 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development18,267 27,565 5,195 609 1,582 7,140 267,895 328,253 
Commercial real estate - owner occupied
Risk rating
Pass22,024 57,836 68,838 46,495 39,665 86,119 14,006 334,983 
Special mention— 132 — 386 391 2,319 — 3,228 
Substandard— — — — — 2,613 — 2,613 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate - owner occupied22,024 57,968 68,838 46,881 40,056 91,051 14,006 340,824 
Commercial real estate - non-owner occupied
Risk rating
Pass51,653 96,511 117,902 90,348 56,597 239,453 18,357 670,821 
Special mention— — — — — 14,040 5,379 19,419 
Substandard— — — — — 1 — 1 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate - non-owner occupied51,653 96,511 117,902 90,348 56,597 253,494 23,736 690,241 
Multifamily
Risk rating
Pass1,962 11,755 18,964 10,402 3,381 21,808 483 68,755 
Special mention— — — — 29 62 — 91 
Substandard— — — — — 310 — 310 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily1,962 11,755 18,964 10,402 3,410 22,180 483 69,156 
Total commercial real estate
Risk rating
Pass$93,906 $192,796 — $210,899 $147,854 $101,225 $354,470 $300,741 $1,401,891 
Special mention— 132 — 386 420 16,421 5,379 22,738 
Substandard— 871 — — — 2,974 — 3,845 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate$93,906 $193,799 $210,899 $148,240 $101,645 $373,865 $306,120 $1,428,474 
Term Loans By Origination Fiscal Year
December 31, 202220232022202120202019PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$21,697 $65,130 $17,789 $14,061 $7,515 $22,897 $39,085 $188,174 
Special mention— 147 349 — 219 — 200 915 
Substandard— — 26 600 884 46 3,656 5,212 
Doubtful
— — — — — — 164 164 
Loss— — — — — — — — 
Total commercial and industrial21,697 65,277 18,164 14,661 8,618 22,943 43,105 194,465 
Equipment finance
Risk rating
Pass101,278 161,067 93,081 49,654 17,966 1,061 — 424,107 
Special mention— 275 12 973 381 — — 1,641 
Substandard— — 121 27 149 — — 297 
Doubtful— 229 233 — — — — 462 
Loss— — — — — — — — 
Total equipment finance101,278 161,571 93,447 50,654 18,496 1,061 — 426,507 
Municipal leases
Risk rating
Pass13,145 19,881 23,588 8,443 10,309 47,465 13,091 135,922 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases13,145 19,881 23,588 8,443 10,309 47,465 13,091 135,922 
PPP loans
Risk rating
Pass— — 13 201 — — — 214 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total PPP loans— — 13 201 — — — 214 
Total commercial
Risk rating
Pass$136,120 $246,078 $134,471 $72,359 $35,790 $71,423 $52,176 $748,417 
Special mention— 422 361 973 600 — 200 2,556 
Substandard— — 147 627 1,033 46 3,656 5,509 
Doubtful— 229 233 — — — 164 626 
Loss— — — — — — — — 
Total commercial$136,120 $246,729 $135,212 $73,959 $37,423 $71,469 $56,196 $757,108 
Term Loans By Origination Fiscal Year
December 31, 202220232022202120202019PriorRevolvingTotal
Construction and land development
Risk rating
Pass$568 $861 $— $50 $— $1,487 $96,693 $99,659 
Special mention— — — — — — — — 
Substandard— — — — — 343 — 343 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development568 861 — 50 — 1,830 96,693 100,002 
One-to-four family
Risk rating
Pass24,334 70,877 89,996 46,166 27,833 124,754 11,086 395,046 
Special mention— — — — — 625 — 625 
Substandard— 126 — 57 — 4,703 — 4,886 
Doubtful— — — — — 38 — 38 
Loss— — — — — — — — 
Total one-to-four family24,334 71,003 89,996 46,223 27,833 130,120 11,086 400,595 
HELOCs
Risk rating
Pass3,226 1,107 638 517 976 7,057 180,006 193,527 
Special mention— — — — — — — — 
Substandard— — — — 46 646 48 740 
Doubtful— — — — — 29 — 29 
Loss— — — — — — — — 
Total HELOCs3,226 1,107 638 517 1,022 7,732 180,054 194,296 
Total residential real estate
Risk rating
Pass$28,128 $72,845 $90,634 $46,733 $28,809 $133,298 $287,785 $688,232 
Special mention— — — — — 625 — 625 
Substandard— 126 — 57 46 5,692 48 5,969 
Doubtful— — — — — 67 — 67 
Loss— — — — — — — — 
Total residential real estate$28,128 $72,971 $90,634 $46,790 $28,855 $139,682 $287,833 $694,893 
Term Loans By Origination Fiscal Year
December 31, 202220232022202120202019PriorRevolvingTotal
Total consumer
Risk rating
Pass$40,368 $21,422 $16,557 $11,767 $7,954 $5,902 $256 $104,226 
Special mention— — — — — — — — 
Substandard44 106 166 279 77 235 7 914 
Doubtful— — 7 — — — — 7 
Loss— — — — 1 — — 1 
Total consumer$40,412 $21,528 $16,730 $12,046 $8,032 $6,137 $263 $105,148 
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate, and consumer loans by origination year as of June 30, 2022:
Term Loans By Origination Fiscal Year
June 30, 202220222021202020192018PriorRevolvingTotal
Construction and land development
Risk rating
Pass$21,988 $5,686 $627 $2,089 $1,092 $5,819 $248,189 $285,490 
Special mention— — — — — 97 4,677 4,774 
Substandard871 — — — — 67 — 938 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development22,859 5,686 627 2,089 1,092 5,983 252,866 291,202 
Commercial real estate - owner occupied
Risk rating
Pass55,167 71,429 45,665 43,786 21,720 74,602 16,857 329,226 
Special mention— — 396 418 — 2,416 — 3,230 
Substandard— — — — 577 2,227 398 3,202 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate - owner occupied55,167 71,429 46,061 44,204 22,297 79,245 17,255 335,658 
Commercial real estate - non-owner occupied
Risk rating
Pass97,885 122,975 95,268 56,846 81,037 182,664 7,214 643,889 
Special mention— — — — 13,844 4,421 — 18,265 
Substandard— — — — — 5 — 5 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate - non-owner occupied97,885 122,975 95,268 56,846 94,881 187,090 7,214 662,159 
Multifamily
Risk rating
Pass10,135 19,985 15,881 8,614 2,796 20,587 2,495 80,493 
Special mention— — — 29 — 217 — 246 
Substandard— — — — — 347 — 347 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily10,135 19,985 15,881 8,643 2,796 21,151 2,495 81,086 
Total commercial real estate
Risk rating
Pass$185,175 $220,075 — $157,441 $111,335 $106,645 $283,672 $274,755 $1,339,098 
Special mention— — 396 447 13,844 7,151 4,677 26,515 
Substandard871 — — — 577 2,646 398 4,492 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate$186,046 $220,075 $157,837 $111,782 $121,066 $293,469 $279,830 $1,370,105 
Term Loans By Origination Fiscal Year
June 30, 202220222021202020192018PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$70,863 $21,059 $11,361 $9,377 $6,338 $20,856 $43,119 $182,973 
Special mention— 346 260 364 — — 1,957 2,927 
Substandard— 770 343 1,152 — 52 4,337 6,654 
Doubtful
— 98 — — — — — 98 
Loss— — — — — — — — 
Total commercial and industrial70,863 22,273 11,964 10,893 6,338 20,908 49,413 192,652 
Equipment finance
Risk rating
Pass186,139 113,363 64,400 26,467 1,755 — — 392,124 
Special mention200 331 1,002 547 — — — 2,080 
Substandard— 123 18 159 — — — 300 
Doubtful32 — — 5 — — — 37 
Loss— — — — — — — — 
Total equipment finance186,371 113,817 65,420 27,178 1,755 — — 394,541 
Municipal leases
Risk rating
Pass19,425 24,480 8,962 11,034 13,584 39,529 12,715 129,729 
Special mention— 37 — — — — — 37 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases19,425 24,517 8,962 11,034 13,584 39,529 12,715 129,766 
PPP loans
Risk rating
Pass— 375 286 — — — — 661 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total PPP loans— 375 286 — — — — 661 
Total commercial
Risk rating
Pass$276,427 $159,277 $85,009 $46,878 $21,677 $60,385 $55,834 $705,487 
Special mention200 714 1,262 911 — — 1,957 5,044 
Substandard— 893 361 1,311 — 52 4,337 6,954 
Doubtful32 98 — 5 — — — 135 
Loss— — — — — — — — 
Total commercial$276,659 $160,982 $86,632 $49,105 $21,677 $60,437 $62,128 $717,620 
Term Loans By Origination Fiscal Year
June 30, 202220222021202020192018PriorRevolvingTotal
Construction and land development
Risk rating
Pass$864 $— $53 $— $— $1,783 $78,775 $81,475 
Special mention— — — — — — — — 
Substandard— — — — — 372 — 372 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development864 — 53 — — 2,155 78,775 81,847 
One-to-four family
Risk rating
Pass55,415 74,035 47,364 29,075 23,250 113,307 4,077 346,523 
Special mention— — — — — 835 — 835 
Substandard128 — 1,002 540 430 4,590 — 6,690 
Doubtful— — — — — 155 — 155 
Loss— — — — — — — — 
Total one-to-four family55,543 74,035 48,366 29,615 23,680 118,887 4,077 354,203 
HELOCs
Risk rating
Pass1,466 458 282 901 107 7,441 148,526 159,181 
Special mention— — — — — — — — 
Substandard— — — — — 879 49 928 
Doubtful— — — — — 28 — 28 
Loss— — — — — — — — 
Total HELOCs1,466 458 282 901 107 8,348 148,575 160,137 
Total residential real estate
Risk rating
Pass$57,745 $74,493 $47,699 $29,976 $23,357 $122,531 $231,378 $587,179 
Special mention— — — — — 835 — 835 
Substandard128 — 1,002 540 430 5,841 49 7,990 
Doubtful— — — — — 183 — 183 
Loss— — — — — — — — 
Total residential real estate$57,873 $74,493 $48,701 $30,516 $23,787 $129,390 $231,427 $596,187 
Term Loans By Origination Fiscal Year
June 30, 202220222021202020192018PriorRevolvingTotal
Total consumer
Risk rating
Pass$25,935 $20,443 $15,849 $11,329 $8,235 $2,398 $277 $84,466 
Special mention— — — — — — — — 
Substandard72 169 274 85 182 100 33 915 
Doubtful— — — — — — — — 
Loss— — — 2 — — — 2 
Total consumer$26,007 $20,612 $16,123 $11,416 $8,417 $2,498 $310 $85,383 
The following tables present aging analyses of past due loans (including nonaccrual loans) by segment and class for the periods indicated below:
Past DueTotal
30-89 Days90 Days+TotalCurrentLoans
December 31, 2022
Commercial real estate
Construction and land development$— $— $— $328,253 $328,253 
Commercial real estate - owner occupied503 — 503 340,321 340,824 
Commercial real estate - non-owner occupied— — — 690,241 690,241 
Multifamily— — — 69,156 69,156 
Total commercial real estate503 — 503 1,427,971 1,428,474 
Commercial
Commercial and industrial87 549 636 193,829 194,465 
Equipment finance392 497 889 425,618 426,507 
Municipal leases83 — 83 135,839 135,922 
PPP loans— — — 214 214 
Total commercial562 1,046 1,608 755,500 757,108 
Residential real estate
Construction and land development— 133 133 99,869 100,002 
One-to-four family533 1,554 2,087 398,508 400,595 
HELOCs1,226 979 2,205 192,091 194,296 
Total residential real estate1,759 2,666 4,425 690,468 694,893 
Consumer456 173 629 104,519 105,148 
Total loans$3,280 $3,885 $7,165 $2,978,458 $2,985,623 
Past DueTotal
30-89 Days90 Days+TotalCurrentLoans
June 30, 2022
Commercial real estate
Construction and land development$— $— $— $291,202 $291,202 
Commercial real estate - owner occupied— 52 52 335,606 335,658 
Commercial real estate - non-owner occupied— — — 662,159 662,159 
Multifamily— — — 81,086 81,086 
Total commercial real estate— 52 52 1,370,053 1,370,105 
Commercial
Commercial and industrial255 — 255 192,397 192,652 
Equipment finance186 56 242 394,299 394,541 
Municipal leases— — — 129,766 129,766 
PPP loans— — — 661 661 
Total commercial441 56 497 717,123 717,620 
Residential real estate
Construction and land development115 22 137 81,710 81,847 
One-to-four family910 1,394 2,304 351,899 354,203 
HELOCs283 122 405 159,732 160,137 
Total residential real estate1,308 1,538 2,846 593,341 596,187 
Consumer330 177 507 84,876 85,383 
Total loans$2,079 $1,823 $3,902 $2,765,393 $2,769,295 
The following table presents recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the six months ended December 31, 2022.
December 31, 2022
 June 30, 2022
90 Days+ &
Still Accruing as of December 31, 2022
Nonaccrual With No Allowance as of December 31, 2022
Interest Income Recognized
Commercial real estate
Construction and land development$50 $67 $— $— $1 
Commercial real estate - owner occupied621 706 — — 12 
Commercial real estate - non-owner occupied2 5 — — — 
Multifamily94 103 — — 4 
Total commercial real estate767 881 — — 17 
Commercial
Commercial and industrial970 1,951 — 151 58 
Equipment finance840 270 — — 64 
Municipal leases— — — — 5 
Total commercial1,810 2,221 — 151 127 
Residential real estate
Construction and land development133 137 — — 2 
One-to-four family2,021 1,773 — — 33 
HELOCs1,130 724 — — 42 
Total residential real estate3,284 2,634 — — 77 
Consumer313 384 — — 8 
Total loans$6,174 $6,120 $— $151 $229 
TDRs are loans which have renegotiated loan terms to assist borrowers who are unable to meet the original terms of their loans. Such modifications to loan terms may include a lower interest rate, a reduction in principal, and/or a longer term to maturity. The above table excludes $9,327 and $9,818 of TDRs that were performing under their restructured payment terms as of December 31, 2022 and June 30, 2022, respectively.
The following tables present analyses of the ACL on loans by segment for the periods indicated below. In addition to the provision (benefit) for credit losses on loans presented below, provisions (benefits) of $(85) and $358 for off-balance sheet credit exposures and $(100) and $(250) for commercial paper were recorded for the three and six months ended December 31, 2022, respectively. Provisions (benefits) of $(110) and $(235) for off-balance sheet credit exposures and $50 and $50 for commercial paper were recorded for the three and six months ended December 31, 2021.
Three Months Ended December 31, 2022
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$14,680 $12,978 $8,383 $2,260 $38,301 
Provision (benefit) for credit losses378 1,232 693 122 2,425 
Charge-offs— (1,859)(51)(69)(1,979)
Recoveries1 31 23 57 112 
Net (charge-offs) recoveries1 (1,828)(28)(12)(1,867)
Balance at end of period$15,059 $12,382 $9,048 $2,370 $38,859 
Six Months Ended December 31, 2022
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$13,414 $12,036 $7,611 $1,629 $34,690 
Provision (benefit) for credit losses1,642 2,296 1,367 814 6,119 
Charge-offs— (2,133)(123)(170)(2,426)
Recoveries3 183 193 97 476 
Net (charge-offs) recoveries3 (1,950)70 (73)(1,950)
Balance at end of period$15,059 $12,382 $9,048 $2,370 $38,859 
Three Months Ended December 31, 2021
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$13,994 $10,211 $7,601 $2,600 $34,406 
Provision (benefit) for credit losses(1,253)1,113 (1,737)(563)(2,440)
Charge-offs(1)(1,130)— (16)(1,147)
Recoveries10 25 53 26 114 
Net (charge-offs) recoveries9 (1,105)53 10 (1,033)
Balance at end of period$12,750 $10,219 $5,917 $2,047 $30,933 
Six Months Ended December 31, 2021
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$15,084 $9,663 $8,185 $2,536 $35,468 
Provision (benefit) for credit losses(2,589)1,826 (2,526)(486)(3,775)
Charge-offs(439)(1,311)(27)(79)(1,856)
Recoveries694 41 285 76 1,096 
Net (charge-offs) recoveries255 (1,270)258 (3)(760)
Balance at end of period$12,750 $10,219 $5,917 $2,047 $30,933 
The following tables present ending balances of loans and the related ACL, by segment and class for the periods indicated below:
Allowance for Credit LossesTotal Loans Receivable
Loans
Individually
Evaluated 		Loans
Collectively
Evaluated		TotalLoans
Individually
Evaluated		Loans
Collectively
Evaluated		Total
December 31, 2022
Commercial real estate
Construction and land development$— $5,893 $5,893 $— $328,253 $328,253 
Commercial real estate - owner occupied— 3,042 3,042 — 340,824 340,824 
Commercial real estate - non-owner occupied— 5,803 5,803 — 690,241 690,241 
Multifamily— 321 321 — 69,156 69,156 
Total commercial real estate— 15,059 15,059 — 1,428,474 1,428,474 
Commercial
Commercial and industrial646 3,755 4,401 1,505 192,960 194,465 
Equipment finance— 7,693 7,693 — 426,507 426,507 
Municipal leases— 288 288 — 135,922 135,922 
PPP loans— — — — 214 214 
Total commercial646 11,736 12,382 1,505 755,603 757,108 
Residential real estate
Construction and land development— 1,576 1,576 — 100,002 100,002 
One-to-four family— 4,983 4,983 1,932 398,663 400,595 
HELOCs— 2,489 2,489 — 194,296 194,296 
Total residential real estate— 9,048 9,048 1,932 692,961 694,893 
Consumer— 2,370 2,370 — 105,148 105,148 
Total$646 $38,213 $38,859 $3,437 $2,982,186 $2,985,623 
Allowance for Credit LossesTotal Loans Receivable
Loans
Individually
Evaluated		Loans
Collectively
Evaluated		TotalLoans
Individually
Evaluated		Loans
Collectively
Evaluated		Total
June 30, 2022
Commercial real estate
Construction and land development$— $4,402 $4,402 $— $291,202 $291,202 
Commercial real estate - owner occupied— 3,038 3,038 — 335,658 335,658 
Commercial real estate - non-owner occupied— 5,589 5,589 — 662,159 662,159 
Multifamily— 385 385 — 81,086 81,086 
Total commercial real estate— 13,414 13,414 — 1,370,105 1,370,105 
Commercial
Commercial and industrial2,191 2,892 5,083 2,854 189,798 192,652 
Equipment finance— 6,651 6,651 — 394,541 394,541 
Municipal leases— 302 302 — 129,766 129,766 
PPP loans— — — — 661 661 
Total commercial2,191 9,845 12,036 2,854 714,766 717,620 
Residential real estate
Construction and land development— 1,052 1,052 — 81,847 81,847 
One-to-four family— 4,673 4,673 2,486 351,717 354,203 
HELOCs— 1,886 1,886 — 160,137 160,137 
Total residential real estate— 7,611 7,611 2,486 593,701 596,187 
Consumer— 1,629 1,629 — 85,383 85,383 
Total$2,191 $32,499 $34,690 $5,340 $2,763,955 $2,769,295 
In estimating expected credit losses, ASC 326 prescribes that if foreclosure is probable, a CDA is required to be measured at the fair value of collateral, but as a practical expedient, if foreclosure is not probable, fair value measurement is optional. For those CDA loans measured at the fair value of collateral, a credit loss expense is recorded for loan amounts in excess of fair value. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, and securing collateral, as well as collateral coverage for those loans for the periods indicated below:
Type of Collateral and Extent to Which Collateral Secures Financial AssetsFinancial Assets Not Considered Collateral Dependent
December 31, 2022Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $328,253 $328,253 
Commercial real estate - owner occupied— — — — 340,824 340,824 
Commercial real estate - non-owner occupied— — — — 690,241 690,241 
Multifamily— — — — 69,156 69,156 
Total commercial real estate— — — — 1,428,474 1,428,474 
Commercial
Commercial and industrial— — — 816 193,649 194,465 
Equipment finance— — — — 426,507 426,507 
Municipal leases— — — — 135,922 135,922 
PPP loans— — — — 214 214 
Total commercial— — — 816 756,292 757,108 
Residential real estate
Construction and land development— — — — 100,002 100,002 
One-to-four family765 — — — 399,830 400,595 
HELOCs— — — — 194,296 194,296 
Total residential real estate765 — — — 694,128 694,893 
Consumer— — — — 105,148 105,148 
Total$765 $— $— $816 $2,984,042 $2,985,623 
Total collateral value$1,293 $— $— $— 
Type of Collateral and Extent to Which Collateral Secures Financial AssetsFinancial Assets Not Considered Collateral Dependent
June 30, 2022Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $291,202 $291,202 
Commercial real estate - owner occupied— — — — 335,658 335,658 
Commercial real estate - non-owner occupied— — — — 662,159 662,159 
Multifamily— — — — 81,086 81,086 
Total commercial real estate— — — — 1,370,105 1,370,105 
Commercial
Commercial and industrial— — — 2,594 190,058 192,652 
Equipment finance— — — — 394,541 394,541 
Municipal leases— — — — 129,766 129,766 
PPP loans— — — — 661 661 
Total commercial— — — 2,594 715,026 717,620 
Residential real estate
Construction and land development— — — — 81,847 81,847 
One-to-four family1,318 — — — 352,885 354,203 
HELOCs— — — — 160,137 160,137 
Total residential real estate1,318 — — — 594,869 596,187 
Consumer— — — — 85,383 85,383 
Total$1,318 $— $— $2,594 $2,765,383 $2,769,295 
Total collateral value$2,443 $— $— $69 
The following tables present a breakdown of the types of concessions made on TDRs by loan class for the periods indicated below:
Three Months Ended December 31,
20222021
Number
of
Loans		Pre
Modification
Outstanding
Recorded
Investment		Post
Modification
Outstanding
Recorded
Investment		Number
of
Loans		Pre
Modification
Outstanding
Recorded
Investment		Post
Modification
Outstanding
Recorded
Investment
Other TDRs
Residential real estate
One-to-four family— $— $— 3 $215 $212 
HELOCs— — — 1 51 51 
Consumer1 11 10 — — — 
Total other TDRs1 11 10 4 266 263 
Total1 $11 $10 4 $266 $263 
Six Months Ended December 31,
20222021
Number
of
Loans		Pre
Modification
Outstanding
Recorded
Investment		Post
Modification
Outstanding
Recorded
Investment		Number
of
Loans		Pre
Modification
Outstanding
Recorded
Investment		Post
Modification
Outstanding
Recorded
Investment
Below market interest rate
Commercial loans
Commercial and industrial5 $569 $569 — $— $— 
Total below market interest rate5 $569 $569 — $— $— 
Other TDRs
Residential real estate loans
One-to-four family— $— $— 3 $215 $212 
HELOCs— — — 2 68 70 
Consumer4 49 41 5 84 80 
Total other TDRs4 49 41 10 367 362 
Total9 $618 $610 10 $367 $362 
The following tables present loans that were modified as TDRs within the previous 12 months and for which there was a payment default during the periods indicated below:
Three Months Ended December 31,
20222021
Number of
Loans		Recorded
Investment		Number of
Loans		Recorded
Investment
Below market interest rate
Commercial loans
Commercial and industrial1 $140 — $— 
Total1 $140 — $— 
Six Months Ended December 31,
20222021
Number of
Loans		Recorded
Investment		Number of
Loans		Recorded
Investment
Below market interest rate
Commercial loans
Commercial and industrial1 $140 — $— 
Total below market interest rate1 $140 — $— 
Extended payment terms
Residential real estate loans
One-to-four family1 $34 — $— 
Total extended payment terms1 $34 — $— 
Other TDRs
Consumer1 $2 2 $44 
Total other TDRs1 $2 2 $44 
Total3 $176 2 $44 
Other TDRs include TDRs that have a below market interest rate and extended payment terms. The Company does not typically forgive principal when restructuring troubled debt.
In determining the ACL, management considers TDRs for all loan classes, and the subsequent nonperformance in accordance with their modified terms, by measuring a reserve on a loan-by-loan basis based on either the value of the loan's expected future cash flows discounted at the loan's original effective interest rate or on the collateral value, net of the estimated costs of disposal, if the loan is collateral dependent.
Off-Balance-Sheet Credit Exposure
The Company maintains a separate reserve for credit losses on off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At December 31, 2022 and June 30, 2022, the ACL on off-balance-sheet credit exposures included in other liabilities was $3,662 and $3,304, respectively.